In this article, we discuss 5 dividend stocks to buy according to billionaire Carl Icahn’s Icahn Capital LP. If you want to read our detailed analysis of Icahn’s investment strategy and his performance in the past, go directly to read 10 Dividend Stocks to Buy According to Billionaire Carl Icahn’s Icahn Capital LP.
5. FirstEnergy Corp. (NYSE:FE)
Icahn’s Capital Stake Value: $728,172,000
Dividend Yield as of September 8: 3.79%
FirstEnergy Corp. (NYSE:FE) is an Ohio-based electric services company that specializes in the distribution and generation of electricity. The company was a part of 42 hedge fund portfolios in Q2 2022, growing from 33 in the previous quarter. The stakes owned by these hedge funds hold a collective value of over $1.78 billion.
Billionaire Icahn initiated his position in FirstEnergy Corp. (NYSE:FE) during the first quarter of 2021 with shares worth roughly $658 million. At the end of Q2 2022, his hedge fund held nearly 19 million shares in the company with a total value of over $728 million. The company accounted for 3.49% of its 13F portfolio.
Though FirstEnergy Corp. (NYSE:FE) hasn’t raised its dividends since 2019 due to the pandemic, the company maintained its payouts during this period. Its quarterly dividend currently stands at $0.39 per share and has a yield of 3.79%, as of September 8.
In July, Barclays reiterated its Equal Weight rating on FirstEnergy Corp. (NYSE:FE) as the firm upgraded price targets on North America’s power and utility sector.
ClearBridge Investments mentioned FirstEnergy Corp. (NYSE:FE) in its Q4 2021 investor letter. Here is what the firm has to say:
“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).
During the quarter we initiated new positions in U.S. electric utility FirstEnergy. With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S.”
4. CVR Energy, Inc. (NYSE:CVI)
Icahn’s Capital Stake Value: $2,385,157,000
Dividend Yield as of September 8: 4.83%
CVR Energy, Inc. (NYSE:CVI) is another prominent dividend stock in billionaire Icahn’s portfolio. The company specializes in petroleum refining and also manufactures nitrogen fertilizers.
CVR Energy, Inc. (NYSE:CVI) was the second-largest holding of Icahn Capital and represented 11.43% of its portfolio in Q2. The hedge fund has been investing in the company since the fourth quarter of 2011 and gradually increased its position. In Q2 2022, the fund owned over 71 million shares in the company, worth nearly $2.4 billion.
On August 1, CVR Energy, Inc. (NYSE:CVI) declared a quarterly dividend of $0.40 per share and a supplemental dividend of $2.60 per share. As of September 8, the stock’s dividend yield came in at 4.83%.
The number of hedge funds tracked by Insider Monkey owning stakes in CVR Energy, Inc. (NYSE:CVI) grew to 22 in Q2 2022, from 17 in the previous quarter. These stakes hold a collective value of over $2.52 billion. Jim Simons’ Renaissance Technologies was one of the company’s most prominent stakeholders in Q2.
3. Newell Brands Inc. (NASDAQ:NWL)
Icahn’s Capital Stake Value: $629,661,000
Dividend Yield as of September 8: 5.35%
Newell Brands Inc. (NASDAQ:NWL) is an American commercial company that deals in the manufacturing and marketing of consumer and commercial products. The company has not raised its dividend since 2017 but has been paying dividends to shareholders since 1994. It currently pays a quarterly dividend of $0.23 per share, with a dividend yield of 5.35%, as recorded on September 8.
This September, Raymond James maintained its Strong Buy rating on Newell Brands Inc. (NASDAQ:NWL) with a $23 price target. The firm acknowledged the company’s recent quarterly earnings and its guidance and also expects to see improvement in its restructuring.
In Q2 2022, Carl Icahn owned over 33 million shares in Newell Brands Inc. (NASDAQ:NWL), worth roughly $630 million. The company represented 3.01% of the billionaire’s portfolio. He started investing in the company during the first quarter of 2018 with shares worth over $771.5 million.
As of the close of Q2 2022, 22 hedge funds tracked by Insider Monkey owned $1.46 billion worth of stakes in Newell Brands Inc. (NASDAQ:NWL). In comparison, 31 hedge funds owned stakes in the company in the previous quarter, with a total value of over $1.64 billion.
2. Xerox Holdings Corporation (NASDAQ:XRX)
Icahn’s Capital Stake Value: $508,543,000
Dividend Yield as of September 8: 6.25%
Xerox Holdings Corporation (NASDAQ:XRX) is a Connecticut-based corporation that specializes in print and digital document products and provides related services in 160 countries.
In Q2 2022, Icahn Capital raised its position in Xerox Holdings Corporation (NASDAQ:XRX) by 7%, which takes its total stake in the company to over $508.5 million. The company accounted for 2.43% of the hedge fund’s portfolio.
Xerox Holdings Corporation (NASDAQ:XRX) has been making consecutive dividend payments for the past 15 years. Currently, the company pays a quarterly dividend of $0.25 per share, and as of September 8, the stock’s dividend yield came in at 6.25%.
In July, JPMorgan maintained its Underweight rating on Xerox Holdings Corporation (NASDAQ:XRX) but expects the company to show resilience in its cloud and cable services.
Citadel Investment Group owned over $13.6 million worth of stakes in Xerox Holdings Corporation (NASDAQ:XRX), becoming one of the major stakeholders of the company in Q2. Overall, 29 hedge funds tracked by Insider Monkey owned stakes in the company in the second quarter, up from 25 in the previous quarter. These stakes have a consolidated value of roughly $620 million.
1. Icahn Enterprises L.P. (NASDAQ:IEP)
Icahn’s Capital Stake Value: $13,360,695,000
Dividend Yield as of September 8: 15.87%
Icahn Enterprises L.P. (NASDAQ:IEP) is an American diversified holding company that provides services in a wide range of industries. The company has sustained the same quarterly payout of $2.00 per share since 2019. As of September 8, the stock’s dividend yield stood at 15.87%.
Icahn Enterprises L.P. (NASDAQ:IEP) was the largest holding of billionaire Icahn’s portfolio in Q2 2022. His hedge fund opened its position in the company during the second quarter of 2011 with shares worth over $3.4 billion. In Q2 2022, the hedge fund owned over 277.6 million IEP shares, worth $13.36 billion. The company represented 64.05% of its 13F portfolio.
At the end of Q2 2022, Icahn Enterprises L.P. (NASDAQ:IEP) was a part of 2 hedge fund portfolios, compared with 4 in the preceding quarter, according to Insider Monkey’s data. The collective value of stakes owned by these hedge funds stood at $13.3 billion.
You can also take a look at 10 Best Paper Stocks To Buy Now and 10 Best Long-Term Stocks to Buy Now
