In this article, we discuss 5 dividend stocks to buy according to billionaire Cliff Asness. If you want to read our detailed analysis of AQR Capital’s performance and its investment strategy, as well as the risk/reward and methodology of this list, go directly and read 10 Dividend Stocks to Buy According to Billionaire Cliff Asness.
5. The Procter & Gamble Company (NYSE:PG)
AQR Capital’s Stake Value: $375,559,000
Percent of AQR Capital’s 13F Portfolio: 0.84%
Dividend Yield as of September 12: 2.59%
Number of Hedge Fund Holders: 71
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company that specializes in a wide range of personal care and hygiene products. The company is one of the oldest holdings of AQR Capital, as the hedge fund has been investing in it since 2010. In Q2 2022, the fund owned over 2.6 million PG shares, worth $375.5 million. The company represented 0.84% of billionaire Cliff Asness’ portfolio.
On July 12, The Procter & Gamble Company (NYSE:PG) declared a quarterly dividend of $0.9133 per share, with a dividend yield of 2.59%, as of September 12. The company holds one of the longest dividend growth track records in the market, raising its payouts for consecutive 66 years. In addition to this, it has been making uninterrupted dividend payments for the past 132 years.
Following the company recent quarterly earnings, Barclays reiterated its Overweight rating on The Procter & Gamble Company (NYSE:PG) in August, with a $154 price target. In the same month, Truist also maintained its Buy rating on the stock.
At the end of June 2022, 71 hedge funds tracked by Insider Monkey owned stakes in The Procter & Gamble Company (NYSE:PG), down from 72 in the previous quarter. The stakes owned by hedge funds hold a collective value of over $5.5 billion. With stakes worth over $970 million, Bridgewater Associates was the company’s leading stakeholder in Q2.
4. Gilead Sciences, Inc. (NASDAQ:GILD)
AQR Capital’s Stake Value: $375,562,000
Percent of AQR Capital’s 13F Portfolio: 0.84%
Dividend Yield as of September 12: 4.29%
Number of Hedge Fund Holders: 58
Gilead Sciences, Inc. (NASDAQ:GILD) is a California-based biotech company that mainly focuses on the research and development of medicines for serious illnesses. The company has been raising its dividends consistently for the past 6 years. It currently pays a quarterly dividend of $0.73 per share, with shares boasting a yield of 4.29%, as recorded on September 12.
During Q2 2022, AQR Capital purchased an additional stake in Gilead Sciences, Inc. (NASDAQ:GILD) worth over $214 million. The hedge fund’s total stake in the company stood at over $375.5 million, which represented 0.84% of its 13F portfolio. The fund started its position in the company during the fourth quarter of 2010, with shares worth $1.4 million.
In September, Mizuho lifted its price target on Gilead Sciences, Inc. (NASDAQ:GILD) to $75 with a Buy rating on the shares, as the company announced settlement agreements with different manufacturers.
According to Insider Monkey’s data for Q2 2022, 58 hedge funds owned stakes in Gilead Sciences, Inc. (NASDAQ:GILD), compared with 68 in the previous quarter. The collective value of stakes owned by these funds is roughly $4 billion. Jim Simons and Ken Griffin were some of the company’s prominent stakeholders in Q2.
ClearBridge Investments mentioned Gilead Sciences, Inc. (NASDAQ:GILD) in its Q4 2021 investor letter. Here is what the firm has to say:
“Other pharma companies are providing solutions as well. Biopharmaceutical company Gilead Sciences’ remdesivir, sold under the brand name Veklury, is a broad-spectrum antiviral medication administered by intravenous infusion; it can shorten the time to recovery in hospitalized patients and reduce the risk of hospitalization and death in non-hospitalized patients.”
3. Exxon Mobil Corporation (NYSE:XOM)
AQR Capital’s Stake Value: $377,631,000
Percent of AQR Capital’s 13F Portfolio: 0.85%
Dividend Yield as of September 12: 3.61%
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) is next on our list of the best dividend stocks according to billionaire Cliff Asness. The company is one of the most popular energy corporations in the US and was founded in 1999 with the merger of Exxon and Mobil. Morgan Stanley lifted its price target on the stock to $113 in September and maintained an Overweight rating on the shares, holding a positive stance for companies that support low carbon growth.
Exxon Mobil Corporation (NYSE:XOM) has been a part of AQR Capital’s portfolio since the fourth quarter of 2010 when the hedge fund purchased stakes worth $120 million. During Q2 2022, the fund owned over 4.4 million XOM shares, after increasing its position by 52% in the company. Its total XOM stake stood at $377.6 million, representing 0.85% of billionaire Cliff Asness’ portfolio.
Exxon Mobil Corporation (NYSE:XOM) pays a quarterly dividend of $0.88 per share for a yield of 3.61%, as recorded on September 12. The company has sustained its annual dividend growth for 39 years in a row.
Of the 895 hedge funds tracked by Insider Monkey, 72 funds had investments in Exxon Mobil Corporation (NYSE:XOM) in Q2 2022, compared with 83 in the previous quarter. The total value of these investments came in at over $7.4 billion.
First Eagle Investments mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q2 2022 investor letter. Here is what the firm has to say:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
2. Pfizer Inc. (NYSE:PFE)
AQR Capital’s Stake Value: $553,911,000
Percent of AQR Capital’s 13F Portfolio: 1.25%
Dividend Yield as of September 12: 3.35%
Number of Hedge Fund Holders: 70
Pfizer Inc. (NYSE:PFE) is a New York-based multinational biotech and pharmaceutical company that develops medicines and vaccines for various diseases. The company was a part of 70 hedge fund portfolios in Q2 2022, down from 79 in the previous quarter. The stakes owned by these hedge funds hold a collective value of over $2.8 billion.
AQR Capital has been investing in Pfizer Inc. (NYSE:PFE) for over a decade now and never sold its entire stake in the company over these years. The hedge fund first invested $37.6 million in the company during the fourth quarter of 2010. At the end of Q2 2022, the fund owned over 10.5 million PFE shares, worth roughly $554 million. The company made up 1.25% of billionaire Cliff Asness’ portfolio.
In June, Pfizer Inc. (NYSE:PFE) declared a quarterly dividend of $0.23 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 12 years and its free cash flow generation signals future growth as well. As of September 12, the stock has a yield of 3.35%.
ClearBridge Investments mentioned Pfizer Inc. (NYSE:PFE) in its Q4 2021 investor letter. Here is what the firm had to say:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks. (Click here for the full text)
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
AQR Capital’s Stake Value: $557,382,000
Percent of AQR Capital’s 13F Portfolio: 1.25%
Dividend Yield as of September 12: 2.89%
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based semiconductor company that deals in the manufacturing and design of semiconductors and related products. The company was the fourth-largest holding of AQR Capital in Q2 2022. The hedge fund owned over 6.8 million shares in the company with a total value of over $557.3 million. The company represented 1.25% of billionaire Cliff Asness’ portfolio.
Though Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) does not hold any dividend growth track records, the company has raised its dividends at a CAGR of 10.83% in the past five years. It currently offers NT$2.75 per share in quarterly dividends, with a dividend yield of 2.89%, as of September 12.
In June, Loop Capital initiated its coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a Buy rating and a NT$600 price target, calling the company an industry leader due to its long-term structural growth.
Given how difficult leading edge semiconductor manufacturing is, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is considered as one of the world’s most high tech companies. The company does face competition from Intel Corporation (NASDAQ:INTC) and Samsung, however, and any tension between Taiwan and China would be a headwind.
At the end of June 2022, 72 hedge funds tracked by Insider Monkey had over $9.2 billion invested in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). In the previous quarter, 83 hedge funds owned stakes in the semiconductor company, worth over $10.1 billion. With over $2.1 billion worth of TSM shares, Fisher Asset Management owned the largest position in the company in Q2.
Baron Funds mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2022 investor letter. Here is what the firm has to say:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted in the second quarter due to macroeconomic uncertainties and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”
You can also take a look at 10 High Dividend Stocks to Shore Up Your Cash Position Before Recession Begins and 10 Dividend Stocks to Buy According to Steve Cohen’s Point72 Asset Management
