In this article, we discuss the 5 dividend stocks to buy according to billionaire Dan Loeb’s Third Point. If you want to read our detailed analysis of the hedge fund and its performance, go directly to read 9 Dividend Stocks to Buy According to Billionaire Dan Loeb’s Third Point.
5. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 58
Dividend Yield as of March 4: 1.38%
Third Point’s Stake Value: $88,084,000
CF Industries Holdings, Inc. (NYSE:CF), an American manufacturing company, experienced a positive hedge fund sentiment in Q4 2021, as 58 hedge funds tracked by Insider Monkey held stakes in the company, up from 49 in the previous quarter. The total worth of these stakes is over $1.54 billion.
CF Industries Holdings, Inc. (NYSE:CF) currently pays a quarterly dividend of $0.30 per share, with a dividend yield of 1.38%, as of March 4. In Q4 2021, Third Point held a stake worth over $88 million in CF Industries Holdings, Inc. (NYSE:CF), after increasing its position by 25%. The company represented 0.61% of Dan Loeb’s 13F portfolio.
On February 28, Piper Sandler’s analyst, Charles Neivert, presented a constructive view of nitrogen markets. Given this, the analyst raised its price target on CF Industries Holdings, Inc. (NYSE:CF) to $88, with an Overweight rating on the shares.
4. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 56
Dividend Yield as of March 4: 1.72%
Third Point’s Stake Value: $267,431,000
DuPont de Nemours, Inc. (NYSE:DD) is an American company that provides tech-based solutions to its consumers. On February 8, the company announced a 10% increase in its quarterly dividend at $0.33 per share. The stock’s dividend yield, as recorded on March 4, stood at 1.72%. Moreover, DuPont de Nemours, Inc. (NYSE:DD) paid over $0.3 billion in dividends to shareholders through 2021.
Appreciating the company’s balanced execution, in February, Mizuho raised its price target on DuPont de Nemours, Inc. (NYSE:DD) to $101, with a Buy rating on the shares. In Q4 2021, Third Point increased its stake in DuPont de Nemours, Inc. (NYSE:DD) by 12% and held shares worth over $267.4 million. The company accounted for 1.86% of Dan Loeb’s portfolio.
By the end of Q4 2021, 56 hedge funds tracked by Insider Monkey held stakes in DuPont de Nemours, Inc. (NYSE:DD), valued at roughly $2 billion. In comparison, 51 hedge funds held stakes in the company in the preceding quarter, worth $1.5 billion. 40 North Management held the largest position in DuPont de Nemours, Inc. (NYSE:DD) in Q4, with stakes worth $454.3 million.
Rhizome Partners mentioned DuPont de Nemours, Inc. (NYSE:DD) in its Q1 2021 investor letter. Here is what the firm has to say:
“We have written extensively about the anticipated DuPont’s Reverse Morris Trust merger with International Flavors and Fragrances (IFF) in January of 2021. During the quarter, DuPont shares traded up significantly in anticipation of the deal. We tendered about 40% of our DuPont shares for IFF and received about half of the allocation due to pro-ration. Investors are finally starting to appreciate DuPont’s effort to cut costs, streamline operations, and spin off companies into pure-play companies that trade at higher multiples. We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as DuPont.”
3. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 46
Dividend Yield as of March 4: 2.01%
Third Point’s Stake Value: $108,505,000
EQT Corporation (NYSE:EQT), an American energy company, is one of the recent acquisitions of Third Point in Q4. The hedge fund started building its position in the company with a stake worth over $108.5 million. The company accounted for 0.75% of Dan Loeb’s portfolio.
In 2021, EQT Corporation (NYSE:EQT) temporarily suspended its dividends to prioritize its debt repayment. However, in February, the company announced the reinstatement of its quarterly dividend at $0.125 per share. As of March 4, the stock’s dividend yield stood at 2.01%. In January, Truist set a $31 price target on EQT Corporation (NYSE:EQT), with a Buy rating on the shares, as the firm raised its oil price targets for 2022 and 2023.
The number of hedge funds tracked by Insider Monkey holding stakes in EQT Corporation (NYSE:EQT) declined to 46 in Q4, from 57 in the preceding quarter. The total value of these stakes is over $1.21 billion.
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 80
Dividend Yield as of March 4: 2.29%
Third Point’s Stake Value: $100,660,000
This January, Cowen raised its price target on Comcast Corporation (NASDAQ:CMCSA), an American tech company, to $64 and appreciated the company’s free cash flow and growth after the pandemic. The firm maintained an Outperform rating on the shares.
First Eagle Investment Management was the largest shareholder of Comcast Corporation (NASDAQ:CMCSA) in Q4, holding a stake worth roughly $1.5 billion. Overall, 80 hedge funds tracked by Insider Monkey held stakes in the company in Q4, up from 75 in the previous quarter. The total value of these stakes is over $8.6 billion.
In January, Comcast Corporation (NASDAQ:CMCSA) announced an 8% increase in its quarterly dividend at $0.27 per share, with a dividend yield of 2.29%, as recorded on March 4. This marked the company’s 14th consecutive year of dividend growth. Third Point started building its position in Comcast Corporation (NASDAQ:CMCSA) during the fourth quarter of 2021, with shares worth over $100.6 million. The company represented 0.7% of Dan Loeb’s portfolio.
Artisan Partners mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm has to say:
“Comcast is the leading broadband cable company in North America and a global content producer. Comcast and other cable companies are seeing decreased net subscriber additions as they are lapping tough comparisons from a year ago when net additions were high earlier in the pandemic. Interestingly, churn remains at record low levels—a positive metric that speaks to cable’s value proposition. For Comcast, an additional headwind is a delayed recovery in its theme parks business due to the ongoing pandemic. Additionally, increased investment in 5G by wireless competitors may be weighing on shares. However, 5G is not currently competitive with cable, and based on the economics of 5G capex, it’s unlikely to be competitive for many years, if ever. Cable continues to have a competitive advantage with respect to network speeds and reliability. High recurring revenue, pricing power and low capital intensity make for a powerful economic model that contribute to Comcast’s free cash flow generation, allowing the company to play offense with regards to capital allocation. In summary, Comcast is a well-financed business with a wide competitive moat, that trades cheaply at under 13X our estimate of normalized earnings.”
1. The AES Corporation (NYSE:AES)
Number of Hedge Fund Holders: 41
Dividend Yield as of March 4: 2.95%
Third Point’s Stake Value: $139,725,000
In Q4 2021, Third Point Capital increased its stake significantly by 54% in The AES Corporation (NYSE:AES), an American energy company. The hedge fund held shares worth roughly $140 million in the company, which accounted for 0.97% of Dan Loeb’s portfolio.
The AES Corporation (NYSE:AES) currently pays a quarterly dividend of $0.158 per share, having raised it by 5% in December 2021. The stock’s dividend yield stood at 2.95%, as of March 4. This January, Morgan Stanley raised its price target on The AES Corporation (NYSE:AES) to $32, while keeping an Overweight rating on the shares.
At the end of Q4 2021, 41 hedge funds tracked by Insider Monkey held stakes in The AES Corporation (NYSE:AES), down from 47 in the previous quarter. These stakes hold a consolidated value of over $1.5 billion.
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