In this article, we discuss the 5 dividend stocks to buy according to billionaire Jeffrey Talpins. If you want to read our detailed analysis of Element Capital Management’s past performance and investment strategies, go directly to read 10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Element Capital Management’s Stake Value: $148,156,000
Dividend Yield as of March 9: 3.33%
In Q4 2021, the number of hedge funds tracked by Insider Monkey holding stakes in Pfizer Inc. (NYSE:PFE) grew to 83, from 74 in the previous quarter. The consolidated value of these stakes is over $5 billion, showing significant growth from a $2.6 billion worth of stake held by hedge funds in the preceding quarter.
In December 2021, Pfizer Inc. (NYSE:PFE) increased its quarterly dividend by 2.6% at $0.40 per share. The stock’s dividend yield stood at 3.33%, as of March 9. The company has been increasing its dividend consistently for the past 11 years. In February, Wells Fargo set a $60 price target on Pfizer Inc. (NYSE:PFE), with an Overweight rating on the shares, expecting growth in the company’s Covid-related sales.
Pfizer Inc. (NYSE:PFE) was the largest holding of Element Capital in Q4 2021 and represented 9.53% of Jeffrey Talpins’ portfolio. The hedge fund held a stake worth over $148 million in the company in Q4.
Saturna Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q3 2021 investor letter. Here is what the firm has to say:
“The Fund’s strongest performer during the quarter was pharmaceutical manufacturer Pfizer. The company submitted trial data to the FDA for use of its COVID-19 vaccine for younger children, and it is widely expected that the FDA will approve it. Health authorities also began recommending booster shots of the Pfizer vaccine for select populations, further increasing demand for vaccinations.”
4. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 39
Element Capital Management’s Stake Value: $17,609,000
Dividend Yield as of March 9: 3.35%
The Clorox Company (NYSE:CLX) is an American manufacturer of consumer and professional products. As the company’s management indicated a recovery in sales to pre-pandemic levels, in February, Citigroup set a $160 price target on the stock, with a Buy rating on the shares.
The Clorox Company (NYSE:CLX) pays a quarterly dividend of $1.16 per share, growing it by 5% in 2021. The stock’s dividend yield, as of March 9, stood at 3.35%. The company has been a dividend payer for the past 50 years and also maintains a 20-year track record of consistent dividend growth. The Clorox Company (NYSE:CLX) was one of the latest holdings of Element Capital in Q4 and represented 1.13% of its 13F portfolio.
By the end of Q4 2021, 39 hedge funds in Insider Monkey’s database held stakes in The Clorox Company (NYSE:CLX), up from 34 in the previous quarter. The total value of these stakes is around $1.2 billion. Andy Brown’s Cedar Rock Capital held a stake worth $238 million in the company, becoming its largest stakeholder in Q4.
LRT Capital Management mentioned The Clorox Company (NYSE:CLX) in its Q1 2021 investor letter. Here is what the firm has to say:
“For several months now, our largest position has been Clorox – the cleaning products company. Besides wipes, the company also manufactures bleach, charcoal, cat litter, plastic bags, and container products. Clorox benefited during the Covid-19 pandemic from an increased demand for cleaning products. Companies and consumers trust the Clorox brand – a source of the company’s huge competitive advantage.
United Airlines, for example, chose to partner with Clorox in its push to reassure consumers about the safety of air travel. The company is a typical “defensive” holding – subject to very small fluctuations in end market demand. Its branded consumer products remain in strong demand. Historically (pre-Covid), the company’s sales grew in line with GDP, while earnings-per-share grew slightly faster due to operational and financial leverage. We expect sales will decline slightly in the next few quarters as the Covid-19 pandemic comes to an end, but we believe this decline is more than accounted for by the company’s low valuation.
On February 4th, Clorox reported results for Q4 2020, with both earnings and sales beating estimates. Sales grew by +27% (vs. 20% estimate) from the prior year’s Q4, and EPS increased +39% ($2.03 vs. $1.75 expected). The company continues to see robust demand and raised its sales and EPS guidance for the rest of the year. Shares are down 4% year-to-date. We believe the shares are undervalued at 20x trailing and 24x forward earnings and currently represent an excellent opportunity.”
3. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Holders: 32
Element Capital Management’s Stake Value: $14,932,000
Dividend Yield as of March 9: 3.71%
Kimberly-Clark Corporation (NYSE:KMB) is an American manufacturing company that specializes in the production of paper-based consumer products. Element Capital started building its position in the company during Q4 2021, with shares worth roughly $15 million. The Texas-based company constituted 0.96% of Jeffrey Talpins’ portfolio.
As per Insider Monkey’s Q4 2021 data, 32 hedge funds held positions in Kimberly-Clark Corporation (NYSE:KMB), with stakes valued at over $309 million. In the previous quarter, 28 hedge funds held stakes in the company, worth $410.4 million.
On January 26, Kimberly-Clark Corporation (NYSE:KMB) announced a 2% increase in its quarterly dividend at $1.16 per share. As of March 9, the stock’s dividend yield was recorded to be at 3.71%. 2022 marked the company’s 50th consecutive year of dividend growth. This January, JPMorgan raised its price target on Kimberly-Clark Corporation (NYSE:KMB) to $127, with an Underweight rating on the shares.
2. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 42
Element Capital Management’s Stake Value: $18,068,000
Dividend Yield as of March 9: 3.93%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an American pharmaceutical company that also deals in beauty product brands. In Q4 2021, the number of hedge funds tracked by Insider Monkey having stakes in the company jumped to 42, from 37 in the previous quarter. These stakes hold a consolidated value of over $1 billion.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) pays a quarterly dividend of $0.4775 per share, with a dividend yield of 3.93%, as of March 9. The company has been consistently paying dividends for the past 89 years while maintaining a 46-year streak of dividend growth. With shares worth over $18 million, Element Capital started building its position in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) during Q4 2021. The company represented 1.16% of Jeffrey Talpins’ portfolio.
This January, Mizuho presented a positive outlook on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) due to the company’s newly-introduced Covid testing kits. The firm raised its price target on the stock to $56 while keeping a Neutral rating on the shares.
Miller Howard Investments mentioned Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter. Here is what the firm has to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
1. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 39
Element Capital Management’s Stake Value: $18,290,000
Dividend Yield as of March 9: 4.09%
The Kraft Heinz Company (NASDAQ:KHC)’s current quarterly dividend stood at $0.40 per share, with a dividend yield of 4.09%, as of March 9.
This February, Stifel called The Kraft Heinz Company (NASDAQ:KHC)’s growth outlook ‘encouraging’, and raised its price target on the stock to $41, with a Hold rating on the shares. The Kraft Heinz Company (NASDAQ:KHC) accounted for 1.17% of Jeffrey Talpins’ portfolio in Q4 2021, as his hedge fund held stakes worth over $18 million in the company.
Warren Buffett’s Berkshire Hathaway was the largest shareholder of The Kraft Heinz Company (NASDAQ:KHC) in Q4, holding stakes worth roughly $11.7 billion. Overall, 39 hedge funds tracked by Insider Monkey held stakes in the Chicago-based company in Q4, up from 33 in the previous quarter. These stakes are worth over $12.2 billion.
You can also take a look at 10 Best Dividend Stocks to Buy Under $20 and 10 Best Monthly Dividend Stocks with High Yields
