In this article, we discuss 5 dividend stocks to buy according to billionaire Ken Fisher. If you want to read our detailed analysis of Fisher Asset Management’s performance and Ken Fisher’s investment strategy, go directly to read 10 Dividend Stocks to Buy According to Billionaire Ken Fisher.
5. Oracle Corporation (NYSE:ORCL)
Fisher Asset Management’s Stake Value: $1,386,458,000
Dividend Yield as of June 15: 1.82%
Number of Hedge Fund Holders: 61
Oracle Corporation (NYSE:ORCL) is a California-based computer software company that offers a fully integrated stack of cloud applications and cloud platform services. On June 13, the company announced its fiscal Q4 2022 results, posting a 19% year-over-year growth in its Cloud revenue at $2.9 billion. The company’s total revenue came in at $11.8 billion, which exceeded estimates by $190 million.
In June, Oracle Corporation (NYSE:ORCL) announced a quarterly dividend of $0.32 per share, up 19% from its previous dividend. The company maintains a 12-year streak of consistent dividend growth, with a five-year dividend CAGR standing at 14.68%. As of June 15, the stock’s dividend yield came to be recorded at 1.82%.
Oracle Corporation (NYSE:ORCL) has been a part of Fisher Asset Management’s portfolio since 2010. At the end of Q1 2022, the firm owned over 16.7 million shares in the company, worth nearly $1.39 billion. It represented 0.81% of Ken Fisher’s portfolio. In June, Jefferies lifted its price target on Oracle Corporation (NYSE:ORCL) to $75, but kept a Hold rating on the shares, noting that the company’s organic growth rates remained well below the large-cap software average. However, the firm saw strength in its cloud and database businesses.
The number of hedge funds tracked by Insider Monkey owning stakes in Oracle Corporation (NYSE:ORCL) grew to 61 in Q1 2022, from 57 in the previous quarter. These stakes hold a consolidated value of over $4.3 billion. Among these hedge funds, First Eagle Investment Management held the largest position in the company, with stakes valued at $2.14 billion.
ClearBridge Investments mentioned Oracle Corporation (NYSE:ORCL) in its Q3 2021 investor letter. Here is what the firm has to say:
“While the information technology (IT) sector in the benchmark stalled amid rising rates, our holdings outperformed in relative terms, helped in part by a strong quarter from Oracle, the dominant provider of on-premise database software for large enterprises globally and an increasingly viable cloud competitor. Solid quarterly results, raised guidance, healthy underlying metrics and an attractive valuation contributed to strong performance during the period.”
4. Union Pacific Corporation (NYSE:UNP)
Fisher Asset Management’s Stake Value: $1,395,808,000
Dividend Yield as of June 15: 2.48%
Number of Hedge Fund Holders: 89
Union Pacific Corporation (NYSE:UNP) is a Nebraska-based transport company that covers 23 states on the western side of the US. Since 2000, the company has achieved a 22% improvement in its locomotive fuel efficiency due to the consistent use of technology in its operations.
On May 19, Union Pacific Corporation (NYSE:UNP) announced a 10% hike in its quarterly payout to $1.30 per share. The company has paid uninterrupted dividends to shareholders for the past 123 years. As of June 15, the stock’s dividend yield was recorded at 2.48%. In April, Raymond James appreciated the company’s improved services and its focus on sustainability which would help it generate earnings higher than expected. Considering this, the firm lifted its price target on Union Pacific Corporation (NYSE:UNP) to $285, with a Strong Buy rating on the shares.
Fisher Asset Management initiated its position in Union Pacific Corporation (NYSE:UNP) during the fourth quarter of 2010, buying shares worth over $313.5million, at an average share price of $44.6. At the end of Q1 2022, the hedge fund owned more than 5 million UNP shares, worth roughly $1.4 billion. The company represented 0.82% of Ken Fisher’s portfolio.
As per Insider Monkey’s Q1 database, 89 elite funds loaded up on Union Pacific Corporation (NYSE:UNP), owning stakes worth over $7 billion. In contrast, 59 hedge funds held stakes in the Nebraska-based company in the previous quarter, worth $5.64 billion.
ClearBridge Investments mentioned Union Pacific Corporation (NYSE:UNP) in its Q4 2021 investor letter. Here is what the firm has to say:
“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. These consistent growers were complemented by solid contributions from structural holdings including Union Pacific.”
3. Eli Lilly and Company (NYSE:LLY)
Fisher Asset Management’s Stake Value: $2,148,979,000
Dividend Yield as of June 15: 1.35%
Number of Hedge Fund Holders: 53
Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company that provides high-quality products and is mainly known for its clinical depression drugs. During the first quarter of 2022, Fisher Asset Management purchased additional 521,295 LLY shares, increasing its position in the company by 8%. The hedge fund held stakes worth over $2.1 billion in the company, which accounted for 1.26% of Ken Fisher’s portfolio.
In Q1 2022, Eli Lilly and Company (NYSE:LLY) posted an EPS of $2.62, beating estimates by $0.32. The company’s revenue of $7.81 billion saw a 14.7% year-over-year growth and also surpassed analysts’ expectations by $520 million. For FY22, the company expects its gross revenue to fall between $28.8 billion to $29.3 billion, versus estimates of $28.47 billion.
On May 2, Eli Lilly and Company (NYSE:LLY) stated a quarterly dividend of $0.98 per share, with a dividend yield of 1.35%, as of June 15. 2021 marked the company’s 136th consecutive year of dividend distribution. In June, JPMorgan raised its price target on Eli Lilly and Company (NYSE:LLY) following the FDA approval of the company’s drug for type two diabetes. Moreover, the firm also expects LLY to see EPS growth from $8.80 in 2022 to $28 by 2030.
As per Insider Monkey’s Q1 2022 database, 53 hedge funds tracked by Insider Monkey held stakes in Eli Lilly and Company (NYSE:LLY), down from 61 in the previous quarter. These stakes hold a consolidated value of over $5 billion.
Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q1 2022 investor letter. Here is what the firm has to say:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with a diverse offering primarily focused on therapeutics. Performance was strong mostly due to consistent financial growth powered by its core diabetes (and future obesity) franchise, as well as the constant drumbeat surrounding the Alzheimer’s therapeutic market, of which Eli Lilly has one of the three potential winning blockbuster candidates in Donanemab. We retain conviction in Eli Lilly given the company’s strong long-term growth outlook.”
2. The Home Depot, Inc. (NYSE:HD)
Fisher Asset Management’s Stake Value: $2,435,009,000
Dividend Yield as of June 15: 2.73%
Number of Hedge Fund Holders: 75
The Home Depot, Inc. (NYSE:HD) specializes in home improvement and sells tools, construction products, and appliances to its consumers. In the first quarter of 2022, the company experienced a positive hedge fund sentiment, with 75 elite funds tracked by Insider Monkey owning stakes in the company, up from 68 in the previous quarter. The consolidated value of these stakes is roughly $5.6 billion.
Fisher Asset Management started investing in The Home Depot, Inc. (NYSE:HD) during Q1 of 2012, purchasing shares worth $308,000. At the end of Q1 2022, the hedge fund owned more than 8 million HD shares, valued at over $2.4 billion. The company made up 1.43% of Ken Fisher’s portfolio.
On May 19, The Home Depot, Inc. (NYSE:HD) announced a quarterly payout of $1.90 per share, with a dividend yield of 2.73%, as of the close of June 15. The company maintains a 14-year track record of consistent dividend growth. Following its strong Q1 results, Citigroup lifted its price target on The Home Depot, Inc. (NYSE:HD) to $348 in May, with a Buy rating on the shares. The firm also increased the company’s FY22 earnings estimates after noticing growth in its major segments.
Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:
“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
1. American Express Company (NYSE:AXP)
Fisher Asset Management’s Stake Value: $2,933,385,000
Dividend Yield as of June 15: 1.44%
Number of Hedge Fund Holders: 69
American Express Company (NYSE:AXP) is a multinational credit card services company that offers financial and travel-related services to consumers in over 110 countries. In May, the company reported strong credit card metrics, with consumer card total loans of roughly $63 billion, up from $60.5 billion in April 2022.
Fisher Asset Management started investing in American Express Company (NYSE:AXP) during the third quarter of 2012, purchasing over 11.6 million shares, worth $660 million. At the end of Q1 2022, the hedge fund owned nearly 15.7 million AXP shares, valued at roughly $3 billion. The company was the tenth-largest holding of the hedge fund, accounting for 1.73% of its 13F portfolio.
American Express Company (NYSE:AXP) currently offers a quarterly dividend of $0.52 per share. The company has been raising its dividends consecutively for the past 30 years, with its 5-year dividend CAGR standing at 7.68%. As of June 15, the stock’s dividend yield was recorded at 1.44%.
On June 6, Edward Jones upgraded American Express Company (NYSE:AXP) to Buy, noting that the company’s loyal customer base will be less affected by inflationary pressures, due to which AXP is in a better position to sustain spending trends.
At the end of Q1 2022, 69 hedge funds tracked by Insider Monkey presented a bullish stance on American Express Company (NYSE:AXP), up from 64 in the previous quarter. These stakes hold a collective value of over $33.1 billion. With 151.6 million shares valued at $28.3 billion, Berkshire Hathaway was the company’s leading shareholder at the end of March 2022.
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