In this article, we discuss 5 dividend stocks to buy according to Jacob Mitchell’s Antipodes Partners. If you want to read our detailed analysis of the hedge fund’s performance and its investment strategy, go directly to read 9 Dividend Stocks to Buy According to Jacob Mitchell’s Antipodes Partners.
5. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of August 8: 2.79%
Antipodes Partners’ Stake Value: $105,727,000
The Coca-Cola Company (NYSE:KO) holds one of the strongest dividend growth track records, raising its payouts consistently for the past 60 years. The company pays a quarterly dividend of $0.44 per share, with a dividend yield of 2.79%, as of August 8.
Antipodes Partners opened its position in The Coca-Cola Company (NYSE:KO) during the third quarter of 2019, purchasing shares worth over $56.6 million. In Q1 2022, the hedge fund raised its position in the company by 2%, taking its total stake worth over $105.7 million. The company represented 3.74% of Jacob Mitchell’s portfolio.
In July, JPMorgan set a $70 price target on The Coca-Cola Company (NYSE:KO) with an Overweight rating on the shares, calling the stock one of the best defensive names in the sector.
Warren Buffett’s Berkshire Hathaway owned 400 million shares in The Coca-Cola Company (NYSE:KO), worth $24.8 billion, becoming the company’s leading stakeholder in Q1. Overall, 64 hedge funds in Insider Monkey’s database owned stakes in the Georgia-based company, with a total value of over $29 billion.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm had to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
4. Northrop Grumman Corporation (NYSE:NOC)
Dividend Yield as of August 8: 1.47%
Antipodes Partners’ Stake Value: $108,300,000
Northrop Grumman Corporation (NYSE:NOC) is a Virginia-based multinational aerospace and defense company that specializes in space, aeronautics, defense, and cyberspace. In Q1 2022, Antipodes Partners purchased an additional $64.5 million worth of NOC stake, boosting its position in the company by 49%. The hedge fund’s stake in the company stood at over $108.3 million, which represented 3.84% of Jacob Mitchell’s portfolio.
In May, Northrop Grumman Corporation (NYSE:NOC) declared a quarterly dividend of $1.73 per share, up 10% from its previous dividend. The company holds an 18-year streak of consistent dividend growth. The stock’s dividend yield came in at 1.47%, as of August 8.
In July, Susquehanna raised its price target on Northrop Grumman Corporation (NYSE:NOC) to $530 with a Positive rating on the shares, appreciating the company’s higher margin outlook.
The number of hedge funds tracked by Insider Monkey owning stakes in Northrop Grumman Corporation (NYSE:NOC) stood at 39 in Q1 2022, compared with 33 in the previous quarter. These stakes are collectively valued at over $940.3 million.
LRT Capital Management mentioned Northrop Grumman Corporation (NYSE:NOC) in its Q2 2022 investor letter. Here is what the firm has to say:
Based in Virginia, Northrop Grumman is one of the world’s largest defense contractors with annual revenue of more than $30 billion. The company operates in a cozy oligopoly, that after decades of consolidation the US defense market is now controlled by five large companies: The Boeing Company, General Dynamics Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation. (Click here to view the full text)
3. Oracle Corporation (NYSE:ORCL)
Dividend Yield as of August 8: 1.66%
Antipodes Partners’ Stake Value: $166,732,000
Oracle Corporation (NYSE:ORCL) is a Texas-based computer software company that specializes in cloud applications and cloud platform services. The company holds a 12-year track record of consistent dividend growth and has a 5-year dividend CAGR of 14.68%. It pays a quarterly dividend of $0.32 per share, with a dividend yield of 1.66%, as of August 8.
Oracle Corporation (NYSE:ORCL) has been a part of Antipodes Partners’ portfolio since the third quarter of 2017. In Q1 2022, the hedge fund owned over 2 million ORCL shares, increasing its position in the company by 37%. The firm owned a stake worth over $166.7 million in the company, which represented 5.91% of Jacob Mitchell’s portfolio.
At the end of Q1 2022, 61 hedge funds tracked by Insider Monkey owned stakes in Oracle Corporation (NYSE:ORCL), valued at over $4.3 billion. In the previous quarter, 57 hedge funds held positions in the company, with stakes valued at over $4 billion. Brandon Haley and Ken Fisher were some of the company’s prominent stakeholders in Q1.
Oakmark Funds mentioned Oracle Corporation (NYSE:ORCL) in its Q2 2022 investor letter. Here is what the firm has to say:
“The sell-off in the enterprise software sector, combined with the complexity related to the acquisition of Cerner, provided an opportunity for us to re-establish a position in Oracle (NASDAQ:ORCL). Oracle is one of the world’s largest and most profitable software companies-generating more than $42 billion in revenue and 40% operating margins. We have always admired the stability of Oracle’s business and the strength of its customer relationships. Now, the company’s organic growth is beginning to accelerate. Specifically, total revenue grew 7% in fiscal year 2022 and 10% in the fourth fiscal quarter. In addition, management believes that Cerner’s growth and margins can be higher under Oracle’s ownership than it could on a standalone basis. Finally, we commend Oracle’s repurchase of roughly half its share base over the past decade, which has nearly doubled each remaining share’s interest in the business. Trading for only 12x calendar 2023 earnings ex-cash, we believe Oracle’s risk/reward is attractive.”
2. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of August 8: 3.13%
Antipodes Partners’ Stake Value: $179,496,000
Antipodes Partners opened its position in Merck & Co., Inc. (NYSE:MRK) during the second quarter of 2019, with shares worth over $122.8 million. In Q1 2022, the hedge fund raised its position in the pharmaceutical company by 12%, owning over 2 million shares, with a total value of roughly $180 million. The company represented 6.36% of Jacob Mitchell’s portfolio.
Merck & Co., Inc. (NYSE:MRK) has raised its dividends 11 years in a row, with a 5-year dividend CAGR of 8.81%. The company pays a quarterly dividend of $0.69 per share, with a dividend yield of 3.13%, as of August 8.
In July, Barclays lifted its price target on Merck & Co., Inc. (NYSE:MRK) to $101 with an Overweight rating on the shares, appreciating the company’s Q2 earnings beat.
The number of hedge funds tracked by Insider Monkey owning stakes in Merck & Co., Inc. (NYSE:MRK) grew to 84 in Q1 2022, from 80 in the previous quarter. The collective value of these stakes stood at over $5.8 billion.
Sound Shore Fund mentioned Merck & Co., Inc. (NYSE:MRK) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:
“On the positive side, a number of our health care names outperformed, including drug maker Merck & Co. Benefitting from a best in class research and development team, Merck’s progress is being fueled by the impressive growth of its immunooncology cancer drug, Keytruda. The stock remains attractive at less than 12 times 2023 earnings.”
1. EQT Corporation (NYSE:EQT)
Dividend Yield as of August 8: 1.43%
Antipodes Partners’ Stake Value: $193,069,000
An American energy company, EQT Corporation (NYSE:EQT) was the largest holding of Antipodes Partners in Q1 2022. The hedge fund owned over 5.6 million shares in the company, raising its position by 3%. These shares are valued at over $193 million. The company represented 6.84% of Jacob Mitchell’s portfolio.
On July 20, EQT Corporation (NYSE:EQT) declared a quarterly dividend of $0.15 per share, raising it by 20%. The company temporarily ceased its payouts in 2021 to repay its debt but reinstated dividends in March 2022. As of August 8, the stock’s dividend yield stood at 1.43%.
In July, Scotiabank assumed its coverage of EQT Corporation (NYSE:EQT) with an Outperform rating and a $54 price target, highlighting the company’s efficient capital allocation.
Dan Loeb’s Third Point owned nearly 9 million shares in EQT Corporation (NYSE:EQT), becoming the company’s largest stakeholder in Q1 2022. Overall, 52 hedge funds in Insider Monkey’s database owned stakes in the Pennsylvania-based company in Q1, with a total value of over $2.1 billion.
ClearBridge Investments mentioned EQT Corporation (NYSE:EQT) in its Q1 2022 investor letter. Here is what the firm has to say:
“In the early days of the invasion, we made two measured changes to the portfolio based on longer-term fallout we anticipate from Russia’s invasion of Ukraine. First, we initiated small positions in U.S. natural gas producer EQT (NYSE:EQT).
Given its superior environmental profile compared to other fossil fuels, we have long favored natural gas in our energy holdings. Combustion of natural gas releases 50% less CO2 than coal, 25% less CO2 than gasoline and dramatically less particulate and pollution, per the U.S. Energy Information Administration. With the advances in shale production this century, the U.S. has become a natural gas powerhouse with some of the lowest-cost and largest reserves in the world. But because natural gas is difficult to ship across the ocean (it must be liquefied, which requires expensive infrastructure on both ends of the voyage), America’s gas bounty has ironically proved a burden for U.S. producers. (Click here to see the full text)
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