In this article, we discuss 5 dividend stocks to buy according to Jim Simons’ Renaissance Technologies. If you want to read our detailed analysis of Renaissance Technologies’ strategy and performance, go directly to 10 Dividend Stocks to Buy According to Jim Simons’ Renaissance Technologies.
5. The Home Depot, Inc. (NYSE:HD)
Renaissance Technologies Stake Value: $480,219,000
The Home Depot, Inc. (NYSE:HD) is a Georgia-based home improvement company that sells construction products and offers related services to consumers. The company has been raising its dividends consistently for the past 14 years. It currently pays a quarterly dividend of $1.90 per share, giving HD shares a yield of 2.56% as of August 29.
In Q2 2022, Renaissance Technologies owned over 1.7 million shares in The Home Depot, Inc. (NYSE:HD), valued at over $480 million. The hedge fund reduced its position in the company by 7% during the quarter. The company accounted for 0.56% of Jim Simons’ portfolio.
In August, Truist lifted its price target on The Home Depot, Inc. (NYSE:HD) to $399 with a ‘Buy’ rating on the shares, appreciating the company’s strong business trends despite the macro concerns.
The Home Depot, Inc. (NYSE:HD) was a popular buy among elite funds in Q2, as 80 hedge funds in Insider Monkey’s database owned stakes in the company, up from 75 in the previous quarter. Those stakes had a total value of over $5.35 billion. Fisher Asset Management was the company’s leading stakeholder in Q2.
Diamond Hill Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm had to say:
“Home Depot shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
4. Exxon Mobil Corporation (NYSE:XOM)
Renaissance Technologies Stake Value: $612,907,000
American natural gas and energy company Exxon Mobil Corporation (NYSE:XOM) was assumed with an ‘Outperform’ rating at Credit Suisse in August, with a $125 price target. The firm acknowledged the company’s momentum-building and portfolio investments over the past few years.
Renaissance Technologies resumed its position in Exxon Mobil Corporation (NYSE:XOM) during the first quarter of 2021, purchasing shares worth over $162 million. In Q2 2022, the hedge fund increased its stake in the company by 12%, with its total investment amounting to nearly $613 million. The company represented 0.72% of Jim Simons’ portfolio.
On July 27, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.88 per share, in line with its previous dividend. The company has paid dividends to shareholders for over 100 years while maintaining a 39-year track record of consistent dividend growth. As of August 29, the stock’s dividend yield came in at 3.52%.
As of the end of Q2, 72 hedge funds tracked by Insider Monkey reported owning stakes in Exxon Mobil Corporation (NYSE:XOM), valued at over $7.4 billion.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here is what the firm had to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
3. Merck & Co., Inc. (NYSE:MRK)
Renaissance Technologies Stake Value: $616,668,000
Merck & Co., Inc. (NYSE:MRK) delivers innovative health solutions to its consumers through its medicines, vaccines, and medical devices. In Q2, Renaissance Technologies increased its position in the company by 33%, which raised its total stake in the company to $617 million. The company accounted for 0.73% of Jim Simons’ portfolio.
Merck & Co., Inc. (NYSE:MRK) has been raising its dividends consistently for the past 11 years. The company pays a quarterly dividend of $0.69 per share, giving the stock a dividend yield of 3.15% as of August 29.
In August, Erste Group upgraded Merck & Co., Inc. (NYSE:MRK) to ‘Buy’, mentioning that the company’s profits are well above the sector’s average and are expected to grow further in the future.
At the end of June, 79 hedge funds tracked by Insider Monkey owned stakes in Merck & Co., Inc. (NYSE:MRK), compared with 84 in the previous quarter. The collective value of those stakes was over $6.1 billion. Fisher Asset Management was the company’s largest stakeholder in Q2, owning a position worth over $1.1 billion.
Smead Capital Management mentioned Merck & Co., Inc. (NYSE:MRK) in its Q2 2022 investor letter. Here is what the firm had to say:
“For the quarter, our best-performing stocks included Merck & Co., Inc. (NYSE:MRK). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list. Merck’s defensive characteristics and good news on earnings/growth didn’t shock us. We argued one year ago that Merck was historically cheap relative to the indexes as compared to the last 20 years.”
2. The Kroger Co. (NASDAQ:KR)
Renaissance Technologies Stake Value: $792,589,000
The Kroger Co. (NASDAQ:KR) is an Ohio-based retail company that operates supermarkets and multi-department stores across the U.S. On June 23, the company announced a 24% hike in its quarterly dividend to $0.26 per share. This marked the company’s 16th consecutive year of dividend growth. As of August 29, the stock’s dividend yield came in at 2.15%.
In Q2, Renaissance Technologies owned over 16.7 million shares in The Kroger Co. (NASDAQ:KR), valued at $793 million. The hedge fund raised its position in the company by 2% during the quarter, with it representing 0.93% of the fund’s 13F portfolio.
In June, MKM Partners lifted its price target on The Kroger Co. (NASDAQ:KR) to $55 with a ‘Neutral’ rating on the shares.
As per Insider Monkey’s Q2 database, 49 hedge funds owned stakes in The Kroger Co. (NASDAQ:KR), growing from 45 in the previous quarter. Those stakes were collectively valued at over $4.3 billion, compared with $5.1 billion worth of KR shares owned by hedge funds in Q1.
1. Chevron Corporation (NYSE:CVX)
Renaissance Technologies Stake Value: $837,740,000
Chevron Corporation (NYSE:CVX), an American multinational energy industry company, was the fifth-largest holding of Renaissance Technologies in Q2. The hedge fund owned a stake in the company worth $838 million, up from $134 million in the previous quarter. The company accounted for 0.99% of Jim Simons’ portfolio.
Chevron Corporation (NYSE:CVX) has been raising its dividends consistently for the past 35 years. The company pays a quarterly dividend of $1.42 per share and the stock has a yield of 3.45% as of August 29.
In August, BMO Capital raised its price target on Chevron Corporation (NYSE:CVX) to $180 with an ‘Outperform’ rating on the shares, appreciating the company’s operational performance, asset base, and financial strength.
At the end of Q2, 59 hedge funds tracked by Insider Monkey were bullish on Chevron Corporation (NYSE:CVX), up from 53 in the previous quarter. The stakes owned by those hedge funds had a total value of over $26 billion. Warren Buffett, Ken Fisher, and Ken Griffin were some of the company’s most prominent stakeholders in Q2.
Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
You can also take a look at Ray Dalio’s Bridgewater Associates Portfolio: Top 10 Dividend Stocks and 10 Best Renewable Energy Stocks to Buy and Hold for the Next 10 Years
