5 Dividend Stocks to Buy According to Ken Fisher

1. Vale S.A. (NYSE:VALE)

Fisher Asset Management Stake Value: $486,355,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders: 27
Dividend Yield: 14%

Vale S.A. (NYSE:VALE) manufactures and exports iron ore, pellets, manganese, and iron alloys. In November, Wolfe Research analyst Timna Tanners initiated coverage of Vale S.A. (NYSE:VALE), rating the stock as “Peerperform” and gave a price target of $13.

In the third quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $1.98 billion in Vale S.A. (NYSE:VALE).

In its third-quarter 2021 investor letter, Miller Value Partners mentioned Vale S.A. (NYSE:VALE). Here is what the fund said:

“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”

You can also take a peek at 10 Best Blue Chip Dividend Stocks and 11 Cheap High Dividend Stocks to Buy Right Now

Follow Insider Monkey on Twitter