In this article, we discuss the 5 dividend stocks to buy according to Ken Fisher. If you want to read our detailed analysis of Fisher’s history, investment philosophy, and hedge fund performance, go directly to the 10 Dividend Stocks to Buy According to Ken Fisher.
5. Artisan Partners Asset Management Inc. (NYSE:APAM)
Fisher Asset Management Stake Value: $68,290,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 15
Dividend Yield: 9.3%
Artisan Partners Asset Management Inc. (NYSE:APAM) is an investment management firm that offers investment solutions to customers worldwide. In October, Artisan Partners Asset Management Inc.’s (NYSE:APAM) third-quarter revenue came in at $316.6 million, up 36.1% Y/Y, surpassing analysts’ expectations by $1.51 million.
Fisher Asset Management started building its position in Artisan Partners Asset Management Inc. (NYSE:APAM) in the fourth quarter of 2015 and currently holds over 1.40 million shares in the company, valued at $68.29 million. The company represents 0.04% of the hedge fund’s 13F portfolio.
15 hedge funds in our database held stakes in Artisan Partners Asset Management Inc.’s (NYSE:APAM) in the third quarter of 2021, compared to 19 funds in the previous quarter.
4. Annaly Capital Management, Inc. (NYSE:NLY)
Fisher Asset Management Stake Value: $645,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 15
Dividend Yield: 11.1%
Annaly Capital Management, Inc. (NYSE:NLY) is a real estate investment trust that invests in real estate. Out of the hedge funds being tracked by Insider Monkey, Citadel Investment Group is the most significant shareholder in Annaly Capital Management, Inc. (NYSE:NLY), with 2.22 million shares worth more than $18.68 million.
Annaly Capital Management, Inc. (NYSE:NLY) was downgraded to “Equal Weight” from “Overweight” by Barclays analyst Mark DeVries in October and gave a price target of $9.
According to regulatory filings, Fisher Asset Management owned 76,618 shares in Annaly Capital Management, Inc. (NYSE:NLY), worth $645,000. The hedge fund’s stake in Annaly Capital Management, Inc. (NYSE:NLY) increased by 52% in the third quarter of 2021.
3. FS KKR Capital Corp. (NYSE:FSK)
Fisher Asset Management Stake Value: $210,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 14
Dividend Yield: 11.09%
FS KKR Capital Corp. (NYSE:FSK) is a closed-end management investment and financing business that invests mainly in the debt securities of private middle-market US corporations. It is externally managed and non-diversified. According to regulatory filings, Fisher Asset Management holds 9,540 shares in FS KKR Capital Corp. (NYSE:FSK) in the third quarter of 2021, worth $210,000.
FS KKR Capital (NYSE:FSK) declared a quarterly dividend of $0.62 per share in November, down 4.6% from the previous dividend of $0.65. For the third quarter ended September 30, 2021, FS KKR Capital Corp. (NYSE:FSK) reported a net investment income of $0.64, beating the estimates by $0.02.
In the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $204.77 million in FS KKR Capital (NYSE:FSK), down from 17 the preceding quarter worth 208.38 million.
2. BHP Group (NYSE:BBL)
Fisher Asset Management Stake Value: $447,539,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.25%
Number of Hedge Fund Holders: 21
Dividend Yield: 10.78%
BHP Group (NYSE:BBL) is a mining and oil and gas exploration, development, production, processing, and marketing company. Ken Fisher’s Fisher Asset Management is the company’s biggest shareholder with 8 million shares worth $405.50 million.
In September, RBC Capital analyst Tyler Broda initiated coverage of BHP Group (NYSE:BBL), downgrading BHP Group to “Sector Perform” from “Outperform” and gave a price target of 1,900 GBp, down from 2,300 GBp. According to Broda, while the demerger of petroleum may restrict the growth of the company and make its portfolio less diversified.
BHP Group (NYSE:BBL) recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 21 in the third quarter of 2021 compared to 24 positions in the previous quarter.
In its first-quarter 2021 investor letter, Harding Loevner, mentioned BHP Group (NYSE:BHP). Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low-cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
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
