In this article, we discuss 5 dividend stocks to buy according to Kenneth Tropin’s Graham Capital Management. If you want to read our detailed analysis of the hedge fund’s past performance and Tropin’s investment strategies, go directly to read 10 Dividend Stocks to Buy According to Kenneth Tropin’s Graham Capital Management.
5. Citigroup Inc. (NYSE:C)
Dividend Yield as of June 22: 4.31%
Graham Capital Management’s Stake Value: $18,907,000
Citigroup Inc. (NYSE:C) is an American investment banking company that also provides financial services to consumers. In May, the company’s delinquency rate decreased to 0.78%, compared with 0.82% in April. However, its net charge-off rate was recorded at 1.39% in May, up from 1.36% in April.
During Q1 2022, Graham Capital sold off 266,313 C shares, worth over $18.5 million, trimming its position in the company by 43%. At the end of March, the hedge fund owned a stake worth nearly $19 million in the company, which represented 0.65% of Kenneth Tropin’s portfolio.
On April 1, Citigroup Inc. (NYSE:C) announced a quarterly dividend of $0.51 per share, in line with its previous dividend. In Q1, the company returned over $4 billion to shareholders through buybacks and dividends. The stock’s dividend yield stood at 4.31%, as of June 22.
Warren Buffett’s Berkshire Hathaway opened its position in Citigroup Inc. (NYSE:C) during Q1 2022, with shares worth nearly $3 billion, becoming the company’s leading shareholder. In addition to this, 88 hedge funds tracked by Insider Monkey owned stakes in the New York-based company, down from 97 in the previous quarter. The consolidated value of these stakes is over $8 billion.
4. Healthcare Realty Trust Incorporated (NYSE:HR)
Dividend Yield as of June 22: 4.74%
Graham Capital Management’s Stake Value: $6,976,000
Healthcare Realty Trust Incorporated (NYSE:HR) is an American real estate investment trust that invests in outpatient medical facilities. Though the company missed Q1 earnings estimates on various accounts, its revenue for the quarter showed a 10% year-over-year growth at $142.8 million. Moreover, its same-store net operating income increased 2.9% from the same period last year.
Graham Capital added Healthcare Realty Trust Incorporated (NYSE:HR) to its portfolio during Q1 2022, purchasing shares worth nearly $7 million. The company represented 0.24% of Kenneth Tropin’s portfolio.
Healthcare Realty Trust Incorporated (NYSE:HR) has been paying regular dividends to shareholders since 1994. The company’s current quarterly payout stands at $0.31 per share, with a dividend yield of 4.74%, as of June 22. Capital One resumed its coverage of Healthcare Realty Trust Incorporated (NYSE:HR) in June, with an Overweight rating and a $33 price target, expecting a rebound in the stock’s shares.
At the end of Q1 2022, Healthcare Realty Trust Incorporated (NYSE:HR) was a part of 28 hedge fund portfolios, up from 21 a quarter earlier. The consolidated value of these stakes is over $328.4 million. Zimmer Partners was the company’s leading shareholder in Q1.
3. Douglas Emmett, Inc. (NYSE:DEI)
Dividend Yield as of June 22: 5.05%
Graham Capital Management’s Stake Value: $3,568,000
Douglas Emmett, Inc. (NYSE:DEI) is a California-based real estate investment trust that owns multiple office buildings and apartment communities in Southern California. In Q1 2022, the company’s FFO fell in line with estimates at $0.50. Moreover, the company also reported an 87.7% growth in its leased rate, and its straight-line rents increased by 9.4% from the same period last year.
On May 27, Douglas Emmett, Inc. (NYSE:DEI) declared its quarterly dividend of $0.28 per share, in line with its previous dividend. The company’s dividend amount has remained the same for the past 10 consecutive quarters due to the pandemic-related financial instability. The stock’s dividend yield of 5.05% has reached its 10-year high, as recorded on June 22.
At the end of Q1 2022, Graham Capital owned 106,783 DEI shares, valued at over $3.56 million. The hedge fund increased its position in the company by 421%, which accounted for 0.12% of Kenneth Tropin’s portfolio.
In June, Credit Suisse initiated its coverage of Douglas Emmett, Inc. (NYSE:DEI) with an Outperform rating and a $27 price target, acknowledging the recovery in the company’s occupancy rates.
At the end of March 2022, 23 hedge funds in Insider Monkey’s database owned stakes in Douglas Emmett, Inc. (NYSE:DEI), up from 19 in the previous quarter. These stakes hold a collective value of nearly $463 million. Ken Griffin, Israel Englander, and Ric Dillon were the company’s prominent shareholders in Q1.
2. The Macerich Company (NYSE:MAC)
Dividend Yield as of June 22: 6.76%
Graham Capital Management’s Stake Value: $4,073,000
The Macerich Company (NYSE:MAC) is an American real estate investment trust that invests in shopping centers and other retail buildings. In May, the company announced to add 17 more Cotton On Group to regional town centers, expanding its footprint across the country.
In Q1 2022, The Macerich Company (NYSE:MAC) reported solid earnings, posting an FFO of $0.50, which beat estimates by $0.04. The company’s revenue for the quarter stood at $216.1 million, up 13.5% year-over-year. For FY22, it expects its FFO to fall between $1.85-$2.05, versus the consensus of $1.95.
During Q1 2022, Graham Capital piled up another $3.8 million in The Macerich Company (NYSE:MAC), increasing its position by 1,746%. The hedge fund owned a total stake worth $4.07 million in the company, which represented 0.14% of Kenneth Tropin’s portfolio.
The Macerich Company (NYSE:MAC) slashed its dividend twice in 2020 due to the pandemic and currently pays a quarterly dividend of $0.15 per share. The stock’s dividend yield stood at 6.76% on June 22. In June, Compass Point lowered its price target on The Macerich Company (NYSE:MAC), with a Buy rating on the shares. The firm lowered targets on the mall sector by an average of 18% due to the recent market downswing.
As of the quarter ended in March 2022, 20 hedge funds in Insider Monkey’s database owned a $160.2 million worth of combined stake in The Macerich Company (NYSE:MAC). In comparison, 21 hedge funds held positions in the company in the previous quarter, with stakes valued at $128.8 million.
Smead Capital Management mentioned The Macerich Company (NYSE:MAC) in its Q3 2021 investor letter. Here is what the firm has to say:
“Our poor performers for the quarter were quite eclectic. Macerich (MAC) dropped 7.55% for the quarter and most of that loss was on September 30, 2021… Ironically, some of our best nine-month performers were Q3 losers. Macerich (MAC) gained 61.81% through the end of the quarter and took third place.”
1. Arbor Realty Trust, Inc. (NYSE:ABR)
Dividend Yield as of June 22: 11.70%
Graham Capital Management’s Stake Value: $7,460,000
Arbor Realty Trust, Inc. (NYSE:ABR) is a New York-based real estate investment trust that provides debt capital for multifamily loan and commercial industries. The company delivered strong Q1 results, with its net interest income standing at $84.1 million, up 71.9% from the same period last year. Moreover, its EPS of $0.55 beat market estimates by $0.11.
Arbor Realty Trust, Inc. (NYSE:ABR) holds a 7-year track record of consistent dividend growth. The company offers a quarterly payout of $0.38 per share, up 12% from a prior-year quarter. Its payout ratio stands at 67.2% and the dividend yield came in at 11.70%, as of June 22’s close.
In April, Piper Sandler initiated its coverage of Arbor Realty Trust, Inc. (NYSE:ABR) with an Overweight rating and a $20 price target, highlighting the company’s diversified business model. Graham Capital opened its position in Arbor Realty Trust, Inc. (NYSE:ABR) during the fourth quarter of 2021 and increased its position by 795% in the recent quarter. The hedge fund owned 437,285 ABR shares at the end of Q1, with a total value of over $7.4 million. The company made up 0.25% of Kenneth Tropin’s portfolio.
According to Insider Monkey’s Q1 database, 14 hedge funds owned stakes in Arbor Realty Trust, Inc. (NYSE:ABR), up from 13 in the previous quarter. These stakes hold a consolidated value of over $92.5 million. Marshall Wace LLP was one of the company’s prominent shareholders in Q1.
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