In this article, we discuss 5 dividend stocks to buy according to Lee Munder Capital Group. If you want to read our detailed analysis of the hedge fund’s performance and investment strategy, go directly to 10 Dividend Stocks to Buy According to Lee Munder Capital Group.
5. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of June 30: 2.75%
Lee Munder Capital Group’s Stake Value: $19,196,000
Comcast Corporation (NASDAQ:CMCSA) is a global media and tech company providing high-speed internet and other phone services to its consumers. In April, the company announced a collaboration with Charter to develop a next-generation streaming platform, while the broadband and cable video businesses of both companies will remain independent.
Lee Munder Capital Group sold off its former Comcast Corporation (NASDAQ:CMCSA) stake, worth $214,000 as of September 30 2015, during the fourth quarter of 2015. The hedge fund resumed its position in the company during Q1 2022, purchasing shares worth over $19 million. The company represented 1.11% of the hedge fund’s portfolio.
As per Insider Monkey’s Q1 database, 78 hedge funds owned stakes in Comcast Corporation (NASDAQ:CMCSA), down from 80 in the previous quarter. The collective value of these stakes is over $7 billion. First Eagle Investment Management owned the largest stake in the company in Q1, worth over $1.4 billion.
On May 27, Comcast Corporation (NASDAQ:CMCSA) announced a quarterly dividend of $0.27 per share, in line with its previous quarter. The company has been raising its dividends consecutively for the past 14 years. The stock’s dividend yield came in at 2.75% as of June 30.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm had to say:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
4. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of June 30: 2.81%
Lee Munder Capital Group’s Stake Value: $17,762,000
An American multinational beverage corporation, The Coca-Cola Company (NYSE:KO) has been the top-performing stock in the Dow Jones Industrial Average, gaining 5.78% in 2022 so far, whereas the Consumer Staples Select Sector SPDR Fund is down 2.99% year-to-date, as of the close of June 30.
In February 2022, The Coca-Cola Company (NYSE:KO) raised its dividend for the 60th consecutive year. The company currently offers a quarterly dividend of $0.44 per share, with a yield of 2.81%, recorded on June 30. In June, Morgan Stanley reiterated its ‘Overweight’ rating on The Coca-Cola Company (NYSE:KO), with a $76 price target, which represents 25% upside. The firm appreciated the company’s strong pricing power and earnings growth.
During Q1 2022, Lee Munder Capital Group purchased 286,473 KO shares, worth over $17.7 million. The company represented 1.02% of the hedge fund’s portfolio.
At the end of Q1 2022, 64 hedge funds tracked by Insider Monkey owned stakes in The Coca-Cola Company (NYSE:KO), down from 70 in the previous quarter. These hedge funds have nearly $30 billion invested in the company.
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.”
3. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of June 30: 2.98%
Lee Munder Capital Group’s Stake Value: $13,279,000
Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based pharmaceutical company that is famous for its diabetes and asthma-related products and drugs. The company recently launched Merck Digital Sciences Studio, which will support early-stage biomedical startups as they generate technologies for drug development.
Merck & Co., Inc. (NYSE:MRK) holds an 11-year track record of consistent dividend growth. The company’s quarterly dividend stands at $0.69 per share, with a dividend yield of 2.98%, as of June 30. In June, the company was also added to Goldman Sachs’ list of high dividend stocks, with an estimated yield of 3.2% in 2022. As Merck & Co., Inc. (NYSE:MRK) completed its acquisition of Seagen, Cowen raised its price target on the stock in June to $102, with a ‘Market Perform’ rating on the shares.
As of the quarter ended March 2022, Merck & Co., Inc. (NYSE:MRK) was in 84 hedge funds’ portfolios, according to Insider Monkey’s database. The collective value of these stakes was nearly $5.9 billion. Fisher Asset Management was the company’s leading shareholder in Q1, with over 11.8 million shares.
Lee Munder Capital Group opened its position in Merck & Co., Inc. (NYSE:MRK) during Q1 2022, buying 161,848 shares, worth over $13.2 million. The company made up 0.76% of the hedge fund’s portfolio.
ClearBridge Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter. Here is what the firm had to say:
“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”
2. Newmont Corporation (NYSE:NEM)
Dividend Yield as of June 30: 3.55%
Lee Munder Capital Group’s Stake Value: $19,380,000
Newmont Corporation (NYSE:NEM) is a Colorado-based gold mining company that has the largest gold reserve in the industry. In its Q1 2022 earnings, the company missed estimates on several counts, posting EPS and revenue of $0.69 and $3.02 billion, respectively. The company produced 1.34 million ounces of gold and 350,000 gold equivalent ounces from co-products during the quarter.
Lee Munder Capital Group started its position in Newmont Corporation (NYSE:NEM) during Q1 2022, buying shares worth over $19.38 million. The company represented 1.12% of the hedge fund’s portfolio. Canaccord expressed disappointment in the company’s Q1 results in April and called it one of its weakest quarters. The firm lowered its price target on Newmont Corporation (NYSE:NEM) to $80, with a ‘Hold’ rating on the shares.
In 2021, Newmont Corporation (NYSE:NEM) generated over $2.6 billion in free cash flow and spent nearly $2 billion on dividends. The company currently pays a quarterly dividend of $0.55 per share. The stock’s dividend yield was recorded at 3.55% on June 30.
At the end of Q1 2022, 53 hedge funds in Insider Monkey’s database owned stakes in Newmont Corporation (NYSE:NEM), up from 45 in the previous quarter. The collective value of these stakes is over $3.52 billion, compared to just $1.4 billion worth of stakes held by hedge funds in Q4 2021.
First Eagle Investment Management mentioned Newmont Corporation (NYSE:NEM) in its Q3 2021 investor letter. Here is what the firm had to say:
“The largest gold miner in the world, Newmont shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
1. Chevron Corporation (NYSE:CVX)
Dividend Yield as of June 30: 3.86%
Lee Munder Capital Group’s Stake Value: $20,238,000
Chevron Corporation (NYSE:CVX) is a California-based energy company that manufactures high-quality refined products, including gasoline, diesel, and other fuels. During Q1 2022, Lee Munder Capital Group bought 124,288 CVX shares, valued at over $20.2 million. The company represented 1.17% of the hedge fund’s portfolio.
According to Insider Monkey’s database, 53 hedge funds were bullish on Chevron Corporation (NYSE:CVX) in Q1, the same as in the previous quarter. Those stakes held a collective value of roughly $28 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading shareholder in Q1, owning stakes worth nearly $26 billion.
Chevron Corporation (NYSE:CVX) holds a 35-year track record of consistent dividend growth. The company has raised its dividend at a CAGR of 5.07% over the past five years. Its quarterly dividend stands at $1.42 per share, with a yield of 3.86%, as of June 30. In June, Credit Suisse raised its price target on Chevron Corporation (NYSE:CVX) to $202, with an ‘Outperform’ rating on the shares, highlighting the company’s disciplined strategy.
ClearBridge Investments mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:
“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”
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