In this article, we discuss the 5 best dividend stocks according to Matthew Barrett’s Glendon Capital. If you want to read our detailed analysis of the hedge fund, go directly to read 10 Dividend Stocks to Buy According to Matthew Barrett’s Glendon Capital Management.
5. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 28
Dividend Yield as of March 1: 3.84%
Glendon Capital’s Stake Value: $60,477,000
In Q4 2021, an American energy company, NRG Energy, Inc. (NYSE:NRG) saw a decline in the number of hedge funds holding positions in it. As of Insider Monkey’s Q4 data, 28 hedge funds held stakes in the company, down from 34 in the preceding quarter. These stakes are valued at over $1.83 billion.
NRG Energy, Inc. (NYSE:NRG)’s increasing debt led the company to cut its dividend by 79% in 2016. However, the company maintained dividend payments over the years, growing it by 8% on January 21. The company currently pays a quarterly dividend of $0.35 per share, with a dividend yield of 3.84%, as reported on March 1. This January, UBS set a $42 price target on NRG Energy, Inc. (NYSE:NRG), with a Neutral rating on the shares.
In Q4 2021, Glendon Capital held over 1.4 million shares in NRG Energy, Inc. (NYSE:NRG), valued at $60.4 million. The company accounted for 3.18% of Matthew Barrett’s portfolio.
4. Edison International (NYSE:EIX)
Number of Hedge Fund Holders: 25
Dividend Yield as of March 1: 4.42%
Glendon Capital’s Stake Value: $24,647,000
Edison International (NYSE:EIX) is an American public utility company. This January, Mizuho presented a positive outlook on the company and lifted its price target on the stock to $82, while maintaining a Buy rating on the shares.
Edison International (NYSE:EIX) has been growing its dividend consistently for the past 17 years, raising it by 7.5% in the last ten years. In December 2021, the company hiked its quarterly dividend by 6% at $0.70 per share. The stock’s dividend yield stood at 4.42%, as of March 1. In Q4 2021, Glendon Capital held a stake worth over $24.6 million in Edison International (NYSE:EIX), which represented 1.29% of Matthew Barrett’s portfolio.
By the end of Q4 2021, 25 hedge funds tracked by Insider Monkey held stakes in Edison International (NYSE:EIX), valued at over $1.3 billion. With shares worth over $1 billion, Pzena Investment Management was the company’s largest stakeholder in Q4.
3. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 30
Dividend Yield as of March 1: 4.49%
Glendon Capital’s Stake Value: $132,934,000
Realty Income Corporation (NYSE:O), an American real estate investment trust, is a recent acquisition of Glendon Capital in Q4. The hedge fund started building its position in the company with shares worth roughly $133 million. The company accounted for 6.99% of Matthew Barrett’s portfolio.
Since Realty Income Corporation (NYSE:O) went public in 1994, the company has grown its monthly dividend at a CAGR of 4.4%. In 2021, the company grew its monthly dividend by 4% at $0.2465 per share. The stock’s dividend yield, as of March 1, stood at 4.49%. As the real estate sector outperformed S&P 500 in 2021, Mizuho in January set a $76 price target on Realty Income Corporation (NYSE:O), while maintaining a Buy rating on the shares.
In Q4 2021, the number of hedge funds tracked by Insider Monkey having stakes in Realty Income Corporation (NYSE:O) grew to 30, from 22 in the previous quarter. These stakes are valued at roughly $399 million.
2. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 22
Dividend Yield as of March 1: 6.71%
Glendon Capital’s Stake Value: $17,715,000
An American real estate investment trust, EPR Properties (NYSE:EPR) pays monthly dividends to shareholders. In 2020, the company temporarily cut its dividend due to the pandemic. Currently, EPR Properties (NYSE:EPR) pays a monthly dividend of $0.25 per share, with a solid dividend yield of 6.71%, as of March 1.
By the end of the fourth quarter of 2021, 22 hedge funds tracked by Insider Monkey held stakes in EPR Properties (NYSE:EPR), valued at $248.6 million. In comparison, 19 hedge funds held positions in the company in the preceding quarter, with stakes valued at $220 million.
On February 23, Stifel lifted its price target on EPR Properties (NYSE:EPR) to $56.50, while maintaining a Hold rating on the shares. Glendon Capital started building its position in EPR Properties (NYSE:EPR) during Q4 2021, with shares worth over $17.7 million. The company made up 0.93% of Matthew Barrett’s portfolio.
1. CVR Partners, LP (NYSE:UAN)
Number of Hedge Fund Holders: 4
Dividend Yield as of March 1: 9.38%
Glendon Capital’s Stake Value: $11,041,000
CVR Partners, LP (NYSE:UAN) is an American company that manufactures nitrogen fertilizer products. In Q4 2021, Glendon Capital held a stake worth over $11 million in the company, which accounted for 0.58% of Matthew Barrett’s portfolio.
On February 25, CVR Partners, LP (NYSE:UAN) announced a quarterly dividend of solid $5.24 per share, an increase of 79% from its previous dividend. The stock’s dividend yield stood at 9.38%, as of March 1. Since the start of 2022, the stock delivered a 24.8% return to shareholders, as of the market close of March 1.
By the end of Q4 2021, 4 hedge funds tracked by Insider Monkey reported owning stakes in CVR Partners, LP (NYSE:UAN), down from 5 in the previous quarter. The total value of these stakes is over $15.4 million.
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