In this article, we discuss 5 dividend stocks to buy according to Sean Murphy’s Game Creek Capital. If you want to read our detailed analysis of Murphy’s investment strategy and his hedge fund’s past performance, go directly to read 10 Dividend Stocks to Buy According to Sean Murphy’s Game Creek Capital.
5. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 84
Game Creek Capital’s Stake Value: $2,133,000
Dividend Yield as of May 31: 2.97%
Merck & Co., Inc. (NYSE:MRK) recently got approval from European Commission for its Keytruda drug which is used to treat certain patients with triple-negative breast cancer. The drug will be used in combination with chemotherapy. Merck & Co., Inc. (NYSE:MRK) is up 21.09% year-to-date, as of the market close of May 31.
In May, Merck & Co., Inc. (NYSE:MRK) declared a quarterly dividend of $0.69 per share. The company holds an 11-year track record of consistent dividend growth. As of May 31, the stock’s dividend yield was recorded at 2.97%. In April, Barclays lifted its price target on Merck & Co., Inc. (NYSE:MRK) to $97, with an Overweight rating on the shares, as the company reported a 50% year-over-year growth in its revenue for the first quarter of 2022.
Ken Fisher’s Fisher Asset Management owned a $970.8 million worth of stake in Merck & Co., Inc. (NYSE:MRK), becoming its largest shareholder in Q1 2022. In addition to this, 84 hedge funds tracked by Insider Monkey were bullish on the company at the end of March 2022, up from 80 funds in the quarter earlier. These stakes hold a collective value of over $5.8 billion, showing growth from $3.7 billion worth of stakes held by hedge funds in Q4 2021.
Game Creek sold off its entire stake worth $318,000 in Merck & Co., Inc. (NYSE:MRK) during the fourth quarter of 2019 and resumed its position in the company a year later, purchasing shares worth over $1 million. At the end of Q1 2022, the hedge fund owned 26,000 MRK shares, valued at over $2.13 million. Merck & Co., Inc. (NYSE:MRK) accounted for 0.84% of Sean Murphy’s portfolio.
ClearBridge Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter. Here is what the firm has 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.”
4. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 53
Game Creek Capital’s Stake Value: $4,429,000
Dividend Yield as of May 31: 3.20%
Newmont Corporation (NYSE:NEM), an American gold mining company, currently pays a quarterly dividend of $0.55 per share. The stock’s dividend yield stood at 3.20%, as of the close of May 31.
In Q1 2022, Newmont Corporation (NYSE:NEM) reported revenue of $3.02 billion, up 5.2% from the same period last year. The company produced 1.34 million ounces of gold during the quarter, compared with 1.62 million ounces produced during Q4 2021. As the company’s earnings were lower than the market estimates, in April, Canaccord lowered its price target on Newmont Corporation (NYSE:NEM) to $80, with a Hold rating on the shares.
Game Creek Capital started building its position in Newmont Corporation (NYSE:NEM) during the first quarter of 2018, purchasing shares worth over $2.1 million. At the end of Q1 2022, the hedge fund owned a $4.5 million worth of stake in the company, which represented 1.75% of Sean Murphy’s portfolio.
In addition to Game Creek Capital, 53 hedge funds tracked by Insider Monkey reported owning stakes in Newmont Corporation (NYSE:NEM) in Q1 2022, up from 45 in the previous quarter. The collective value of these stakes is over $3.5 billion, compared with $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 has 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.”
3. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 66
Game Creek Capital’s Stake Value: $5,248,000
Dividend Yield as of May 31: 3.33%
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational technology company. In its fiscal Q3 2022 earnings, the company reported product revenue of $9.4 billion, up from $9.1 billion recorded during the same period last year. However, the company’s service revenue was down 8% in Q3.
In February, Cisco Systems, Inc. (NASDAQ:CSCO) announced a 3% hike in its quarterly dividend to $0.38 per share. The company has been raising dividends consecutively for the past 11 years. Moreover, between 2015 and 2018, it raised its dividend at a CAGR of 14%. As of May 31, the stock’s dividend yield was recorded at 3.33%.
During Q1 2022, Game Creek increased its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 2%, owning a $5.24 million worth of stake. The company represented 2.07% of Sean Murphy’s portfolio. In May, Jefferies set a $52 price target on Cisco Systems, Inc. (NASDAQ:CSCO), with a Buy rating on the shares, expressing concerns about the supply chain issues the company might face in China.
As per Insider Monkey’s Q1 2022 database, 66 hedge funds held a $1.74 billion worth of stake in Cisco Systems, Inc. (NASDAQ:CSCO). In comparison, 57 hedge funds held positions in the company in the previous quarter, with stakes valued at over $3.4 billion. AQR Capital Management was one of the leading shareholders of the California-based company in Q1 2022, owning stakes worth over $331.5 million.
ClearBridge Investments mentioned Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2021 investor letter. Here is what the firm has to say:
“We reinvested a portion of the proceeds into existing holding Cisco Systems, Inc. (NASDAQ:CSCO), which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco Systems, Inc. (NASDAQ:CSCO) has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco Systems, Inc. (NASDAQ:CSCO) boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”
2. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 40
Game Creek Capital’s Stake Value: $1,608,000
Dividend Yield as of May 31: 3.50%
U.S. Bancorp (NYSE:USB) has been a part of Game Creek Capital’s portfolio since 2017. At the end of Q1 2022, the hedge fund held stakes worth over $1.6 million, purchasing additional 5,375 USB shares during the quarter. The company represented 0.63% of Sean Murphy’s portfolio.
At the end of March 2022, 40 hedge funds tracked by Insider Monkey owned stakes in U.S. Bancorp (NYSE:USB), down from 46 in the previous quarter. These stakes hold a collective value of over $7.37 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading shareholder in Q1 2022, owning a $6.7 billion worth of stake.
In March, U.S. Bancorp (NYSE:USB) declared its quarterly dividend of $0.46 per share, consistent with the previous quarter. The stock’s dividend yield was recorded at 3.50% on May 31. In May, Oppenheimer presented a positive stance on the finance sector as it can benefit from rising interest rates. In view of this, the firm lifted its price target on U.S. Bancorp (NYSE:USB) to $72, with an Outperform rating on the shares.
ClearBridge Investments mentioned U.S. Bancorp (NYSE:USB) in its Q4 2021 investor letter. Here is what the firm has to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We have increased our exposure to interest-rate sensitive banks by adding to existing positions in U.S. Bancorp.”
1. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Game Creek Capital’s Stake Value: $2,002,000
Dividend Yield as of May 31: 3.80%
Citigroup Inc. (NYSE:C) is an American multinational investment bank and financial services company. The bank is in the early stages of acquiring the Mexican branches of Deutsche Bank, as the German bank closes down its operations in Mexico.
At the end of Q1 2022, Game Creek Capital held 37,500 shares in Citigroup Inc. (NYSE:C), valued at over $2 million, after reducing its stake in the company by 5%. The company represented 0.79% of Sean Murphy’s portfolio. In May, Credit Suisse set a $58 price target on Citigroup Inc. (NYSE:C), while downgrading the stock to Neutral. The firm mentioned the negative returns of the stock in its May investors’ note and sees a delay in the company’s transformation process.
Citigroup Inc. (NYSE:C) currently pays a quarterly dividend of $0.51 per share, with a dividend yield of 3.80%, as of the close of May 31.
The number of hedge funds tracked by Insider Monkey owning stakes in Citigroup Inc. (NYSE:C) stood at 88 in Q1 2022, declining from 97 in the previous quarter. The consolidated value of these stakes is over $8.1 billion, up from $6.6 billion worth of stakes held by hedge funds in Q4 2021.
You can also take a look at 10 Dividend Aristocrats to Buy for 2022 and 10 Cheap Value Stocks to Buy for 2022
