In this article, we discuss 5 dividend stocks to buy according to Steve Cohen’s Point72 Asset Management. If you want to read our detailed analysis of Cohen’s hedge fund and its past performance, go directly to read 10 Dividend Stocks to Buy According to Steve Cohen’s Point72 Asset Management.
5. Target Corporation (NYSE:TGT)
Dividend Yield as of August 5: 2.59%
Point72 Asset Management’s Stake Value: $168,714,000
An American big-box store company, Target Corporation (NYSE:TGT) was one of the recent holdings of Point72 Asset Management. The hedge fund initiated its position in the company with 794,997 shares, valued at over $168.7 million. The company accounted for 0.66% of Steve Cohen’s portfolio.
In June, Target Corporation (NYSE:TGT) raised its dividend for the 51st consecutive year, which takes its quarterly dividend to $1.08 per share. In Q1 2022, the company spent $424 million in dividend payments, up 32.4% from the same period last year. As of August 5, the stock’s dividend yield came in at 2.59%.
On August 1, Wells Fargo upgraded Target Corporation (NYSE:TGT) to Overweight and also raised its price target on the stock to $195. The firm appreciated the company’s earnings recovery after the pandemic.
As per Insider Monkey’s Q1 2022 database, 50 hedge funds owned stakes in Target Corporation (NYSE:TGT), up from 49 a quarter earlier. The collective value of stakes owned by hedge funds stood at nearly $3 billion. Jim Simons, Israel Englander, and Ken Griffin were some of the company’s major stakeholders in Q1.
4. ConocoPhillips (NYSE:COP)
Dividend Yield as of August 5: 3.35%
Point72 Asset Management’s Stake Value: $198,113,000
ConocoPhillips (NYSE:COP) is a Texas-based multinational company that is engaged in the production and exploration of hydrocarbon. The company paid $3.3 billion to shareholders in Q2 2022, $1 billion of which was paid in dividends. It currently pays a quarterly dividend of $0.46 per share, with a yield of 3.35%, as of August 5. Though the company has not raised its dividends consecutively, it has been making dividend payments continuously since 1993.
Point72 Asset Management started building its position in ConocoPhillips (NYSE:COP) during the first quarter of 2015, owning stakes worth over $3 million. In Q1 2022, the hedge fund increased its position in the company by 231%, purchasing an additional stake worth over $154.7 million. The company represented 0.78% of Steve Cohen’s portfolio.
In July, MKM Partners initiated its coverage of ConocoPhillips (NYSE:COP) with a Buy rating and a $110 price target, appreciating the company’s high returns of capital to shareholders.
ConocoPhillips (NYSE:COP) was a popular stock among elite funds in Q1 2022, as shown by Insider Monkey’s data. At the end of Q1, 67 hedge funds owned stakes in the company, growing from 56 in the previous quarter. These stakes are collectively valued at over $2.58 billion.
Diamond Hill Capital mentioned ConocoPhillips (NYSE:COP) in its Q1 2022 investor letter. Here is what the firm has to say:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
3. Analog Devices, Inc. (NASDAQ:ADI)
Dividend Yield as of August 5: 1.72%
Point72 Asset Management’s Stake Value: $235,722,000
Analog Devices, Inc. (NASDAQ:ADI) is a Norwood-based semiconductor company that specializes in data conversion, power management technology, and signal processing. In Q1 2022, Point72 Asset Management owned 1.2 million shares in the company, boosting its position by 363% during the quarter. The hedge fund’s total stake in the company amounted to $235.7 million, which made up 0.93% of Steve Cohen’s portfolio.
On May 18, Analog Devices, Inc. (NASDAQ:ADI) announced a quarterly dividend of $0.76 per share, consistent with its previous dividend. The company has a strong dividend history, raising its dividends 19 times in the past 18 years. Moreover, the company has been paying dividends for 73 consecutive quarters, with a cumulative value of over $8 billion. As of August 5, the stock’s dividend yield stood at 1.72%.
In July Goldman Sachs expressed concerns for the semiconductor industry due to the current supply chain issues. In view of this, the firm lowered its price target on the stock but maintained a Buy rating on the shares.
At the end of Q1 2022, 67 hedge funds tracked by Insider Monkey owned stakes in Analog Devices, Inc. (NASDAQ:ADI), down from 72 in the previous quarter. The combined value of these stakes is over $4.8 billion. Among these hedge funds, Egerton Capital Management was the company’s leading stakeholder in Q1.
Madison Funds mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q3 2021 investor letter. Here is what the firm has to say:
“At its 2017 investor day, Analog Device’s VP of Automotive, Mark Gill, described how the company’s content on well-equipped electric vehicles was $600 per car compared to $250 per car for the traditional 2017 internal combustion engine car. Since then, Analog has highlighted the success of its EV battery management systems (BMS) product nearly every quarter. The BMS product is hardware and software that manages the power into and out of the battery systems. It’s the brains of the operation. Analog says it’s on its fifth generation BMS product, that it has the no. 1 market share in high voltage products, and that it is on 5 of the top 10 selling EVs. While we think that the BMS product is just 1 to 1.5% of Analog Devices, Inc. (NASDAQ:ADI)’s product mix, we think that it could add nearly a point of revenue growth per year to the company’s top-line given the expected ramp in EV production. This is a material amount of growth atop an already nicely growing company revenue line.”
2. FedEx Corporation (NYSE:FDX)
Dividend Yield as of August 5: 1.94%
Point72 Asset Management’s Stake Value: $240,357,000
FedEx Corporation (NYSE:FDX) is a Tennessee-based multinational transport company that offers e-commerce and related services to consumers. The company has been raising its dividends consistently for the past 21 years and has a 5-year CAGR of 13.4%. It pays a quarterly dividend of 1.15 per share, with a dividend yield of 1.94%, as of August 5.
Point72 Asset Management started investing in FedEx Corporation (NYSE:FDX) during the third quarter of 2014, purchasing shares worth over $39 million. The hedge fund increased its stake in the company by 139% in Q1 2022, taking its total value to over $240.3 million. The company accounted for 0.95% of Steve Cohen’s portfolio.
In June, BofA raised its price target on FedEx Corporation (NYSE:FDX) to $287 with a Buy rating on the shares, highlighting the company’s earnings improvement.
At the end of Q1 2022, 52 hedge funds in Insider Monkey’s database owned stakes in FedEx Corporation (NYSE:FDX), compared with 64 a quarter earlier. The collective value of these stakes is over $1.78 billion.
1. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of August 5: 3.18%
Point72 Asset Management’s Stake Value: $293,903
An American pharmaceutical company, Merck & Co., Inc. (NYSE:MRK) was the third largest holding of Point72 Asset Management in Q1 2022. The hedge fund owned over 3.5 million MRK shares, increasing its position in the company by 6,769% during the quarter. Its total stake in the company stood at nearly $294 million, which represented 1.16% of Steve Cohen’s portfolio.
On July 26, Merck & Co., Inc. (NYSE:MRK) declared a quarterly dividend of $0.69 per share, in line with its previous dividend. The company holds an 11-streak of consistent dividend growth and has not slashed its dividend since 1985. As of August 5, the stock’s dividend yield came in at 3.18%.
Appreciating the company’s Q2 2022 earnings beat, Barclays raised its price target on Merck & Co., Inc. (NYSE:MRK) to $101, with an Overweight rating on the shares.
As per Insider Monkey’s data, the elite funds’ interest in Merck & Co., Inc. (NYSE:MRK) increased in Q1 2022, with the company becoming a part of 84 hedge fund portfolios, up from 80 in the previous quarter. These hedge funds owned stakes worth over $5.8 billion in the New Jersey-based company.
Sound Shore Fund mentioned Merck & Co., Inc. (NYSE:MRK) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:
“On the positive side, a number of our health care names outperformed, including drug maker Merck & Co. Benefitting from a best in class research and development team, Merck’s progress is being fueled by the impressive growth of its immunooncology cancer drug, Keytruda. The stock remains attractive at less than 12 times 2023 earnings.”
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