In this article, we discuss 5 dividend stocks to buy according to Stuart Zimmer’s Zimmer Partners. If you want to read our detailed analysis of Zimmer’s history and hedge fund performance, go directly to 10 Dividend Stocks to Buy According to Stuart Zimmer’s Zimmer Partners.
5. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
Zimmer Partners’ Stake Value: $133,815,000
Percentage of Zimmer Partners’ 13F Portfolio: 1.99%
Number of Hedge Fund Holders: 39
Dividend Yield: 5.83%
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is in the business of buying, financing, and holding real estate that will be leased to gaming companies under triple-net leasing agreements. On February 2, Deutsche Bank analyst Carlo Santarelli boosted his price objective on Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) to $58 from $56 and reiterated a ‘Buy’ rating on the shares.
The stock is a new arrival in Stuart Zimmer’s portfolio, as his hedge fund bought about 2.75 million shares of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) during Q4, worth $133.82 million at the end of 2021. Gates Capital Management is the most significant stakeholder of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI), with 2.96 million shares worth $144.09 million.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) declared a quarterly dividend of $0.69 per share on February 24, up 3% from the previous distribution of $0.67. In the fourth quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $821.78 million in Gaming and Leisure Properties, Inc. (NASDAQ:GLPI), up from 29 during the preceding quarter, which were worth $517.29 million.
4. Energy Transfer LP (NYSE:ET)
Zimmer Partners’ Stake Value: $18,362,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.27%
Number of Hedge Fund Holders: 36
Dividend Yield: 6.26%
Energy Transfer LP (NYSE:ET) is a diversified midstream energy company based in the United States. Energy Transfer LP (NYSE:ET) announced a quarterly dividend of $0.175 per share on January 25, up 14.8% from the previous payout of $0.1525.
In the fourth quarter, Zimmer Partners sold more than 3.15 million shares of Energy Transfer LP (NYSE:ET) stock, lowering its position by nearly 59%. Nevertheless, the hedge fund still owned more than 2.23 million Energy Transfer LP (NYSE:ET) shares worth $18.36 million at the end of the quarter. Energy Transfer LP (NYSE:ET) is also getting the attention of other smart money, as 36 hedge funds tracked by Insider Monkey reported owning stakes in the company as of the end of the fourth quarter, up from 29 funds a quarter earlier.
Mizuho analyst Gabriel Moreen boosted his price objective on Energy Transfer LP (NYSE:ET) to $14 from $13 on February 18 and maintained a ‘Buy’ rating on the stock. In a research note, Moreen stated that the business offered a “solid” 2022 EBITDA outlook and provided positive commercial updates in several critical sectors.
In its Q2 2021 investor letter, Miller Value Partners talked about Energy Transfer L.P. (NYSE:ET). Here is what the fund said:
“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
3. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Zimmer Partners’ Stake Value: $9,984,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 6
Dividend Yield: 6.69%
Plains All American Pipeline, L.P. (NASDAQ:PAA) is a logistics company that owns and operates midstream energy infrastructure. Zimmer Partners made its first investment in Plains All American Pipeline, L.P. (NASDAQ:PAA) in the first quarter of 2015. On the other hand, Stuart Zimmer decreased his stake in Plains All American Pipeline, L.P. (NASDAQ:PAA) by 22% during Q4, leaving him with an investment of 1.07 million shares valued at $9.98 million on December 31.
In the fourth quarter, the hedge fund sentiment towards Plains All American Pipeline, L.P. (NASDAQ:PAA) declined slightly. Insider Monkey’s data shows that six hedge funds held stakes in the company at the end of the fourth quarter, down from seven funds a quarter earlier.
On January 25, Bernstein analyst Jean Ann Salisbury raised Plains All American Pipeline, L.P. (NASDAQ:PAA) to ‘Outperform’ from ‘Market Perform’, with a price target of $14.50, representing 33% upside.
Due to the pandemic, Plains All American Pipeline, L.P. (NASDAQ:PAA) reduced its dividend by 50% in 2020. Plains All American Pipeline, L.P. (NASDAQ:PAA) issued an $0.18 per share quarterly dividend on January 27, in line with the previous payout.
2. OneMain Holdings, Inc. (NYSE:OMF)
Zimmer Partners’ Stake Value: $37,773,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.56%
Number of Hedge Fund Holders: 44
Dividend Yield: 7.99%
OneMain Holdings, Inc. (NYSE:OMF) is a consumer finance firm that specializes in non-prime personal loan origination, underwriting, and servicing. On February 2, OneMain Holdings, Inc. (NYSE:OMF) declared a quarterly dividend of $0.95 per share, up 35.7% from the previous payout of $0.70.
JPMorgan analyst Richard Shane decreased his price objective on OneMain Holdings, Inc. (NYSE:OMF) to $56 from $64 on January 19, and maintained an ‘Overweight’ rating on the stock. The analyst lowered his target multiples on consumer finance businesses by 8%.
Hedge funds are loading up on OneMain Holdings, Inc. (NYSE:OMF), as Insider Monkey’s data shows that 44 hedge funds held a stake in the company as of the end of the fourth quarter of 2021, up from 41 funds in the preceding quarter. On the other hand, Stuart Zimmer decreased his stake in OneMain Holdings, Inc. (NYSE:OMF) by 29% during Q4, leaving him with a position worth about $37.77 million as of the end of 2021.
1. NuStar Energy L.P. (NYSE:NS)
Zimmer Partners’ Stake Value: $10,449,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 3
Dividend Yield: 11.10%
NuStar Energy L.P. (NYSE:NS) is in the business of transporting petroleum products and anhydrous ammonia, as well as storing and marketing them. On January 29, NuStar Energy L.P. (NYSE:NS) announced a quarterly dividend of $0.40 per share, in line with the previous. NuStar Energy L.P. (NYSE:NS) holds a 21-year track record of consistent dividend payouts.
On February 7, Wells Fargo analyst Michael Blum downgraded NuStar Energy L.P. (NYSE:NS) to ‘Equal Weight’, with a $17 price target. Blum believes that NuStar Energy L.P. (NYSE:NS)’s higher leverage and tempered future growth will result in slightly discounted EV/EBITDA multiples of 8.9x and 8.6x in 2022 and 2023, respectively, compared to other large group medians of 9.3 and 9.0x.
Zimmer Partners trimmed its position in NuStar Energy L.P. (NYSE:NS) in the fourth quarter by 44% to 657,966 shares, a position which accounted for 0.15% of the overall value of the firm’s 13F portfolio. Zimmer was one of just three hedge funds that were bullish on NuStar Energy L.P. (NYSE:NS) at the end of Q4, down from five funds in the preceding quarter.
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