3. Macquarie Infrastructure Corp (NYSE:MIC)
Investors with Long Positions (as of June 30): 69
Aggregate Value of Investors’ Holdings (as of June 30): $2.06 Billion
Macquarie Infrastructure Corp (NYSE:MIC) was the third-most popular high dividend stock among hedge funds as of June 30, even though the number hedge funds owning the stock dipped by one and the aggregate value of hedge funds’ holdings declined by $233 million during the April-June period. After raising its dividend for six quarters in a row, the company yet again raised its dividend to $1.11 recently. This $1.11 quarterly dividend represents an annual dividend yield of 5.70%. Macquarie Infrastructure Corp (NYSE:MIC)’s stock was on a continuous uptrend from the beginning of the year until mid-June. However the rally came to an end in late-June and the stock ended the second quarter up by a meager 1.7%. On July 19, the company announced a change in the conversion ratio applicable to its 2.875% Convertible Senior Notes, due 2019 . The increase in the conversion ratio to 11.8273 shares of common stock per $1,000 principal amount effective July 15, 2015 reflected the impact of the dividends the company paid during 2014. One of Macquarie Infrastructure Corp (NYSE:MIC)’s largest shareholders, Richard McGuire‘s Marcato Capital Management, continued to own over 3.5 million shares of the company at the end of June.
2. Williams Companies Inc (NYSE:WMB)
Investors with Long Positions (as of June 30): 86
Aggregate Value of Investors’ Holdings (as of June 30): $10.64 Billion
Thanks to it rejecting a $53.1 billion buyout bid by Energy Transfer Equity LP (NYSE:ETE) in late-June, shares of Williams Companies Inc (NYSE:WMB) ended the second quarter up by almost 15%. Even after this rejection, Energy Transfer Equity LP (NYSE:ETE) didn’t end its pursuit of Williams Companies Inc (NYSE:WMB), announcing a hostile takeover bid for the company in July. Event-focused hedge funds seem to have lapped up this opportunity surrounding Williams Companies Inc (NYSE:WMB), as the hedge fund ownership of the company went up by 26 and the aggregate value of investments by hedge funds increased by $4.02 billion during the April-June period. Williams Companies Inc (NYSE:WMB) currently pays a quarterly dividend of $0.59 and its annual dividend yield stands at an impressive 4.82%. Recent reports have suggested that Spectra Energy Corp. (NYSE:SE), a company half the size of Williams Companies Inc (NYSE:WMB), has also made a bid for it. James Dinan‘s York Capital Management was one of the hedge funds that initiated a stake in Williams Companies Inc (NYSE:WMB) during the second quarter by buying slightly over 5.76 million shares of the company.
1. General Motors Company (NYSE:GM)
Investors with Long Positions (as of June 30): 104
Aggregate Value of Investors’ Holdings (as of June 30): $5.78 Billion
After dropping over 10% during the second quarter, shares of General Motors Company (NYSE:GM) recently broke the $30 mark for the first time in two years and are still trading below it. Surprisingly enough, this fall in the stock price has resulted in the automotive manufacturer, which started paying dividends in 2014, becoming the most popular high dividend stock among hedge funds. At the current market price and with a $0.36 per share quarterly dividend, General Motors Company (NYSE:GM) boasts an annual dividend yield of 4.96%. The fall in the stock has also caused the company to come under severe criticism from several analysts and experts due to the $5 billion buyback that it authorized earlier, under pressure from activist investors. With 41 million shares at the end of June, Warren Buffett’s Berkshire Hathaway continued to remained the investment firm with the largest stake in General Motors Company (NYSE:GM) that we follow.
Disclosure: None
