In this article, we discuss 5 high dividend stocks picked by billionaire Gabelli. If you want to read our detailed analysis of GAMCO Investors’ investment philosophy and its performance, go directly to read 10 High Dividend Stocks Picked by Billionaire Gabelli.
5. International Flavors & Fragrances Inc. (NYSE:IFF)
Dividend Yield as of September 26: 3.35%
GAMCO Investors’ Stake Value: $36,832,000
International Flavors & Fragrances Inc. (NYSE:IFF) is an American corporation that produces fragrances and cosmetics and sells them globally. Recently, the company set up a new Nourish Innovation Lab in New Jersey that will enable customers to co-create beverage solutions.
GAMCO Investors started investing in International Flavors & Fragrances Inc. (NYSE:IFF) during the third quarter of 2012, with shares worth over $63.6 million. In Q2 2022, the hedge fund owned 309,197 IFF shares, worth over $36.8 million. The company accounted for 0.4% of the firm’s 13F portfolio.
International Flavors & Fragrances Inc. (NYSE:IFF) currently pays a quarterly dividend of $0.81 per share and has a yield of 3.35%, as recorded on September 26. The company has been raising its dividends consistently for the past 19 years, coming through as one of the best dividend stocks in Mario Gabelli’s portfolio.
In August, Baird maintained its Outperformed rating on International Flavors & Fragrances Inc. (NYSE:IFF) with a $140 price target, as the company’s management is focused on creating a sustainable earnings algorithm, which will be formally launched in December this year.
At the end of June 2022, 34 hedge funds tracked by Insider Monkey owned stakes in International Flavors & Fragrances Inc. (NYSE:IFF), up from 33 in the previous quarter. The combined value of these stakes is over $2.78 billion.
4. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of September 26: 3.51%
GAMCO Investors’ Stake Value: $42,474,000
Comcast Corporation (NASDAQ:CMCSA) is an American telecommunications company that offers technology and entertainment solutions to its millions of customers. At the end of Q2 2022, GAMCO Investors boosted its stake in the company by 1%, which takes its total stake to over $42.4 million. The company represented 0.46% of the firm’s 13F portfolio.
In August, Barclays maintained its Equal Weight rating on Comcast Corporation (NASDAQ:CMCSA) with a $42 price target as the firm started coverage of cable companies.
On July 28, Comcast Corporation (NASDAQ:CMCSA) declared a quarterly dividend of $0.27 per share, in line with its previous dividend. The company is one of the best dividend stocks in Mario Gabelli’s portfolio as it holds a 14-year streak of dividend growth. In addition to this, it has raised its payouts at a CAGR of 12% in the last five years. As of September 26, the stock’s dividend yield came in at 3.51%.
At the end of Q2 2022, 75 hedge funds tracked by Insider Monkey owned stakes in Comcast Corporation (NASDAQ:CMCSA), compared with 78 in the previous quarter. These stakes hold a total value of roughly $5.4 billion. Harris Associates was one of the company’s leading stakeholders in Q2.
3. The Bank of New York Mellon Corporation (NYSE:BK)
Dividend Yield as of September 26: 3.74%
GAMCO Investors’ Stake Value: $87,612,000
The Bank of New York Mellon Corporation (NYSE:BK) is a New York-based investment banking holding company that provides related services to its consumers. The company has been a part of GAMCO Investors’ portfolio since 2012. At the end of Q2 2022, the hedge fund owned over 2.1 million shares in the company, worth over $87.6 million. The company accounted for 0.96% of the fund’s 13F portfolio.
On July 15, The Bank of New York Mellon Corporation (NYSE:BK) hiked its quarterly dividend by 8.8% to $0.37 per share. This marked the company’s 11th consecutive year of dividend growth. The company has been making uninterrupted dividends to shareholders for the past 21 years. As of September 26, the stock’s dividend yield came in at 3.74%.
In August, Deutsche Bank lifted its price target on The Bank of New York Mellon Corporation (NYSE:BK) to $46 and maintained its Hold rating on the shares, as asset managers are seeing growth due to the sector rebound post-pandemic. The firm also highlighted the sector’s strong fundamentals.
At the end of June 2022, 38 hedge funds in Insider Monkey’s database owned stakes in The Bank of New York Mellon Corporation (NYSE:BK), down from 54 in the previous quarter. These stakes are collectively valued at over $3.6 billion. With over $3 billion worth of stakes, Berkshire Hathaway owned the largest position in the company in Q2.
Ariel Investments mentioned The Bank of New York Mellon Corporation (NYSE:BK) in its Q4 2021 investor letter. Here is what the firm has to say:
“Rising interest rates, after a surprisingly long period of low absolute rates and negative “real” rates, will create a headwind. While there has been much debate about the cause of these low rates, we believe the most important factor has been the $120 billion in monthly federal reserve open market bond purchases and the accumulation of an $8 trillion balance sheet. The former will end, and the latter will shrink. It is not just the Fed that has aggressively purchased bonds, bidding up prices and lowering yields. Bond traders and hedge fund managers have added to positions, confident that being on the same side as the Fed was the wise place to be. Now as the Fed is about to become a seller of bonds rather than a buyer, Wall Street’s “smart money” is likely to follow suit. Against this backdrop, fixed income securities and bond substitutes such as high dividend paying utilities and absolute return hedge funds are substantially overpriced and are not likely to produce attractive returns going forward.
This expectation of a reversion to the mean for interest rates helped 2021 performance, though not as much as we had hoped. The yield on the U.S. 10-year Treasury did indeed increase from +0.92% at the beginning of the year to +1.52% at year-end. An underreported story was the poor performance of bonds last year. The Barclays Aggregate Index declined -1.67% for the year ending December compared to a return of +28.71% for equities as measured by the S&P 500. Interest rates have continued to climb in 2022 with the 10-year Treasury at +1.79% as we go to print. This move higher in rates has contributed to our good, early start to 2022. Smaller positions in The Bank of New York Mellon Corporation (BK) also benefited from higher rates, principally with their ability to invest customer cash.”
2. State Street Corporation (NYSE:STT)
Dividend Yield as of September 26: 4.02%
GAMCO Investors’ Stake Value: $56,437,000
State Street Corporation (NYSE:STT) is a multinational financial service and bank holding company that has operations worldwide. In August, Deutsche Bank raised its price target on the stock to $74 with a Hold rating on the shares, appreciating the company’s strong fundamentals in Q2 earnings. The firm also expects the company to maintain its performance in the next quarter.
At the end of Q2 2022, GAMCO Investors owned 915,436 shares in State Street Corporation (NYSE:STT), with a total value of over $56.4 million. The company represented 0.61% of the firm’s 13F portfolio.
State Street Corporation (NYSE:STT) holds a strong dividend history as it has been paying consistent dividend payments for the past 24 years. The company also holds a 12-year track record of dividend growth. It currently pays a quarterly dividend of $0.63 per share, with a dividend yield of 4.02%, as of September 26.
The number of hedge funds tracked by Insider Monkey owning stakes in State Street Corporation (NYSE:STT) grew to 41 in Q2 2022, from 29 in the previous quarter. The collective value of these stakes is over $667.6 million. With over 6 million shares, Harris Associates was the largest stakeholder of the Boston-based company in Q2.
1. Telephone and Data Systems, Inc. (NYSE:TDS)
Dividend Yield as of September 26: 4.96%
GAMCO Investors’ Stake Value: $27,115,000
Telephone and Data Systems, Inc. (NYSE:TDS) is a Chicago-based telecommunications service company that provides wireless products and services to its consumers. The company remained famous among elite funds in Q2 2022, as 16 hedge funds in Insider Monkey’s database owned stakes in the company, up from 12 in the previous quarter. These stakes have a total value of nearly $63.6 million.
On August 11, Telephone and Data Systems, Inc. (NYSE:TDS) declared a quarterly dividend of $0.11 per share, consistent with its previous dividend. In 2022, the company extended its dividend growth streak to 47 years and its 5-year dividend CAGR stands at 3.22%. As of September 26, the stock’s dividend yield came in at 4.96%.
At the end of Q2 2022, GAMCO Investors owned over 1.7 million shares in the company, after reducing its position in the company by 1%. The fund’s total TDS stake amounted to over $27 million, which represented 0.29% of its 13F portfolio.
You can also take a look at 10 Dividend Aristocrats Under $60 You Can Buy in September and 10 Dividend Stocks to Buy According to Bruce Kovner’s Caxton Associates LP
