In this article, we discuss the 5 high-yield dividend stocks to buy according to Ken Fisher. If you want to read our detailed analysis of these stocks, go directly to the 10 High-Yield Dividend Stocks to Buy According to Ken Fisher.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 108
Forward Dividend Yield: 2.40%
JPMorgan Chase & Co. (NYSE:JPM) stock has returned more than 67% to investors over the course of the past twelve months. On October 13, the firm reported earnings for the third quarter, posting earnings per share of $3.74, beating market estimates by $0.74. The revenue over the period was $29 billion, in line with market expectations. Barclays, Credit Suisse, and Jefferies are all bullish on the stock.
According to 13F filings, Fisher Asset Management owned over 6.9 million shares in JPMorgan Chase & Co. (NYSE:JPM) at the end of June 2021 worth $1 billion, representing 0.67% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in JPMorgan Chase & Co. (NYSE:JPM) with 2.9 million shares worth more than $456 million.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
4. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 21
Forward Dividend Yield: 9.73%
Rio Tinto Group (NYSE:RIO) is a diversified metals and mining company. It is placed fourth on our list of the top high-yield dividend picks of Ken Fisher. Some of the materials the company has interests in include aluminum, copper, diamonds, gold, iron ore, and uranium, among others. The firm beat market expectations on earnings per share and revenue in the first half of the year.
According to the latest data, Fisher Asset Management owned more than 12.9 million shares in Rio Tinto Group (NYSE:RIO) at the end of the second quarter of 2021 worth $1 billion, representing 0.68% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Rio Tinto Group (NYSE:RIO) with 1.8 million shares worth more than $156 million.
3. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 37
Forward Dividend Yield: 2.32%
UBS analyst Michael Leuchten recently raised the price target on AstraZeneca PLC (NASDAQ:AZN) stock to GBP10,000 from GBP9,200 with a Buy rating on the shares. Stifel and Deutsche Bank are also bullish on the firm. The company was one of the first to come up with a COVID-19 vaccine – the stock has soared by 20% year-to-date. The company has a market cap of over $185 billion and posted over $26 billion in revenue last year.
Securities filings show that Fisher Asset Management owned over 18.8 million shares in AstraZeneca PLC (NASDAQ:AZN) at the end of June 2021 worth $1.1 billion, representing 0.70% of the portfolio of the fund.
At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in AstraZeneca PLC (NASDAQ:AZN), up from 34 in the previous quarter worth $2.6 billion.
In its Q4 2020 investor letter, Baron Health Care Fund, an asset management firm, highlighted a few stocks and AstraZeneca PLC (NASDAQ:AZN) was one of them. Here is what the fund said:
“AstraZeneca PLC is a multinational pharmaceutical company developing drugs across multiple therapeutic areas such as oncology and respiratory diseases. Shares were impacted by news of AstraZeneca’s joint development with Oxford University of a viral-based COVID-19 vaccine. Given a mixed data set due to an unforeseen error in dosing that occurred in the Brazilian market, the vaccine timelines slipped, hurting share performance. Our investment thesis on AstraZeneca is not dependent on COVID-19 but rather its best-in-class large-cap growth profile, and we retain conviction.”
2. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 60
Forward Dividend Yield: 2.68%
Cisco Systems, Inc. (NASDAQ:CSCO) recently declared a quarterly dividend of $0.37 per share, in line with previous. The company, a communications equipment manufacturer, was one of the most valuable companies in the world until tech giants like Apple and Google overtook almost every other tech stock on the market. The firm expects to grow revenue by 7% in the next four years as it attempts to jump back into mainstream relevance.
Regulatory filings reveal that Fisher Asset Management owned over 22 million shares in Cisco Systems, Inc. (NASDAQ:CSCO) worth more than $1.1 billion at the end of the second quarter of 2021, representing 0.74% of the portfolio of the fund.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Cisco Systems, Inc. (NASDAQ:CSCO), up from 59 in the previous quarter worth $5.1 billion.
1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 78
Forward Dividend Yield: 2.55%
Intel Corporation (NASDAQ:INTC) is one of the surprise inclusion on our high-yield dividend stock list of Fisher. The company, traditionally considered a growth stock, also hands out regular and healthy dividend payments. Morgan Stanley analyst Joseph Moore recently maintained an Overweight rating on the stock with a price target of $67.
Fisher Asset Management owned more than 31 million shares in Intel Corporation (NASDAQ:INTC) worth $1.7 billion at the end of June 2021, representing 1.1% of the portfolio of the fund.
At the end of the second quarter of 2021, 78 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in Intel Corporation (NASDAQ:INTC), down from 83 in the previous quarter worth $7.6 billion.
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.
