In this article, we discuss the billionaire Paul Singer’s 10 dividend stock picks. You can skip our detailed analysis of Paul Singer’s hedge fund, Elliott Management, and its past performance, and go directly to read Billionaire Paul Singer’s 5 Dividend Stock Picks.
Paul Singer founded Elliott Management in 1977, which is one the most prominent hedge funds today. The hedge fund manages $48 billion in assets, according to the firm’s official website. Elliott Management follows a wide range of trading strategies including investing in distressed securities. The fund also focuses on commodities trading, especially crude oil, and real-estate-related securities.
Singer is generally known as an ‘activist’ investor. His strategy of buying stocks in distressed companies and then changing their business plans has earned him a solid reputation over the years. In 2020, Singer earned over $675 million, making it to the list of Institutional Investor’s coveted Rich List. Moreover, in the same year, his hedge fund gained 13%, while the fund’s annualized performance over the five years stands at 9.21%, as reported by Institutional Investor. The firm’s average annual return stands at 13.1%, outperforming S&P 500’s average annual return of 11.8%.
As of Q3 2021, Elliott Management holds a 13F portfolio value of roughly $14 billion, up from $13 billion in the previous quarter. The hedge fund invests heavily in technology and basic materials among other sectors. Some of the fund’s holdings include Snap Inc. (NYSE:SNAP), Twitter, Inc. (NYSE:TWTR), and Tesla, Inc. (NASDAQ:TSLA).
Paul Singer of Elliott Management
Our Methodology:
In this article, we will discuss the dividend stocks in Paul Singer’s portfolio. For this list, we considered Elliott Management’s 13F portfolio as of Q3.
Billionaire Paul Singer’s 10 Dividend Stock Picks.
10. Citrix Systems, Inc. (NASDAQ:CTXS)
Number of Hedge Fund Holders: 24
Dividend Yield as of February 15: 1.45%
Elliott Management’s Stake Value: $128,844,000
Citrix Systems, Inc. (NASDAQ:CTXS), an American multinational cloud company, currently pays a quarterly dividend of $0.37 per share.
The number of hedge funds tracked by Insider Monkey having stakes in Citrix Systems, Inc. (NASDAQ:CTXS) increased to 24 in Q3, from 23 in the preceding quarter. The total value of these stakes is over $766.5 million.
This January, Jefferies appreciated the improving fundamentals of Citrix Systems, Inc. (NASDAQ:CTXS) and set a $120 price target on the stock, with a Buy rating on the shares. Elliott Management started building its position in Citrix Systems, Inc. (NASDAQ:CTXS) during the third quarter of 2021, with shares worth over $128.8 million. The company accounted for 0.92% of Paul Singer’s portfolio.
ClearBridge Investments mentioned Citrix Systems, Inc. (NASDAQ:CTXS) in its Q3 2021 investor letter. Here is what the firm has to say:
“When we notice a meaningful slowdown due to growing competitive threats or our thesis has not played out as expected, we remain disciplined in acting. These concerns motivated our sale of Citrix Systems, which is experiencing complications in transitioning its business model to the cloud while a reorganization of its sales force is pushing out financial targets; as well as a small position in technology-driven real estate brokerage Compass.”
9. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 33
Dividend Yield as of February 15: 1.56%
Elliott Management’s Stake Value: $58,933,000
APA Corporation (NASDAQ:APA) is an American holding company that specializes in hydrocarbon exploration. The company was one of the latest acquisitions of Elliott Management in Q3, holding shares worth roughly $60 million. The company represented 0.42% of Paul Singer’s portfolio.
On November 3, 2021, APA Corporation (NASDAQ:APA) announced a quarterly dividend of $0.125 per share, presenting a 100% growth from the previous dividend. This January, Morgan Stanley raised its price target on APA Corporation (NASDAQ:APA) to $41, with an Overweight rating on the shares.
At the end of Q3 2021, 33 hedge funds tracked by Insider Monkey reported owning stakes in APA Corporation (NASDAQ:APA), down from 37 in the previous quarter. The total value of these stakes is over $458.6 million. Harris Associates was the company’s largest shareholder in Q3, holding a stake worth $445.1 million.
Ariel Investments mentioned APA Corporation (NASDAQ:APA) in its Q2 2021 investor letter. Here is what the firm has to say:
“APA Corp. (APA), (formerly Apache Corp.) increased +21.01%, benefitting from strong oil and natural gas markets. Crude oil is up +47% this year. We have lamented about surprisingly low natural gas prices in past letters and are pleased to see them moving higher this year.
Natural gas produces significantly less carbon emissions than either coal or crude oil. Equity investors have been badly burned by underperforming energy companies over the past decade. As a result, we believe they are still underestimating APA’s earning power. We have recently added to our holding.”
8. Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 35
Dividend Yield as of February 15: 2.25%
Elliott Management’s Stake Value: $170,833,000
An American self-storage company, Public Storage (NYSE:PSA) saw an increase in the number of hedge funds having stakes in it. As of Q3 2021, 35 hedge funds tracked by Insider Monkey reported holding stakes in the company, up from 27 in the previous quarter. These stakes hold a consolidated value of over $1.2 billion.
Public Storage (NYSE:PSA) currently pays a quarterly dividend of $2.00 per share, with a dividend yield of 2.25%. The company stopped increasing its dividend in the recent past but has grown the dividends by 8% in the past decade. Moreover, understanding the shareholder obligations, Public Storage (NYSE:PSA) paid over $1.2 billion in dividends in the first nine months of 2021. In January, Truist lifted its price target on Public Storage (NYSE:PSA) to $380, with a Buy rating on the shares. In the same month, Jefferies also upgraded the stock to Buy.
Elliott Management started investing in Public Storage (NYSE:PSA) during the fourth quarter of 2020. In Q3 2021, the company represented 1.22% of Paul Singer’s portfolio as his hedge fund held a stake worth $170.8 million in the company.
7. Marathon Petroleum Corporation (NYSE:MPC)
Number of Hedge Fund Holders: 43
Dividend Yield as of February 15: 2.93%
Elliott Management’s Stake Value: $653,332,000
Marathon Petroleum Corporation (NYSE:MPC) is an American petroleum refining and transportation company. The company currently pays a quarterly dividend of $0.58 per share, with a dividend yield of 2.93%.
In Q3 2021, Marathon Petroleum Corporation (NYSE:MPC) was the sixth-largest holding of Elliott Management. The hedge fund held shares worth over $653.3 million in the company, which represented 4.68% of Paul Singer’s 13F portfolio. In its recent quarterly results, Marathon Petroleum Corporation (NYSE:MPC) presented a 95.9% year-over-year growth in its revenue, which was appreciated by Wall Street analysts. On February 2, both Cowen and Credit Suisse raised their price targets on Marathon Petroleum Corporation (NYSE:MPC) to $90.
According to Insider Monkey’s Q3 data, 43 hedge funds held stakes worth $2.68 billion in Marathon Petroleum Corporation (NYSE:MPC). In comparison, 48 hedge funds owned positions in the company in Q2, with stakes worth $2.6 billion. Along with Elliott Management, D E Shaw was also one of the company’s major shareholders in Q3, with stakes worth over $631 million.
Clark Street Value mentioned Marathon Petroleum Corporation (NYSE:MPC) in its Q4 2021 investor letter. Here is what the firm has to say:
“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later. Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”
6. Principal Financial Group, Inc. (NASDAQ:PFG)
Number of Hedge Fund Holders: 18
Dividend Yield as of February 15: 3.45%
Elliott Management’s Stake Value: $322,000
Principal Financial Group, Inc. (NASDAQ:PFG) is an American insurance company that also provides financial management services to its consumers. In Q3 2021, 18 hedge funds tracked by Insider Monkey held stakes in the company, the same as in the previous quarter. These stakes hold a consolidated value of $146.4 million.
Elliott Management held a minor stake worth $322,000 in Principal Financial Group, Inc. (NASDAQ:PFG) in Q3. The hedge fund did not change its position in the company during the quarter. Principal Financial Group, Inc. (NASDAQ:PFG) currently pays a quarterly dividend of $0.64 per share, up 14% year-over-year.
On February 9, Barclays lifted its price target on Principal Financial Group, Inc. (NASDAQ:PFG) to $86, with an Overweight rating on the shares, following the company’s earnings beat and solid guidance.
In addition to tech stocks like Snap Inc. (NYSE:SNAP), Twitter, Inc. (NYSE:TWTR) and Tesla, Inc. (NASDAQ:TSLA), Singer likes to invest in finance stocks like Principal Financial.
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Disclosure. None. Billionaire Paul Singer’s 10 Dividend Stock Picks is originally published on Insider Monkey.
