In this article, we will take a look at billionaire Steve Cohen’s top dividend stocks. If you want to see more of billionaire Steve Cohen’s top dividend stocks, go directly to Billionaire Steve Cohen’s Top 5 Dividend Stocks.
Billionaire Steve Cohen is the founder of Point72 Asset Management which as of the end of September has a 13F equity portfolio of over $25 billion. Prior to founding Point72 Asset Management, Cohen was the founder of SAC Capital Advisors which generated higher than average returns for two decades.
Due to the success of SAC Capital Advisors and Point72 Asset Management, Steve Cohen is worth around $12.8 billion according to Bloomberg Billionaires Index. Aside from owning stocks, Cohen also owns the New York Mets.
In terms of Point72 Asset Management, the fund has many different strategies including long short equity investing, and systematic investing.
In terms of long/short equity investing, the strategy is Point72’s largest by asset allocation and is a sector-aligned, multi-manager business where teams are empowered to do deep fundamental research and run unique investing processes.
For systematic investing, Point72 Asset Management designs and implements systematic, computer driven trading strategies to buy and sell across multiple asset classes.
Given that Point72 Asset Management has many different investing teams and the fund also uses computer driven trading strategies for part of its fund, Point72 Asset Management has many different positions. For Q3, for example, the fund has over 1,800 positions in different stocks.
2022
Given high inflation, the Federal Reserve has raised interest rates six times in 2022 so far and U.S. Treasury yields have increased substantially as a result.
Given the higher Treasury yields, many dividend stocks have declined year to date as capital has flowed from dividend stocks into Treasuries which in some instances offer higher yields. As a result, some quality blue chip dividend stocks have fairly low valuations that could be attractive if the Federal Reserve eventually wins its war against inflation.
Given the economic uncertainty currently, however, the market could still go lower if economic data fails to meet expectations. As a result, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors.
Steven Cohen of Point72 Asset Management
Methodology
For the Billionaire Steve Cohen’s Top 10 Dividend Stocks list, we took 10 stocks that paid a dividend from billionaire Steve Cohen’s Point72 Asset Management’s top 25 positions according to Q3 2022 13F filings.
We ranked them based on Point72 Asset Management’s stake value in the stocks.
Billionaire Steve Cohen’s Top 10 Dividend Stocks
10. GlaxoSmithKline plc (NYSE:GSK)
Point72 Asset Management’s Stake Value as of 9/30: $136,021,000
Percentage of Point72 Asset Management’s 13F Portfolio as of 9/30: 0.54%
Dividend Yield as of 11/18: 4.96%
GlaxoSmithKline plc (NYSE:GSK) is a leading pharmaceutical giant with a dividend yield of almost 5% as of 11/18. Although shares of GlaxoSmithKline plc (NYSE:GSK) are down almost 27% year to date due to broader market weakness and the Zantac lawsuits, Point72 Asset Management initiated a new stake of over $136 million or 0.54% of the fund’s 13F equity portfolio in GlaxoSmithKline plc (NYSE:GSK) in Q3. With estimated average EPS of $3.12 for 2022, $3.39 for 2023, and $3.64 for 2024, GlaxoSmithKline plc (NYSE:GSK)’s annual dividend of $1.64 per share seems secure if the company meets profit expectations.
Alongside Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS), and AstraZeneca plc (NASDAQ:AZN), GlaxoSmithKline plc (NYSE:GSK) is a top dividend stock in billionaire Steve Cohen’s Point72 Asset Management’s portfolio.
9. Dell Technologies Inc. (NYSE:DELL)
Point72 Asset Management’s Stake Value as of 9/30: $139,308,000
Percentage of Point72 Asset Management’s 13F Portfolio as of 9/30: 0.55%
Dividend Yield as of 11/18: 3.14%
Point72 Asset Management initiated a new stake worth over $139 million at the end of September on leading computer hardware company Dell Technologies Inc. (NYSE:DELL) in Q3 where the price of the stock ranged from around $34 to $49 per share. Given Dell Technologies Inc. (NYSE:DELL)’s current price of $42.04, Point72 Asset Management could either be down or up on its position depending on its average price. In terms of analyst estimates, Jim Suva of Citi recently cut his price target to $55 from $60 per share but kept a ‘Buy’ rating on Dell Technologies Inc. (NYSE:DELL) citing a weakening environment for PC, smartphone and printers given the macroeconomic headwinds.
Given Point72 Asset Management’s position, Dell Technologies Inc. (NYSE:DELL) ranks #9 on our list of Billionaire Steve Cohen’s Top 10 Dividend Stocks.
8. Ross Stores, Inc. (NASDAQ:ROST)
Point72 Asset Management’s Stake Value as of 9/30: $146,784,000
Percentage of Point72 Asset Management’s 13F Portfolio as of 9/30: 0.58%
Dividend Yield as of 11/18: 1.15%
Point72 Asset Management increased its position in Ross Stores, Inc. (NASDAQ:ROST) by 210% in Q3 to end the quarter with a position worth over $146 million in the off-price retail apparel and home fashion chain. Given Ross Stores, Inc. (NASDAQ:ROST)’s surge of almost 10% on November 18 due to stronger than expected Q3 earnings and guidance, the new purchases have been profitable at least in the near term.
Madison Mid Cap Fund commented on Ross Stores, Inc. (NASDAQ:ROST) in a Q3 2022 investor letter,
“Ross Stores is one of our longest-tenured holdings. Its profits have gyrated wildly since the beginning of the pandemic, first from store closures and shutdowns, then from the pent-up demand for apparel, and more recently, from the economic uncertainty. Adding to that, Ross is finding that consumers’ spending trends in terms of mix and categories have been more difficult to predict than usual, resulting in some mismatches between its merchandise assortment and what shoppers want. This doesn’t appear to be a Ross-specific issue, as other apparel retailers have reported similar problems. We attribute this to the unusual post-pandemic environment, and while we don’t have a crystal ball as to when this will normalize, we believe it will.”
7. Juniper Networks, Inc. (NYSE:JNPR)
Point72 Asset Management’s Stake Value as of 9/30: $163,388,000
Percentage of Point72 Asset Management’s 13F Portfolio as of 9/30: 0.65%
Dividend Yield as of 11/18: 2.66%
Billionaire Steve Cohen’s Point72 Asset Management increased its position in Juniper Networks, Inc. (NYSE:JNPR) by 376% in Q3 to end the quarter with a position worth 0.65% of the fund’s 13F equity portfolio. Thanks to the broader market rally, shares of the leading network products and services company have rallied from $26.12 at the end of September to $31.57 on November 18. Juniper Networks, Inc. (NYSE:JNPR) also has a dividend yield of 2.66%. In terms of its preliminary Q3 results, Juniper Networks, Inc. (NYSE:JNPR) earned an adjusted EPS of $0.58 on sales of $1.415 billion versus the estimated $0.50 and $1.35 billion.
Given Point72 Asset Management’s stake, Juniper Networks, Inc. (NYSE:JNPR) ranks #7 on our list of Billionaire Steve Cohen’s Top 10 Dividend Stocks.
6. Oracle Corporation (NASDAQ:ORCL)
Point72 Asset Management’s Stake Value as of 9/30: $183,651,000
Percentage of Point72 Asset Management’s 13F Portfolio as of 9/30: 0.73%
Dividend Yield as of 11/18: 1.61%
Point72 Asset Management more than doubled its position in Oracle Corporation (NASDAQ:ORCL) in the third quarter to end September with a stake value of over $183 million. Although Oracle Corporation (NASDAQ:ORCL) shares are down around 8.6% year to date, Brad Zelnick of Deutsche Bank raised his price target to $120 from $110 and kept a ‘Buy’ rating citing growth prospects from the company’s public cloud. Oracle Corporation (NASDAQ:ORCL) has a dividend yield of 1.61%.
Like Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS), and AstraZeneca plc (NASDAQ:AZN) are among billionaire Steve Cohen’s Point72 Asset Management’s top dividend stocks at the end of Q3 2022.
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Disclosure: None. Billionaire Steve Cohen’s Top 10 Dividend Stocks is originally published on Insider Monkey.
