In this article, we discuss 10 dividend stocks in Clint Carlson’s portfolio. You can skip our detailed analysis of Carlson Capital’s past performance and Carlson’s investment strategies, and go directly to read Clint Carlson’s Carlson Capital Portfolio: 5 Dividend Stock Picks.
Clint Carlson’s Carlson Capital reported above-average returns in 2021, gaining 13.3%, compared with an average hedge fund return of 10% during the year. The hedge fund now manages $1.5 billion in assets.
Clint Carlson founded Carlson Capital in 1993 with the sole objective of following a multi-strategy approach to investing. Before founding Carlson Capital, Mr. Carlson worked as the head of risk arbitrage at Bass Brothers and also co-managed the risk arbitrage fund at Maxxam Group and affiliate companies from 1985 to 1988. He is currently serving as the President and the Chief Investment Officer of the hedge fund. The fund sustained its performance since its inception, returning 39% in 2010 with a $1 billion bet on distressed mortgage bonds, as reported by Wall Street Journal. The firm’s Black Diamond Arbitrage Fund follows one of the multidimensional approaches of the hedge fund and invests in merger opportunities. In 2021, it returned 8.4% to shareholders, with over $666 million in assets. Despite the challenges faced by the hedge fund, it reported a good start in 2022, as its flagship fund, Double Black Diamond, returned 3.94% in April, with $600 million in assets.
As of Q1 2022, Carlson Capital holds a 13F portfolio valued at over $1.47 billion, down from $1.73 billion in the previous quarter. The hedge fund made major investments in technology, finance, services, and basic material sectors. Some of the hedge fund’s major holdings include Bank of America Corporation (NYSE:BAC), Morgan Stanley (NYSE:MS), and Dell Technologies Inc. (NYSE:DELL).
Clint Carlson of Carlson Capital
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In this article, we discuss the best dividend stocks in Clint Carlson’s portfolio. The data used in this list has been derived from Carlson Capital’s 13F portfolio, as of Q1 2022.
Clint Carlson’s Carlson Capital Portfolio: 10 Dividend Stock Picks
10. Cerner Corporation (NASDAQ:CERN)
Number of Hedge Fund Holders: 64
Dividend Yield as of May 29: 1.14%
Carlson Capital’s Stake Value: $77,187,000
Cerner Corporation (NASDAQ:CERN) is an American technology company that supplies health information technology services, devices, and hardware to consumers. The company’s products are used in over 27,000 facilities around the world. In Q1 2022, the company posted an EPS of $0.89, which beat the analysts’ expectations by $0.02. However, its revenue of $1.43 billion missed estimates by $40 million.
Carlson Capital initiated its position in Cerner Corporation (NASDAQ:CERN) during the fourth quarter of 2021, with shares worth over $44 million. At the end of Q1 2022, the hedge fund owned shares worth over $77 million in the company, buying additional 350,000 shares during the quarter. Cerner Corporation (NASDAQ:CERN) was the second-largest holding of Carlson Capital and represented 5.28% of its 13F portfolio.
In December 2021, Cerner Corporation (NASDAQ:CERN) increased its quarterly dividend by 23% to $0.27 per share. The stock’s dividend yield, as of May 29, stood at 1.14%. The company initiated a dividend in 2019 and has raised it twice since. Unlike major stocks such as Bank of America Corporation (NYSE:BAC), Morgan Stanley (NYSE:MS), and Dell Technologies Inc. (NYSE:DELL), Cerner Corporation (NASDAQ:CERN)’s performance has been stable, returning 2.8% in 2022 so far.
At the end of March 31, 64 hedge funds tracked by Insider Monkey reported owning stakes in Cerner Corporation (NASDAQ:CERN), up from 61 in the previous quarter. These stakes hold a consolidated value of over $4 billion, showing considerable growth from $2.9 billion worth of stakes held by hedge funds in Q4 2021.
9. Wintrust Financial Corporation (NYSE:WTFC)
Number of Hedge Fund Holders: 28
Dividend Yield as of May 29: 1.55%
Carlson Capital’s Stake Value: $17,638,000
Wintrust Financial Corporation (NYSE:WTFC), an American financial holding company, was the latest addition to Carlson Capital’s portfolio. The hedge fund started building its position in the company with 189,800 shares, valued at over $17.6 million. The company accounted for 1.2% of Clint Carlson’s portfolio.
Insider Monkey’s Q1 2022 database shows that Carlson Capital isn’t the only hedge fund that initiated its position in Wintrust Financial Corporation (NYSE:WTFC), as the number of hedge funds owning stakes in the company grew to 28, from 24 in the previous quarter. These stakes hold a consolidated value of over $314.5 million. Fisher Asset Management was the largest shareholder of the Illinois-based company in Q1 2022, with shares worth over $60.4 million.
Wintrust Financial Corporation (NYSE:WTFC) currently pays a quarterly dividend of $0.34 per share, having raised it by 9.7% in January this year. The stock’s dividend yield was recorded at 1.55% on May 29.
This April, UBS lifted its price target on Wintrust Financial Corporation (NYSE:WTFC) to $95, with a Neutral rating on the shares, as the company reported a 9% loan growth in its first-quarter results.
8. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 47
Dividend Yield as of May 29: 1.83%
Carlson Capital’s Stake Value: $9,020,000
Diamondback Energy, Inc. (NASDAQ:FANG) is an American energy company that specializes in the exploration of hydrocarbon. The company is also focused on the acquisition and development of oil and natural gas reserves.
In May, Diamondback Energy, Inc. (NASDAQ:FANG) announced a 16.7% hike in its quarterly dividend to $0.70 per share. The stock’s dividend yield stood at 1.83%, as of the close of May 28. Along with this, the company also declared a variable cash dividend of $2.35 per share for the first quarter of 2022.
In Q1 2022, Diamondback Energy, Inc. (NASDAQ:FANG) posted revenue of $2.41 billion, reflecting a 104% year-over-year growth. The company’s Q1 results have the analysts confident about its cash returns in 2022 and considering this, in May, Barclays upgraded Diamondback Energy, Inc. (NASDAQ:FANG) to Overweight, while lifting the stock’s price target to $162. At the end of Q1 2022, Carlson Capital owned a stake worth over $9 million in Diamondback Energy, Inc. (NASDAQ:FANG), which represented 0.61% of Clint Carlson’s portfolio.
At the end of Q1 2022, 47 hedge funds tracked by Insider Monkey reported owning stakes in Diamondback Energy, Inc. (NASDAQ:FANG), up from 45 in the previous quarter. These stakes hold a consolidated value of over $887 million, compared with a $572.4 million worth of stake held by hedge funds in Q4 2021.
Miller Value Partners mentioned Diamondback Energy, Inc. (NASDAQ:FANG) in its Q4 2021 investor letter. Here is what the firm has to say:
“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
7. Brunswick Corporation (NYSE:BC)
Number of Hedge Fund Holders: 37
Dividend Yield as of May 29: 1.83%
Carlson Capital’s Stake Value: $8,760,000
Brunswick Corporation (NYSE:BC) is an American company that manufactures and develops a wide range of products, especially in the marine industry. In Q1 2022, the company reported solid results, posting an EPS of $2.53, which beat the market estimates by $0.20. The company’s revenue of $1.7 billion presented a 19% growth from the same period last year.
Carlson Capital initiated its position in Brunswick Corporation (NYSE:BC) during Q1 2022, with shares worth over $8.7 million. The company accounted for 0.59% of Clint Carlson’s portfolio. In April, Raymond James lifted its price target on Brunswick Corporation (NYSE:BC) to $123, with an Outperform rating on the shares, highlighting the company’s solid quarterly earnings.
In February, Brunswick Corporation (NYSE:BC) announced a 9% growth in its quarterly dividend to $0.365 per share. This was the company’s tenth consecutive year of dividend growth. As of May 29, the stock’s dividend yield stood at 1.83%.
The number of hedge funds tracked by Insider Monkey holding positions in Brunswick Corporation (NYSE:BC) declined to 37 in Q1 2022, from 42 in the previous quarter. These stakes hold a consolidated value of over $1.1 billion. Among these hedge funds, Cantillon Capital Management was the company’s largest stakeholder, owning shares worth roughly $333.5 million.
6. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 93
Dividend Yield as of May 29: 2.18%
Carlson Capital’s Stake Value: $24,565,000
Carlson Capital resumed building its position in Wells Fargo & Company (NYSE:WFC) during the fourth quarter of 2021, after dumping off its entire stake in the company a quarter earlier. At the end of Q1 2022, the hedge fund owned over half a million shares in Wells Fargo & Company (NYSE:WFC), valued at over $24.5 million.
In April, Barclays raised its price target on Wells Fargo & Company (NYSE:WFC) to $64, with an Overweight rating on the shares as the company raised its loan growth and net interest income outlook for 2022. In January, Wells Fargo & Company (NYSE:WFC) announced a 25% hike in its quarterly dividend to $0.25 per share. The stock’s dividend yield, as of May 29, stood at 2.18%.
Like Bank of America Corporation (NYSE:BAC) and Morgan Stanley (NYSE:MS), Wells Fargo & Company (NYSE:WFC) is a notable stock gaining investors’ attention these days.
At the end of March 31, 93 hedge funds in Insider Monkey’s database held stakes in Wells Fargo & Company (NYSE:WFC), valued at over $6.8 billion. In comparison, 94 hedge funds held stakes in the company in the previous quarter, worth over $6.1 billion. Theleme Partners owned the largest stake in the company in Q1 2022, worth over $884.7 million.
Davis Funds mentioned Wells Fargo & Company (NYSE:WFC) in its Q4 2021 investor letter. Here is what the firm has to say:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”
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Disclosure. None. Clint Carlson’s Carlson Capital Portfolio: 10 Dividend Stock Picks is originally published on Insider Monkey.
