In this article, we discuss 5 dividend stocks in Jim Simons’ portfolio. If you want to read our detailed analysis of Renaissance Technologies’ returns and overall performance, go directly to read Jim Simons’ Renaissance Technologies Portfolio: 10 Dividend Stock Picks.
5. The Home Depot, Inc. (NYSE:HD)
Dividend Yield as of May 19: 2.64%
Number of Hedge Fund Holders: 68
Renaissance Technologies’ Stake Value: $563,524,000
The Home Depot, Inc. (NYSE:HD) is one of the latest acquisitions of Renaissance Technologies in the first quarter of 2022. The firm initiated its position in the company with shares worth over $563.5 million, which represented 0.66% of Jim Simons’ portfolio.
On February 22, The Home Depot, Inc. (NYSE:HD) announced a 15% increase in its annual dividend to $1.90 per share. The stock’s dividend yield stood at 2.64%, as of May 19. The company has increased its dividend consecutively for the past 14 years. This May, Citigroup set a $327 price target on The Home Depot, Inc. (NYSE:HD), with a Buy rating on the shares.
At the end of Q4 2021, 68 hedge funds tracked by Insider Monkey held positions in The Home Depot, Inc. (NYSE:HD), up from 58 in the previous quarter. The total value of these stakes is over $6.08 billion. Ken Fisher’s Fisher Asset Management was the company’s largest shareholder in Q1 2022, with shares worth over $2.4 billion.
Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:
“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
4. PepsiCo, Inc. (NASDAQ:PEP)
Dividend Yield as of May 19: 2.84%
Number of Hedge Fund Holders: 60
Renaissance Technologies’ Stake Value: $327,838,000
This May, JPMorgan appreciated the performance of PepsiCo, Inc. (NASDAQ:PEP), calling its earnings and guidance ‘impressive’. The firm lifted its price target on the stock to $186, while maintaining an Overweight rating on the shares.
Terry Smith’s Fundsmith LLP was the largest shareholder of PepsiCo, Inc. (NASDAQ:PEP) in Q1 2022, owning shares worth over $1.3 billion. Overall, 60 hedge funds tracked by Insider Monkey held stakes in the company in Q4 2021, down from 61 in the previous quarter. These stakes hold a consolidated value of over $4.64 billion.
On May 3, PepsiCo, Inc. (NASDAQ:PEP) announced a 7% hike in its annual dividend to $1.15 per share, marking the company’s 50th year of consecutive dividend growth. The company has been paying dividends to shareholders consistently since 1965. The stock’s current dividend yield stood at 2.84%, as of the close of May 19. In Q1 2022, Renaissance Technologies increased its stake in PepsiCo, Inc. (NASDAQ:PEP) by 72%.
ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2021 investor letter. Here is what the firm has to say:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year. After a strong year for equities, we sought to bolster more defensive areas of the portfolio and added to PepsiCo, increasing our exposure to a high-quality and stable name.”
3. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of May 19: 2.92%
Number of Hedge Fund Holders: 70
Renaissance Technologies’ Stake Value: $313,234,000
Jim Simons’ Renaissance Technologies started building its position in The Coca-Cola Company (NYSE:KO) during the fourth quarter of 2010. In Q1 2022, the hedge fund held shares worth over $313.2 million in the company, after reducing its position by 49%. The company represented 0.36% of Jim Simons’ portfolio.
The Coca-Cola Company (NYSE:KO) is one of the most famous dividend stocks, increasing dividends for the shareholders for the past 60 years consecutively.
As of the end of Q4 2021, 70 hedge funds tracked by Insider Monkey reported owning stakes in The Coca-Cola Company (NYSE:KO), up from 61 in the previous quarter. The consolidated value of these stakes is over $28.6 billion. Berkshire Hathaway was the major shareholder of this Georgia-based company in Q1 2022, holding stakes worth roughly $24.8 billion.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm has to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
2. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of May 19: 3.01%
Number of Hedge Fund Holders: 80
Renaissance Technologies’ Stake Value: $418,400,000
Merck & Co., Inc. (NYSE:MRK) currently pays a quarterly dividend of $0.69 per share, after raising its annual dividend by 6% in 2021. The company maintains an 11-year track record of consistent dividend growth. As of May 19, the stock’s dividend yield stood at 3.01%.
In Q1 2022, Renaissance Technologies increased its position in the company by 2,672% and held stakes worth $418.4 million. The company represented 0.49% of Jim Simons’ portfolio. Merck & Co., Inc. (NYSE:MRK) is one of the oldest holdings of the hedge fund, as it first invested in the company in 2010. In April, Barclays analyst Carter Gould lifted his price target on the stock to $97, while maintaining an Overweight rating on the shares.
ClearBridge Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter. Here is what the firm has to say:
“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”
1. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of May 19: 3.88%
Number of Hedge Fund Holders: 71
Renaissance Technologies’ Stake Value: $532,273,000
Exxon Mobil Corporation (NYSE:XOM) is a Texas-based natural gas and oil company, also involved in the production and exploration of crude oil and gas. Following its strong Q1 2022 results, Wall Street analysts presented a positive outlook on the company. In May, both Cowen and Credit Suisse lifted their price targets on Exxon Mobil Corporation (NYSE:XOM) to $90 and $102, respectively.
Exxon Mobil Corporation (NYSE:XOM) has been increasing its dividends for the past 39 years at an annual average rate of 6%. In 2021, the company raised its annual dividend by 1% to $0.88 per share. The stock’s dividend yield stood at 3.88%, as of the close of May 19. In Q1 2022, Exxon Mobil Corporation (NYSE:XOM) represented 0.62% of Jim Simons’ portfolio, as its hedge fund increased its position in the company by 3% during the quarter.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
You can also take a look at Billionaire Steve Cohen’s Top 10 Stock Picks and David Einhorn’s Top 10 Stock Picks
