In this article, we discuss 5 dividend stocks with over 15% yield from Jim Simons’ Renaissance Technologies portfolio. If you want our detailed analysis of these stocks, go directly to Jim Simons’ Renaissance Technologies Portfolio: 10 Dividend Stocks With Over 15% Yield.
5. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Renaissance Technologies’ Stake Value: $118,838,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 22
Dividend Yield as of December 21: 19.43%
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a cargo shipping company that is considered to be one of the top global carriers from Israel. Renaissance Technologies, as of Q3 2021, increased its position in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) by 399%, holding 2.34 million shares, worth $118.8 million, representing 0.15% of the total securities at the hedge fund.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) posted strong Q3 results on November 17. The company announced earnings per share of $12.16, beating estimates by $2.83. Revenue for the quarter totaled $3.14 billion, outperforming estimates by $374.27 million. After the Q3 performance, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stock jumped 10% to $54.93.
One of the leading ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stakeholders from the third quarter is Abrams Bison Investments.
On November 17, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) announced a $2.50 per share interim dividend, payable on December 27. The dividend payout equals roughly 20% of the net quarterly income, and going into 2022, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is expected to distribute 30-50% of the total 2021 net income as dividends.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
4. Enel Chile S.A. (NASDAQ:ENIC)
Renaissance Technologies’ Stake Value: $5,830,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 7
Dividend Yield as of December 21: 22.41%
Enel Chile S.A. (NASDAQ:ENIC), the largest electric utility company in Chile, posted on October 29 its Q3 results. The company reported a loss per share of $0.01, missing estimates by $0.05. The $955.70 million revenue exceeded estimates by $77.12 million.
In the third quarter of 2021, 7 hedge funds reported owning stakes worth $14.5 million in Enel Chile S.A. (NASDAQ:ENIC). One of the leading company stakeholders is Cliff Asness’ AQR Capital Management, with 2.1 million shares worth more than $5 million.
Renaissance Technologies holds 2.41 million Enel Chile S.A. (NASDAQ:ENIC) shares as of September 2021, worth $5.83 million, making the hedge fund the largest stakeholder of Enel Chile S.A. (NASDAQ:ENIC).
On October 15, Morgan Stanley analyst Miguel Rodrigues initiated coverage of Enel Chile S.A. (NASDAQ:ENIC) with an Overweight rating and a CLP 52 price target. According to the analyst, Enel Chile S.A. (NASDAQ:ENIC) is a good “vehicle to play the ESG theme” in Latin America due to its rapid decarbonization process and “increasingly high ESG scores by different rating agencies”.
With a yield of 22.41%, Enel Chile S.A. (NASDAQ:ENIC) is one of the best dividend stocks to buy according to Jim Simons’ fund as of the third quarter.
3. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Renaissance Technologies’ Stake Value: $1,932,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 21
Dividend Yield as of December 21: 24.51%
Star Bulk Carriers Corp. (NASDAQ:SBLK) offers a high yield of 24.51%, making it a top dividend stock in Jim Simons’ Renaissance Technologies’ portfolio. Star Bulk Carriers Corp. (NASDAQ:SBLK) is a Greece-based shipping company that transports iron ore, coal, grain, bauxite, fertilizers, and steel products via a fleet of dry bulk carrier vessels.
In the third quarter of 2021, Renaissance Technologies held 80,366 shares of Star Bulk Carriers Corp. (NASDAQ:SBLK), worth $1.93 million. The largest Star Bulk Carriers Corp. (NASDAQ:SBLK) stakeholder is Howard Marks’ Oaktree Capital Management, with almost 26 million shares worth $624.8 million.
Publishing its third quarter results on November 16, Star Bulk Carriers Corp. (NASDAQ:SBLK) posted an EPS of $2.19, beating estimates by $0.05. Revenue over the period jumped 126.61% year-over-year to $354.84 million, outperforming estimates by $14.59 million.
Here is what Massif Capital has to say about Star Bulk Carriers Corp. (NASDAQ:SBLK) in its Q3 2021 investor letter:
“We initiated one long position, one short position and exited one position during the third quarter. Our new long position was in Star Bulk Carriers (SBLK), a pure-play dry bulk operator with roughly 120 controlled vessels and 14 million tons of combined cargo capacity globally.
SBLK has one of the better management teams in the maritime shipping industry and the lowest cost structure among all dry bulk names. After announcing their new dividend policy in May, SBLK now has one of the best payout structures in shipping. The firm has paid out $0.3 and $0.7 per share in dividends for the first and second quarters of 2021. SBLK will most likely announce a dividend for the third quarter somewhere in the $1.15-$1.25 per share range, depending on movement in net working capital.
We believe the best way to look at this business is through cash generation potential and how much is returned to investors. The current equity valuation does not reflect current rates for shipping (earnings), partly because of the velocity of the move in rates and because shipping cycles turn, and it’s not clear whether this is a local top or the early innings of a multi-year cycle. Our belief is the latter. Part of our catalyst is the market re-rating the stock higher once the length of the increased earnings power becomes understood. It is a relatively strong catalyst in the sense that with a strong dividend policy, we can be patient for the market to underwrite this story as the cash is either returned to us via a high dividend yield if the market is either slow or chooses not to join our side of the trade.
Our estimates suggest a time-charter equivalent rate (net profit or loss of operating a vessel daily) of at least $30,000 for SBLK in Q4, with the firm earning a potential annual average of $26,000. Our base case is that this is a strong floor going into next year, with little need to articulate much more upside. If rates hold, which we expect them to do, we could see a 20+% annual dividend next year for SBLK. If the market priced the equity such that the dividend yield was 8%, that implies a $62 stock. Today our base case target for the firm is $37 per share. This is likely conservative as we know that third-quarter rates are higher than the second quarter, and third-quarter dividends will most likely reflect that. We are cautious about diving too deep into the sensitivities to the upside with this position as we are arriving at some pretty remunerative torque using current contracted values and seemingly conservative forecasts…” (Click here to see the full text)
2. Companhia Paranaense de Energia – COPEL (NYSE:ELP)
Renaissance Technologies’ Stake Value: $649,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 7
Dividend Yield as of December 21: 25.53%
Companhia Paranaense de Energia – COPEL (NYSE:ELP), a Brazilian electric utility company, posted its Q3 results on November 11. The company reported earnings per share of $0.04, missing estimates by $0.86. Revenue for the period totaled $1.29 billion, exceeding estimates by $487 million.
Jim Simons’ fund holds 99,376 shares of Companhia Paranaense de Energia – COPEL (NYSE:ELP), worth $649,000 as of September. Overall, 7 hedge funds in the Q3 database of Insider Monkey were long Companhia Paranaense de Energia – COPEL (NYSE:ELP), down from 13 funds in the preceding quarter.
Billionaire Israel Englander’s Millennium Management is the largest Companhia Paranaense de Energia – COPEL (NYSE:ELP) stakeholder from the third quarter, holding a $20.3 million position in the company.
1. Golden Ocean Group Limited (NASDAQ:GOGL)
Renaissance Technologies’ Stake Value: $15,374,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 13
Dividend Yield as of December 21: 40.72%
Golden Ocean Group Limited (NASDAQ:GOGL) is the highest yielding dividend stock from Jim Simons’ Renaissance Technologies’ portfolio, offering a yield of 40.72%. As of Q3 2021, Renaissance Technologies owns 1.42 million Golden Ocean Group Limited (NASDAQ:GOGL) shares, worth $15.37 million, representing 0.01% of the fund’s total investments.
On December 7, Golden Ocean Group Limited (NASDAQ:GOGL) declared a quarterly dividend of $0.85 per share, which reflects a 70% increase from the prior dividend of $0.50. The dividend was paid on December 16.
In the third quarter earnings report published on November 24, Golden Ocean Group Limited (NASDAQ:GOGL) posted earnings per share of $0.92, beating estimates by $0.27.
Of the 13 hedge funds that were bullish on Golden Ocean Group Limited (NASDAQ:GOGL) as of September 2021, Arrowstreet Capital is the leading stakeholder of the company, with 4.30 million shares worth $45.8 million.
You can also take a look at 10 Best High Dividend Stocks in Canada for 2022 and 10 Financial Stocks to Buy According to Ken Griffin’s Citadel Investment Group.
