JPMorgan’s Dividend Stocks for 2016, Part 3

Goldcorp Inc. (USA) (NYSE:GG)

– Number of Hedge Fund Holders (as of September 30): 29

– Total Value of Holdings (as of September 30): $871.28 million

– Hedge Fund Holdings as Percent of Float (as of September 30): 8.40%

The decline in prices of gold this year has taken a toll on Goldcorp Inc. (USA) (NYSE:GG)’s stock. Moreover, the delay in the completion of the company’s two new mines recently has also added to the pressure and caused Goldcorp Inc. (USA) (NYSE:GG)’s stock to now trade down more than 36% year-to-date. But despite all this, the number of funds covered by us that were long in the company increased by five and the aggregate value of their holdings increased by $23 million during the third quarter. Analysts at JP Morgan highlighted that even though the company has significantly reduced its monthly dividend payout to $0.02 per share, it still provides one of the highest and best supported annual dividend yield among gold stocks covered by them. Jonathon Jacobson‘s Highfields Capital Management initiated a huge stake in Goldcorp during the third quarter by purchasing 2.5 million shares.

Honeywell International Inc. (NYSE:HON)

– Number of Hedge Fund Holders (as of September 30): 46

– Total Value of Holdings (as of September 30): $1.29 billion

– Hedge Fund Holdings as Percent of Float (as of September 30): 1.70%

Moving on, the headwinds faced by Honeywell International Inc. (NYSE:HON) and the average fundamentals of the company has kept its stock range bound this year. Analysts at JP Morgan acknowledged this in their note, but believe that the company will continue to outperform its peers in profit growth next year due to improvement in cost and margins as well as high business quality. Moreover, they also believe that the stock deserves to trade at a premium currently if one takes into account that 2017 will be an ‘inflection’ year for its revenues and the addition of Elster Division of Melrose Industries plc will help in increasing the overall growth of the company. Honeywell International has an outstanding history of consistent dividend payout  in the last 28 years and currently boasts of an annual dividend yield of  2.28%. Robert Polak‘s Anchor Bolt Capital more than doubled its stake in Honeywell International to over 1.26 million shares during the third quarter.

Interpublic Group of Companies Inc (NYSE:IPG)

– Number of Hedge Fund Holders (as of September 30): 36

– Total Value of Holdings (as of September 30): $2.10 billion

– Hedge Fund Holdings as Percent of Float (as of September 30): 26.80%

The significant rise that Interpublic Group of Companies Inc (NYSE:IPG)’s shares have had in the fourth quarter has pushed its year-to-date gains to 12.13%. Even after this significant rise, the advertising major boasts of an attractive annual dividend yield of over 2%. This perhaps explains why analysts at JP Morgan find Interpublic Group of Companies Inc (NYSE:IPG) the best income stock in the media universe. Though they acknowledge that owing to the industry it operates in its results can be volatile, citing the company’s record new business win backlog in 2015 they feel that the company will be able to deliver on its promise of double digit EPS growth in 2016 and the growth in its organic revenues will continue. The number of funds covered by us that were long in the company declined by five during the third quarter, but the aggregate value of hedge funds’ holdings in it increased by $94 million during the same time. Ken Griffin‘s Citadel Investment Group initiated  a stake in Interpublic Group of Companies during the third quarter purchasing over 5.5 million shares of the company.

Disclosure: None