In this article, we will discuss 10 dividend stocks in Rajiv Jain’s portfolio. You can skip our detailed analysis of GQG Partners’ past performance and recent developments, and go directly to Rajiv Jain’s GQG Partners Portfolio: 5 Dividend Stock Picks.
Rajiv Jain founded GQG Partners, a Florida-based investment management firm, in 2016. In just over five years, the hedge fund has grown tremendously, gaining serious traction first among its investors, and then later among its public shareholders. Before founding GQG Partners, Jain worked at Vontobel Asset Management for 22 years, refining his investment strategies. According to the firm’s official website, GQG currently manages $91 billion in assets and provides financial advisory services to over 800 companies.
In 2021, GQG Partners listed over 20% of its shares on the Australian Stock Exchange (ASX), which are valued at nearly $800 million. The firm’s IPO raised $1.18 billion, and gave it a $5.9 billion market capitalization, according to Financial Review. One of the main reasons for this step is that Australia offers a superannuation scheme, a mandatory retirement saving program which makes it very desirable for investment firms. Along with this, the firm also experimented with its investment strategies during the year, switching its focus to the energy sector and away from tech stocks. According to Jain, even though the tech sector performed remarkably in 2021, it is no longer an area of growth, and the latest trends in the market show signs of late-cycle. This shift proved beneficial for the hedge fund, as its global equity strategy returned 17.13% in 2021.
GQG Partners’ International Equality Dividend Income strategy aims to invest in dividend-paying companies with profitable prospects. In this regard, the hedge fund focuses on large-cap stocks from both emerging and developed markets and considers financial health, management quality, and earnings growth while investing. Dividend stocks made up a sizeable portion of the hedge fund’s Q4 portfolio.
As of Q4 2021, GQG Partners holds a 13F portfolio valued at $40.3 billion, up from $36.5 billion in the previous quarter. The hedge fund had prominent investments in the healthcare, financial, basic materials, and services sectors. Some of the hedge fund’s major holdings in the fourth quarter were Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Johnson & Johnson (NYSE:JNJ).
Our Methodology:
In this article, we discuss the top dividend stocks in Rajiv Jain’s 13F portfolio as of December 31, with the stocks being ranked according to their current dividend yield. To compile this list, we analyzed GQG Partners’ latest 13F filing with the SEC.
Note: All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Rajiv Jain’s GQG Partners Portfolio: 10 Dividend Stock Picks
10. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
GQG Partners’ Stake Value: $1,231,791,000
Dividend Yield as of March 14: 2.43%
The Procter & Gamble Company (NYSE:PG) is an American multinational consumer goods company. It has been increasing its dividend for an impressive 65 years, with a five-year dividend CAGR of 5%. The dividend king currently pays a quarterly dividend of $0.8698 per share, with a dividend yield of 2.43% as of March 14.
The Procter & Gamble Company (NYSE:PG) was one of the latest acquisitions of GQG Partners. The hedge fund started building a position in the company during Q4, amassing shares worth over $1.2 billion by the end of quarter, which accounted for 3.05% of Rajiv Jain’s portfolio. Along with PG, Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Johnson & Johnson (NYSE:JNJ) were some other major blue-chip holdings of the hedge fund.
In January, Morgan Stanley raised its price target on The Procter & Gamble Company (NYSE:PG) to $177, with an ‘Overweight’ rating on the shares, naming the stock as its favorite one in the Household Products category.
By the end of Q4 2021, 67 hedge funds tracked by Insider Monkey held stakes in The Procter & Gamble Company (NYSE:PG), down from 69 in the previous quarter. Those stakes were valued at over $6.6 billion on December 31. Besides GQG Partners, Bridgewater Associates was one of the company’s largest stakeholders in Q4, holding shares worth roughly $849 million.
9. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
GQG Partners’ Stake Value: $12,838,000
Dividend Yield as of March 14: 3.04%
An American multinational beverage corporation, The Coca-Cola Company (NYSE:KO) experienced positive hedge fund sentiment in Q4 2021. 70 hedge funds tracked by Insider Monkey reported owning stakes in the Georgia-based company as of the end of the fourth quarter, up from 61 in the previous quarter. The total value of those 70 stakes was over $28.6 billion.
On February 22, The Coca-Cola Company (NYSE:KO) announced its 60th-consecutive annual dividend increase, to $1.76 per share, with a dividend yield of 3.04%, as recorded on March 14. Given that the company has continued to expand its business model, portfolio, and long-term outlook, Evercore ISI lifted its price target on The Coca-Cola Company (NYSE:KO) to $70 in February, up from $63. The firm maintained an ‘Overweight’ rating on the shares.
GQG Partners started building its position in The Coca-Cola Company (NYSE:KO) during the first quarter of 2018. In Q4 2021, the hedge fund slashed its position in the company by 9%, maintaining a stake worth $12.8 million. The company accounted for 0.03% of Rajiv Jain’s portfolio.
8. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 107
GQG Partners’ Stake Value: $806,728,000
Dividend Yield as of March 14: 3.10%
In Q4 2021, GQG Partners increased its stake in American investment bank JPMorgan Chase & Co. (NYSE:JPM) by 404%. The hedge fund held shares in the company worth over $806.7 million, which represented 2% of Rajiv Jain’s portfolio.
As per Insider Monkey’s Q4 data, the number of hedge funds holding stakes in JPMorgan Chase & Co. (NYSE:JPM) increased to 107 by the end of Q4, up from 101 at the end of Q3. The total value of those 107 stakes was roughly $6.6 billion. With shares worth nearly $1.2 billion, Fisher Asset Management was the most bullish JPM investor among those funds.
In 2021, JPMorgan Chase & Co. (NYSE:JPM) raised its quarterly dividend by 11.1% to $1.00 per share. The stock’s dividend yield, as of March 14, stood at 3.10%. The company holds an 11-year track record of consistent dividend growth. In January, UBS set a $197 price target on JPMorgan Chase & Co. (NYSE:JPM), while maintaining a ‘Buy’ rating on the shares.
Giverny Capital mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm had to say:
“I sold some of our JP Morgan Chase in the fourth quarter, redeploying the proceeds and a bit of available cash into M&T Bank. JP Morgan is the nation’s best giant bank and I am optimistic about its future. GCAM still owns some. But M&T has a multi-decade record of excellent results, a strong balance sheet and conservative loan loss reserves. Importantly, it is extremely sensitive to rising interest rates.
JPMorgan Chase & Co. (NYSE:JPM) generates income from traditional bank lending, but also from trading, investment banking and wealth management. It is the nation’s largest credit card issuer and also does business with about 80% of the Fortune 500. M&T is more oriented to commercial real estate lending and could be a major beneficiary of higher interest rates, as it has a lot of excess cash on its balance sheet and a stable core deposit base. As rates rise, it will have plenty of ability to make loans. Alternatively, M&T could buy back a lot of stock with that surplus cash.”
7. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 80
GQG Partners’ Stake Value: $632,000
Dividend Yield as of March 14: 3.53%
Merck & Co., Inc. (NYSE:MRK), an American pharmaceutical company, is a Dividend Achiever, as the company has been increasing its dividends consistently for the past 11 years. In 2021, the company hiked its quarterly dividend by 6% to $0.69 per share. As of March 14, the stock’s dividend yield stands at 3.53%.
GQG Partners increased its stake in Merck & Co., Inc. (NYSE:MRK) by 54% in the fourth quarter of 2021, giving the fund shares worth $632,000 in the company. Along with presenting a positive outlook on Merck & Co., Inc. (NYSE:MRK) in January, JPMorgan set a $95 price target on the stock, with an ‘Overweight’ rating on the shares.
As of the end of Q4 2021, 80 hedge funds tracked by Insider Monkey reported owning stakes in Merck & Co., Inc. (NYSE:MRK), worth roughly $3.8 billion. In the previous quarter, 77 hedge funds held shares in the New Jersey-based company, valued at $4.5 billion.
Miller Howard Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q3 2021 investor letter. Here is what the firm had to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
6. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 82
GQG Partners’ Stake Value: $5,034,000
Dividend Yield as of March 14: 3.78%
In Q4 2021, Warren Buffett’s Berkshire Hathaway was the largest shareholder of American biopharmaceutical company AbbVie Inc. (NYSE:ABBV), holding shares worth roughly $411 million. Overall, 82 hedge funds tracked by Insider Monkey held $3.74 billion worth of stakes in the company at the end of Q4, up from 81 in the previous quarter.
In 2021, AbbVie Inc. (NYSE:ABBV) increased its quarterly dividend by 9% at $1.41 per share. The stock’s current dividend yield stands at 3.78% as of March 14. Since its inception in 2013, the company has raised its dividend by 250%. In March, Citigroup raised its price target on AbbVie Inc. (NYSE:ABBV) to $170, while maintaining a ‘Buy’ rating on the shares.
In Q4 2021, GQG Partners increased its position in AbbVie Inc. (NYSE:ABBV) by 215%. The hedge fund held a position worth over $5 million in the company, which accounted for 0.01% of Rajiv Jain’s portfolio. Besides AbbVie Inc. (NYSE:ABBV), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Johnson & Johnson (NYSE:JNJ) were among the other important holdings of GQG Partners in Q4 2021.
Miller Howard Investments mentioned AbbVie Inc. (NYSE:ABBV) in its Q3 2021 investor letter. Here is what the firm had to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
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Disclosure. None. Rajiv Jain’s GQG Partners Portfolio: 10 Dividend Stock Picks is originally published on Insider Monkey.
