In this article, we will discuss 5 dividend stocks in Rajiv Jain’s portfolio. To take a look at more stocks and a detailed analysis of GQG Partners’ past performance and recent developments, go directly to Rajiv Jain’s GQG Partners Portfolio: 10 Dividend Stock Picks.
5. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 42
GQG Partners’ Stake Value: $1,132,984,000
Dividend Yield as of March 14: 3.96%
In February, British-Swedish pharmaceutical company AstraZeneca PLC (NASDAQ:AZN), was initiated with a ‘Buy’ rating by Stifel, with a 12,300 GBP price target. The firm predicts the company will be one of the fastest-growing big pharma companies, with a substantially positive growth rate over the next five years. AstraZeneca PLC (NASDAQ:AZN) currently pays a quarterly dividend of $1.97 per share. The stock’s dividend yield, as of March 14, stood at 3.96%.
At the end of Q4 2021, GQG Partners held shares worth over $1.1 billion in AstraZeneca PLC (NASDAQ:AZN) after increasing its position by 6% during the quarter. The company made up 2.8% of Rajiv Jain’s portfolio. By the end of Q4 2021, 42 hedge funds tracked by Insider Monkey held stakes in AstraZeneca PLC (NASDAQ:AZN), up from 41 in the previous quarter. Those stakes were valued at nearly $4 billion.
4. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
GQG Partners’ Stake Value: $1,982,114,000
Dividend Yield as of March 14: 4.15%
GQG Partners first invested in Exxon Mobil Corporation (NYSE:XOM) during the second quarter of 2018 but soon unloaded its investment in the company. In the second quarter of 2021, the hedge fund again started building its position in XOM, buying shares worth roughly $900 million. By the end of Q4 2021, GQG Partners held shares in Exxon Mobil Corporation (NYSE:XOM) valued at $2 billion, which made it the fourth-largest holding of the hedge fund.
Of the 927 elite funds tracked by Insider Monkey which filed 13Fs for the December quarter, 71 of them held stakes in Exxon Mobil Corporation (NYSE:XOM) on December 31, which were collectively valued at $5.3 billion. In comparison, 64 hedge funds held positions in the company in the preceding quarter, with stakes worth over $4.6 billion.
Exxon Mobil Corporation (NYSE:XOM) pays a quarterly dividend of $0.88 per share, with a dividend yield of 4.15%. Over the past 39 years, the company has raised its dividend at an annual average rate of 6%. Appreciating the company’s strong production outlook, Barclays raised its price target on Exxon Mobil Corporation (NYSE:XOM) to $98 on March 9, with an ‘Overweight’ rating on the shares.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here is what the firm had 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.”
3. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 47
GQG Partners’ Stake Value: $1,368,162,000
Dividend Yield as of March 14: 5.63%
Philip Morris International Inc. (NYSE:PM), a Swiss-American tobacco manufacturing company, has been consistently raising its dividend since its inception in 2008. Since then, it has increased its dividend by 171.7%. The company pays a quarterly dividend of $1.25 per share, with a dividend yield of 5.63%, as of March 14. In February, UBS predicted growth in Philip Morris International Inc.’s (NYSE:PM) organic sales, raising its price target on the stock to $110 while maintaining a ‘Neutral’ rating on the shares.
At the end of Q4 2021, 47 hedge funds tracked by Insider Monkey held stakes in Philip Morris International Inc. (NYSE:PM), down from 48 in the preceding quarter. Those stakes held a consolidated value of $6.2 billion as of December 31. Holding PM shares worth nearly $2 billion, Fundsmith LLP was the company’s leading shareholder in Q4 among those funds. In Q4 2021, GQG Partners held shares in Philip Morris International Inc. (NYSE:PM) worth over $1.3 billion, which accounted for 3.39% of Rajiv Jain’s portfolio.
Broyhill Asset Management mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2021 investor letter. Here is what the firm had to say:
“Philip Morris (PM) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 23%. We shared our thoughts on these regulations during the quarter, which are available here.
‘PM Valuation. PM is up ~ 15% YTD and would have the most to gain under a nicotine cap. A cap would likely accelerate conversion to iQOS, which is 100% incremental for PM (PM also has zero exposure to combustible cigarettes in the U.S. and licenses its IQOS product for MO to distribute domestically). As such, the decline in PM was much more muted, with the stock hitting new 52 week highs a day after the Biden headline, driven by yesterday’s earnings release. It didn’t take long for investors to shift their attention back to fundamentals and the fundamentals here are best in class. In short, results beat estimates across the board (a recurring theme here), and management raised guidance for the full year (another recurring theme). IQOS continued to deliver impressive growth, recording continued market share gains on the heels of continued user acquisition growth, up 1.5M to 19.1M total users. Importantly, IQOS now represents nearly 30% of PM net revenues (management expects “smoke-free” products to represent more than half of their business by 2025, which should make the ESG folks happy), which is driving top-line growth and margin expansion. Hard to believe that they have created a product with higher margins than combustible cigarettes!! We expect PM operating margins to increase by 100bps – 200bps annually as IQOS continues to gain share. The stock trades at ~ 15x today or 2/3 of the market’s multiple for a business likely to generate $35B in cash flow – or 25% of the market cap – in just the next three years. Over the last decade, shares have traded at an average multiple of 18x and within a range of ~ 14x – 22x (+/-1 standard deviation). The stock yields 5.1% at the current price, and we expect management to resume share purchases in the back half of this year.’”
2. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 21
GQG Partners’ Stake Value: $380,238,000
Dividend Yield as of March 14: 6.08%
Enbridge Inc. (NYSE:ENB), a Canadian pipeline company, was one of the new holdings of GQG Partners in Q4 2021. The hedge fund started building a position in the company during the quarter, ending the period with over $380 million worth of ENB shares, which constituted 0.94% of Rajiv Jain’s portfolio. By the end of Q4 2021, the number of hedge funds tracked by Insider Monkey holding stakes in Enbridge Inc. (NYSE:ENB) declined to 21, from 24 in the previous quarter. Those stakes held a value of $550.2 million.
In December 2021, Enbridge Inc. (NYSE:ENB) announced a 3% increase in its quarterly dividend to $0.86 per share. The stock’s dividend yield, as of March 14, stood at a solid 6.08%. Enbridge Inc. (NYSE:ENB) has been paying dividends to shareholders for the past 67 years, while maintaining a 27-year track record of consistent dividend growth. Moreover, during the past 27 years, the stock’s dividend CAGR stands at 10%. In February, BMO Capital raised its price target on Enbridge Inc. (NYSE:ENB) to C$59, with an ‘Outperform’ rating on the shares.
ClearBriedge Investments mentioned Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter. Here is what the firm had to say:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
1. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 39
GQG Partners’ Stake Value: $434,956,000
Dividend Yield as of March 14: 7.13%
Altria Group, Inc. (NYSE:MO), a London-based tobacco company, pays a quarterly dividend of $0.90 per share, with a dividend yield of 7.13%, as recorded on March 14. In the past 52 years, the company has raised its dividend 56 times. This January, JPMorgan raised its price target on Altria Group, Inc. (NYSE:MO) to $51, while keeping an ‘Equal Weight’ rating on the shares.
In Q4 2021, GQG Partners increased its position in the company by 47,902%, building a stake worth $435 million. The company represented 1.07% of Rajiv Jain’s portfolio. As of the end of Q4, 39 hedge funds tracked by Insider Monkey reported owning stakes in Altria Group, Inc. (NYSE:MO), down from 45 in the previous quarter. Those stakes held a consolidated value of over $1.05 billion.
Broyhill Asset Management also mentioned Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter. Here is what the firm had to say:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
You can also take a look at 10 Dividend Stocks With the Potential to Grow and 10 Dividend Stocks That Have Doubled Their Payouts
