In this article, we discuss top 10 dividend stocks favored by Carolina Panthers owner David Tepper. You can skip our detailed analysis of Tepper’s investment strategy and his hedge fund’s performance, and go directly to read Top 5 Dividend Stocks Favored by David Tepper.
An American billionaire investor, David Tepper also owns National Football League’s team, Carolina Panthers. Tepper bought the professional football team in 2018 in a deal worth $2.3 billion, after partnering with the Pittsburgh Steelers ownership group for nine years. As of February 2023, the billionaire’s real-time net worth is $18.5 billion.
Tepper was a former Goldman Sachs trader and founded his own hedge fund, Appaloosa Management LP, in 1993. His main hedge fund delivered an annual average return of 25% from 1993 to 2019, according to Forbes. Tepper’s investment philosophy revolves around investing in distressed debt and converting it into equity ownership. Through this strategy, he earned billions for his fund by buying shares of distressed banks during the financial crisis of 2008.
At the end of 2022, Tepper expressed his concerns regarding Federal Reserve’s tightening monetary policies last year. In his December interview with Barron’s, Tepper said that he’s betting against the market as central banks are expected to keep rates ‘high for a while’.
As of the close of Q4 2022, David Tepper’s Appaloosa Management LP had a 13F portfolio valued at over $1.3 billion. Technology, services, basic material, and healthcare were some of the major sectors that the hedge fund invested in. Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META) were the firm’s most prominent holdings. However, we will discuss top dividend stocks in David Tepper’s portfolio.
Our Methodology:
For this list, we selected dividend stocks in David Tepper’s portfolio, as of Q4 2022. The stocks are ranked according to their stake value in Appaloosa Management LP.
Top 10 Dividend Stocks Favored by Carolina Panthers Owner David Tepper
10. MPLX LP (NYSE:MPLX)
Appaloosa Management LP’s Stake Value: $6,315,953
Dividend Yield as of February 23: 8.92%
MPLX LP (NYSE:MPLX) is an American diversified MLP that owns and operates midstream energy infrastructure and logistics assets. The company currently pays a quarterly dividend of $0.775 per share and has a dividend yield of 8.92%, as of February 23. It maintains an eight-year streak of consistent dividend growth. The company is among the top dividend stocks favored by David Tepper.
Appaloosa Management LP started building its position in MPLX LP (NYSE:MPLX) during the fourth quarter of 2020, with shares worth over $23.6 million. During Q4 2022, the hedge fund owned 192,325 shares in the company, valued at over $6.3 million. The company represented 0.46% of the firm’s 13F portfolio. Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META) were some other prominent holdings of the firm.
In September, Wolfe Research upgraded MPLX LP (NYSE:MPLX) to Outperform with a $36 price target. The firm mentioned that the company has a highly stable business and a top-tier balance sheet.
At the end of Q4 2022, 7 hedge funds tracked by Insider Monkey reported owning stakes in MPLX LP (NYSE:MPLX), up from 6 in the previous quarter. The collective value of these stakes is over $33 million. Heronetta Management was one of the company’s leading stakeholders in Q4.
9. Sysco Corporation (NYSE:SYY)
Appaloosa Management LP’s Stake Value: $11,467,500
Dividend Yield as of February 23: 2.53%
Sysco Corporation (NYSE:SYY) is a Texas-based wholesale company that is involved in the distribution of marketing of a wide range of consumer and healthcare goods. In fiscal Q2 2023, the company reported revenue of $18.6 billion, which showed a 14% growth from the same period last year. During the first 26 weeks of fiscal 2023, it returned roughly $500 million to shareholders in dividends.
Sysco Corporation (NYSE:SYY), one of the top dividend stocks favored by David Tepper, offers a quarterly dividend of $0.49 per share and has a dividend yield of 2.53%, as of February 23. The company has been raising its payouts consistently for the past 53 years.
During the fourth quarter of 2022, Appaloosa Management LP reduced its stake in Sysco Corporation (NYSE:SYY) by 25%, which took its total SYY stake to over $11.4 million. The company represented 0.85% of the firm’s 13F portfolio.
In February, BMO Capital maintained an Outperform rating on Sysco Corporation (NYSE:SYY) with a $90 price target, following the company’s recent quarterly earnings.
As per Insider Monkey’s Q4 2022 database, 41 hedge funds owned investments in Sysco Corporation (NYSE:SYY), up from 40 a quarter earlier. The collective value of these investments is over $728.5 million. With over 1.5 million shares, D E Shaw was the company’s leading stakeholder.
8. Chesapeake Energy Corporation (NASDAQ:CHK)
Appaloosa Management LP’s Stake Value: $23,880,800
Dividend Yield as of February 23: 12.70%
Chesapeake Energy Corporation (NASDAQ:CHK) is an American energy company that specializes in the exploration and production of natural resources. The company currently offers a quarterly dividend of $3.16 per share, having raised it by 36.2% in November 2022. The stock’s dividend yield on February 23 came in at 12.70%.
During the fourth quarter of 2022, Appaloosa Management LP raised its position in Chesapeake Energy Corporation (NASDAQ:CHK) by a whopping 182%. The firm’s total stake in the company amounted to over $23.8 million, which represented 1.77% of its 13F portfolio.
Citigroup initiated its coverage on Chesapeake Energy Corporation (NASDAQ:CHK) in February with a Neutral rating and a $90 price target. The firm mentioned that the company is ‘well-positioned’ to maintain adequate cash flow through this year.
At the end of December 2022, 58 hedge funds tracked by Insider Monkey reported owning stakes in Chesapeake Energy Corporation (NASDAQ:CHK), valued at over $3 billion collectively. Orbis Investment Management owned the largest stake in the company, worth $303 million.
Scout Investments mentioned Chesapeake Energy Corporation (NASDAQ:CHK) in its Q3 2022 investor letter. Here is what the firm has to say:
“Chesapeake Energy Corporation (NASDAQ:CHK), a natural gas exploration and production company, emerged from bankruptcy with little fanfare in 2021, despite having rid itself of its debt burden and onerous pipeline contracts. The company was able to make two large acquisitions at very reasonable prices within its core producing areas, allowing for scale and cost savings. Then in 2022, natural gas prices began to rise well above expectations, increasing the value of Chesapeake’s large natural gas resources and production and contributing to its outperformance.”
7. HCA Healthcare, Inc. (NYSE:HCA)
Appaloosa Management LP’s Stake Value: $43,792,700
Dividend Yield as of February 23: 0.94%
HCA Healthcare, Inc. (NYSE:HCA) is an American healthcare company that provides related facilities and services to its consumers. During the fourth quarter of 2022, Appaloosa Management LP boosted its stake in the company by 144%. The hedge fund currently owns 182,500 HCA shares, worth nearly $43.8 million. The company accounted for 3.24% of the firm’s 13F portfolio.
HCA Healthcare, Inc. (NYSE:HCA) currently pays a quarterly dividend of $0.56 per share, with a dividend yield of 0.94%, as of February 23. The company has been raising its dividends consistently for over five years and is among the top dividend stocks favored by David Tepper.
In February, Argus raised its price target on HCA Healthcare, Inc. (NYSE:HCA) to $285 with a Buy rating on the shares, presenting a positive stance on the company’s performance.
As of the close of Q4 2022, 64 hedge funds tracked by Insider Monkey reported owning stakes in HCA Healthcare, Inc. (NYSE:HCA), the same as in the previous quarter. The collective value of these stakes is over $2.5 billion.
Diamond Hill Capital mentioned HCA Healthcare, Inc. (NYSE:HCA) in its Q4 2022 investor letter. Here is what the firm has to say:
“HCA Healthcare, Inc. (NYSE:HCA)’s stock price continued to advance in Q4 following a difficult first half of 2022. Fortunately, we did not own shares until the end of Q2. Two major factors that are top of mind for investors right now are volumes and labor constraints, both of which continue to normalize albeit at a relatively slow pace. We remain favorable on the longterm fundamentals of the business and the opportunity for HCA to reinvest the large amounts of cash it generates at attractive returns. That said, the discount to our intrinsic value estimate has narrowed significantly following robust returns in the second half of the year.”
6. Microsoft Corporation (NASDAQ:MSFT)
Appaloosa Management LP’s Stake Value: $56,357,700
Dividend Yield as of February 23: 1.08%
An American tech giant, Microsoft Corporation (NASDAQ:MSFT) is another top dividend stock favored by David Tepper. The company offers a quarterly dividend of $0.68 per share for a dividend yield of 1.08%, as of February 23. It has been rewarding shareholders with growing payouts for the past 16 years.
At the end of Q4 2022, Appaloosa Management LP owned 235,000 shares in Microsoft Corporation (NASDAQ:MSFT), worth over $56.3 million. The company represented 4.18% of the firm’s 13F portfolio. Along with MSFT, Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META) are some other prominent holdings of the hedge fund.
At the end of Q4 2022, 259 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), down from 269 in the previous quarter. These stakes have a total value of over $58.6 billion. Ken Griffin and Terry Smith were some of the company’s leading stakeholders in Q4.
Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter. Here is what the firm has to say:
“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”
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Disclosure. None. Top 10 Dividend Stocks Favored by Carolina Panthers Owner David Tepper is originally published on Insider Monkey.