In this article, we discuss the top 5 dividend stock picks of Chuck Royce’s Royce & Associates. If you want to read our detailed analysis of the hedge fund’s past performance and investment strategies, go directly to read the Top 10 Dividend Stock Picks of Chuck Royce’s Royce & Associates.
5. Ares Management Corporation (NYSE:ARES)
Number of Hedge Fund Holders: 29
Dividend Yield as of March 2: 3.08%
Royce & Associates’ Stake Value: $60,283,000
Ares Management Corporation (NYSE:ARES) is an American global asset management company. In Q4 2021, there was a notable surge in the number of hedge funds holding stakes in ARES. According to Insider Monkey’s Q4 data, 29 hedge funds were long Ares Management Corporation (NYSE:ARES) on December 31, up from 22 in the previous quarter. Those stakes were valued at roughly $791 million.
Royce & Associates started investing in Ares Management Corporation (NYSE:ARES) during the fourth quarter of 2018. The hedge fund reduced its position in the company by 10% in Q4 to hold a stake worth over $60.3 million. The position represented 0.45% of Chuck Royce’s 13Fportfolio.
On February 11, Ares Management Corporation (NYSE:ARES) announced a quarterly dividend of $0.61 per share, up 11% from its previous dividend. The stock’s dividend yield, as of March 2, is recorded to be at 3.08%. Ares Management Corporation (NYSE:ARES) has been paying dividends to shareholders consistently for the past seven years.
In the light of the company’s solid Q4 results, BMO Capital raised its price target on Ares Management Corporation (NYSE:ARES) to $97 in February, and has an ‘Outperform’ rating on the shares.
4. MSC Industrial Direct Co., Inc. (NYSE:MSM)
Number of Hedge Fund Holders: 26
Dividend Yield as of March 2: 3.94%
Royce & Associates’ Stake Value: $56,263,000
MSC Industrial Direct Co., Inc. (NYSE:MSM) is an American industrial supplies company. At the end of Q4 2021, Royce & Associates held a stake worth over $56.2 million in the company, after slashing its position by 10%. The holding accounted for 0.42% of the value of Chuck Royce’s portfolio.
MSC Industrial Direct Co., Inc. (NYSE:MSM) has been growing its dividend consistently for the past 18 years and also makes occasional special dividend payments to shareholders. Currently, the company pays a quarterly dividend of $0.75 per share, which yields 3.94%, as of March 2. In December, Baird raised its price target on MSC Industrial Direct Co., Inc. (NYSE:MSM) to $103, with an ‘Outperform’ rating on the shares, praising the company for its consistent performance over the years.
With a stake valued at roughly $105 million, Yacktman Asset Management held the largest position in MSC Industrial Direct Co., Inc. (NYSE:MSM) in Q4 out of the 26 hedge funds tracked by Insider Monkey that were long MSM on December 31, up from 25 in the previous quarter. Those 26 stakes held a value of $424.4 million.
3. Grosvenor Capital Management, L.P. (NASDAQ:GCMG)
Number of Hedge Fund Holders: 26
Dividend Yield as of March 2: 3.97%
Royce & Associates’ Stake Value: $62,516,000
Grosvenor Capital Management, L.P. (NASDAQ:GCMG) is a Chicago-based alternative asset management company. It initiated its dividend policy in 2021 and has hiked its dividend three times since. The company pays a quarterly dividend of $0.10 per share, with a dividend yield of 3.97%, as of March 2.
By the end of Q4 2021, 26 hedge funds tracked by Insider Monkey held stakes in Grosvenor Capital Management, L.P. (NASDAQ:GCMG), valued at $231 million. In comparison, 25 hedge funds held positions in the company with stakes valued at $242.1 million a quarter earlier.
In Q4 2021, Royce & Associates increased its position by 4% in Grosvenor Capital Management, L.P. (NASDAQ:GCMG), building a stake worth over $62.5 million. The holding accounted for 0.46% of Chuck Royce’s portfolio value.
Highlighting the company’s growing return business, UBS initiated its coverage on Grosvenor Capital Management, L.P. (NASDAQ:GCMG) in December with a ‘Neutral’ rating and an $18 price target.
2. Kennedy-Wilson Holdings, Inc. (NYSE:KW)
Number of Hedge Fund Holders: 14
Dividend Yield as of March 2: 4.52%
Royce & Associates’ Stake Value: $129,716,000
An American real estate investment trust, Kennedy-Wilson Holdings, Inc. (NYSE:KW) was the third-largest holding of Royce & Associates in Q4 2021. The hedge fund held shares worth just under $130 million in the company, a holding which represented 0.96% of Chuck Royce’s portfolio value.
The number of hedge funds holding stakes in Kennedy-Wilson Holdings, Inc. (NYSE:KW) grew to 14 in Q4 2021, from 13 in the previous quarter. The consolidated value of those stakes was over $588.4 million. Fairfax Financial Holdings was one of the company’s major shareholders in Q4, owning shares worth over $318 million.
Kennedy-Wilson Holdings, Inc. (NYSE:KW) temporarily stopped increasing its dividends in 2020 due to the Covid-19 pandemic. Before that, the company held a 9-year track record of consistent dividend growth. In 2021, Kennedy-Wilson Holdings, Inc. (NYSE:KW) raised its quarterly dividend by 9% to $0.24 per share, with a dividend yield of 4.52%, as of March 2.
1. The Bank of N.T. Butterfield & Son Limited (NYSE:NTB)
Number of Hedge Fund Holders: 13
Dividend Yield as of March 2: 4.81%
Royce & Associates’ Stake Value: $38,528,000
This February, Piper Sandler praised the deployment strategy of The Bank of N.T. Butterfield & Son Limited (NYSE:NTB), a Bermuda-based bank. The firm lifted its price target on the stock to $47, while maintaining an ‘Outperform’ rating on the shares.
Since 2019, The Bank of N.T. Butterfield & Son Limited’s (NYSE:NTB) dividend has been steady at $0.44 per share. The stock’s dividend yield, as of March 2, stood at 4.81%.
In Q4 2021, Royce & Associates held a stake worth over $38.5 million in The Bank of N.T. Butterfield & Son Limited (NYSE:NTB), which accounted for 0.28% of the hedge fund’s portfolio value. Holdings total positions worth roughly $100 million, 13 hedge funds tracked by Insider Monkey were long The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) at the end of 2021. At the end of the previous quarter, 16 hedge funds held stakes in the company valued at $87.4 million.
You can also take a look at 10 Best Dividend Stocks to Buy According to Billionaire Cliff Asness and 10 Best High Yield Dividend Stocks Under $50
