In this article, we discuss 5 dividend stocks to buy according to James Katz’s Humankind Investments. If you want to read our detailed analysis of the hedge fund’s past performance and latest developments, go directly to read Top 10 Dividend Stocks to Buy According to James Katz’s Humankind Investments.
5. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of June 28: 2.54%
Humankind Investments’ Stake Value: $2,424,000
Johnson & Johnson (NYSE:JNJ) is one of the oldest multinational corporations that specialize in pharmaceuticals, medical devices, and consumer products. The company’s Janssen unit recently announced that its Tremfya drug has shown improvement in many symptoms of psoriatic arthritis over two years. The patients saw improvement in disease severity, with low rates of radiographic progression.
On April 19, Johnson & Johnson (NYSE:JNJ) announced a 6.6% hike in its quarterly dividend to $1.13 per share. The company has been raising its dividend consistently for the past 60 years. Moreover, from 2017 to 2021, it generated $59.6 billion in free cash flow and paid $49.9 billion in dividends. The stock’s dividend yield was recorded at 2.54% on June 28.
Humankind Investments initiated its position in Johnson & Johnson (NYSE:JNJ) during the fourth quarter of 2020, purchasing shares worth $308,000. At the end of Q1 2022, the hedge fund owned 13,678 shares in the company, worth $2.4 million. The company represented 0.99% of James Katz’s portfolio. In June, Daiwa initiated its coverage of Johnson & Johnson (NYSE:JNJ) with an Outperform rating and a $180 price target.
At the end of Q1, Arrowstreet Capital was the largest shareholder of Johnson & Johnson (NYSE:JNJ), owning stakes worth over $1.1 billion. Overall, 83 hedge funds tracked by Insider Monkey reported holding positions in the company, the same as in the previous quarter. The collective value of these stakes is over $7.4 billion.
Distillate Capital, an investment firm, discussed Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the fund said:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
4. Bunge Limited (NYSE:BG)
Dividend Yield as of June 28: 2.74%
Humankind Investments’ Stake Value: $2,530,000
Bunge Limited (NYSE:BG) is a Missouri-based food company that specializes in fertilizers, edible oil, and wheat products.
At the end of Q1 2022, Humankind Investments owned 22,834 shares in Bunge Limited (NYSE:BG), valued at over $2.5 million. The hedge fund sold over 400 BG shares, trimming its position by 1%. The company represented 1.03% of James Katz’s portfolio.
Bunge Limited (NYSE:BG) froze its quarterly payout at $0.50 per share from 2018 to 2020, however, the company has raised its dividend twice since then. On May 12, the company announced a 19% growth in its quarterly dividend at $0.625 per share. In Q1, it paid $82 million in dividends to shareholders, up from $79 million paid during the same period last year. The stock’s dividend yield was recorded at 2.74% on June 28.
Old West Investment Management mentioned Bunge Limited (NYSE:BG) in its Q1 2022 investor letter. Here is what the firm has to say:
“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)
3. Corteva, Inc. (NYSE:CTVA)
Dividend Yield as of June 28: 1.03%
Humankind Investments’ Stake Value: $4,201,000
Corteva, Inc. (NYSE:CTVA) is an American agricultural chemical company that produces pesticides, bio-fertilizers, hybrid corn seeds, and other related products.
Though Corteva, Inc. (NYSE:CTVA) started paying dividends in 2019, the company’s consistent payouts and dividend growth have analysts optimistic about the company’s financial health. Since 2019, the company has raised its dividend twice and its current dividend stands at $0.14 per share. As of June 28, the stock’s dividend yield was 1.03%. In June, Barclays presented a positive outlook on the fertilizer industry and initiated its coverage on Corteva, Inc. (NYSE:CTVA) with an Overweight rating and a $71 price target.
Aristotle Capital Management mentioned Corteva, Inc. (NYSE:CTVA) in its Q1 2022 investor letter. Here is what the firm has to say:
“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of June 28: 5.05%
Humankind Investments’ Stake Value: $4,324,000
Humankind Investments made its first purchase in Verizon Communications Inc. (NYSE:VZ) during the first quarter of 2021, worth over $2.1 million. After a year, the hedge fund owned 84,886 VZ shares, valued at $4.3 million. The company accounted for 1.76% of James Katz’s portfolio.
Verizon Communications Inc. (NYSE:VZ) currently offers a quarterly dividend of $0.64 per share. The company maintains a 14-year streak of consistent dividend growth. From 2017 to 2021, the company generated $63.2 billion in free cash flow and paid $48.8 billion in dividends. The stock’s dividend yield came in at 5.05%, as of June 28. Moreover, in May, Morgan Stanley picked Verizon Communications Inc. (NYSE:VZ) as one of its top picks for high dividend growth, with an estimated yield of 5.3% in 2022.
As of the quarter ended in March 2022, 69 hedge funds tracked by Insider Monkey owned stakes in Verizon Communications Inc. (NYSE:VZ), up from 63 in the previous quarter. The collective value of these stakes is over $4.12 billion. Fisher Asset Management was the company’s leading shareholder in Q1.
Weitz Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q4 2021 investor letter. Here is what the firm had to say:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
1. Cisco Systems, Inc. (NASDAQ:CSCO)
Dividend Yield as of June 28: 3.51%
Humankind Investments’ Stake Value: $4,990,000
Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based technology company that provides cloud and other security services to consumers. The company announced to exit Russia in wake of the Ukrainian war, stopping its sales and services in the country.
On June 6, Cisco Systems, Inc. (NASDAQ:CSCO) announced a quarterly dividend of $0.38 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 11 years. As of June 28, the stock’s dividend yield came in at 3.51%.
At the end of Q1 2022, Cisco Systems, Inc. (NASDAQ:CSCO) was the eighth-largest holding of Humankind Investments. The hedge fund owned 89,496 CSCO shares, valued at nearly $5 million. The company accounted for 2.04% of James Katz’s portfolio. Highlighting the current supply chain issues, Morgan Stanley lowered its price target on Cisco Systems, Inc. (NASDAQ:CSCO) in May to $46, with an Equal Weight rating on the shares.
ClearBridge Investments mentioned Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2021 investor letter. Here is what the firm has to say:
“We reinvested a portion of the proceeds into existing holding Cisco Systems, Inc. (NASDAQ:CSCO), which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco Systems, Inc. (NASDAQ:CSCO) has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco Systems, Inc. (NASDAQ:CSCO) boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”
You can also take a look at 10 Best Fertilizer Stocks To Buy Now and 10 Stocks to Sell According to Billionaire Daniel Sundheim
