In this article, we discuss the top 5 dividend stocks to buy according to Peter S. Stamos’ Stamos Capital. If you want to read our detailed analysis of Stamos’ past life and his hedge fund history, go directly to read Top 10 Dividend Stocks to Buy According to Peter S. Stamos’ Stamos Capital.
5. JPMorgan Chase & Co. (NYSE:JPM)
Stamos Capital Partners’ Stake Value: $10,473,000
Dividend Yield as of June 14: 3.46%
Number of Hedge Fund Holders: 110
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm with over $2.6 trillion in assets, recorded in May. The firm has evolved its operations over time, deploying blockchain for collateral settlements to expand tech usage in the trading of traditional financial assets.
In April, Societe Generale upgraded JPMorgan Chase & Co. (NYSE:JPM) to Buy while lifting its price target on the stock to $150. The firm appreciated the company’s guidance on net interest income, credit quality, and its trading revenues.
Stamos Capital started building its position in JPMorgan Chase & Co. (NYSE:JPM) during the fourth quarter of 2018, buying shares worth $5 million, at an average share price of $106.5. During the first quarter of 2022, the hedge fund increased its position in the company by 35%, owning a $10.4 million worth of stake. The New York-based company made up 3.49% of Peter S. Stamos’ portfolio.
On May 16, JPMorgan Chase & Co. (NYSE:JPM) declared a quarterly dividend of $1.00 per share, with a dividend yield of 3.46%, as of the close of June 14. The company maintains a 12-year streak of consistent dividend growth.
JPMorgan Chase & Co. (NYSE:JPM) was the 14th most famous company among elite funds at the end of March 2022, as 110 hedge funds tracked by Insider Monkey reported owning stakes in the company, up from 107 in the previous quarter. Ken Fisher’s Fisher Asset Management was the company’s leading shareholder in Q1, owning over 7.7 million shares, worth $1.05 billion.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
4. Intel Corporation (NASDAQ:INTC)
Stamos Capital Partners’ Stake Value: $10,591,000
Dividend Yield as of June 14: 3.87%
Number of Hedge Fund Holders: 76
Intel Corporation (NASDAQ:INTC) manufactures semiconductor chips and microprocessors and also provides PC solutions to its consumers. Due to the rising inflation, the chip manufacturers are expected to see a decline in consumer spending, putting INTC in a fragile position as the stock hit its 52-week-low on June 10.
In the first quarter of 2022, Intel Corporation (NASDAQ:INTC) reported solid results, posting an EPS of $0.87, which beat estimates by $0.08. The company generated revenue of $18.4 billion, which also exceeded market consensus by $80 million. In June, Citigroup noted that Intel Corporation (NASDAQ:INTC)’s operations deteriorated in Q1 due to the reduced inventory level and kept a $45 price target on the stock, with a Neutral rating on the shares.
Intel Corporation (NASDAQ:INTC) is a Dividend Challenger, raising its dividend consecutively for the past 7 years. Currently, it offers a quarterly payout of $0.365 per share, raising it by 5% in January. As of June 14’s close, the stock’s dividend yield stood at 3.87%.
As per Insider Monkey’s Q1 2022 database, 76 hedge funds were bullish on Intel Corporation (NASDAQ:INTC), compared with 72 a quarter earlier. The consolidated value of stakes held by hedge funds stood at over $3.1 billion.
Stamos Capital started reinvesting in Intel Corporation (NASDAQ:INTC) during the third quarter of 2021, after dumping off its entire stake in the company a quarter earlier. During Q1 2022, the hedge fund piled up on additional INTC shares worth roughly $5 million, taking its total stake to nearly $10.6 million, which accounted for 3.53% of Peter S. Stamos’ portfolio.
3. Chevron Corporation (NYSE:CVX)
Stamos Capital Partners’ Stake Value: $10,714,000
Dividend Yield as of June 14: 3.36%
Number of Hedge Fund Holders: 53
Chevron Corporation (NYSE:CVX) is an American energy company that specializes in the exploration of oil and natural gas and aims to use clean energy in its operations. On June 13, the company completed its acquisition of Renewable Energy Group in a deal worth over $3.15 billion. With this acquisition, CVX becomes one of the leading US renewable fuel companies.
Chevron Corporation (NYSE:CVX) has been paying consistent dividends to shareholders for the past 35 years, with its 5-year dividend CAGR standing at 5.07%. The company currently gives a quarterly dividend of $1.42 per share, with a dividend yield of 3.36%, as of the close of June 14. Credit Suisse mentioned in its investors’ note that Chevron Corporation (NYSE:CVX) has no refining capacity in Europe and is not influenced by European Union’s ban on Russian oil imports. Given this, the firm lifted its price target on the stock to $202, with an Outperform rating on the shares.
At the end of Q1 2022, Stamos Capital owned 65,800 shares in Chevron Corporation (NYSE:CVX), valued at over $10.7 million. The hedge fund increased its stake in the company by 11% during the quarter. The company constituted 3.57% of Peter S.Stamos’ portfolio.
According to Insider Monkey’s Q1 2022 database, 53 hedge funds were bullish on Chevron Corporation (NYSE:CVX), the same as in the previous quarter. The consolidated value of the stakes held by hedge funds stood at roughly $28 billion. With stakes valued at $26 billion, Warren Buffett’s Berkshire Hathaway held the largest position in the California-based company in Q1.
ClearBridge Investments mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm has to say:
“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”
2. Verizon Communications Inc. (NYSE:VZ)
Stamos Capital Partners’ Stake Value: $13,744,000
Dividend Yield as of June 14: 5.22%
Number of Hedge Fund Holders: 69
Verizon Communications Inc. (NYSE:VZ) is a New York-based telecommunications company that offers data and video services on its networks and platforms. The company’s Q1 results came in line with Street estimates, with its EPS and revenue standing at $1.35 and $33.6 billion, respectively. Moreover, the company reported a 9.5% year-over-year growth in its total wireless service revenue at $18.3 billion.
On May 31, Verizon Communications Inc. (NYSE:VZ) announced a quarterly dividend of $0.35 per share, in line with its previous dividend. The company maintains a 14-year track record of consistent dividend growth. As of June 14, the stock’s dividend yield came to be recorded at 5.22%.
At the end of Q1 2022, Stamos Capital owned stakes worth over $13.7 million in Verizon Communications Inc. (NYSE:VZ), purchasing additional 96,000 VZ shares during the quarter. The company accounted for 4.58% of Peter S. Stamos’ portfolio. In May, Wolfe Research set a $50 price target on Verizon Communications Inc. (NYSE:VZ), with a Peer Perform rating on the shares, appreciating the company’s media, cable, and telecom sectors.
At the end of March 2022, 69 hedge funds tracked by Insider Monkey owned a $4.12 billion worth of stake in Verizon Communications Inc. (NYSE:VZ). In comparison, 63 hedge funds held positions in the company in the previous quarter, with stakes valued at over $10.8 billion.
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. AT&T Inc. (NYSE:T)
Stamos Capital Partners’ Stake Value: $21,139,000
Dividend Yield as of June 14: 5.74%
Number of Hedge Fund Holders: 74
AT&T Inc. (NYSE:T) is the largest provider of mobile telephone services in the US and also offers media and communications services to its customers. On June 8, Morgan Stanley noted that the company’s strong balance sheet, free cash flow, and capital return could bring the stock a 20% upside in 2022. The firm lifted its price target on AT&T Inc. (NYSE:T) to $27.
In March 2022, AT&T Inc. (NYSE:T) announced a quarterly dividend of $0.28 per share, with an annual dividend of $1.11 per share, in line with the company’s previously declared dividend.
At the end of Q1 2022, AT&T Inc. (NYSE:T) was the largest holding of Stamos Capital as the hedge fund held 894,600 shares in the company, valued at over $21.1 million. The hedge fund has increased its position in the company by 58% during the quarter. AT&T Inc. (NYSE:T) accounted for 7.05% of Peter S. Stamos’ portfolio.
With stakes worth over $4 billion, 74 hedge funds tracked by Insider Monkey held positions in AT&T Inc. (NYSE:T) at the end of March 2022. In the previous quarter, 70 hedge funds held stakes in the Texas-based company, valued at roughly $5 billion. Arrowstreet Capital was the company’s largest shareholder in Q1 2022, with stakes worth over $678.5 million.
Weitz Investment Management mentioned AT&T Inc. (NYSE:T) in its Q4 2021 investor letter. Here is what the firm has 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).”
You can also take a look at 10 Stocks to Buy According to James Mitarotonda’s Barington Capital and 10 Best Affordable Dividend Stocks to Buy
