Warren Buffett’s 8 Best Dividend Stock Picks

5. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 87

Citigroup Inc. (NYSE:C) has been increasing its dividends consistently since 2011. The company recently posted Q1 results. GAAP EPS in the quarter totaled $1.58, surpassing estimates by $0.41. Revenue fell 1.6% year over year to $21.1 billion, beating estimates by $700 million. Insider Monkey’s database of hedge funds shows that 87 hedge funds had stakes in Citigroup as of the end of 2023.

Silver Beech Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2024 investor letter. The firm made the following comment:

“Since the beginning of 2023, Citigroup Inc. (NYSE:C) has been one of the Fund’s largest holdings. In our Q3 2023 investor letter, we laid out our core investment thesis for Citi: although the bank was an underperformer (weak returns on equity), Citi was (1) less risky than it had ever been and (2) cheaper than it had ever been. The Fund’s investment thesis for Citi featured in a November 2023 Euromoney article Citi 2.0: If she builds it, will they come?

The market narrative has started to converge on our investment thesis. During the first quarter, Citi was the best-performing bank stock in the S&P 500 index. However, improvements in Citi’s operating performance have come more slowly than its share price gains. Due to this converging market perception with our own thesis, the Fund exited its position in Citi. The Fund’s stake in Citi generated a 34% gross IRR over our 14-month investment period.”