Billionaire Ken Fisher of Fisher Asset Management filed his latest 13F on October 20, revealing his holdings in U.S-traded equities as of September 30. Since then, we’ve covered the firm’s top overall picks, its top tech picks, top finance picks, and top healthcare picks. In this article, we’ll uncover four dividend stocks in which some of Fisher’s vast capital was moved into during the third quarter. Each of these stocks sports a current dividend yield of over 3.5%, and given Fisher’s investment, we can assume his deep analysis of each of these stocks has determined that they possess solid long-term growth potential.
Rexford Industrial Realty Inc (NYSE:REXR)
- Shares Owned by Fisher (as of September 30): 107,063
- Value of Fisher’s Shares (as of September 30): $1.48 Million
We’ll start with Rexford Industrial Realty Inc (NYSE:REXR), which has bumped its quarterly dividend payment up to $0.135 per share, providing a yield of 3.60%. The California-focused REIT added a number of new industrial properties to its fold in the third quarter, lifting its portfolio of properties in which it has ownership interests to 116. Among the new additions were a two-building industrial property in Central San Diego housing a combined 373,744 square feet, which it purchased for $19.3 million, and a 70,877 square-foot cold storage property in the Central Los Angeles submarket for $12.2 million. Rexford Industrial Realty Inc (NYSE:REXR) pulled in rental revenues of $23.3 million in the third quarter, and property net operating income of $17.1 million, each of which represented greater than 30% increases year-over-year. Ten investors in our database held a combined $76.40 million worth of Rexford Industrial’s shares as of June 30, accounting for 9.50% of its common shares.
Hedge funds and other big money managers like Fisher tend to have the largest amounts of their capital invested in large and mega-cap stocks like Apple Inc. (NASDAQ:AAPL) because these companies allow for much greater capital allocation. That’s why if we take a look at the most popular stocks among funds, we won’t find any mid- or small-cap stocks there. However, our backtests of hedge funds’ equity portfolios between 1999 and 2012 revealed that the 50 most popular stocks among hedge funds underperformed the market by seven basis points per month, showing that their most popular picks and the ones that received the bulk of their capital were not actually their best picks. On the other hand, their top small-cap picks performed considerably better, outperforming the market by 95 basis points per month. This was confirmed through backtesting and in forward tests of our small-cap strategy since August 2012. The strategy, which involves imitating the 15 most popular small-cap picks among hedge funds has provided gains of 102%, beating the broader market by over 53 percentage points (see the details).
We have three more high-dividend stocks for you to consider adding to your portfolio, as Fisher has, on the next page.