At Insider Monkey, we track around 730 hedge funds and other institutional investors as part of our small-cap strategy (see more details here). Among these funds, around 40 are managed or were led by investors who became billionaires. This group is particularly interesting, because billionaire investors stand above the rest of the crowd of smart money investors due to their unique stock-picking skills and views on the market that helped them generate outstanding returns. For example, Warren Buffett‘s last investor letter showed that Berkshire managed to generate a total return of 1,826,163% since 1965. If you could have imitated Buffett’s moves, your returns would probably have been lower, but still considerably above the market. With the current environment, many investors are uncertain which stocks to invest in, but most billionaires stuck to their strategies and remain bullish on companies that sport strong fundamentals. A good way to determine a solid investment is to follow dividend stocks and here is where imitating billionaires comes in handy. With this in mind, we have selected five stocks that sport a strong dividend yield and that billionaires in our database are collectively bullish on.
Kraft Heinz Co (NASDAQ:KHC) ranked on the fifth spot in our list of billionaires’ favorite dividend stocks, with 14 investors holding shares as of the end of December, having amassed over $25 billion worth of its stock. Since the merger between Kraft and Heinz was backed by Warren Buffett’s Berkshire and Brazilian-based 3G Capital, Berkshire Hathaway is the largest shareholder of Kraft Heinz Co (NASDAQ:KHC), holding a $23.63 billion position that contains 325.63 million shares. Other funds managed or founded by billionaires that are bullish on the company include David E. Shaw’s D. E. Shaw, Israel Englander’s Millennium Management, and Andreas Halvorsen’s Viking Global.
Kraft Heinz Co started trading in July last year and its stock has inched up by slightly more than 2% since going public. Following the merger, the company announced a dividend of $0.55 per share, which later was raised to $0.57 and the stock currently sports a dividend yield of 2.95%. Kraft Heinz Co (NASDAQ:KHC) is yet to achieve the synergies from the merger and management anticipated earlier to realize $1.5 billion in cost savings and for the merger to be EPS accretive by 2017. Nevertheless, at the current levels and with support from investors like Warren Buffett, Kraft Heinz Co represents a good long-term bet with a solid dividend as well.