Hedge Funds Are Piling Into These Dividend Stocks: Part II

Northstar Realty Finance Corp (NYSE:NRF) is next in line with 67 funds reporting ownership of $1.75 billion worth of stock. Northstar is a diversified commercial real estate investment trust (REIT) that sports a dividend yield of 8.84%, one of the highest in the industry. It’s no surprise that Northstar Realty Finance Corp (NYSE:NRF) has such a high yield, since REITs usually pay all of their taxable income as dividends to investors and that’s why investors like holding shares of these companies, because of a stable income stream. However, Northstar Realty Finance Corp (NYSE:NRF) has cut its last dividend to $0.40, from $0.50. Among funds that we track, Christian Leone’s Luxor Capital Group initiated a stake in the REIT last quarter, and held 5.77 million shares as of the end of 2014, while Ken Griffin‘s Citadel Investment Group cut its stake by 12% on the quarter to 6.40 million shares.

In Macquarie Infrastructure Company LLC (NYSE:MIC) 64 funds disclosed holding long positions with an aggregate value of over $2.0 billion. Last year, Macquarie Infrastructure has been increasing its dividend by $0.03 each quarter during the first nine months, while for the fourth quarter the dividend has been raised to $1.02, from $0.98. Macquarie Infrastructure Company LLC (NYSE:MIC) company is engaged in airport and air services, providing fuel, terminal, aircraft hangaring and other services. The company’s stock advanced by 44% in the last 52 weeks and it sports a dividend yield of 5.16%, which is also one of the highest in the industry. MSDC Management, led by Marc Lisker, Glenn Fuhrman and John Phelan, was the largest shareholder of Macquarie Infrastructure Company LLC (NYSE:MIC) among funds that we track, holding 4.10 million shares.

Verizon Communications Inc. (NYSE:VZ) also made the list, the company sporting a dividend yield of 4.56% and being included in the equity portfolios of 63 funds among those that we track. Funds that we track held $2.96 billion of Verizon Communications Inc. (NYSE:VZ)’s stock, including Warren Buffett‘s Berkshire Hathaway, which held 15.0 million shares as of the end of 2014. Verizon Communications Inc. (NYSE:VZ) also has a strong dividend history, its quarterly dividend amounting to at least $0.50 for the last three years, while for the third and fourth quarter the dividend payment was $0.55, up from $0.53 from the middle of 2103 to the middle of 2014.

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