In this article, we discuss the 10 best dividend stocks according to Andreas Halvorsen’s Viking Global.
Ole Andreas Halvorsen is a former Tiger Cub, who traded equities at Julian Robertson’s Tiger Management. In 1999, he started Viking Global Management, which currently manages $48 billion in assets. The hedge fund has offices at multiple locations, including Hong Kong, London, New York, San Francisco, with headquarters in Connecticut, Greenwich. The fund aims to deliver higher risk-adjusted returns by investing globally after meticulous research. As of February 2022, Halvorsen’s real-time net worth stands at $6.3 billion.
Viking Global aims to build long-term partnerships with companies that are deploying positive and innovative techniques in their operations. In this regard, the hedge fund also invests in ESG-focused companies, which are an instrument to reduce risks and explore more opportunities in financial markets.
Over the years, the fund managed to generate positive returns for investors. In the first decade of its existence, the firm’s Equities III fund delivered an average return of 22%, as reported by Hartford Business. The hedge fund also gained during the pandemic in 2020, returning 25% to investors during the year. However, a recent report by Bloomberg tells that 2021 did not prove fruitful for the fund, as it fell 4.5%. According to Halvorsen’s investor letter, the firm’s returns fell as it played down the impacts of the pandemic. However, Viking Management’s long-only strategy fund gained 8.3% in 2021 and its Global Opportunities Hybrid Fund, which also invests in private companies, rose 20% during the year.
As of Q4 2021, Viking Global holds a 13F portfolio value of over $34.4 billion. The hedge fund invests mainly in healthcare, services, technology, and services sectors. Some of the firm’s major holdings in Q4 include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA).
Ole Andreas Halvorsen of Viking Global
Our Methodology:
In this article, we will focus on the best dividend stocks in Andreas Halvorsen’s portfolio. For this list, we considered Viking Global’s 13F portfolio for Q4 2021.
10 Best Dividend Stocks According to Andreas Halvorsen’s Viking Global
10. PulteGroup, Inc. (NYSE:PHM)
Number of Hedge Fund Holders: 35
Viking Global’s Stake Value: $52,225,000
Dividend Yield as of February 15: 1.24%
PulteGroup, Inc. (NYSE:PHM) is an American home construction company that operates in 44 industries and 23 states across the country. The company is one of the latest acquisitions of Viking Global in Q4 2021. The hedge fund started building its position in PulteGroup, Inc. (NYSE:PHM) with shares worth over $52.2 million, which accounted for 0.15% of its 13F portfolio. Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA), PulteGroup, Inc. (NYSE:PHM) is also one of the most notable holdings of Viking Global.
In Q3 2021, the number of hedge funds tracked by Insider Monkey having stakes in PulteGroup, Inc. (NYSE:PHM) stood at 35, up from 34 in the previous quarter. The total value of these stakes is around $771.7 million.
PulteGroup, Inc. (NYSE:PHM) currently pays a quarterly dividend of $0.15 per share, up 7% from its previous dividend. 2021 marked the company’s fourth consecutive year of dividend growth. In February, John Lovallo at UBS upgraded PulteGroup, Inc. (NYSE:PHM) to Buy, while lifting the stock’s price target to $70, expecting peak earnings in 2022.
Miller Value Partners mentioned PulteGroup, Inc. (NYSE:PHM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Some homebuilders, like Pulte Homes (PHM), traded down to half their financial crisis lows despite early signs of housing fundamentals improving. This sharp divergence between the stock prices and the fundamentals created a great buying opportunity. Homebuilders were top performers in 2012, with Pulte gaining triple digits and many others posting similar gains.”
9. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Holders: 39
Viking Global’s Stake Value: $972,468,000
Dividend Yield as of February 15: 1.34%
Parker-Hannifin Corporation (NYSE:PH) is an American technology company that specializes in motion and control tech products. Jim Simons’ Renaissance Technologies was one of the company’s major shareholders in Q3 2021, holding a stake worth over $142 million. Overall, 39 hedge funds tracked by Insider Monkey held stakes in Parker-Hannifin Corporation (NYSE:PH) in Q3, down from 42 in the previous quarter. These stakes hold a value of roughly $2 billion.
In 2021, Parker-Hannifin Corporation (NYSE:PH) increased its dividend by 17% at $1.03 per share, with a dividend yield of 1.34%. The company is a dividend payer for the past 71 years, with a 65-year track record of consistent dividend growth, falling into the category of Dividend Kings. Moreover, Parker-Hannifin Corporation (NYSE:PH) has increased its dividend at a CAGR of 10.8% in the past decade. In Q4 2021, the company represented 2.81% of Andreas Halvorsen’s portfolio.
This December, Goldman Sachs provided a positive outlook on Parker-Hannifin Corporation (NYSE:PH) and initiated its coverage on the stock with a Buy rating and a $375 price target.
Oakmark Funds mentioned Parker-Hannifin Corporation (NYSE:PH) in its Q1 2021 investor letter. Here is what the firm has to say:
“Parker Hannifin approached our estimates of intrinsic value and were, therefore, eliminated during the period. The company was a longstanding investment of the Fund and produced successful outcomes. We believe Parker Hannifin, one of our longest tenured positions, is a high-quality, well-managed industrial with strong competitive positions in good end markets. However, after the market price reflected these positives, we elected to sell to pursue more attractive alternatives that were priced at steeper discounts to our estimates of intrinsic value.”
8. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 42
Viking Global’s Stake Value: $218,286,000
Dividend Yield as of February 15: 1.39%
In Q4 2021, Viking Global increased its stake by 10% in Marsh & McLennan Companies, Inc. (NYSE:MMC), an American insurance company. The hedge fund held shares worth over $218.2 million, which accounted for 0.63% of Andreas Halverson’s portfolio.
This January, JPMorgan’s research note presented a bullish outlook on property and casualty sectors in 2022. The firm lifted its price target on Marsh & McLennan Companies, Inc. (NYSE:MMC) to $157, while maintaining a Neutral rating on the shares. The company pays a quarterly dividend of $0.535 per share, presenting a 15% increase from its previous dividend. The stock’s dividend yield stands at 1.39%.
As per Insider Monkey’s Q3 data, 42 hedge funds were bullish on Marsh & McLennan Companies, Inc. (NYSE:MMC), holding stakes worth roughly $2 billion. In comparison, 41 hedge funds held stakes in the company in the preceding quarter.
7. Ameriprise Financial, Inc. (NYSE:AMP)
Number of Hedge Fund Holders: 40
Viking Global’s Stake Value: $438,552,000
Dividend Yield as of February 15: 1.48%
Ameriprise Financial, Inc. (NYSE:AMP) is a Minnesota-based bank holding and financial services company. The company pays a quarterly dividend of $1.13 per share, with a dividend yield of 1.48%. Ameriprise Financial, Inc. (NYSE:AMP) maintains a 15-year streak of consistent dividend growth and has increased its dividend at a CAGR of 8.7% in the past five years.
This January, RBC Capital appreciated the Q4 earnings beat of Ameriprise Financial, Inc. (NYSE:AMP) and lifted its price target on the stock to $360. The firm maintained an Outperform rating on the shares. In Q4 2021, Viking Global held over 1.4 million shares in Ameriprise Financial, Inc. (NYSE:AMP), worth $438.5 million. The company represented 1.27% of Andreas Halvorsen’s portfolio.
By the end of Q3 2021, 40 hedge funds in Insider Monkey’s database held stakes in Ameriprise Financial, Inc. (NYSE:AMP), up from 37 in the previous quarter. These stakes hold a value of over $1.3 billion. Among these hedge funds, Lyrical Asset Management held the largest stake in the company, worth roughly $429 million.
6. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 30
Viking Global’s Stake Value: $713,655,000
Dividend Yield as of February 15: 1.56%
Chubb Limited (NYSE:CB) is a Switzerland-based insurance company with operations in over 54 countries. In 2021, the company increased its dividend by 2.6% at $0.80 per share, with a dividend yield of 1.56%. Chubb Limited (NYSE:CB) has not cut its dividend in over a decade and analysts expect dividend growth of around 3% every year.
In Q4 2021, Viking Global increased its stake in Chubb Limited (NYSE:CB) by 22% and held a stake worth over $713.6 million in the company. It accounted for 2.06% of the hedge fund’s portfolio. In its Q4 2021 earnings report, the company beat revenue estimates by $810 million and earned revenue of $9.32 billion. In light of this, in February, Argus lifted its price target on Chubb Limited (NYSE:CB) to $230, with a Buy rating on the shares.
At the end of Q3 2021, 30 hedge funds tracked by Insider Monkey reported owning stakes in Chubb Limited (NYSE:CB), down from 42 in the previous quarter. These stakes hold a consolidated value of over $1.27 billion. AQR Capital Management was one of the company’s major shareholders in Q3, holding stakes worth over $111.2 million.
Chubb Limited (NYSE:CB) is also one of the major holdings of Viking Global like major blue-chip companies, such as Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA).
5. Assurant, Inc. (NYSE:AIZ)
Number of Hedge Fund Holders: 28
Viking Global’s Stake Value: $268,667,000
Dividend Yield as of February 15: 1.64%
Assurant, Inc. (NYSE:AIZ), an American insurance company, increased its quarterly dividend by 3% on November 10, 2021. This marked the company’s 17th year of consistent dividend growth. Assurant, Inc. (NYSE:AIZ) currently pays a quarterly dividend of $0.68 per share, which yields 1.64%.
As per Insider Monkey’s Q3 data, the hedge fund interest spiked in Assurant, Inc. (NYSE:AIZ), as 28 hedge funds held stakes in the company, up from 26 in the previous quarter. These stakes hold a consolidated value of over $794 million.
As of Q4 2021, Viking Global’s stake in Assurant, Inc. (NYSE:AIZ) equaled over $268.6 million. The company constituted 0.77% of Andreas Halvorsen’s portfolio. On February 14, Morgan Stanley lifted its price target on Assurant, Inc. (NYSE:AIZ) to $197, while maintaining an Overweight rating on the shares.
4. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 20
Viking Global’s Stake Value: $411,068,000
Dividend Yield as of February 15: 1.92%
Royalty Pharma plc (NASDAQ:RPRX) is the largest buyer of pharmaceutical royalties and also funds innovation in the industry. This December, Tigress Financial appreciated the company’s significant revenue growth, cash flow, and dividend increases. The firm lifted its price target on the stock to $52, with a Buy rating on the shares.
Warren Buffett’s Berkshire Hathaway was the second-largest shareholder of Royalty Pharma plc (NASDAQ:RPRX) in Q3 2021, owning shares valued at over $475 million. Overall, 20 hedge funds tracked by Insider Monkey held stakes in the company in Q3, the same as in the previous quarter. These stakes hold a value of nearly $2 billion.
Royalty Pharma plc (NASDAQ:RPRX) started giving dividends to shareholders right after its IPO in 2020. Since then, the company has increased its dividend two times, recently growing it by 12%. Royalty Pharma plc (NASDAQ:RPRX) pays a quarterly dividend of $0.19 per share, with a dividend yield of 1.92%. Viking Global increased its stake in the company by 150% in Q4, which made up 1.19% of its 13F portfolio.
3. American International Group, Inc. (NYSE:AIG)
Number of Hedge Fund Holders: 30
Viking Global’s Stake Value: $165,081,000
Dividend Yield as of February 15: 2.13%
American International Group, Inc. (NYSE:AIG) is an American finance and insurance company that has operations in over 80 countries. The company was one of the recent holdings of Viking Global in Q4 2021 and accounted for 0.47% of its portfolio. The fund held shares worth over $165 million in American International Group, Inc. (NYSE:AIG).
On February 10, Wolfe Research set a $65 price target on American International Group, Inc. (NYSE:AIG), with a Peer Perform rating on the shares. The company currently pays a quarterly dividend of $0.32 per share, with a dividend yield of 2.13%.
In Q3 2021, 30 hedge funds tracked by Insider Monkey held a stake worth roughly $2 billion in American International Group, Inc. (NYSE:AIG). In the previous quarter, 39 hedge funds held positions in the company, with stakes valued at over $2.7 billion.
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 75
Viking Global’s Stake Value: $715,345,000
Dividend Yield as of February 15: 2.25%
Though Comcast Corporation (NASDAQ:CMCSA), an American telecommunications company, saw a decline in the number of hedge funds holding positions in it, analysts remained positive on the company’s long-term outlook. This January, Cowen raised its price target on the stock to $64, with an Outperform rating on the shares, appreciating the company’s growth and buybacks.
Comcast Corporation (NASDAQ:CMCSA) has been increasing its dividends for the past 14 years consecutively. On January 27, the company announced a quarterly dividend of $0.27 per share, up 8% from its previous dividend. The stock’s dividend yield stands at 2.25%. Moreover, Comcast Corporation (NASDAQ:CMCSA) paid over $4.5 billion in dividends in 2021. Viking Global started investing in the company during the fourth quarter of 2012. In Q4 2021, the hedge fund increased its position in Comcast Corporation (NASDAQ:CMCSA) by 40%, which presented 2.07% of Andreas Halvorsen’s portfolio.
The number of hedge funds tracked by Insider Monkey having stakes in Comcast Corporation (NASDAQ:CMCSA) declined to 75 in Q3, from 84 in the previous quarter. The total value of these stakes is over $8.5 billion.
ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q2 2021 investor letter. Here is what the firm has to say:
“We funded the shift primarily with trims in Comcast following big gains in this name. Comcast is a long-term holding that have been and remain core holdings. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.
Comcast, like Blackstone, has been a meaningful long-term holding whose stock performance has at times lagged its robust fundamental performance. Over the last nine months the stock price caught up some with the fundamentals and looked like it had more room to run. Our thesis on the name evolved, however, following the May 17 announcement that competitor Discovery was merging its operations with Time Warner. This deal positions the new company as a credible competitor to Netflix, Amazon Prime, Hulu and Disney, and results in Comcast being left without the proverbial dance partner in the evolving pay TV/DTC landscape. While we continue to believe Comcast’s cable systems business is well-positioned and that NBCUniversal remains valuable, the competitive dynamic for NBCUniversal has stiffened. Our reduced position size reflects both our continued enthusiasm for many parts of the franchise and emerging concerns given the evolving pay TV/DTC landscape.”
1. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 74
Viking Global’s Stake Value: $113,204,000
Dividend Yield as of February 15: 3.20%
On December 13, Bristol-Myers Squibb Company (NYSE:BMY), an American pharmaceutical company, raised its quarterly dividend by 10% to $0.54 per share, achieving 15 years of consistent dividend growth. The stock’s current dividend yield stands at 3.20%.
This December, JPMorgan raised its price target on Bristol-Myers Squibb Company (NYSE:BMY) to $80, with an Overweight rating on the shares, expecting a rebound in the company’s shares in 2022. In Q4 2021, Bristol-Myers Squibb Company (NYSE:BMY) represented 0.32% of Andreas Halvorsen’s portfolio, as his hedge fund held a stake worth over $113.2 million in the company.
In Q3 2021, the number of hedge funds tracked by Insider Monkey having stakes in Bristol-Myers Squibb Company (NYSE:BMY) grew to 74, from 73 in the preceding quarter. These stakes hold a value of over $4.75 billion. Among these shareholders, Warren Buffett’s Berkshire Hathaway held the largest stake in the company, worth over $1.3 billion.
You can also take a look at 15 Biggest Companies That Don’t Pay Dividends and 10 Stocks that Pay Dividends Monthly
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Disclosure. None. 10 Best Dividend Stocks According to Andreas Halvorsen’s Viking Global is originally published on Insider Monkey.
