In this article, we discuss the 10 best dividend stocks billionaire Paul Tudor Jones is buying.
Paul Tudor Jones, the founder of Tudor Investment Corporation, is one of Wall Street’s most notable advocates of cryptocurrency. In late 2021, Jones spoke about how his hedge fund would prefer digital assets over traditional commodities, acknowledging that crypto is a hedge against inflation, as reported by Bloomberg. One of the many reasons for his inclination towards digital money is his firm’s strategy to keep up with the continuously evolving markets.
Tudor Investment’s Q3 portfolio also showed the firm’s heavy investments in the tech sector. Along with this, the fund also invested in services, finance, and healthcare sectors. In Q3, the hedge fund’s 13F portfolio value stands at $6.16 billion, up from $5.2 billion in Q2. Some of its major holdings include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Airbnb, Inc. (NASDAQ:ABNB).
Our Methodology:
In this article, we will focus on the dividend stocks in Paul Tudor’s portfolio. For this list, we considered Tudor Investment Corp’s 13F portfolio as of Q3.
10 Best Dividend Stocks Billionaire Paul Tudor Jones Is Buying
10. Extra Space Storage Inc. (NYSE:EXR)
Number of Hedge Fund Holders: 27
Dividend Yield as of February 3: 2.44%
Tudor Investment Corp’s Stake Value: $14,751,000
Extra Space Storage Inc. (NYSE:EXR) is a real estate investment trust that invests in self-storage units. In 2021, the company increased its dividend by 38% and currently pays a quarterly dividend of $1.25 per share. The stock’s dividend yield stands at 2.44%. Extra Space Storage Inc. has been growing dividends consistently for the past 11 years, with a 5-year CAGR of 8.7%.
Extra Space Storage Inc. was one of the latest holdings of Tudor Investment Corp in Q3, which accounted for 0.23% of Paul Tudor’s 13F portfolio. The hedge fund started building its position in the company with a $14.7 million worth of stake. As the economy improves after Covid-related restrictions, Truist expects Extra Space Storage Inc. to gain due to healthy occupancy and rent growth. In January, the firm lifted its price target on the stock to $220, while maintaining a Buy rating on the shares.
At the end of Q3 2021, 27 hedge funds tracked by Insider Monkey held stakes in Extra Space Storage Inc., up from 21 in the previous quarter. These stakes hold a consolidated value of over $405 million, presenting a tremendous growth from $176 million worth of stakes in Q2.
Along with Extra Space Storage Inc., some other important holdings of Paul Tudor Jones include Microsoft Corporation, Apple Inc., and Airbnb, Inc..
9. Equity Residential (NYSE:EQR)
Number of Hedge Fund Holders: 32
Dividend Yield as of February 3: 2.62%
Tudor Investment Corp’s Stake Value: $15,646,000
In Q3 2021, Tudor Investment Corp increased its stake by 113% in Equity Residential (NYSE:EQR), a real estate investment trust. The hedge fund held shares worth over $15.6 million in the company, which represented 0.25% of its 13F portfolio.
As per Insider Monkey’s Q3 data, the number of hedge funds holding stakes in Equity Residential stood at 32 in Q3, compared with 31 in the previous quarter. The total value of these stakes is over $558.8 million. First Eagle Investment Management held the largest stake in the company, worth $473.4 million.
Equity Residential currently pays a quarterly dividend of $0.6025 per share, with a dividend yield of 2.62%. In view of the fact that the real estate sector outperformed the S&P 500 in 2021, Wall Street analysts presented a positive stance on Equity Residential. In January, both Mizuho and Truist raised their price targets on the stock to $98 and $95, respectively.
8. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 61
Dividend Yield as of February 3: 2.75%
Tudor Investment Corp’s Stake Value: $14,429,000
The Coca-Cola Company (NYSE:KO) was upgraded at Guggenheim to Buy this January, with a $66 price target. According to the firm, the company saw strong on-premise sales post-Covid and further expects sales to grow by 12% in fiscal 2023.
The Coca-Cola Company maintains a 59-year streak of consistent dividend growth. In 2021, the company increased its dividend by 2.4% to $0.42 per share. The stock’s current dividend yield stands at 2.75%. In Q3 2021, Tudor Investment Corp increased its position in The Coca-Cola Company significantly by 3,079% and held shares worth over $14.4 million. The company accounted for 0.23% of Paul Tudor’s 13F portfolio.
In Q3 2021, 61 hedge funds tracked by Insider Monkey held stakes in The Coca-Cola Company, worth over $25.1 billion. In comparison, 62 hedge funds held positions in the company in the previous quarter, with stakes valued at roughly $25 billion.
7. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 74
Dividend Yield as of February 3: 3.38%
Tudor Investment Corp’s Stake Value: $11,535,000
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.
On December 13, 2021, Bristol-Myers Squibb Company announced a 10.2% increase in its quarterly dividend at $0.54 per share. This marked the company’s 15th year of consecutive dividend growth, making it one of the best dividend stocks in Paul Tudor’s portfolio. The stock’s current dividend yield stands at 3.38%. Tudor Investment Corp started investing in Bristol-Myers Squibb Company during the third quarter of 2021 with a stake worth over $11.5 million. The company accounted for 0.18% of the hedge fund’s 13F portfolio.
This December, JPMorgan announced that it sees the company’s shares rebounding in 2022. The firm lifted its price target on Bristol-Myers Squibb Company to $80, while maintaining an Overweight rating on the shares.
6. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 32
Dividend Yield as of February 3: 3.75%
Tudor Investment Corp’s Stake Value: $13,663,000
Duke Energy Corporation (NYSE:DUK) is an American energy company that distributes electric power and gas across the country. In 2021, the company increased its dividend by 2% to $0.985 per share, with a dividend yield of 3.75%. Duke Energy Corporation has been paying dividends to shareholders consistently for the past 96 years, coming through as one of the best dividend stocks in Paul Tudor’s portfolio.
Tudor Investment Corp started investing in Duke Energy Corporation during the third quarter of 2021, with a stake worth roughly $2 million. In Q3 2021, the hedge fund held shares worth $13.6 million, after increasing its position in the company massively by 3,392%. Duke Energy Corporation constituted 0.22% of the hedge fund’s 13F portfolio. This December, Barclays set a $110 price target on Duke Energy Corporation, with an Equal Weight rating on the shares, acknowledging the company’s focus on carbon reduction and clean energy.
With a stake worth $687.5 million, 32 hedge funds tracked by Insider Monkey held positions in Duke Energy Corporation in Q3. In the previous quarter, 36 hedge funds held stakes in the North Carolina-based energy company.
Like Microsoft Corporation, Apple Inc., and Airbnb, Inc., Duke Energy Corporation is also one of the important stocks in Tudor Investment’s portfolio.
5. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield as of February 3: 4.27%
Tudor Investment Corp’s Stake Value: $16,638,000
Realty Income Corporation (NYSE:O), an American real estate investment trust, pays monthly dividends to its shareholders. In Q3 2021, Tudor Investment Corp increased its stake in the company by 1,076%, equaling $16.6 million, which represented 0.27% of its 13F portfolio.
At the end of the third quarter of 2021, 22 hedge funds tracked by Insider Monkey held stakes worth over $275 million in Realty Income Corporation. In comparison, 23 hedge funds held positions in the company in the preceding quarter. Among these hedge funds, Millennium Management was the company’s largest shareholder in Q3, owning shares worth over $60.5 million.
Realty Income Corporation currently pays a monthly dividend of $0.2465 per share, with a dividend yield of 4.27%. The company has been increasing dividends since 1990, even during the last three decades’ financial or health crisis. This January, Mizuho set a $72 price target on Realty Income Corporation, with a Buy rating on the shares.
4. Unum Group (NYSE:UNM)
Number of Hedge Fund Holders: 30
Dividend Yield as of February 3: 4.59%
Tudor Investment Corp’s Stake Value: $15,155,000
Unum Group (NYSE:UNM) is an American company that provides financial protection benefits to its consumers. Insider Monkey’s Q3 data showed that the hedge fund interest spiked in the company, as 30 hedge funds held a $350 million worth of stake in Unum Group in Q3, up from 23 hedge funds in the previous quarter.
In 2021, Unum Group hiked its quarterly dividend by 5.3% at $0.30 per share. The stock’s annual dividend yield stands at 4.59%. This December, Goldman Sachs initiated its coverage on Unum Group with a Buy rating and a $32 price target. In the past 12 months, the stock has delivered a 7.4% return to shareholders, as of the close of February 3.
Unum Group is one of the latest acquisitions of Tudor Investment Corp in Q3 2021. The hedge fund held shares worth over $15.1 million in the company, which represented 0.24% of its 13F portfolio.
3. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 47
Dividend Yield as of February 3: 5.03%
Tudor Investment Corp’s Stake Value: $15,641,000
VICI Properties Inc. (NYSE:VICI) is an American real estate investment trust that mainly invests in casino properties. The company’s strong business throughout the pandemic caught the eyes of Wall Street analysts, who expect it to grow in the coming years as well. In light of this, in January, Berenberg initiated its coverage on VICI Properties Inc. with a Buy rating and a $35 price target.
The number of hedge funds tracked by Insider Monkey holding stakes in VICI Properties Inc. grew to 47 in Q3, from 37 in the previous quarter. These stakes hold a consolidated value of over $1.37 billion, showing considerable growth from $664.6 million worth of stakes in Q2.
VICI Properties Inc. currently pays a quarterly dividend of $0.36 per share, with a dividend yield of 5.03%. The company increased its dividend by 9% in 2021, continuing the practice since it went public in 2018. In Q3 2021, Tudor Investment Corp held a stake worth over $15.6 million in VICI Properties Inc., after increasing its position by 15%. The company made up 0.25% of Paul Tudor’s portfolio.
2. W. P. Carey Inc. (NYSE:WPC)
Number of Hedge Fund Holders: 24
Dividend Yield as of February 3: 5.45%
Tudor Investment Corp’s Stake Value: $20,295,000
On December 8, W. P. Carey Inc. (NYSE:WPC), a real estate investment trust, announced a quarterly dividend of $1.055 per share, an increase of 0.3% from the previous dividend. The stock’s dividend yield stands at 5.45%. W. P. Carey Inc. has increased its dividend at a CAGR of 7.01% in the past 10 years, which makes it one of the best dividend stocks in Paul Tudor’s portfolio.
In January, BofA upgraded W. P. Carey Inc. to Neutral from Underperform, noting that analysts should focus more on REITs’ growing dividends. In Q3 2021, the company accounted for 0.32% of Tudor Investment Corp’s portfolio, as the hedge fund increased its position in W. P. Carey Inc. by 294% during the quarter.
Millennium Management held a stake worth $45.5 million in W. P. Carey Inc., becoming its largest shareholder in Q3. Along with this, 24 hedge funds tracked by Insider Monkey reported owning stakes in the company in Q3, down from 29 in the previous quarter. The total value of these stakes is over $142.7 million.
1. Riley Financial, Inc. (NASDAQ:RILY)
Number of Hedge Fund Holders: 24
Dividend Yield as of February 3: 6.56%
Tudor Investment Corp’s Stake Value: $20,654,000
Riley Financial, Inc. (NASDAQ:RILY) is an American company that provides financial solutions to its consumers. On October 28, 2021, the company raised its quarterly dividend by 100% to $1.00 per share. It also offered a special dividend of $3 per share, taking the total to $10 per share paid in special dividends in 2021. The stock’s dividend yield stands at 6.56%.
In Q3 2021, Tudor Investment Corp held shares worth over $20.6 million in B. Riley Financial, Inc., which represented 0.33% of its 13F portfolio.
In Q3 2021, 24 hedge funds tracked by Insider Monkey reported held stakes in B. Riley Financial, Inc., the same as in the previous quarter. The total value of these stakes is over $109.5 million.
You can also take a look at 10 Best Dividend Stocks Under $20 and Top 15 Dividend Stocks With Upside Potential
Follow Insider Monkey on Twitter
Suggested articles:
- 15 Best Energy Stocks to Buy Now
- 10 Best Dividend Stocks for Long Term
- 10 Best Dividend Stocks for Passive Income
This article is originally published at Insider Monkey.
