10 Best Dividend Stocks to Buy According to Billionaire Howard Marks

Published July 10, 2021 at 10:12 am EDT Updated September 7, 2026 at 12:57 pm EDT

In this article, we will discuss the 10 best dividend stocks to buy according to billionaire Howard Marks.

Born in New York, Howard Marks started his career at Citibank and, in 1985, became an integral part of TCW Group as its fund manager. Howard Marks, in 1995, along with several other individuals at TCW, started Oaktree Capital Management. He is the co-organizer and co-chairman of Oaktree Capital Management, one of the biggest financiers in distressed securities global.

Established in Los Angeles, Oaktree is a financial institution that invests in convertible bonds, corporate debt, distressed debt, and appropriate investments. Oaktree Capital Management handles finance of benefactions, fundamentals, and pension funds. It focuses on firms that are mostly deferred in the grading of ‘contrarian investments.’ This hedge fund went public in 2012.

The firm’s 13F portfolio is valued at approximately $7.184 billion as of the end of the first quarter of 2021. In 2020 the hedge fund posted a return of 99.48% returns compared to a 18.25% return posted by SPDR S&P 500 ETF Trust (NYSE: SPY). While it posted returns of about 10.53% in the first quarter of 2021 compared to a 5.17% return posted by S&P 500.

Among the notable holdings of Marks as of the first quarter of 2021 are Berry Corporation (NASDAQ: BRY), PG&E Corporation (NYSE: PCG) and Vale S.A. (NYSE: VALE).

Berry Corporation, in which Howard Marks has a $71.15 million stake, is gaining a lot of attention. On May 4, Berry declared a quarterly dividend of $0.04 per share, in line with the previous. The dividend yield is 2.37%. Berry Corporation posted earnings for the first quarter of 2021. It reported earnings per share of $0.07, beating market predictions by $0.14. The revenue for the first three months of 2021 was $135.27 million, up 10.8% YoY, beating the estimates by $13.56 million. On April 4, Berry Corporation was upgraded at KeyBanc to “Overweight” from “Sector Weight.” The price target was set at $9.

In PG&E Corporation, Marks owns 22.50 million shares. PG&E Corporation gained 19.59% over the past 12 months. On May 14, Mizuho raised the price target of PG&E Corporation stock to $16 from $15.

Another notable stock in Marks’ portfolio is Vale S.A.. The investor owns a $110.68 million stake in the company. On June 23, Vale S.A. declared a quarterly dividend of $0.436 per share. The dividend yield is 3.99%. On June 3, RBC Capital raised the price target of Vale S.A. to $29 from $25 and maintained an “Outperform” rating.

10 Best Dividend Stocks to Buy According to Billionaire Howard Marks

Howard Marks of Oaktree Capital

Earlier this year, Howard Marks said during an interview that it’s a “challenging” time for traditional distressed investing amid the pandemic. He isn’t alone. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That’s why we believe hedge fund sentiment is a handy indicator that investors should consider. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this context and industry outlook in mind, let’s start the list of the 10 best dividend stocks to buy according to Billionaire Howard Marks.

Best Dividend Stocks to Buy According to Billionaire Howard Marks

10. MGIC Investment Corporation (NYSE: MTG)

Marks’ Stake Value: $41,827,000
Percentage of Howard Marks’ 13F Portfolio 0.58%
Dividend Yield: 1.71%
Number of Hedge Fund Holders: 28

MGIC Investment Corporation (NYSE: MTG), with its subsidiaries, supplies private mortgage insurance, other mortgage credit risk administration solutions, and additional services to lenders and government-supported units. It was founded in 1957 and ranks tenth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. MGIC Investment Corporation shares have gained about 74.24% over the last 12 months.

On May 5, MGIC Investment Corporation posted earnings results for the first three months of 2021. The earnings per share was $0.42, in line with the previous. On April 29, the company declared a quarterly dividend of $0.06 per share, in line with the previous. On July 5, B. Riley raised the price target of MGIC to $17 from $16. The firm maintained the rating at “Buy.”

Just like Berry Corporation, PG&E Corporation, and Vale S.A., MGIC Investment Corporation is one of the best stocks to buy according to billionaire Howard Marks.

Oaktree Capital Management holds 3.02 million shares in the company worth $41.83 million, representing 0.58% of their portfolio. At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $268.80 million in MGIC Investment Corporation, up from 27 the preceding quarter worth $260.95 million.

9. Americold Realty Trust (NYSE: COLD)

Marks’ Stake Value: $452,855,000
Percentage of Howard Marks’ 13F Portfolio: 6.3%
Dividend Yield: 2.3%
Number of Hedge Fund Holders: 16

Americold Realty Trust (NYSE: COLD) is one of the world’s biggest publicly traded REITs which focuses on the possession, working, acquisition, and development of thermostatted warehouses. It was founded in 1997, and the company stands ninth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Americold currently has a $9.65 billion market capitalization.

On May 20, Americold Realty Trust declared a quarterly dividend of $0.22 per share, in line with the previous. On June 7, KeyBanc initiated a coverage on Americold Realty Trust, and rated the stock as “Overweight,” setting a price target at $43.

Just like Berry Corporation, PG&E Corporation, and Vale S.A., MAmericold Realty Trust is one of the best stocks to buy according to billionaire Howard Marks.

The hedge fund run by Howard Marks owns 11.77 million shares in Americold Realty Trust worth $452.86 million, representing 6.3% of their investment portfolio.

8. Chesapeake Energy Corporation (NASDAQ: CHK)

Marks’ Stake Value: $518,038,000
Percentage of Howard Marks’ 13F Portfolio: 7.21%
Dividend Yield: 2.52%
Number of Hedge Fund Holders: 42

Chesapeake Energy Corporation (NASDAQ: CHK) is an American energy company occupied in hydrocarbon exploration. Chesapeake Energy Corporation was founded in 1989, and it ranks eighth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Chesapeake Energy Corporation has returned 20.15% to investors in the last 3 months.

On May 11, Chesapeake Energy Corporation posted earnings for the first quarter of 2021. It reported earnings per share of $1.48, missing market predictions by $0.37. The revenue for the first three months of 2021 was over $880 million, down 65.2% YoY, beating the estimates by $78.07 million. On June 29, CapitalOne initiated a coverage on Chesapeake Energy Corporation with an “Equal-weight” rating and a price target of $57.

Just like Berry Corporation, PG&E Corporation, and Vale S.A., Chesapeake Energy Corporation is one of the best stocks to buy according to billionaire Howard Marks.

Chesapeake Energy Corporation is a new addition to billionaire Howard Marks’ hedge fund portfolio, as Oaktree Capital Management bought 11.94 million shares of the company, worth $518.04 million. Hedge funds are loading up on Chesapeake Energy, as Insider Monkey’s data shows that 42 hedge funds held stakes in the company in the first quarter of 2021, compared to 0 funds a quarter earlier.

7. Kilroy Realty Corporation (NYSE: KRC)

Marks’ Stake Value: $59,724,000
Percentage of Howard Marks’ 13F Portfolio: 0.83%
Dividend Yield: 2.88%
Number of Hedge Fund Holders: 27

Kilroy Realty Corporation (NYSE: KRC) possesses, expands, obtains, and manages realty assets mainly in the maritime areas of Los Angeles, Orange County, San Diego, the San Francisco Bay Area, and greater Seattle. Kilroy Realty Corporation was founded in 1947 and is placed seventh on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Kilroy Realty Corporation shares have gained about 12.53% in value over the last 12 months.

On May 20, Kilroy Realty Corp declared a quarterly dividend of $0.5000 per share, in line with the previous. KRC is a compelling investment opportunity as the company has paid dividends since 2001. On June 25, Deutsche Bank raised the price target on Kilroy Realty Corporation to $65 from $60.

Just like Berry Corporation, PG&E Corporation, and Vale S.A., Kilroy Realty Corporation (NYSE: KRC) is one of the best stocks to buy according to billionaire Howard Marks.

Howard Marks added this stock to its portfolio in the latest quarter by buying 910,011 shares. In addition, hedge fund sentiment increased for Kilroy Realty Corporation in the first quarter of 2021. Insider Monkey’s data shows that 27 elite hedge funds held stakes in the company in the first quarter, up from 25 funds a quarter earlier.

6. Equity Residential (NYSE: EQR)

Marks’ Stake Value: $66,401,000
Percentage of Howard Marks’ 13F Portfolio: 0.92%
Dividend Yield: 3.07%
Number of Hedge Fund Holders: 23

Equity Residential (NYSE: EQR) develops, acquires and manages residential properties. The company was incorporated in 1969 and is ranked sixth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. The company’s shares has offered investors returns of 31.45% over the course of the past 12 months.

On June 17, Equity Residential declared a dividend of $0.6025 per share. On June 11, Morgan Stanley raised the price target of Equity Residential to $82 from $79. The firm maintained the rating at “Equal Weight.”

Just like Berry Corporation, PG&E Corporation, and Vale S.A., Equity Residential is one of the best stocks to buy according to billionaire Howard Marks.

The hedge fund run by Howard Marks owns 927,000 shares in the company worth $66.40 million, representing 0.92% of their investment portfolio. New York-based investment fund First Eagle Investment Management is the biggest stakeholder in the company, with 6.07 million shares worth $434.78 million.

5. Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR)

Marks’ Stake Value: $80,974,000
Percentage of Howard Marks’ 13F Portfolio: 1.12%
Dividend Yield: 3.24%
Number of Hedge Fund Holders: 27

Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR) produces and sells oil and gas globally. The company was founded in 1953 and stands fifth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. The Petróleo shares have gained 28.55% over the last 12 months.

On July 6, the company declared that it will increase the average price of fuel at refineries by 16 centavos to 2.69 reais per liter, a 6.3% increase, while diesel will rise by 10 centavos, or 3.7%, to 2.81 reais per liter. But truck drivers, a strong force in Brazil, opposed Petrobras’ strategy of selling fuel nationally in accordance with import prices. Petrobras also approved to sell its 100% interest in the Polo Alagoas land and shallow water terrain to Petromais Global Exploracao e Producao for $300 million. On June 28, JPMorgan upgraded the stock of Petróleo Brasileiro S.A. – Petrobras to “Overweight” from “Neutral,” and also raised the price target to $13 from $11.

The stock accounts for about 1.12% of Oaktree Capital Management, as the hedge fund owns an $80.97 million stake in the company. In addition, Howard Marks’ hedge fund increased its stake in the company by 52% in the first quarter. At the end of the first quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $878.46 million in Petróleo Brasileiro S.A. – Petrobras, up from 24 the preceding quarter worth $1.34 billion.

4. Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI)

Marks’ Stake Value: $46,319,000
Percentage of Howard Marks’ 13F Portfolio: 0.64%
Dividend Yield: 3.97%
Number of Hedge Fund Holders: 12

Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI) owns and develops infrastructure and associated equipment for the transit of merchandise and people in Africa, Asia, Europe, North America, and South America. It was founded in 2011 and is ranked fourth on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Fortress Transportation currently has a $2.85 billion market capitalization and was able to deliver a 154.02% return in the past 12 months.

Fortress Transportation is a good option for dividend investors as the company has paid dividends every year since 2015. On April 29, the company declared a quarterly dividend of $0.33 per share in line with the previous. On June 16, Citi resumed coverage on Fortress Transportation and Infrastructure Investors LLC rating it as “Buy,” and set a price target at $40.

At the end of the first quarter of 2021, Oaktree Capital Management owned 1.64 million shares in Fortress Transportation and Infrastructure Investors LLC, worth $46.32 million. This represented 0.64% of the investment portfolio of Oaktree Capital Management. The company is getting the attention of the smart money, as 12 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, down from 15 funds a quarter earlier.

3. Uniti Group Inc. (NASDAQ: UNIT)

Marks’ Stake Value: $37,475,000
Percentage of Howard Marks’ 13F Portfolio: 0.52%
Dividend Yield: 5.71%
Number of Hedge Fund Holders: 17

Uniti Group Inc. (NASDAQ: UNIT) is a realty investment trust company involved in the attainment and building of mission infrastructure in the broadcasting industry. The company was founded in 2014, and it stands third on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Uniti shares have gained 13.74% over the last 12 months.

On May 6, Uniti Group Inc. proclaimed Funds from operations (FFO) for the first quarter of 2021. It reported Funds from operations (FFO) of $0.41, beating market predictions by $0.13. The revenue for the first three months of 2021 was over $272.59 million, up 2.4% YoY, beating the estimates by $0.9 million. On May 4, the company declared a quarterly dividend of $0.15 per share, in line with the previous.

The hedge fund chaired by Howard Marks holds 3.40 million shares in Uniti Group Inc. worth $37.48 million. Paul Singer’s Elliott Management is the company’s most significant stakeholder, with 20.48 million shares worth $225.85 million.

2. Star Bulk Carriers Corp. (NASDAQ: SBLK)

Marks’ Stake Value: $572,608,000
Percentage of Howard Marks’ 13F Portfolio: 7.97%
Dividend Yield: 5.83%
Number of Hedge Fund Holders: 13

Star Bulk Carriers Corp. (NASDAQ: SBLK) is a multinational shipping company engaged in the marine transportation of dry bulk goods. The company was incorporated in 2006 and is ranked second on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Star Bulk currently has a $2.1 billion market capitalization. It delivered a 192.33% return in the past 12 months.

On June 2, SEB Equities initiated a coverage on Star Bulk Carriers stock rating it as “Buy,” and set a price target at $27.

Oaktree Capital Management is the biggest stakeholder in Star Bulk Carriers out of the 866 hedge funds tracked by Insider Monkey, as in the first quarter of 2021. The fund owns 39.01 million shares of the company, worth $572.61 million. The company is also getting the attention of the smart money, as 13 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 10 funds a quarter earlier.

1. Oaktree Specialty Lending Corporation (NASDAQ: OCSL)

Marks’ Stake Value: $1,711,000
Percentage of Howard Marks’ 13F Portfolio: 0.02%
Dividend Yield: 7.64%
Number of Hedge Fund Holders: 13

Oaktree Specialty Lending Corporation (NASDAQ: OCSL) is a specialty finance company that provides personalized, integrated credit solutions to firms with restricted access to citizens or associated capital markets. It was founded in 1995 and ranks first on the list of 10 best dividend stocks to buy according to billionaire Howard Marks. Oaktree shares have gained about 54.07% over the last 12 months.

On June 23, Oppenheimer analyst Mitchel Penn initiated coverage on Oaktree Specialty Lending Corp with an “Outperform” rating and a price target of $7.50. On May 06, Oaktree Specialty Lending declared a quarterly dividend of $0.13 per share, which was a 8.3% increase from prior dividend of $0.12.

The hedge fund run by Marks owns 276,000 shares in the Oaktree Specialty Lending Corporation, worth $1.71 million, representing 0.02% of their investment portfolio. Arrowstreet Capital is a leading shareholder in the company, with 2.54 million shares worth $15.76 million.

You can also take a peek at 10 Best Cheap Dividend Stocks to Buy According to Mario Gabelli and 10 Best Dividend Stocks to Buy Now According to Billionaire Jim Simons.

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