In this article, we will take a look at the 10 Best Dividend Stocks to Buy According to D. E. Shaw.
D. E. Shaw was founded by David E. Shaw in 1988. It was one of the first firms to build its investment approach around complex trading algorithms. As the business grew, it expanded beyond quantitative strategies and moved into human-led investing, private markets, and long-term investments.
Shaw stepped away from the firm’s day-to-day management in the early 2000s. Since then, an executive committee has been responsible for overseeing the company.
Bloomberg reported on June 3 that D.E. Shaw & Co. is lengthening the time investors will need to fully exit two of its largest hedge funds. The decision follows a broader industry trend, with firms such as Millennium Management and Citadel also taking steps to keep client capital invested for longer periods. The firm is also closing Valence and Multi-Asset Fund, two smaller multistrategy hedge funds that manage less than $10 billion in outside capital. A person familiar with the matter said D.E. Shaw is launching a new fund that will accept direct investments only from employees. The fund is being introduced as a benefit aimed at attracting and retaining talent.
D.E. Shaw currently uses fund-level liquidity limits. That means there is a cap on the total amount investors can withdraw from a fund during a set period. The firm told clients the changes are part of a wider shift across the hedge fund industry toward tighter liquidity terms that help protect portfolios and funds.
In its Q1 2026 13F filing, D. E. Shaw & Co. reported a portfolio worth $166.3 billion. That marked a decline of about 8.8% from the previous quarter. During the quarter, the firm adjusted a number of its large technology and broad-market holdings. Even with those changes, its portfolio remained heavily concentrated in AI-related semiconductor and technology companies.
Given this, we will take a look at some of the best dividend stocks according to D. E. Shaw.
David E. Shaw of D.E. Shaw
Our Methodology
For this list, we scanned D E Shaw’s portfolio as of Q1 2026 as of Q1 2026 and identified prominent companies that offer dividends to shareholders. From there, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Bath & Body Works, Inc. (NYSE:BBWI)
D E Shaw’s Stake Value: $177,450,751
On June 1, Goldman Sachs lowered its price recommendation on Bath & Body Works, Inc. (NYSE:BBWI) to $23 from $26. It reiterated a Neutral rating on the stock. In a research note, the analyst said body care sales declined in the mid-teens range, largely due to assortment and space limitations tied to collaborations, along with a reduction in underperforming Everyday Luxuries products. Management noted that the category remains healthy and expects innovation, changes in marketing strategy, and stronger core offerings to help drive a return to growth by 2027.
On May 28, Telsey Advisory analyst Dana Telsey reduced the firm’s price goal on Bath & Body Works to $22 from $25 and maintained a Market Perform rating. The analyst told investors that the firm was encouraged by improved operating expense deleverage and stronger sales trends. Telsey lowered its target to reflect ongoing macroeconomic concerns and the possibility of inflationary pressures.
Bath & Body Works, Inc. (NYSE:BBWI) is a global omnichannel retailer specializing in personal care and home fragrance products. The company offers a wide range of body and home fragrances, including 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions, and body creams.
9. Devon Energy Corporation (NYSE:DVN)
D E Shaw’s Stake Value: $192,954,405
On June 8, JPMorgan reinstated coverage of Devon Energy Corporation (NYSE:DVN) with an Overweight rating. It also set a $62 price target on the stock after a period of restriction. The firm believes the stock’s current trading levels present an attractive entry point for investors. In a research note, the analyst said Devon offers a “compelling absolute and relative valuation proposition.” The firm also sees opportunities to capture additional synergies and believes a portfolio high-grading process could help unlock further value.
On June 1, Truist raised the firm’s price goal on Devon Energy to $66 from $63. It maintained a Buy rating on the shares. Analyst Gabe Daoud pointed to a Reuters report indicating that Devon had received an $8 billion offer for its Marcellus asset. Daoud added that expectations for a divestiture had increased following the merger’s completion, citing a strong ABS market and generally supportive conditions for asset sales. The analyst noted that investors had anticipated a transaction could materialize relatively quickly after the merger closed.
Devon Energy Corporation (NYSE:DVN) is a US-based oil and gas producer with a diversified multi-basin portfolio, led by its acreage position in the Delaware Basin. The company focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs).
8. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
D E Shaw’s Stake Value: $218,822,966
On June 1, UBS raised its price recommendation on C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to $230 from $224. It reiterated a Buy rating on the stock. In a research note, the analyst said the higher target reflects stronger truckload spot rates and expected benefits from the Montgomery decision.
Earlier, on May 20, Jefferies upgraded CHRW to Buy from Hold. It also increased the firm’s price target to $200 from $195. Following a visit to the company’s headquarters, analyst Stephanie Moore said the trip “materially reinforced” the firm’s conviction in C.H. Robinson’s technology and productivity transformation. Moore also noted that the regulatory environment following the Montgomery Supreme Court decision structurally favors larger, scaled brokers. She added that the company’s balance sheet positions it as a “natural consolidator” within the industry. Based on those factors, Jefferies believes current share levels offer a “compelling entry point” for investors.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a global transportation and logistics company. Its operations are organized into North American Surface Transportation (NAST), Global Forwarding, and All Other and Corporate segments.
7. Albemarle Corporation (NYSE:ALB)
D E Shaw’s Stake Value: $240,535,730
On May 26, Vertical Research upgraded Albemarle Corporation (NYSE:ALB) to Buy from Hold. It assigned a $224 price target to the stock.
The same day, RBC Capital raised its price recommendation on Albemarle to $257 from $253. It reiterated an Outperform rating on the shares. In a research note, the analyst said the company is expected to continue growing volumes at a mid-single-digit CAGR over the next several years. That growth is projected to come primarily from brownfield expansions at CGP3 and Wodgina, productivity improvements at Atacama, and additional opportunities at Kings Mountain and Antofalla. RBC also pointed to last month’s 9% decline in Albemarle’s stock price, which it attributed to oil and broader market factors. The firm views that pullback as a buying opportunity for investors.
Albemarle Corporation (NYSE:ALB) focuses on converting essential resources into key ingredients used across mobility, energy, connectivity, and health markets. The company operates through its Energy Storage, Specialties, and Ketjen segments.
6. Honeywell International Inc. (NASDAQ:HON)
D E Shaw’s Stake Value: $264,334,174
On June 8, Reuters reported that Honeywell International Inc. (NASDAQ:HON) reaffirmed its full-year adjusted profit and sales forecast as the company prepares to spin off its aerospace business in the coming weeks.
Honeywell Aerospace, which manufactures aircraft engines, parts, and defense systems, is set to be spun off on June 29. The move marks a major milestone in the company’s previously announced plan to split into three separate businesses focused on automation, aerospace, and advanced materials.
Honeywell expects full-year 2026 adjusted earnings to be between $10.35 and $10.65 per share. The company also forecasts annual revenue of $38.8 billion to $39.8 billion.
In April, CEO Vimal Kapur said the Middle East conflict reduced first-quarter revenue by 0.5%. He also expected a roughly 1% impact in the second quarter, primarily affecting the company’s process automation and technology segment.
Speaking on an investor call on Monday, Kapur said Honeywell has “very high conviction” that the conflict will not affect results in the second half of 2026, assuming “no significant re-escalation.” He added that it could become a “tailwind” as customers increase spending on energy security and reconstruction efforts. Honeywell Technologies expects adjusted earnings for 2026 to range from $3.95 to $4.15 per share. The business also projects revenue of $19.9 billion to $20.2 billion. The company expects annual free cash flow of about $2 billion.
Honeywell International Inc. (NASDAQ:HON) is an integrated operating company serving customers across a wide range of industries and regions. Its portfolio is supported by the Honeywell Accelerator operating system and the Honeywell Forge platform.
While we acknowledge the potential of HON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HON and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see 5 Best Dividend Stocks to Buy According to D. E. Shaw.
Disclosure: None. Follow Insider Monkey on Google News.
