In this article, we will discuss the 10 best dividend stocks to buy according to Irving Kahn’s hedge fund.
Kahn Brothers was established in 1978 by Irving Kahn, Thomas Graham Kahn and Alan Kahn. Irving Kahn, who passed away in 2015, started his career in the investing business just before the stock market flash crash of 1929. He also served as Benjamin Graham’s assistant teacher at Columbia Business School, in the 1930s
Kahn Brothers follows the value investing technique, which was introduced by Benjamin Graham. Kahn Brothers focuses on the safety of capital and assets appreciation in the long term.
The firm’s 13F public equity portfolio is worth $646.07 billion as of the end of the first quarter of 2021. In 2020 the hedge fund posted annualized gains of 76.99% compared to 18.25% return posted by SPDR S&P 500 ETF Trust (NYSE: SPY).
Some notable stock picks of Irving Kahn’s hedge fund based as of Q1 2021 include Bank of America Corporation (NYSE: BAC), Comcast Corporation (NASDAQ: CMCSA), and PepsiCo, Inc. (NASDAQ: PEP).
In Bank of America Corporation (NYSE: BAC), Irving Kahn’s fund owns 13,547 shares worth $524,000. The investment covers 0.08% of the fund’s portfolio. On July 14, Bank of America Corporation (NYSE: BAC) posted earnings for the second quarter of 2021. It reported earnings per share of $1.03, beating market predictions by $0.26. On July 6, Keefe, Bruyette & Woods analyst David Konrad initiated a coverage on Bank of America Corporation (NYSE: BAC) with a “Market Perform” rating and a price target of $40. Based on our calculations, Bank of America Corporation (NYSE: BAC) ranks 24th in our list of the 30 Most Popular Stocks Among Hedge Funds.
Irving Kahn’s Kahn Brothers also owns 6,181 shares in Comcast Corporation (NASDAQ: CMCSA). The stock gained 37.09% over the past 12 months. On July 12, The Benchmark Company analyst Matthew Harrigan raised the firm’s price target on Comcast Corporation (NASDAQ: CMCSA) to $72 from $70 and kept a “Buy” rating on the shares. On May 25, Comcast Corporation (NASDAQ: CMCSA) announced a quarterly dividend of $0.25 a share on the company’s common stock. In the first quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $9.76 billion in Comcast Corporation (NASDAQ: CMCSA), up from 84 the preceding quarter worth $8.83 billion.
Another notable stock in Irving Kahn’s hedge fund’s portfolio is PepsiCo, Inc. (NASDAQ: PEP). Kahn Brothers holds 1,900 shares in the company worth $268.00. On July 13, PepsiCo, Inc. (NASDAQ: PEP) posted earnings results for the second quarter of 2021. The earnings per share was $1.72, beating market predictions by $0.19. In addition, the revenue over the period was $19.22 billion, beating the estimates by $1.27 billion. On April 21, UBS analyst Sean King upgraded PepsiCo, Inc. (NASDAQ: PEP) from “Neutral” to “Buy” with a price target raised to $165 from $145. Shares of PepsiCo rallied 15.43% in the last 12 months, resulting in a $211.41 billion market capitalization.
In this article, however, our focus would be on the dividend-paying stocks in Kahn Brothers’ Q1 portfolio.
Before investing, you should practice caution and do a lot of research, as financial volatility is making things difficult even for the smart investors. 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.
Keeping all these points in mind, let’s start our list of the 10 best dividend stocks to buy according to Irving Kahn’s hedge fund. We used Kahn Brothers’ Q1 portfolio for this analysis.
Best Dividend Stocks to Buy According to Irving Kahn’s Hedge Fund
10. Sterling Bancorp (NYSE: STL)
Kahn Brothers’ Stake Value: $6,249,000
Percentage of Kahn Brothers’ 13F Portfolio: 0.96%
Dividend Yield: 1.19%
Number of Hedge Fund Holders: 20
Sterling Bancorp (NYSE: STL) is the parent company of Sterling National Bank that offers multiple banking products and services. It was founded in 1888 and ranks tenth on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Sterling Bancorp shares have gained about 97.52% over the last 12 months.
On July 7, Sterling Bancorp (NYSE: STL) stated it made a beneficial investment in Verdigris Holdings, the holding company of digital banking services provider BrightFi, to increase its digital offerings to its customers. BrightFi delivers cost-effective cloud-based technology solutions. On April 19, Sterling Bancorp declared a quarterly dividend of $0.07 per share, in line with the previous.
In addition, Sterling Bancorp (NYSE: STL) released its first-quarter 2021 reports, in which it revealed that its earnings per share stood at $0.51, beating the estimates by $0.05. The revenue over the period was $250.27 million, beating the estimates by $1.97 million. On April 20, Maxim raised the price target on the stock to $30 from $24. The firm maintained a “Buy” rating.
Just like Bank of America Corporation (NYSE: BAC), Comcast Corporation (NASDAQ: CMCSA), and PepsiCo, Inc. (NASDAQ: PEP), Sterling Bancorp (NYSE: STL) is one of the best stocks to buy according to Irving Kahn’s fund.
Kahn Brothers holds 271,482 shares in Sterling Bancorp (NYSE: STL) worth $6.25 million, representing 0.96% of its portfolio. Hedge fund sentiment increased for Sterling Bancorp in the first quarter. Insider Monkey’s data shows that 20 elite hedge funds held stakes in the company in the first quarter, up from 19 funds a quarter earlier.
9. Citigroup Inc. (NYSE: C)
Kahn Brothers’ Stake Value: $60,446,000
Percentage of Kahn Brothers’ 13F Portfolio: 9.35%
Dividend Yield: 2.98%
Number of Hedge Fund Holders: 90
Citigroup Inc. (NYSE: C) is an American investment bank and financial services corporation based in New York City. It was founded in 1812, and the company stands ninth on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Shares of Citigroup climbed 30.34% over the past twelve months.
On July 6, Keefe, Bruyette & Woods analyst David Konrad initiated coverage on Citigroup Inc. (NYSE: C) with an “Outperform” rating and a price target of $85. On June 24, Citigroup Inc. (NYSE: C) established a new electronic asset unit dedicated to cryptocurrency and blockchain solutions within its asset management sector. The purpose is to allow the bank’s wealthy clients easy access to the crypto market. On April 15, Citigroup Inc. (NYSE: C) posted earnings results for the first quarter of 2021. The earnings per share was $3.62, beating the estimates by $1.03.
Just like Bank of America Corporation (NYSE: BAC), Comcast Corporation (NASDAQ: CMCSA), and PepsiCo, Inc. (NASDAQ: PEP), Citigroup Inc. (NYSE: C) is one of the best stocks to buy according to Irving Kahn’s fund.
Irving Kahn’s fund owns 830,883 shares in Citigroup Inc. (NYSE: C) worth $60.45 million, representing 9.35% of the investment portfolio. Natixis Global Asset Management’s Harris Associates is the biggest stakeholder in the company, with 27.32 million shares worth $1.99 billion.
8. Hope Bancorp, Inc. (NASDAQ: HOPE)
Kahn Brothers’ Stake Value: $466,000
Percentage of Kahn Brothers’ 13F Portfolio: 0.07%
Dividend Yield: 4.05%
Number of Hedge Fund Holders: 13
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope that provides banking services in the US. The company was founded in 2000, and it ranks eighth on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Hope Bancorp has a market cap of $1.65 billion.
On April 27, Hope Bancorp, Inc. (NASDAQ: HOPE) declared a quarterly dividend of $0.14 per share. On April 27, Hope Bancorp, Inc. (NASDAQ: HOPE) posted earnings for the first quarter of 2021. It reported earnings per share of $0.35, beating market predictions by $0.04.
Just like Bank of America Corporation (NYSE: BAC), Comcast Corporation (NASDAQ: CMCSA), and PepsiCo, Inc. (NASDAQ: PEP), Hope Bancorp, Inc. (NASDAQ: HOPE) is one of the best stocks to buy according to Irving Kahn’s Hedge Fund.
Kahn Brothers own 31,000 shares in Hope Bancorp, Inc. (NASDAQ: HOPE), worth over $466,000. Pzena Investment Management is the biggest stakeholder in the company, with 3.97 million shares worth $59.82 million.
7. Provident Financial Services, Inc. (NYSE: PFS)
Kahn Brothers’ Stake Value: $612,000
Percentage of Kahn Brothers’ 13F Portfolio: 0.09%
Dividend Yield: 4.14%
Number of Hedge Fund Holders: 11
Provident Financial Services, Inc. (NYSE: PFS) operates as the bank holding company for Provident Bank providing various banking products and services. The company was founded in 1839 and is placed seventh on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Provident Financial Services, Inc. (NYSE: PFS) has gained about 51.74% in value over the last 12 months.
On April 30, Provident Financial Services, Inc. (NYSE: PFS) declared a quarterly dividend of $0.23 per share. On April 30, the company declared that it earned $0.63 per share in the first quarter of 2021, beating analysts’ expectations of $0.20 per share. The company’s revenue in the first quarter came in at $111.64 million, up 25.4% from $1.04 million year-over-year. On March 5, RBC Capital analyst Steven Duong upgraded Provident Financial Services, Inc. (NYSE: PFS) to “Outperform” from “Sector Perform” with a price target of $26, up from $23.
Just like Bank of America Corporation (NYSE: BAC), Comcast Corporation (NASDAQ: CMCSA), and PepsiCo, Inc. (NASDAQ: PEP), Provident Financial Services, Inc. (NYSE: PFS) is one of the best stocks to buy according to Irving Kahn’s Hedge Fund.
Irving Kahn’s fund owns 27,472 shares in the company worth $612.000. Out of the hedge funds being tracked by Insider Monkey, Renaissance Technologies is a leading shareholder in Provident Financial Services, Inc. (NYSE: PFS), with 524,97 shares worth more than $11 million.
6. Verizon Communications Inc. (NYSE: VZ)
Kahn Brothers’ Stake Value: $886,000
Percentage of Kahn Brothers’ 13F Portfolio: 0.13%
Dividend Yield: 4.48%
Number of Hedge Fund Holders: 69
Verizon Communications Inc. (NYSE: VZ) is an American multinational telecommunications corporation. The company was incorporated in 1983 and is ranked sixth on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Verizon currently has a $232.22 billion market capitalization.
On July 13, Verizon Communications Inc. (NYSE: VZ) and Mastercard partnered to lead transformational solutions for the global payments and e-commerce ecosystem.
Just like Bank of America Corporation (NYSE: BAC), Comcast Corporation (NASDAQ: CMCSA), and PepsiCo, Inc. (NASDAQ: PEP), Verizon Communications Inc. (NYSE: VZ) is one of the best stocks to buy according to Irving Kahn’s Hedge Fund.
Irving Kahn’s fund holds 15,244 shares in the company worth $886,000. Hedge fund sentiment increased for Verizon Communications Inc. (NYSE: VZ) in the first quarter. Insider Monkey’s data shows that 69 elite hedge funds held stakes in the company at the end of the first quarter, up from 67 funds a quarter earlier.
Miller/Howard Investments, in its Q1 2021 investor letter, mentioned Verizon Communications Inc. (NYSE: VZ). Here is what the fund said:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
5. BP p.l.c. (NYSE: BP)
Kahn Brothers’ Stake Value: $46,576,000
Percentage of Kahn Brothers’ 13F Portfolio: 7.2%
Dividend Yield: 4.84%
Number of Hedge Fund Holders: 29
BP p.l.c. (NYSE: BP) is a multinational oil and gas company based in London. The company was founded in 1908 and stands fifth on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. BP p.l.c. shares have gained 25.19% year-to-date.
On July 6, JPMorgan analyst Christyan Malek maintained an “Overweight” rating on the stock.
Kahn Brothers holds 1.91 million shares in BP p.l.c. (NYSE: BP) worth over $46 million. This represents 7.2% of their portfolio. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the company’s most significant stakeholder, with 17.38 million shares worth $423.27 million.
4. Chevron Corporation (NYSE: CVX)
Kahn Brothers’ Stake Value: $413,000
Percentage of Kahn Brothers’ 13F Portfolio: 0.06%
Dividend Yield: 5.15%
Number of Hedge Fund Holders: 41
Chevron Corporation (NYSE: CVX) is an American multinational energy corporation. It was founded in 1984 and is ranked fourth on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Chevron has delivered 17.23% returns in the past 12 months.
On July 12, BMO Capital analyst Phillip Jungwirth initiated coverage of Chevron Corporation (NYSE: CVX) with an “Outperform” rating and a $123 price target. On April 28, Chevron Corporation (NYSE: CVX) declared a quarterly dividend of $1.34 per share, a 3.9% increase from the prior dividend of $1.29. This is the company’s 34th year of consecutive dividend payment.
Kahn Brothers holds 3,948 shares in Chevron Corporation (NYSE: CVX) worth $413.000, representing 0.06% of their portfolio. The biggest stakeholder of the company is Berkshire Hathaway, with 23.67 million shares worth $2.48 billion.
ClearBridge Investments, in their first quarter 2021 investor letter, mentioned Chevron Corporation (NYSE: CVX). Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. GlaxoSmithKline plc (NYSE: GSK)
Kahn Brothers’ Stake Value: $45,175,000
Percentage of Kahn Brothers’ 13F Portfolio: 6.99%
Dividend Yield: 5.51%
Number of Hedge Fund Holders: 25
GlaxoSmithKline plc (NYSE: GSK) is a multinational pharmaceutical company. The company was founded in 1715, and it stands third on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. GlaxoSmithKline currently has a $100.04 billion market capitalization.
On July 6, Morgan Stanley analyst Mark Purcell raised the firm’s price target on GlaxoSmithKline plc (NYSE: GSK) to 1,590 GBp from 1,550 GBp and kept an “Equal Weight” rating on the shares.
Irving Kahn’s Kahn Brothers currently holds 1.27 million shares of GlaxoSmithKline plc (NYSE: GSK) that amounts to $45.18 million. GlaxoSmithKline occupies 6.99% of Kahn Brothers’ total portfolio. Out of the hedge funds being tracked by Insider Monkey, Fisher Asset Management is a leading shareholder in GlaxoSmithKline plc (NYSE: GSK) with 17.02 million shares worth more than $607 million.
2. Exxon Mobil Corporation (NYSE: XOM)
Kahn Brothers’ Stake Value: $902,000
Percentage of Kahn Brothers’ 13F Portfolio: 0.13%
Dividend Yield: 5.68%
Number of Hedge Fund Holders: 65
Exxon Mobil Corporation (NYSE: XOM) is a multinational oil and gas corporation. The company was incorporated in 1870 and is ranked second on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. Exxon Mobil Corporation (NYSE: XOM) currently has a $258.97 billion market capitalization. It delivered a 36.41% return in the past 12 months.
On July 12, BMO Capital analyst Phillip Jungwirth initiated a coverage of Exxon Mobil Corporation (NYSE: XOM) with a “Market Perform” rating and $69 price target.
Kahn Brothers owns 16,170 shares of the company, worth $902,000. Exxon Mobil Corporation (NYSE: XOM) is also getting the attention of the smart money, as 65 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 63 funds a quarter earlier.
Harding Loevner, in their first quarter 2021 investor letter, mentioned Exxon Mobil Corporation (NYSE: XOM). Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
1. New York Community Bancorp, Inc. (NYSE: NYCB)
Kahn Brothers’ Stake Value: $56,768,000
Percentage of Kahn Brothers’ 13F Portfolio: 8.78%
Dividend Yield: 6%
Number of Hedge Fund Holders: 25
New York Community Bancorp, Inc. (NYSE: NYCB) provides banking products and services. It was founded in 1859 and ranks first on the list of 10 best dividend stocks to buy according to Irving Kahn’s fund. New York Community currently has a $5.37 billion market capitalization.
On May 5, New York Community Bancorp, Inc. (NYSE: NYCB) declared a quarterly dividend of $0.17 per share, in line with the previous. On April 26, CFRA analyst Pauline Bell upgraded New York Community stock to “Buy” from “Hold.” New York Community Bancorp, Inc. (NYSE: NYCB) also posted its earnings per share for the first quarter of 2021. The earnings per share was $0.29, beating the estimates by $0.02. The company’s revenue in the first quarter came in at $332.07 million, up 27.0% from $7.85 million year over year.
Kahn Brothers’ stake in New York Community Bancorp, Inc. (NYSE: NYCB) stock increased by 5% in the past few months. Adage Capital Management, with 5.60 million shares, is the biggest stakeholder in New York Community Bancorp.
You can also take a peek at 10 Best Dividend Stocks to Buy According to Traci Lerner’s Chescapmanager and 10 Best Dividend Stocks to Buy According to Billionaire Michael Price
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Disclosure: None. 10 Best Dividend Stocks to Buy According to Irving Kahn’s Hedge Fund is originally published on Insider Monkey.
