In this article, we discuss the 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. If you want to skip our detailed analysis of Tiger Cub Lee Ainslie’s history and hedge fund performance, go directly to the 5 Best Dividend Stocks to Buy and Hold Now According to Tiger Cub Lee Ainslie. Note that all hedge fund data is based on the exclusive group of 800+ funds tracked by Insider Monkey as part of our market-beating investment strategy.
Lee Ainslie, who oversees Maverick Capital, is a long/short equity investor. Ainslie is a Tiger Cub, having worked under the mentorship of legendary investor and billionaire Julian Robertson.
Ainslie launched his hedge fund with a $38 million funding boost from Sam Wyly, an American business magnate. Maverick mainly invests in consumer, retail, health care, financial, media, telecommunication, and technology industries.
Maverick’s portfolio worth as of the first quarter of 2021 was $10.852 billion. The hedge fund has posted $14.8 billion in total gains for investors since its launch. In 2020, the fund posted a return of 23.6% against an S&P 500 index of 26.5%.
In the first quarter of 2021, Maverick initiated a new stake in South Korea-based ecommerce company Coupang Inc (NYSE: CPNG). Maverick also started hoarding GameStop Corp. (NYSE: GME) in September last year and took profits from the massive gains and sold its entire stake in the company in the first quarter. Maverick also has major stakes in Facebook, Inc. Common Stock (NASDAQ: FB) and Netflix Inc (NASDAQ: NFLX).
A notable dividend paying stock in Tiger Cub Lee Ainslie portfolio is Microsoft Corporation (NASDAQ: MSFT). Based on the latest 13F holdings for the first quarter of 2021, Maverick Capital owns 1.20 million shares in Microsoft Corporation after cutting its holding in the company by almost 16% from the fourth quarter of 2020. On June 10, Microsoft Corporation (NASDAQ: MSFT) declared it would bring its Xbox Game Pass service to TVs via app or Microsoft’s own streaming stick. Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds.
Lee Ainslie also has a significant holding in Amazon.com, Inc. (NASDAQ: AMZN). The fund increased its holding in Amazon.com, Inc. (NASDAQ: AMZN) by around 71% in the first quarter, ending the period with 88,413 shares of the company, worth more than $273.56 million. On June 16, Jefferies added Amazon.com, Inc. (NASDAQ: AMZN) to its Franchise Picks list. Out of the hedge funds being tracked by Insider Monkey, Abu Dhabi-based investment firm SB Management is a leading shareholder in Amazon.com, Inc. (NASDAQ: AMZN) with 2.01 million shares worth more than $6.21 billion.
Maverick Capital also owns 108,666 shares in Alphabet Inc. (NASDAQ: GOOG), worth over $224.80 million, representing 2% of their portfolio. Maverick Capital trimmed its stake in the stock by 25% in the first quarter of 2021. On June 14, Alphabet Inc. (NASDAQ: GOOG) broadened its Google Workspace offering to consumers, business firms, and education users.
However, in this article, our focus would be on dividend stocks in Lee Ainslie’s Q1 portfolio.
Lee Ainslie isn’t alone in facing the losses. The entire hedge fund industry is feeling the effects of the changing financial landscape. The hedge fund industry’s 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 our list of the 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie.
10 Best Dividend Stocks to Buy and Hold According to Tiger Cub Lee Ainslie
10. The Bank of Nova Scotia (NYSE: BNS)
Ainslie’s Stake Value: $133,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 4.49%
Number of Hedge Fund Holders: 19
The Bank of Nova Scotia (NYSE: BNS) provides banking services and products globally. It was founded in 1832 and stands tenth on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Shares of the company rallied 55.84% in the last 12 months, resulting in $81.68 billion market capitalization.
The Bank of Nova Scotia (NYSE: BNS) is a solid option for income investors looking for a steady dividend payout. On February 23, the company declared a quarterly dividend of $0.73 per share, in line with the previous. The forward yield is 4.47%.
The Bank of Nova Scotia (NYSE: BNS) is a new arrival on Lee Ainslie’s portfolio, as his hedge fund bought about 2,132 shares of the company, worth $133,000.
9. Philip Morris International Inc. (NYSE: PM)
Ainslie’s Stake Value: $708,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 4.77%
Number of Hedge Fund Holders: 48
Philip Morris International Inc. (NYSE: PM) is a cigarette and tobacco-producing company. It was incorporated in 1987 and ranks ninth on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Philip Morris International Inc. (NYSE: PM) has offered investors more than 34.12% in returns over the past year.
Philip Morris International Inc. (NYSE: PM) is also one of the most dependable options when it comes to dividend payouts. Earlier this week, the company declared a quarterly dividend of $1.20 per share, in line with the previous. The board of the company also approved a new share buyback program of up to $7 billion, with target of spending of $5 billion to $7 billion over a three-year period. On April 20, Philip Morris International Inc. (NYSE: PM) posted earnings for the first quarter of 2021, reporting earnings per share of $1.57, beating market predictions by $0.18. The revenue for the first three months of 2021 was over $7.59 billion beating the estimates by $320 million.
Maverick Capital holds 7,979 shares in Philip Morris International Inc. (NYSE: PM) worth over $708,000. Maverick Capital has increased their stake by 496% in Q1 2021. A total of 48 hedge funds tracked by Insider Monkey entered the the second quarter of 2021 with Philip Morris International Inc. (NYSE: PM) shares on their portfolios. Fundsmith LLP is the most significant stakeholder, with 19.39 million shares worth $1.72 billion, representing 5.47% of their portfolio.
Just like Facebook, Inc. Common Stock (NASDAQ: FB), Netflix Inc (NASDAQ: NFLX), Coupang Inc (NYSE: CPNG), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Philip Morris International Inc. (NYSE: PM) is one of the best stocks to buy according to Lee Ainslie.
Fundsmith LLP, in its Q4 2020 investor letter, mentioned Philip Morris International Inc. Here is what Fundsmith LLP has to say about Philip Morris International Inc. in its letter:
“We are impressed with Philip Morris’s development of Reduced Risk Products or RRPs, most notably its heat not burn system iQOS. It seems we are not the only ones to view it this way as it was recently included in the Dow Jones Sustainability North America Index for the first time. For the moment the shares are weighed down by COVID related disruption to some of its markets and simple prejudice which seems to prevent some commentators from weighing the benefits the RRPs bring against the obvious fact that it is a tobacco company.”
8. Valero Energy Corporation (NYSE: VLO)
Ainslie’s Stake Value: $592,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 4.77%
Number of Hedge Fund Holders: 41
Valero Energy Corporation (NYSE: VLO) manufactures, advertises, and trades transportation fuels and petrochemicals products in the United States. It was incorporated in 1980 and stands eighth on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. Valero stock has offered investors returns exceeding 26.04% in the past year.
Valero Energy Corporation (NYSE: VLO) is a good option for dividend investors. It declared a quarterly dividend of $0.98 per share on April 19, in line with previous. The forward yield is 4.81%. On April 16, Raymond James analyst Justin Jenkins upgraded the stock to “Strong Buy” from “Outperform” setting a price target of $96.00.
Ainslie’s hedge fund increased its stake in the company by 138% in the first quarter. Maverick Capital owns 8,264 shares in the company worth over $592,000. There were 41 hedge funds in our database that held stakes in Valero Energy Corporation (NYSE: VLO) in the first quarter of 2021, compared to 38 funds in the fourth quarter of 2020.
Just like Facebook, Inc. Common Stock (NASDAQ: FB), Netflix Inc (NASDAQ: NFLX), Coupang Inc (NYSE: CPNG), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Valero Energy Corporation (NYSE: VLO) is one of the best stocks to buy according to Lee Ainslie.
7. B&G Foods, Inc. (NYSE: BGS)
Ainslie’s Stake Value: $1,738,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.01%
Dividend Yield: 5.36%
Number of Hedge Fund Holders: 10
B&G Foods, Inc. (NYSE: BGS) is an American holding company, which produces, trades, and distributes a portfolio of frozen foods and household items. It was founded in 1822 and is ranked seventh on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. The stock is up by 36.79% over the last 12 months.
B&G Foods, Inc. (NYSE: BGS) is a dependable option when it comes to dividend payouts to shareholders. On May 18, the company declared a quarterly dividend of $0.475 per share, in line with the previous. The forward yield is 5.61%. On January 19, Stephens analyst Tim Perz initiated covering the stock and rating it as “Equal Weight” with a price target of $27.00.
The hedge fund chaired by Lee Ainslie holds 55,954 shares in the company worth over $1.74 million. Maverick Capital‘s stake in B&G stock increased by 439% in the past few months. As of the first quarter of 2021, there were 10 hedge funds in Insider Monkey’s database that held stakes in B&G Foods, Inc. (NYSE: BGS), compared to 15 funds in the previous quarter.
Just like Facebook, Inc. Common Stock (NASDAQ: FB), Netflix Inc (NASDAQ: NFLX), Coupang Inc (NYSE: CPNG), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), B&G Foods, Inc. (NYSE: BGS) is one of the best stocks to buy according to Lee Ainslie.
6. PPL Corporation (NYSE: PPL)
Ainslie’s Stake Value: $203,000
Percentage of Lee Ainslie’s 13F Portfolio: 0.001%
Dividend Yield: 5.68%
Number of Hedge Fund Holders: 25
PPL Corporation (NYSE: PPL) functions as an international energy company, which provides electricity and natural gas. PPL Corporation was founded in 1920 and is sixth on the list of 10 best dividend stocks to buy and hold according to Tiger Cub Lee Ainslie. PPL Corporation (NYSE: PPL) stock has returned more than 6.70% to investors during the course of the past twelve months.
Just like Facebook, Inc. Common Stock (NASDAQ: FB), Netflix Inc (NASDAQ: NFLX), Coupang Inc (NYSE: CPNG), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), PPL Corporation (NYSE: PPL) is one of the best stocks to buy according to Lee Ainslie. In May, PPL declared a quarterly dividend of $0.415 per share, in line with the previous. The forward yield is 5.67%. On June 16, shares of PPL saw a fall across the board, as the Federal Reserve flagged an increased interest rate.
Maverick Capital trimmed its stake in the stock by 49% to 7,042 shares in the first quarter of 2021. Renaissance Technologies is the leading shareholder of PPL Corporation (NYSE: PPL), with a total of 1.98 million shares, worth over $57.20 million. A total of 25 hedge funds tracked by Insider Monkey were bullish on PPL Corporation (NYSE: PPL) in the first quarter of 2021, up from 21 funds a quarter earlier.
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Disclosure: None. 10 Best Dividend Stocks to Buy and Hold According to Tiger Cub Lee Ainslie is originally published on Insider Monkey.
