In this article, we discuss the 10 dividend stocks picks of billionaire Mario Gabelli based on Q3 holdings of the fund.
Billionaire Mario Joseph Gabelli graduated from Fordham University’s College of Business Administration in 1965 with a summa cum laude. He founded GAMCO Investors, formerly known as Gabelli Asset Management Company, an investment hedge fund based in Rye, New York.
The hedge fund’s investment advice and brokerage services are available to mutual funds, institutional investors, and a selected group of clients.
Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Wells Fargo & Company (NYSE:WFC) were among the top equities in GAMCO Investors’ portfolio in the third quarter of 2021.
GAMCO Investors, Mario Gabelli
Here is a list of 10 dividend stock picks of billionaire Mario Gabelli. We used Gabelli’s 13F portfolio for Q3 2021 for this analysis.
Dividend Stock Picks of Billionaire Mario Gabelli
10. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 15
Dividend Yield: 5.29%
BCE Inc. (NYSE:BCE) is a telecommunications and media firm that provides residential, corporate, and wholesale clients with communication services. In November, BCE Inc. (NYSE:BCE) declared a quarterly dividend of CAD 0.875 per share, in line with the previous.
Desjardins analyst Jerome Dubreuil boosted BCE Inc.’s (NYSE:BCE) price objective to C$66 from C$64 in November and maintained a “Hold” rating on the stock. BCE Inc. (NYSE:BCE) third-quarter earnings report shows revenue of C$5.84 billion, up 0.9% YoY, below the estimates by C$100 million.
Hedge fund sentiment increased for BCE Inc. (NYSE:BCE) in the third quarter of 2021. Insider Monkey’s data shows that 15 hedge funds held stakes in the company at the end of the third quarter, up from 14 funds a quarter earlier.
Just like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Wells Fargo & Company (NYSE:WFC), BCE Inc. (NYSE:BCE) is one of the stocks gaining the attention of billionaire Mario Gabelli.
9. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Dividend Yield: 5.65%
Exxon Mobil Corporation (NYSE:XOM) is a multinational oil and gas company. In November, Exxon Mobil Corporation (NYSE:XOM) and privately held biotech startup Viridos struck a cooperative research agreement to commercialize their low-carbon biofuels concepts.
Exxon Mobil Corporation (NYSE:XOM) was downgraded to “Sell” from “Hold” in November by Truist analyst Neal Dingmann, with a price target of $50, down from $66. According to Dingmann while the firm is transitioning to a more energy-efficient model, it got off to a late start and isn’t making much progress.
There were 64 hedge funds in our database that held stakes in Exxon Mobil Corporation (NYSE:XOM) at the end of the third quarter of 2021, compared to 68 funds in the previous quarter. GQG Partners is Exxon Mobil Corporation’s (NYSE:XOM) most significant stakeholder, with 26.59 million shares worth $1.56 billion.
8. Redwood Trust, Inc. (NYSE:RWT)
Number of Hedge Fund Holders: 15
Dividend Yield: 6.22%
Redwood Trust, Inc. (NYSE:RWT) is a financial firm specializing in many different aspects of home financing. Mario Gabelli first bought 12,000 shares in Redwood Trust, Inc. (NYSE:RWT) back in the second quarter of 2013. GAMCO Investors currently owns 188,584 shares of the company worth $2.43 million.
In November, Wells Fargo analyst Donald Fandetti initiated coverage of Redwood Trust, Inc. (NYSE:RWT) with an “Equal Weight” rating and gave a price target of $14. According to the analyst, Redwood Trust, Inc. (NYSE:RWT) is a significant player in the non-agency residential mortgage business and expects continued dividend growth.
In the third quarter of 2021, 15 hedge funds in Insider Monkey’s database of 867 funds held stakes in Redwood Trust, Inc. (NYSE:RWT) compared to 12 funds in the preceding quarter. The all-time high for this statistic is 22.
7. Vodafone Group Public Limited Company (NASDAQ:VOD)
Number of Hedge Fund Holders: 18
Dividend Yield: 6.73%
Vodafone Group Public Limited Company (NASDAQ:VOD) is a telecommunications company that operates in Europe and worldwide. In November, UBS analyst Polo Tang raised his price target on Vodafone Group Public Limited Company (NASDAQ:VOD) to 188 GBp from 187 GBp and maintained a “Buy” rating on the shares.
In the third quarter, Mario Gabelli increased his stake in Vodafone Group Public Limited Company (NASDAQ:VOD) by 8%, and his stake in the company is now worth about $624,000. In addition, Vodafone Group Public Limited Company (NASDAQ:VOD) declared a EUR 0.045 per share semi-annual dividend in November, in line with the previous.
Our data on 867 hedge funds shows that in the third quarter of 2021, 18 hedge funds held stakes in Vodafone Group Public Limited Company (NASDAQ:VOD) worth $613.77 million. In the previous quarter, 17 hedge funds had stakes in the company worth $703.24 million.
6. AllianceBernstein Holding L.P. (NYSE:AB)
Number of Hedge Fund Holders: 8
Dividend Yield: 6.77%
Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital is the leading shareholder of AllianceBernstein Holding L.P. (NYSE:AB), with 453,716 shares worth $22.50 million.
For the fiscal third quarter of 2021, AllianceBernstein Holding L.P. (NYSE:AB) reported an EPS of $0.89, beating the estimates by $0.03. The company’s revenue was $1.09 billion, up 21.1% year over year. AllianceBernstein Holding L.P. (NYSE:AB) also announced a quarterly dividend of $0.89 per share, down from $0.91 per share the prior quarter.
AllianceBernstein Holding L.P. (NYSE:AB) recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 8 in the third quarter of 2021 compared to 9 positions in the previous quarter.
Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Wells Fargo & Company (NYSE:WFC), AllianceBernstein Holding L.P. (NYSE:AB) is a notable stock in Gabelli’s Q3 portfolio.
5. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Dividend Yield: 6.82%
Enbridge Inc. (NYSE:ENB) is a provider of energy infrastructure. Liquid Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services are the company’s five segments. On December 7, Enbridge Inc. (NYSE:ENB) declared a quarterly dividend of CAD 0.860 per share, up 3% from the previous payout of CAD 0.835.
In November, RBC Capital analyst Robert Kwan raised his price target on Enbridge Inc. (NYSE:ENB) to C$61 from C$57 and kept an “Outperform” rating on the shares. GAMCO Investors holds 23,506 shares in Enbridge Inc. (NYSE:ENB) worth over $936,000.
According to our data, 24 hedge funds out of 867 held stakes in Enbridge Inc. (NYSE:ENB) in the third quarter, worth about $211.48 million. The number of hedge funds holding stakes in the company in the second quarter was 19, worth $166.07 million.
ClearBridge Investments, in its first-quarter 2021 investor letter mentioned Enbridge Inc. (NYSE:ENB) . Here is what the fund said:
“Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. The first quarter saw the market giving the energy sector credit for its leverage to the eventual economic recovery as COVID-19 vaccines get rolled out through 2021.”
4. Lumen Technologies, Inc. (NYSE:LUMN)
Number of Hedge Fund Holders: 25
Dividend Yield: 8.23%
Lumen Technologies, Inc. (NYSE:LUMN) is an investment holding company that provides home and commercial users with integrated communications. In the first quarter of 2021, GAMCO Investors began building its stake in Lumen Technologies, Inc. (NYSE:LUMN), and it now has 82,446 shares worth $1.02 million. The firm makes up 0.01% of the hedge fund’s 13F holdings.
In November, Lumen Technologies, Inc. (NYSE:LUMN) declared a quarterly dividend of $0.25 per share, in line with the previous. Citi analyst Michael Rollins upgraded Lumen Technologies, Inc. (NYSE:LUMN) from “Sell” to “Neutral” in November, with a $13 price objective.
At the end of Q3, 25 hedge funds tracked by Insider Monkey reported owning stakes in Lumen Technologies, Inc. (NYSE:LUMN), down from 33 in the previous quarter.
Longleaf Partners Fund mentioned Lumen Technologies, Inc. (NYSE:LUMN) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”
3. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Dividend Yield: 8.56%
Enterprise Products Partners L.P. (NYSE:EPD) is a holding company specializing in natural gas and petrochemicals production and trading. In October, Wolfe Research analyst Keith Stanley downgraded Enterprise Products Partners L.P. (NYSE:EPD) to “Peer Perform” from “Outperform” and gave a price target of $24. Stanley advises investors in a research note that the next midstream earnings season looks good but not extraordinary.
In the third quarter of 2021, Enterprise Products Partners L.P. (NYSE:EPD) had an EPS of $0.53, beating the estimates by $0.02. The company’s revenue was $10.83 billion, up 54.9% year over year and beating estimates by $2.32 billion.
Our data shows 25 hedge funds holding stakes in Enterprise Products Partners L.P. (NYSE:EPD) in the third quarter, worth $233.26 million. In the second quarter, 28 hedge funds held stakes in the company worth $246.06 million, in comparison.
ClearBridge Investments, in its first-quarter 2021 investor letter, mentioned Enterprise Products Partners L.P. (NYSE:EPD). 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) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 66
Dividend Yield: 9.01%
AT&T Inc. (NYSE:T) is a global telecommunications, media, and technology company. In October, KeyBanc analyst Brandon Nispel upgraded AT&T Inc. (NYSE:T) to “Sector Weight” from “Underweight.”
AT&T Inc.’s (NYSE:T) third-quarter EPS came in at $0.87, beating the estimates by $0.08. Revenue over the period was $39.9 billion, down 5.7% Y/Y. GAMCO Investors holds more than 1.04 million shares in AT&T Inc. (NYSE:T) worth $28.15 million. This represents 0.24% of their portfolio. However, the hedge fund’s stake in the company decreased by 3% in the third quarter of 2021.
66 hedge funds in Insider Monkey’s database held stakes amounting to $3.21 billion in AT&T Inc. (NYSE:T) in the third quarter of 2021. This is compared to 68 hedge funds in the previous quarter, with stakes worth $2.90 billion.
1. United-Guardian, Inc. (NASDAQ:UG)
Number of Hedge Fund Holders: 2
Dividend Yield: 9.95%
United-Guardian, Inc. (NASDAQ:UG) manufactures and markets cosmetic ingredients, medicines, medical lubricants, and specialist industrial goods. Out of the hedge funds being tracked by Insider Monkey Jim Simons’ Renaissance Technologies is the leading shareholder of United-Guardian, Inc. (NASDAQ:UG), with a $3.50 million stake in the company.
United-Guardian, Inc. (NASDAQ:UG) declared a $0.65/share semi-annual dividend in November, up 35.4% from the previous dividend of $0.48. The company also reported third-quarter earnings per share of $0.22, vs. the EPS of $0.16 for the third quarter of 2020. The actual revenue for United-Guardian, Inc. (NASDAQ:UG) was $3.18 million, 35.9% Y/Y.
In the third quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $5.61 million in United-Guardian, Inc. (NASDAQ:UG), same as in the preceding quarter worth $6.06 million.
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Disclosure: None. 10 Dividend Stock Picks of Billionaire Mario Gabelli is originally published on Insider Monkey.
