In this article, we will look at 10 dividend stocks billionaire Mario Gabelli loves.
Mario Gabelli is one of the most prominent investors in the world. Mr. Gabelli graduated from the Fordham University’s College of Business Administration with a bachelor’s degree in business administration with the highest honors in 1965. He then went on to earn an advanced degree in business administration from Columbia Business School. According to Forbes, Mario Gabelli’s real-time net worth as of May 2022 sits at $1.8 billion. Mr. Gabelli founded GAMCO Investors in 1986 and as of March 31, 2022, the billionaire manages an estimated $11.07 billion in 13F securities.
Mario Gabelli’s Latest Portfolio
Mr. Gabelli currently has stakes in 898 companies, of which 45 were new additions in Q1 2022. The fund has investments in a wide array of industries, of which the majority percentage is attributed to Industrials, Consumer Cyclicals, Financial Services, and Communications Services sectors. Together these four segments account for 67.2% of Mr. Gabelli’s 13F portfolio.
Among the top dividend stocks held by billionaire investor Mario Gabelli, we have JPMorgan Chase & Co. (NYSE:JPM), Comcast Corporation (NASDAQ:CMCSA), and Honeywell International Inc. (NASDAQ:HON).
Our Methodology
To determine the dividend stocks billionaire Mario Gabelli loves, we scoured GAMCO Investors’ 13F portfolio and identified the highest yielding dividend stocks held by the hedge fund.
Dividend Stocks Billionaire Mario Gabelli Loves
10. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)
Number of Hedge Fund Holders: 20
Dividend Yield as of May 20: 3.97%
Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) operates as a media company in the United States. The company operates through two business segments: Broadcast and Local Sports. As of May 20, Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) has gained 3.19% over the past six months and offers a forward dividend yield of 3.97%. The stock is one of the 10 dividend stocks Mario Gabelli loves and as of March 31, GAMCO Investors owns over 2.45 million shares of the company, which covers 0.62% of its 13F portfolio.
On May 4, Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) released its earnings for the fiscal first quarter of 2022. The company reported earnings per share of $35.39, exceeding Wall Street estimates by $36.41, and the company reported revenues of $1.29 billion. The company also announced that its board of directors has declared a quarterly cash dividend of $0.25 per share of common stock, payable on June 15 to investors of record at the close of business on June 1.
Shortly after Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) released its earnings, Wells Fargo analyst Steven Cahall upgraded the stock to Overweight from Equal Weight and also raised his price target to $33 from $30.
By the end of the fourth quarter of 2021, 20 hedge funds were long Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) with stakes worth $3.74 million.
9. Crane Co. (NYSE:CR)
Number of Hedge Fund Holders: 25
Dividend Yield as of May 20: 2.09%
Crane Co. (NYSE:CR) is a leading global manufacturer and seller of engineered industrial products. The company operates through 4 business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technology, and Engineered Materials. GAMCO Investors upped its Q4 2021 stakes in Crane Co. (NYSE:CR) by 1% in Q1 2022. As of March 31, the fund’s stakes are valued at a hefty $161.3 million, which represents 1.45% of Mario Gabelli’s 13F portfolio.
On April 18, Stifel analyst Nathan Jones slashed his price target on Crane Co. (NYSE:CR) to $134 from $137 but reiterated a Buy rating on the shares.
This April, Crane Co. (NYSE:CR) released its earnings report for the fiscal first quarter of 2022. The company registered an EPS of $1.81 and beat Wall Street estimates by $0.13. The company’s revenues amounted to $801.10 million, down by a mere 3.89% from the comparable quarter in 2021, but outperformed revenue estimates by $0.33 million. In April, Crane Co. (NYSE:CR) declared a quarterly cash dividend of $0.47 per share of its common stock, in line with previous. The dividend is payable on June 8, to investors of record at the close of business on May 27.
In 2022, Crane Co. (NYSE:CR) marks its fifth consecutive year of delivering dividends. The stock has a 5-year dividend CAGR of 5.92%. Crane Co. (NYSE:CR) is one of the top dividend stock picks of billionaire investor Mario Gabelli.
At the end of the fourth quarter of 2021, 25 hedge funds were bullish on Crane Co. (NYSE:CR). These funds held collective stakes of $310.64 million in the company, up from $286.24 million in the third quarter of 2021 with 20 positions. The hedge fund sentiment for the stock is positive.
8. Genuine Parts Company (NYSE:GPC)
Number of Hedge Fund Holders: 29
Dividend Yield as of May 20: 2.79%
Genuine Parts Company (NYSE:GPC) distributes automotive replacement parts, and industrial parts and materials. The company is one of the most prominent aftermarket parts retailers globally. Genuine Parts Company (NYSE:GPC) is one of the top 10 dividend stocks dear to billionaire Mario Gabelli. As of March 31, GAMCO Investors’ held stakes worth $93.6 million in the company which covers 0.64% of the fund’s investment portfolio.
The company has hiked its dividend consistently for well above 60 years.
On April 28, Genuine Parts Company (NYSE:GPC) declared a quarterly cash dividend of $0.895 per share of common stock, payable on July 1 to shareholders of record on June 3. The stock is also gaining the attention of expert analysts. On May 10, BofA analyst Elizabeth Suzuki upgraded Genuine Parts Company (NYSE:GPC) to Neutral from Underperform and gave the stock a $133 price target.
By the end of the fourth quarter of 2021, 29 hedge funds held stakes in Genuine Parts Company (NYSE:GPC). The total value of these stakes amounted to $632.60 million, up from $469.77 million in the prior quarter with 28 positions. The hedge fund sentiment around the stock is positive.
In addition to Genuine Parts Company (NYSE:GPC), billionaire Mario Gabelli’s top dividend stocks include JPMorgan Chase & Co. (NYSE:JPM), Comcast Corporation (NASDAQ:CMCSA), and Honeywell International Inc. (NASDAQ:HON).
7. CNH Industrial N.V. (NYSE:CNHI)
Number of Hedge Fund Holders: 35
Dividend Yield as of May 20: 2.20%
CNH Industrial N.V. (NYSE:CNHI) designs, produces, and sells agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles all around the world.
CNH Industrial N.V. (NYSE:CNHI) is among the top 10 holdings of GAMCO Investors and is one of the top dividend stock picks of billionaire Mario Gabelli. As of March 31, GAMCO Investors owns 9.9 million shares of the company which amounts to a stake of $157.38 million, up 1% from the fund’s Q4 2021 stakes. The investment covers 1.42% of GAMCO Investors’ 13F portfolio.
Memphis-based fund Longleaf Partners published its fourth-quarter 2021 investor letter in which it mentioned CNH Industrial N.V. (NYSE:CNH). Here is what their experts said:
“CNH Industrial (55%, 2.51%; 16%, 0.65%), a leading farm equipment and commercial vehicle manufacturer globally, was another top performer for the year. CNH reported strong results throughout the year, beating our initial conservative expectations. The US agricultural cycle has been firmly in the company’s favor, driven by commodity price strength, healthy farm balance sheets, advanced technology adoption, and aging fleets feeding replacement demand. We believe we are past the mid-cycle but expect the strong upcycle to continue with the solid orderbooks and strong visibility. On December 31, 2021, CNHI completed the demerger of its on-highway business, which includes its IVECO commercial vehicles and FPT powertrain businesses. This transaction creates a pure play off-highway company comprised of the higher-multiple agricultural, construction and specialty vehicle businesses. We expect a narrowing of the discount to the net asset value once we have two focused companies valued at peer multiples.”
6. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 45
Dividend Yield as of May 20: 3.27%
Newmont Corporation (NYSE:NEM) produces and explores gold and other minerals such as copper, silver, zinc, and lead. The company is one of the leading names in the materials and mining sector and has operations in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. Newmont Corporation (NYSE:NEM) is a top dividend stock pick of billionaire Mario Gabelli. GAMCO Investors’ has a hefty stake of $47.08 million in the company as of the end of Q1 2022.
Newmont Corporation (NYSE:NEM) is a high-yielding dividend stock. As of May 20, the stock has a forward yield of 3.27%, an annual payout ratio of 75.86%, and has returned 20.39% to investors over the past six months.
At the close of Q4 2021, 45 hedge funds were bullish on Newmont Corporation (NYSE:NEM) with stakes worth $1.39 billion. This is compared to 48 positions in the preceding quarter with stakes of $774.45 million.
Some of the highest-yielding dividend stocks loved by billionaire Mario Gabelli include Newmont Corporation (NYSE:NEM), JPMorgan Chase & Co. (NYSE:JPM), Comcast Corporation (NASDAQ:CMCSA), and Honeywell International Inc. (NASDAQ:HON).
First Eagle Investment Management named a few stocks in its third-quarter 2021 investor letter and Newmont Corporation (NYSE:NEM) was one of them. Here is the firm’s take on the mining giant:
“The largest gold miner in the world, Newmont shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
5. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 51
Dividend Yield as of May 20: 2.07%
As of March 31, GAMCO Investors has stakes worth $69.2 million in Honeywell International Inc. (NASDAQ:HON). The investment covers 0.62% of Mario Gabelli’s 13F portfolio and makes the stock one of his top dividend picks. As of May 20, Honeywell International Inc. (NASDAQ:HON) boasts a forward yield of 2.07% and has been growing its dividends for over 18 years, registering a 5-year dividend CAGR of 7.03%.
By the end of the fourth quarter of 2021, 51 hedge funds were long Honeywell International Inc. (NASDAQ:HON) with stakes worth $1.89 billion. This is compared to 45 hedge funds in the prior quarter with stakes of $927.73 million. The hedge fund sentiment for the stock is positive.
Distillate Capital, an investment management firm, mentioned a few companies in its third-quarter 2021 investor letter and Honeywell International Inc. (NASDAQ:HON) was one of them. Here is what experts at Distillate Capital think:
“The largest exited positions were Oracle, which outperformed significantly, and Texas Instruments and Honeywell, which were roughly flat versus the market in the quarter but were edged out for inclusion by other stocks that became even more attractively valued.”
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 80
Dividend Yield as of May 20: 2.57%
Comcast Corporation (NASDAQ:CMCSA) is a leading provider of cable communications services in the United States and internationally. At the end of Q4 2021, 80 hedge funds were long Comcast Corporation (NASDAQ:CMCSA) with stakes of $8.63 billion. This is compared to 75 hedge funds in Q3 2021 with stakes of $8.54 billion. GAMCO Investors has a sizeable stake in Comcast Corporation (NASDAQ:CMCSA) as of Q1 2022, owning over 1.08 million shares of the company which amounts to a stake of $50.66 million. The investment covers 0.45% of Mario Gabelli’s 13F portfolio.
Here is what ClearBridge Investments had to say about Comcast Corporation (NASDAQ:CMCSA) in its “All Cap Growth Strategy” fourth quarter 2021 investor letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 84
Dividend Yield as of May 20: 2.48%
GAMCO Investors has maintained a position in Bank of America Corporation (NYSE:BAC) for roughly over a decade, since Q3 2012. As of March 31, Mario Gabelli’s hedge fund owns over 1.18 million shares of Bank of America Corporation (NYSE:BAC) which amounts to a stake of $48.96 million.
Gamco Investors is not the only hedge fund bullish on Bank of America Corporation (NYSE:BAC). Insider Monkey found 84 hedge funds bullish on the company at the end of Q4 2021. The total stakes of these funds amounted to $47.87 billion, up from $46.48 billion in the prior quarter with 72 positions. The hedge fund sentiment for the stock is positive.
Miller Value Partners mentioned Bank of America Corporation (NYSE:BAC) in its “Opportunity Equity” first quarter 2022 investor letter. Here is what they said:
“There are many times when volatility and beta give false signals. Banks outperformed in the post-tech bubble bear market of the early 2000s. At the market peak prior to the financial crisis (when risk was the highest in those names!), Bank of America (NYSE:BAC) had a 0.9x beta (based on the trailing 5 years) suggesting its “risk” was below the market’s. Wrong! It massively underperformed in the financial crisis. Realized beta over the 5 years from the pre-crisis’ 2006 peak measured 2.3x.
A much better indicator of actual risk, both before and after the financial crisis, was the quality of the balance sheet and risk-taking appetite. Beta is backwards looking and non-stationary. Relying on it underestimated risk going into the financial crisis and overestimated coming out of it (its beta has continued to fall over the past decade).
We care greatly about risk. We spend a significant amount of time thinking about the risks to our investments. We measure risk as permanent impairment of capital, which means the prices and values don’t bounce back. Business fundamentals determine risk.”
2. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 94
Dividend Yield as of May 20: 2.40%
Billionaire investor Mario Gabelli appears to be bullish on the financial services sector. As of Q1 2022, GAMCO Investors owns more than 1.39 million shares of Wells Fargo & Company (NYSE:WFC). The fund’s Q1 stakes are estimated at $67.58 million, which accounts for 0.61% of its investment portfolio. Wells Fargo & Company (NYSE:WFC) is a top dividend stock pick of Mr. Gabelli and boasts a forward yield of 2.40% as of May 20.
On April 18, Barclays analyst Jason Goldberg raised his price target on Wells Fargo & Company (NYSE:WFC) to $64 from $62 and reiterated an Overweight rating on the shares.
Davis Funds, an investment management firm, named a few companies in its “Davis Opportunity Fund” fourth-quarter 2021 investor letter and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the firm said:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 107
Dividend Yield as of May 20: 3.41%
Topping our rankings of the 10 dividend stocks billionaire Mario Gabelli loves is JPMorgan Chase & Co. (NYSE:JPM). As of March 31, GAMCO Investors’ stakes in JPMorgan Chase & Co. (NYSE:JPM) stand at $55.49 million which represents 0.5% of its investment portfolio. JPMorgan Chase & Co (NYSE:JPM) is the largest bank in the United States, with a balance sheet totaling $2.87 trillion. As of May 20, the stock has a forward dividend yield of 3.41% and PE ratio of 10.57. JPMorgan Chase & Co. (NYSE:JPM) has been hiking its dividends for almost a decade now and boasts a 5-year dividend growth rate of 14.99%, with an annual payout ratio of 29.35%.
Here is what ClearBridge Investments had to say about JPMorgan Chase & Co. (NYSE:JPM) in its “Large Cap Value Strategy” fourth-quarter 2021 investor letter:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
You can also take a look at 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks and Billionaire Mario Gabelli’s Top 10 Stock Picks.
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Disclosure: None. 10 Dividend Stocks Billionaire Mario Gabelli Loves is originally published on Insider Monkey.
