In this article, we will look at 10 dividend stocks in Billionaire Richard Chilton’s Portfolio.
Richard Chilton is an American investor and the founder of Chilton Investment Company. Prior to founding his hedge fund, Mr. Chilton catered to various roles at Merrill Lynch, Alliance Capital, and Allen & Company. In 1992, the billionaire founded his hedge fund, Chilton Investment company, to target low-volatility stocks that have the potential to be lucrative in the long run.
Billionaire Richard Chilton’s Investment Philosophy and Performance
Chilton Investment company prioritizes holding on to stocks for the long term to profit from dividends and encourage consistent growth. As of the third quarter of 2021, Mr. Chilton manages over $4.05 billion in 13F securities through his hedge fund, Chilton Investment Company.
Richard Chilton’s investment philosophy revolves around long/short and long-only investments with the goal of preserving capital in poor market conditions. Chilton Investment Company has seen consistent gains, with only some instances of losses over the past years.
The fund’s Chilton Flagship Strategy fund generated returns of 18.57% in 2013, 5.39% in 2014, and 13.99% in 2015. The only significant loss that occurred over the past decade was in 2016 when the fund bore a hefty loss of 13.66%. Nevertheless, the fund bounced back and boasted returns of 12.18% in the following year. Chilton’s Flagship Strategy fund posed remarkable total returns of 2103.80% and delivered a compound annual return of 12.55%.
Let’s now take a look at Chilton Investment Company’s approach towards diversifying its investments across several industrial sectors. As of the third quarter of 2021, the services sector makes up for a huge chunk of the fund’s investment portfolio.
Apart from the services sector, Mr. Chilton also appears to be bullish on technology, healthcare, industrial, and consumer goods stocks. Among the fund’s top holdings are Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST).
Chilton Investment Company’s top 10 holdings account for more than 50% of its 13F portfolio. However, for the purposes of this list, we will be looking at the top 10 dividend stocks present in billionaire Richard Chilton’s portfolio at the end of the third quarter of 2021.
Richard Chilton of Chilton Investment Company
Our Methodology
To determine the 10 dividend stocks in billionaire Richard Chilton’s portfolio, we went through Chilton Investment Company’s 13F portfolio based on the third quarter SEC filings. We narrowed our selection down to stocks that yielded more than 2% and gave preference to the highest yields from them.
Dividend Stocks in Billionaire Richard Chilton’s Portfolio
10. 3M Company (NYSE:MMM)
Stake Value of Chilton Investment Company: $215,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0%
Number of Hedge Fund Holders: 46
Dividend Yield as of December 11: 3.35%
3M Company (NYSE:MMM) is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company develops, manufactures, and markets various products worldwide.
As of December 11th, 3M Company (NYSE:MMM) has a forward yield of 3.35% and a forward PE ratio of 17.95.
On October 11th, Langenberg analyst Brian Langenberg upgraded 3M Company (NYSE:MMM) to Buy from Hold and reiterated his price target of $210.
By the end of the third quarter of 2021, Insider Monkey spotted 3M Company (NYSE:MMM) on 46 hedge fund portfolios. The total stakes that these funds had in the company amounted to approximately $1.62 billion, up from $1.58 billion in the previous quarter with 42 positions.
9. Exxon Mobil Corporation (NYSE:XOM)
Stake Value of Chilton Investment Company: $309,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0%
Number of Hedge Fund Holders: 64
Dividend Yield as of December 11: 5.59%
Exxon Mobil Corporation (NYSE:XOM) explores for and produces crude oil and natural gas in the United States and internationally.
On December 8th, 2021, Barclays analyst Jeanine Wai raised her price target on Exxon Mobil Corporation (NYSE:XOM) to $73 from $71 and reiterated an Overweight rating on the shares.
By the end of the third quarter of 2021 Exxon Mobil Corporation (NYSE:XOM) was spotted on 64 investment portfolios, that had total stakes of $4.64 billion in the company, up from $3.69 billion in the previous quarter. The stock has a forward PE ratio of 12.58 and is a new addition to Chilton Investment Company’s 13F portfolio.
Exxon Mobil Corporation (NYSE:XOM) is one of the highest dividend stocks on Chilton Investment Company’s 13F portfolio as of the third quarter of 2021. Other popular stock picks of Mr. Chilton are Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST).
First Eagle Investment Management, an investment management firm, published its second-quarter 2021 investor letter in which it mentioned Exxon Mobil Corporation (NYSE:XOM):
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
8. The First of Long Island Corporation (NASDAQ:FLIC)
Stake Value of Chilton Investment Company: $334,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0%
Number of Hedge Fund Holders: 9
Dividend Yield as of December 11: 3.72%
The First of Long Island Corporation (NASDAQ:FLIC) operates as a bank holding company that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The stock has gained 19% over the past twelve months.
For the fiscal third quarter of 2021, The First of Long Island Corporation (NASDAQ:FLIC) generated revenues of $29.46 million and beat on EPS. The bank holding company reported earnings per share of $0.48 and beat expert EPS estimates by $0.03. Moreover, the stock has a forward yield of 3.72% as of December 11th.
By the end of the third quarter of 2021, 9 hedge funds including Chilton Investment Company held stakes in The First of Long Island Corporation (NASDAQ:FLIC). The total value of these stakes was in excess of $20.84 million.
7. AbbVie Inc (NYSE:ABBV)
Stake Value of Chilton Investment Company: $713,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 81
Dividend Yield as of December 11: 4.50%
AbbVie Inc (NYSE:ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. The stock has a forward yield of 4.50%, and a forward price-to-earnings ratio of 9.90 as of December 11th.
This December, Wells Fargo analyst Mohit Bansal initiated coverage of AbbVie Inc (NYSE:ABBV) with an Overweight rating and a $165 price target.
By the end of the third quarter 81 hedge funds, out of the 867 tracked by Insider Monkey, held stakes in AbbVie Inc (NYSE:ABBV). The total value of these stakes amounted to $4.14 billion.
Artisan Partners shared its stance on AbbVie Inc (NYSE:ABBV) in its third-quarter 2021 investor letter:
“Our sales included Abbvie, a biopharmaceutical company. Abbvie was a smaller position in the portfolio. We had concerns about its capital allocation and a stretched balance sheet, so we chose to move on.”
6. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Stake Value of Chilton Investment Company: $722,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 27
Dividend Yield as of December 11: 4.06%
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a regional bank holding company based in Ohio. The company has $123 billion in assets and operates a network of 839 branches, including 11 Private Client Group offices, and 1,322 ATMs across seven Midwestern states. Huntington Bancshares Incorporated (NASDAQ:HBAN) provides consumer, small business, commercial, treasury management, wealth management, brokerage, trust, and insurance services.
On October 22nd, Huntington Bancshares Incorporated (NASDAQ:HBAN) announced a quarterly cash dividend on the company’s common stock of 15.5 cents per common share, up 0.5 cents from the prior quarter. The common stock cash dividend is payable on January 3, 2022, to shareholders of record on December 17.
There were 27 hedge funds that held stakes in Huntington Bancshares Incorporated (NASDAQ:HBAN) by the end of the third quarter of 2021. The total value of these stakes was $298.89 million. The stock has a forward yield of 4.06% as of December 11th.
In addition to Microsoft Corporation (NASDAQ:MSFT), Mastercard Incorporated (NYSE:MA), The Home Depot, Inc. (NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST), Huntington Bancshares Incorporated (NASDAQ:HBAN) is a notable stock in Chilton’s portfolio.
5. Magellan Midstream Partners, L.P. (NYSE:MMP)
Stake Value of Chilton Investment Company: $740,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 12
Dividend Yield as of December 11: 9.12%
Magellan Midstream Partners, L.P. (NYSE:MMP) engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates through Refined Products and Crude Oil segments.
On November 11th, Mizuho analyst Gabriel Moreen raised the price target on Magellan Midstream Partners, L.P. (NYSE:MMP) to $52 from $50 and reiterated a Neutral rating on the shares in light of the company’s third-quarter earnings.
By the end of the third quarter of 2021, Insider Monkey was able to identify 12 hedge funds that held stakes in Magellan Midstream Partners, L.P. (NYSE:MMP). The total value of these stakes was $92.09 million, up from $89.13 million in the previous quarter.
4. Blackstone Mortgage Trust Inc (NYSE:BXMT)
Stake Value of Chilton Investment Company: $1,804,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 15
Dividend Yield as of December 11: 8.15%
Blackstone Mortgage Trust Inc (NYSE:BXMT) operates as a real estate finance company that originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The stock has a forward dividend yield of 8.15%, and a price-to-earnings ratio of 12.41 as of 11th December.
Blackstone Mortgage Trust Inc (NYSE:BXMT) was found to be a part of 15 hedge fund portfolios at the end of the September quarter. The hedge fund sentiment for the stock is positive, since in the second quarter of 2021, ending June, 12 hedge funds had stakes in Blackstone Mortgage Trust Inc (NYSE:BXMT). The 15 positions identified during the third quarter had total stakes of roughly $182 million in the company.
On 29th November Jade Rahmani, an analyst at Keefe Bruyette, upgraded Blackstone Mortgage Trust Inc (NYSE:BXMT) to Outperform from Market Perform and reiterated a price target of $34.
3. Merck & Co., Inc. (NYSE:MRK)
Stake Value of Chilton Investment Company: $2,239,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.05%
Number of Hedge Fund Holders: 77
Dividend Yield as of December 11: 3.80%
Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. This December, Merck & Co., Inc. (NYSE:MRK) announced it has entered into an agreement with Thermo Fisher Scientific (NYSE:TMO) to manufacture molnupiravir, the company’s investigational oral antiviral medicine for the treatment of COVID-19.
On December 8th, Wells Fargo analyst Mohit Bansal initiated coverage of Merck & Co., Inc. (NYSE:MRK) with an Overweight rating and a $90 price target.
Artisan Partners published its first-quarter 2021 investor letter, in which the firm shared its views on Merck & Co., Inc. (NYSE:MRK). Here’s what the firm had to say:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future
partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
2. Enterprise Products Partners L.P. (NYSE:EPD)
Stake Value of Chilton Investment Company: $2,147,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.05%
Number of Hedge Fund Holders: 25
Dividend Yield as of December 11: 8.41%
Enterprise Products Partners L.P. (NYSE:EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four business segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
On October 5th, Mizuho analyst Gabriel Moreen raised the price target on Enterprise Products Partners L.P. (NYSE:EPD) to $29 from $28 and reiterated a Buy rating on the shares.
By the end of the third quarter of 2021, 25 hedge funds had stakes in Enterprise Products Partners L.P. (NYSE:EPD). The total value of these stakes was $233.25 million.
ClearBridge Investments, an investment management firm, published its “Large Cap Value Strategy” first quarter 2021 investor letter in which it mentioned Enterprise Products Partners L.P. (NYSE:EPD). Here’s what they had to say:
“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.”
1. New Mountain Finance Corp. (NYSE:NMFC)
Stake Value of Chilton Investment Company: $4,571,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 6
Dividend Yield as of December 11: 8.75%
New Mountain Finance Corp. (NYSE:NMFC) is a Business Development Company. It specializes in investments in middle-market companies and debt securities at various levels of the capital structure. The company invests in various industries that include software, education, business services, distribution and logistics, federal services, healthcare, energy, media, consumer and industrial services, specialty chemicals and materials, telecommunication, retail, and power generation.
This November, New Mountain Finance Corp. (NYSE:NMFC) reported its third-quarter earnings for 2021. The company reported an EPS of $0.28, and beat on revenue.
There were 6 hedge funds in Insider Monkey’s database that held stakes worth $13.9 million in New Mountain Finance Corp. (NYSE:NMFC) by the end of the third quarter of 2021.
You can also take a look at 15 Best Energy Stocks to Buy Now and 10 Best Construction Materials Stocks To Buy Now.
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Disclosure. None. 10 Dividend Stocks in Billionaire Richard Chilton’s Portfolio is originally published on Insider Monkey.
