10 Dividend Stocks in Tiger Cub Lee Ainslie’s Portfolio

In this article, we discuss the top 10 dividend stock picks of Tiger Cub Lee Ainslie’s portfolio.

Lee Ainslie is the founder of Maverick Capital, a Dallas-based hedge fund he founded in 1993. Ainslie is a ‘Tiger Cub’, having previously worked at Tiger Management under legendary investor Julian Robertson. Ainslie holds a bachelor’s degree from the University of Virginia, and an MBA from the University of North Carolina at Chapel Hill. At 28 years of age, he started Maverick Capital with $38 million in funding, with help from business magnate Sam Wyly.

Ainslie doesn’t like betting on commodities, currencies, or bonds. He likes the old-school strategy of placing long and short bets on stocks he thinks will fluctuate in the market. His hedge fund gained 16.3% in 2020 and returned an average of 13% annually from 1995 through to 2014.

As of the third quarter of 2021, Ainslie’s Maverick Capital holds $9.91 billion in assets under management (AUM), with primary holdings in technology, healthcare, consumer goods, financial, and the industrial goods sector. Some of the most noteworthy stocks in Lee Ainslie’s portfolio include British American Tobacco p.l.c. (NYSE:BTI), Kinder Morgan, Inc. (NYSE:KMI) and The Williams Companies, Inc. (NYSE:WMB), along with others mentioned in detail below.

Our Methodology

In this article, we will be looking at our list of the top 10 dividend stocks in Tiger Cub Lee Ainslie’s portfolio. We picked these stocks from the third quarter portfolio of Ainsle.

10 Dividend Stock Picks of Tiger Cub Lee Ainsle’s Portfolio.

10. The Western Union Company (NYSE:WU)

Maverick Capital’s Stake Value: $151,000

Percent of Maverick Capital’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: 27

Dividend Yield: 5.03% (as of January 4)

Starting off this list is The Western Union Company (NYSE:WU), a provider of payment transfer services around the globe.

As of the third quarter, 27 out of 867 elite hedge funds tracked by Insider Monkey reported owning stakes in The Western Union Company (NYSE:WU). The combined value of these stakes stood at $234.76 million. In comparison, 31 hedge funds reported owning positions worth $369.54 million in the company a quarter ago.

Along with British American Tobacco p.l.c. (NYSE:BTI), Kinder Morgan, Inc. (NYSE:KMI) and The Williams Companies, Inc. (NYSE:WMB), The Western Union Company (NYSE:WU) is a top dividend stock for investors.

9. OneMain Holdings, Inc. (NYSE:OMF)

Maverick Capital’s Stake Value: $789 ,000

Percent of Maverick Capital’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: 41

Dividend Yield: 5.39% (as of January 4)

OneMain Holdings, Inc. (NYSE:OMF) engages in the provision of consumer finance and insurance services. It operates through a network of 1,500 branch offices in 44 states across the United States. The company dealt with the pandemic exceptionally well, coming through with high lending rates, lower borrowing costs, and historically low net charge-offs.

For the third quarter, OneMain Holdings, Inc. (NYSE:OMF) reported earnings per share of $2.37, which exceeded estimates by $0.09. Quarterly revenue of $1.03 billion was above expectations by $262,000.

41 hedge funds were bullish on OneMain Holdings, Inc. (NYSE:OMF) stock at the end of the third quarter, holding a combined value of $1.04 billion.

On December 16, JMP Securities analyst David Scharf reiterated an ‘Outperform’ rating on OneMain Holdings, Inc. (NYSE:OMF) shares, trimming the price target to $68 from $72.

Out of all the hedge funds tracked by Insider Monkey, Arrowstreet Capital was the leading shareholder in Q3 2021, with 2.66 million shares valued at $147.12 million.

8. The Williams Companies, Inc. (NYSE:WMB)

Maverick Capital’s Stake Value: $2.02 million

Percent of Maverick Capital’s 13F Portfolio: 0.02%

Number of Hedge Fund Holders: 40

Dividend Yield: 6.12% (as of January 4)

As of the third quarter, Lee Ainslie’s Maverick Capital owns approximately 78,000 shares in The Williams Companies, Inc. (NYSE:WMB) valued at $2.02 million, which represents 0.02% of the fund’s overall portfolio.

The Williams Companies, Inc. (NYSE:WMB) is an energy infrastructure company based in the United States. The firm posted an EPS of $0.34 for Q3 2021, beating consensus estimates by $0.07. Revenue for the quarter came in at $2.48 billion, which exceeded analysts’ estimates by $387.28 million. The Williams Companies, Inc. (NYSE:WMB) operates the mega Transco pipeline, which provides the company with reliable cash flow and great potential for expansion.

As of the third quarter, 40 hedge funds reported holding stakes in The Williams Companies, Inc. (NYSE:WMB), with a combined value of $658.65 million. This shows an upward trend from last quarter where 39 hedge funds held $551.01 million worth of shares in the company.

Southeastern Asset Management holds 7.81 million shares in The Williams Companies, Inc. (NYSE:WMB) worth $202.6 million, making it the largest shareholder of the company.

7. ONEOK, Inc. (NYSE:OKE)

Maverick Capital’s Stake Value: $175,000

Percent of Maverick Capital’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: 18

Dividend Yield: 6.10% (as of January 4)

ONEOK, Inc. (NYSE:OKE) deals in the gathering, processing, storage, and transportation of natural gas in the United States.

In the third quarter, Lee Ainsle’s Maverick Capital reported owning 3,024 shares of ONEOK, Inc. (NYSE:OKE), valued at $175,000.

On November 15, RBC Capital analyst Elvira Scotto raised the price target on ONEOK, Inc. (NYSE:OKE) to $63 from $60, and maintained a ‘Sector Perform’ rating on the company shares, noting that the company’s continued volume growth heading into 2022 will likely drive healthy cash flow growth.

 18 hedge funds were long ONEOK, Inc. (NYSE:OKE) at the end of the third quarter, down from 26 in the preceding quarter.

6. Southern Copper Corporation (NYSE:SCCO)

Maverick Capital’s Stake Value: $935,000

Percent of Maverick Capital’s 13F Portfolio: 0.02%

Number of Hedge Fund Holders: 23

Dividend Yield: 6.39% (as of January 4)

Southern Copper Corporation (NYSE:SCCO) is a US-based company that deals in the exploration, mining, and refining of copper and other minerals in Mexico, Argentina, Peru, Ecuador, and Chile. Maverick Capital owns 16,600 shares in the company valued at $935,000, representing a 0.02% slice of the fund’s total holdings. Southern Copper Corporation (NYSE:SCCO) was reported in the portfolios of 23 hedge funds at the end of the third quarter, holding $403.5 million in combined value.

Southern Copper Corporation (NYSE:SCCO) is one of the world’s largest integrated copper producers and is expected to reach a production capacity of 1.9 million metric tons by 2028.

On December 9, Morgan Stanley analyst Carlos De Alba upgraded Southern Copper Corporation (NYSE:SCCO) to ‘Equal Weight’ from ‘Underweight’, maintaining the price target of $55. The firm posted an EPS of $1.12 for the third quarter, which fell slightly below estimates by $0.05.

Fisher Asset Management is the leading shareholder of Southern Copper Corporation (NYSE:SCCO) by the end of September, holding 3.62 million shares valued at $203.1 million.

In addition to British American Tobacco p.l.c. (NYSE:BTI), Kinder Morgan, Inc. (NYSE:KMI) and The Williams Companies, Inc. (NYSE:WMB), Southern Copper Corporation (NYSE:SCCO) is high dividend stock attracting the attention of investors.

5. Kinder Morgan, Inc. (NYSE:KMI)

Maverick Capital’s Stake Value: $2.45 million

Percent of Maverick Capital’s 13F Portfolio: 0.02%

Number of Hedge Fund Holders: 43

Dividend Yield: 6.49% (as of January 4)

Kinder Morgan, Inc. (NYSE:KMI) is an energy company that operates in North America through its segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. Maverick Capital reported owning 146,760 shares in the company with a value of $2.45 million.

In December, Kinder Morgan, Inc. (NYSE:KMI) announced a multi-year partnership with software company Palantir Technologies (PLTR). This venture will see Kinder Morgan, Inc. (NYSE:KMI) deploy Palantir’s data integration software platform, Foundry, at its US-based gas storage operations to drive efficiency and safety.

Kinder Morgan, Inc. (NYSE:KMI) posted revenue of $3.82 billion for Q3 2021, outperforming estimates by $594.90 million. EPS for the quarter came in at $0.22, missing estimates by $0.02.

Investors are loading up on this heavy-dividend stock, with 43 hedge funds reporting ownership of stakes in Kinder Morgan, Inc. (NYSE:KMI) at the end of the third quarter, in comparison to 38 hedge funds a quarter ago.

4. British American Tobacco p.l.c. (NYSE:BTI)

Maverick Capital’s Stake Value: $591,000

Percent of Maverick Capital’s 13F Portfolio: 0.001%

Number of Hedge Fund Holders: 9

Dividend Yield: 7.82% (as of January 4)

Lee Ainslie’s Maverick Capital owns 16,800 shares in British American Tobacco p.l.c. (NYSE:BTI) at the end of the third quarter, valued at $591,000. The company’s cigarette-alternative segment is driving sales growth and is estimated to bring profitability and £5 billion in total revenue by FY’25.

British American Tobacco p.l.c. (NYSE:BTI) is a UK-based company that provides tobacco and nicotine products around the globe. On December 8, UBS analyst Nik Oliver maintained a ‘Buy’ rating on British American Tobacco p.l.c. (NYSE:BTI) stock, upping the price target to 3,700 GBP from 3,500 GBP.

9 hedge funds were long British American Tobacco p.l.c. (NYSE:BTI) at the end of the third quarter, holding $724.4 million in combined value. In contrast, 12 hedge funds held stakes worth $1.01 billion in the company a quarter ago.

3. AT&T Inc. (NYSE:T)

Maverick Capital’s Stake Value: $1.96 million

Percent of Maverick Capital’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 66

Dividend Yield: 8.08% (as of January 4)

AT&T Inc. (NYSE:T) is a holding company that deals in the provision of telecommunications, media, and technology services.

On December 16, Morgan Stanley analyst Simon Flannery upgraded AT&T Inc. (NYSE:T) stock to ‘Overweight’ from ‘Equal Weight’, revising the price target to $28 from $32. The analyst also raised the company’s Telecom Services industry rating to ‘In-Line’ from ‘Cautious’. Flannery believes that valuations are at attractive levels, owing to the company’s recent underperformance.

66 hedge funds were bullish on AT&T Inc. (NYSE:T) stock, holding $3.21 billion at the end of the third quarter. In comparison, 68 hedge funds were holding the company stock in the previous quarter.

2. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Maverick Capital’s Stake Value: $1.05 million

Percent of Maverick Capital’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 23

Dividend Yield: 18.13% (as of January 4)

Next up is Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), a Brazilian state-owned company that deals in the production and sale of oil and gas around the world. According to regulatory filings for the third quarter, Maverick Capital owns 101,600 shares in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) worth $1.05 million, amounting to a 0.01% chunk of the fund’s total portfolio.

On December 15, Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to ‘Buy’ from ‘Neutral’ setting a $14.20 price target. The company posted an EPS of $0.47 in the third quarter, exceeding estimates by $0.14.

At the end of the third quarter, 23 hedge funds reported ownership of stakes worth approximately $3 billion in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR). In the previous quarter, 25 hedge funds owned $2.8 billion worth of stakes in the company.

1. Vale S.A. (NYSE:VALE)

Maverick Capital’s Stake Value: $90,000

Percent of Maverick Capital’s 13F Portfolio: 0.01%

Number of Hedge Fund Holders: 27

Dividend Yield: 19.90% (as of January 4)

With a yield of 19.90%, Vale S.A. (NYSE:VALE) ranks 1st on the list of dividend stocks in Lee Ainslie’s portfolio. The Brazil-based company provides iron ore as raw material to steelmaking operations around the globe and operates through its segments: Ferrous Minerals, Base Metals, and Coal. The firm posted an EPS of $1.26 in the third quarter, beating consensus estimates by $0.19.

On December 9, Morgan Stanley analyst Carlos De Alba upgraded Vale S.A. (NYSE:VALE) to ‘Overweight’ from ‘Equal Weight’, revising the price target to $16.50 from $16. The analyst noted that the stock has corrected, as shares of the company fell 41% from their recent peak after uncertainty around China’s property sector and lower iron prices. De Alba believes the company will benefit as iron ore prices are set to increase in the first half of 2022, on the back of sequentially higher steel output in China.

As of the third quarter, 27 out of 867 elite hedge funds tracked by Insider Monkey disclosed ownership of stakes in Vale S.A. (NYSE:VALE), with a combined value of approximately $1.98 billion. The same number of hedge funds reported owning stakes in the company a quarter ago as well.

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