In this article, we discuss the 10 dividend stocks to buy according to billionaire Jim Simons’ hedge fund.
Renaissance Technologies was founded in 1982 by the American billionaire hedge fund manager and mathematician, Jim Simons. With a Bachelor’s degree in mathematics from Massachusetts Institute of Technology and a PhD from the University of California, Berkeley, Simons’ mathematical background influenced his hedge fund’s investment philosophy deeply. Renaissance Technologies is a quantitative hedge fund, where Jim Simons and his team of computer scientists, mathematicians, statisticians, signal processing experts, and data engineers assess statistical probabilities for the direction of stock prices in a market, and apply algorithms, mathematical models, and theories to predict the industry trends and portfolio allocation.
With two leading funds, namely the Medallion Fund and the Renaissance Institutional Equities Fund (RIEF), Renaissance Technologies manages a portfolio worth $77.4 billion as of Q3 2021, with discretionary assets under management of $130.85 billion. The fund has a top ten holdings concentration of 12.38%, with securities concentrated in the information technology, healthcare, finance, consumer discretionary, communications, and consumer staples sectors.
Jim Simons retired from the hedge fund in 2010, after serving as the CEO and CIO for 38 years, but still remains the non-executive chairman, while Peter Brown is the current CEO of Renaissance Technologies.
In the third quarter of 2021, Renaissance Technologies purchased 665 new stocks, sold out of 657 securities, made additional purchases in 934 equities, and reduced holdings in 1804 companies. The hedge fund’s top buys for Q3 included Adobe Inc. (NASDAQ:ADBE), AstraZeneca PLC (NASDAQ:AZN), NIKE, Inc. (NYSE:NKE), and Tesla, Inc. (NASDAQ:TSLA). Whereas, Renaissance Technologies reduced holdings in Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Roku, Inc. (NASDAQ:ROKU).
Jim Simons of Renaissance Technologies
The most notable dividend stocks from Renaissance Technologies’ Q3 portfolio include Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and Exxon Mobil Corporation (NYSE:XOM).
Our Methodology
We used the third quarter portfolio of Jim Simons’ Renaissance Technologies to select the hedge fund’s highest yielding dividend stocks. We ensured that the selected stocks also had strong company fundamentals, long-term growth prospects, and mostly positive analyst ratings.
We have also mentioned the hedge fund sentiment around each stock, which was gauged from a total of 867 elite funds tracked by Insider Monkey in the third quarter.
Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund
10. Vodafone Group Public Limited Company (NASDAQ:VOD)
Renaissance Technologies’ Stake Value: $441,526,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.57%
Number of Hedge Fund Holders: 18
Dividend Yield on December 16: 10%
Vodafone Group Public Limited Company (NASDAQ:VOD), a British multinational telecommunications company, made it to the list of the 10 best dividend stocks to buy according to billionaire Jim Simons’ Renaissance Technologies, with a yield of 10%. Vodafone Group Public Limited Company stock represents 0.57% of Renaissance Technologies’ Q3 portfolio, with the hedge fund holding a $441.5 million position in the company.
Barclays analyst Maurice Patrick on December 16 lowered the price target on Vodafone Group Public Limited Company to £165 from £170 and kept an Overweight rating on the shares.
Payable on February 4 2022 to shareholders of record on November 25, Vodafone Group Public Limited Company announced a bi-annual dividend of €0.045 per share on November 23.
Arrowstreet Capital increased its stake in Vodafone Group Public Limited Company by 99% in the third quarter, holding 3.6 million shares worth $55.6 million. Overall, 18 hedge funds in the Q3 database of Insider Monkey were bullish on Vodafone Group Public Limited Company, up from 17 funds in the preceding quarter.
In addition to Microsoft Corporation, Walmart Inc., The Coca-Cola Company, and Exxon Mobil Corporation, Vodafone Group Public Limited Company is a good investment to diversify a dividend portfolio, according to billionaire Jim Simons’ hedge fund.
9. PetroChina Company Limited (NYSE:PTR)
Renaissance Technologies’ Stake Value: $34,077,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 7
Dividend Yield on December 16: 7.64%
PetroChina Company Limited (NYSE:PTR) is the largest oil and gas producer in Asia, headquartered in Beijing. PetroChina Company Limited deals in fuels, lubricants, natural gas, and petrochemicals. Jim Simons’ fund holds 728,447 shares in PetroChina Company Limited as of the third quarter, worth over $34 million, representing 0.04% of the total Q3 investments.
JPMorgan analyst Parsley Ong upgraded PetroChina Company Limited on November 29 to Overweight from Underweight as the firm revised its chemical spread and oil price forecasts.
Publishing its third quarter results, PetroChina Company Limited posted earnings per share of $0.121, down 44.8% year-over-year. The $683.76 million quarterly revenue increased 37.5% from the preceding year quarter.
In the third quarter, 7 hedge funds tracked by Insider Monkey were long PetroChina Company Limited, with total stakes worth $94.9 million. Marshall Wace LLP increased its stake in the company by 61% in Q3, and is one of the leading PetroChina Company Limited stakeholders, with 261,294 shares worth $12.2 million.
With a yield of 7.64%, PetroChina Company Limited is one of the best dividend stocks from billionaire Jim Simons’ fund at the end of September.
8. New Residential Investment Corp. (NYSE:NRZ)
Renaissance Technologies’ Stake Value: $11,507,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 16
Dividend Yield on December 16: 9.09%
In the third quarter earnings results, published on November 2, New Residential Investment Corp. (NYSE:NRZ) reported earnings per share of $0.44, topping estimates by $0.09. Revenue over the period jumped 40.20% to $960.42 million, outperforming estimates by $247.09 million.
New Residential Investment Corp. is a real estate investment trust that has an investment portfolio focused on mortgage servicing-related assets, non-agency securities, and residential loans, among other relevant assets. Renaissance Technologies increased its stake in New Residential Investment Corp. by 144% in Q3, holding over 1 million shares worth $11.5 million.
Of the 16 hedge funds that were bullish on New Residential Investment Corp. as of Q3 2021, billionaire Ken Griffin’s Citadel Investment Group is the largest company stakeholder, with a $32 million position.
At the end of September, Barclays analyst Mark DeVries reinstated coverage of New Residential Investment Corp. with an Overweight rating and a $13 price target. The analyst stated that New Residential Investment Corp. has increased exposure to a “still-strong” mortgage organization market, and its underlying investment portfolio will decrease earnings volatility and provide book value stability if interest rates continue to rise.
In addition to Microsoft Corporation, Walmart Inc., The Coca-Cola Company, and Exxon Mobil Corporation, NRZ is a notable stock pick of Jim Simons’ fund.
New Residential Investment Corp. announced a quarterly dividend of $0.25 per share on December 15, payable on January 28 to shareholders of record on December 31. The company offers a forward dividend yield of 9.09%, which makes New Residential Investment Corp. one of the best dividend stocks to buy according to billionaire Jim Simons’ hedge fund.
7. Gerdau S.A. (NYSE:GGB)
Renaissance Technologies’ Stake Value: $30,396,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 13
Dividend Yield on December 16: 11.67%
Headquartered in Sao Paulo, Gerdau S.A. (NYSE:GGB) is the largest producer of long steel in Latin America. Jim Simons’ Renaissance Technologies, as of Q3 2021, owns 6.17 million shares of Gerdau S.A., worth $30.3 million, representing 0.03% of the fund’s total investments.
Posting its Q3 results on October 27, Gerdau S.A. announced a revenue of R$21.32 billion, up 74.5% year-over-year.
On December 10, Goldman Sachs analyst Marcio Farid initiated coverage of Gerdau S.A. with a Buy rating and a R$360 price target. According to the analyst, Gerdau S.A. has one of the “most diversified, resilient, and quality business profiles” among companies in Latin America steel, with relatively less exposure to iron ore price volatility.
Jon Bauer’s Contrarian Capital is the largest Gerdau S.A. stakeholder from the third quarter, increasing its stake in the company by 12%, holding 23.1 million shares worth $113.6 million. Overall, the Q3 database of Insider Monkey reported that 13 hedge funds were bullish on Gerdau S.A., down from 17 funds in the preceding quarter.
6. Gilat Satellite Networks Ltd. (NASDAQ:GILT)
Renaissance Technologies’ Stake Value: $11,174,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 10
Dividend Yield on December 16: 13.38%
In Q3 2021, Jim Simons’ Renaissance Technologies held 1.24 million Gilat Satellite Networks Ltd. (NASDAQ:GILT) shares, valued at $11.1 million. Gilat Satellite Networks Ltd. is an Israel-based company offering satellite communication services and relevant equipment.
As of September this year, a total of 10 hedge funds monitored by Insider Monkey were long Gilat Satellite Networks Ltd., with total stakes worth $27 million. This is compared an increase as compared to 7 funds in the prior quarter, holding stakes amounting to $25.9 million.
Gilat Satellite Networks Ltd. announced on November 30 that it signed a $5 million contract with a Tier-1 US global military terminal provider, to supply solid state amplifiers that will allow communication via satellites for militaries around the world.
In the quarterly financial results published on November 9, Gilat Satellite Networks Ltd. posted an EPS of $0.01, beating estimates by $0.02. The $49.91 million revenue increased $38.8 million year-over-year, but missed estimates by $11.91 million.
With a forward yield of 13.38%, Gilat Satellite Networks Ltd. is one of the best dividend stocks to buy according to billionaire Jim Simons’ hedge fund, in addition to Microsoft Corporation, Walmart Inc., The Coca-Cola Company, and Exxon Mobil Corporation.
5. QIWI plc (NASDAQ:QIWI)
Renaissance Technologies’ Stake Value: $8,986,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 6
Dividend Yield on December 16: 14.54%
QIWI plc (NASDAQ:QIWI), a Russian payment and financial services provider, made it to our list of the top dividend stocks to buy according to Jim Simons’ Renaissance Technologies, offering a forward yield of 14.54%. Renaissance Technologies holds an $8.98 million stake in QIWI plc (NASDAQ:QIWI), which accounts for 0.01% of the fund’s Q3 portfolio. QIWI plc (NASDAQ:QIWI) serves customers in Russia and the CIS countries via an elaborate financial ecosystem including the QIWI payment system, QIWI Bank, CONTACT money transfer system, Factoring PLUS, Flocktory, and QPlatform.
On November 23, QIWI plc (NASDAQ:QIWI) posted earnings for the third quarter. EPS in the period totaled $0.58, exceeding estimates by $0.13. Revenue for the period equaled $86.31 million, outperforming estimates by $2.01 million.
QIWI plc (NASDAQ:QIWI) also declared a $0.30 per share quarterly dividend on November 23, payable on December 8 to shareholders of record on December 6.
One of the leading QIWI plc (NASDAQ:QIWI) stakeholders as of the third quarter is Israel Englander’s Millennium Management, increasing its stake in the company by 253%. Overall, 6 hedge funds reported owning stakes in QIWI plc (NASDAQ:QIWI) in Q3, amounting to $14.1 million.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Renaissance Technologies’ Stake Value: $74,552,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 23
Dividend Yield on December 16: 19.13%
Offering petroleum, petroleum products, natural gas, lubricant, petrochemicals, fertilizers, and biofuels, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian state-owned multinational oil and gas company. As of September end, Petróleo Brasileiro S.A. – Petrobras stock accounts for 0.09% of the total investments at Jim Simons’ Renaissance Technologies, with the hedge fund holding 7.45 million shares worth $74.55 million.
A total of 23 hedge funds in the Q3 database of Insider Monkey were long Petróleo Brasileiro S.A. – Petrobras, with stakes amounting to over $3 billion. Rajiv Jain’s GQG Partners is the largest Petróleo Brasileiro S.A. – Petrobras stakeholder, increasing its stake in the company by 25% in Q3, with 173.3 million shares worth $1.79 billion.
In the Q3 results disclosed on October 28 by Petróleo Brasileiro S.A. – Petrobras, EPS for the quarter totaled $0.47, beating estimates by $0.14. Revenue for the period came in at $21.61 billion, missing analysts’ consensus estimates by $296.05 million.
Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras on December 15 to Buy from Neutral with a $14.20 price target. The analyst stated that he now sees a better risk/reward for Petróleo Brasileiro S.A. – Petrobras despite the existing risks of a change in the fuels pricing policy and capital allocation strategy going into 2022.
3. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Renaissance Technologies’ Stake Value: $118,838,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 22
Dividend Yield on December 16: 20.24%
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), a globally top rated cargo shipping company from Israel, posted solid third quarter results on November 17. The company reported earnings per share of $12.16, exceeding estimates by $2.83. The Q3 revenue equaled $3.14 billion, surpassing estimated revenue by $374.27 million.
On November 17, ZIM Integrated Shipping Services Ltd. declared an interim dividend of $2.50 per share, payable on December 27 to shareholders of record on December 16. The company pays out approximately 20% of its net income in dividends, making it one of the top dividend stocks to buy according to billionaire Jim Simons’ hedge fund, with a forward yield of 20.24%.
Renaissance Technologies increased its position in ZIM Integrated Shipping Services Ltd. by 399% in the third quarter, holding 2.34 million shares worth $118.8 million, accounting for 0.15% of the firm’s total 13F securities. Overall, 22 hedge funds in the Q3 database of Insider Monkey were bullish on ZIM Integrated Shipping Services Ltd., down from 25 funds in the previous quarter.
To cater to customers online, ZIM Integrated Shipping Services Ltd. created a new subsidiary, Ship4wd, a digital freight forwarding platform offering an online self-service end to end shipping solution. Ship4wd launched on October 18, targeting the US & Canadian small and medium-sized businesses importing and exporting from China, Vietnam, and Israel. The platform provides both sea and air shipping services up to the final destination, with associated logistics services, all backed up by a variety of professional vendors.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
2. Enel Chile S.A. (NYSE:ENIC)
Renaissance Technologies’ Stake Value: $5,830,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 7
Dividend Yield on December 16: 21.38%
Morgan Stanley analyst Miguel Rodrigues on October 15 initiated coverage of Enel Chile S.A. (NYSE:ENIC) with an Overweight rating and a CLP 52 price target. As the largest integrated electricity group in Chile and the biggest distributor in the country, the analyst views Enel Chile S.A. as a “vehicle to play the ESG theme” in Latin America due to its rapid decarbonization process and “increasingly high ESG scores by different rating agencies”.
Jim Simons’ hedge fund owns 2.41 million shares of Enel Chile S.A., the leading electric utility company in Chile, worth $5.83 million as of September this year.
Posting its Q3 earnings on October 29, Enel Chile S.A. reported a loss per share of $0.01, missing estimates by $0.05. The revenue totaled $955.70 million, exceeding estimates by $77.12 million.
Of the 867 hedge funds tracked by Insider Monkey at the end of September, 7 funds were long Enel Chile S.A., with AQR Capital Management being one of the leading stakeholders of the company, holding 2.1 million shares worth more than $5 million.
Offering a 21.38% forward yield as of December 16, Enel Chile S.A. is one of the best dividend stocks from Jim Simons’ Renaissance Technologies’ portfolio.
1. Golden Ocean Group Limited (NASDAQ:GOGL)
Renaissance Technologies’ Stake Value: $15,374,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 13
Dividend Yield on December 16: 43.15%
Golden Ocean Group Limited (NASDAQ:GOGL) is the highest yielding dividend stock from Jim Simons’ hedge fund, with a yield of 43.15%. Golden Ocean Group Limited is a dry bulk shipping company from Bermuda, with a fleet of 92 vessels operating in the capesize, panamax, and supramax segments.
Jim Simons’ Renaissance Technologies held 1.42 million shares of Golden Ocean Group Limited in the third quarter, worth $15.3 million. Overall, 13 hedge funds were bullish on Golden Ocean Group Limited in Q3, with Arrowstreet Capital being the biggest stakeholder of the company, holding a $45.8 million position.
On November 24, Golden Ocean Group Limited announced its Q3 results, posting an EPS of $0.92, beating estimates by $0.27. Revenue for the quarter increased 115.95% year-over-year, totaling $305.88 million, exceeding estimates by $43.93 million.
Golden Ocean Group Limited increased its quarterly dividend by 70% from the prior quarter dividend of $0.50, declaring a $0.85 per share dividend on December 7, payable on December 16.
You can also take a look at 10 Cheap Stocks to Buy Before Christmas and 10 High Dividend Stocks with Over 12% Yield.
Follow Insider Monkey on Twitter
Suggested articles:
- Top 10 Stock Picks of Don Morgan’s Brigade Capital
- Top 8 Stock Picks of Michael Sidhom’s Immersion Capital
- Charlie Munger Stock Portfolio: 10 Biggest Positions
This article is originally published at Insider Monkey.
