In this article, we discuss the 10 dividend stocks to buy according to billionaire Louis Bacon. If you want to skip our detailed analysis of Bacon’s history, investment philosophy, and hedge fund performance, go directly to the 5 Dividend Stocks to Buy According to Billionaire Louis Bacon.
Louis Moore Bacon is a philanthropist, hedge fund manager, and investor from the United States. In 1979, he graduated from Middlebury College in Vermont with a bachelor’s degree in American literature. In 1981, he earned his MBA in finance from Columbia Business School. Mr. Bacon is a member of Columbia Business School’s Board of Overseers, the Foreign Policy Association’s Board of Directors, and the Leadership Council of Harvard Kennedy School’s Center for Public Leadership.
Bacon launched Moore Global Investments in 1990 with $25,000 he received from his mother. His hedge fund posted an annualized return of 17.6% since 1989. The billionaire returned investor funds in 2019 to focus only on his ventures.
Billionaire Louis Bacon’s Moore Global Investments had a $6.55 billion portfolio in the third quarter of 2021, down from $7.05 billion a quarter earlier. The fund assets are dispersed throughout the Services, Financial, Industrial Goods, Healthcare, and Utilities sectors. In addition, the hedge fund’s 13F portfolio includes Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Thermo Fisher Scientific Inc. (NYSE:TMO).
Louis Bacon Moore of Moore Capital
Our Methodology
We selected the best dividend yielding stocks in Bacon’s 13F portfolio as of Q3 2021.
Dividend Stocks to Buy According to Billionaire Louis Bacon
10. H&E Equipment Services, Inc. (NASDAQ:HEES)
Moore Global Investments Stake Value: $2,961,000
Percentage of Moore Global Investments’ 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 16
Dividend Yield: 2.53%
H&E Equipment Services, Inc. (NASDAQ:HEES), founded in 1961, is a rental equipment firm. H&E Equipment Services, Inc. (NASDAQ:HEES) is the latest addition in billionaire Louis Bacon’s hedge fund portfolio, as Moore Global Investments bought 85,298 shares of the company, worth $2.96 million.
In November, H&E Equipment Services, Inc. (NASDAQ:HEES) declared a quarterly dividend of $0.275 per share, in line with the previous. In addition, H&E Equipment Services, Inc.’s (NASDAQ:HEES) third-quarter EPS came in at $0.81, surpassing the estimates by $0.35. Revenue over the period was $319.4 million, up 10.4% YoY.
Ken Griffin’s Citadel Investment Group is the leading shareholder of H&E Equipment Services, Inc. (NASDAQ:HEES), with 367,443 shares worth $12.75 million. As of Q3 2021, 16 hedge funds have positions in H&E Equipment Services, Inc. (NASDAQ:HEES), compared with 14 in the previous quarter.
Along with Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Thermo Fisher Scientific Inc. (NYSE:TMO), H&E Equipment Services, Inc. (NASDAQ:HEES) is one of the dividend stocks to buy according to billionaire Louis Bacon.
9. PepsiCo, Inc. (NASDAQ:PEP)
Moore Global Investments Stake Value: $4,343,000
Percentage of Moore Global Investments’ 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 61
Dividend Yield: 2.55%
PepsiCo, Inc. (NASDAQ:PEP) is a global food and beverage corporation. In November, PepsiCo, Inc. (NASDAQ:PEP) declared a quarterly dividend of $0.90 per share, in line with the previous.
Moore Global Investments started building its position in PepsiCo, Inc. (NASDAQ:PEP) in the fourth quarter of 2010. In the third quarter of 2021, the hedge fund holds 28,874 shares in the company, valued at $4.34 million. The company represents 0.06% of the hedge fund’s 13F portfolio. In October, Barclays analyst Lauren Lieberman raised her price target on PepsiCo, Inc. (NASDAQ:PEP) to $168 from $165 and reiterated an “Overweight” rating on the shares.
At the end of the third quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $4.44 billion in PepsiCo, Inc. (NASDAQ:PEP), down from 66 the preceding quarter worth $5.19 billion.
8. Pfizer Inc. (NYSE:PFE)
Moore Global Investments Stake Value: $2,788,000
Percentage of Moore Global Investments’ 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 74
Dividend Yield: 2.71%
Pfizer Inc. (NYSE:PFE) is a pharmaceutical corporation based in the United States that manufactures medicines, vaccines, and consumer health care items for clients worldwide. On December 17, Goldman Sachs analyst Chris Shibutani initiated coverage of Pfizer Inc. (NYSE:PFE), rating the stock as “Neutral,” and gave a price target of $51.
On December 10, Pfizer Inc. (NYSE:PFE) announced a quarterly dividend of $0.40 per share, up 2.6% from the previous $0.39 payout.
As of the end of the third quarter, 74 hedge funds in Insider Monkey’s database of 867 funds held stakes in Pfizer Inc. (NYSE:PFE) compared to 67 funds in the second quarter. Ric Dillon’s Diamond Hill Capital is the company’s most significant stakeholder, with 10.65 million shares worth $457.89 million.
Saturna Capital, in its third-quarter 2021 investor letter mentioned Pfizer Inc. (NYSE:PFE). Here is what the fund said:
“The Fund’s strongest performer during the quarter was pharmaceutical manufacturer Pfizer. The company submitted trial data to the FDA for use of its COVID-19 vaccine for younger children, and it is widely expected that the FDA will approve it. Health authorities also began recommending booster shots of the Pfizer vaccine for select populations, further increasing demand for vaccinations.”
7. Vistra Corp. (NYSE:VST)
Moore Global Investments Stake Value: $11,513,000
Percentage of Moore Global Investments’ 13F Portfolio: 0.17%
Number of Hedge Fund Holders: 38
Dividend Yield: 2.75%
Vistra Corp. (NYSE:VST) is based in Texas and provides electricity and natural gas to residential, commercial, and industrial clients. Moore Global Investments added this stock to its portfolio in the third quarter of 2021, by buying 673,290 shares.
In October, BMO Capital analyst James Thalacker raised his price target on Vistra Corp. (NYSE:VST) to $27 from $25 and maintained an “Outperform” rating on the shares. In addition, Vistra Corp. (NYSE:VST) also declared a quarterly dividend of $0.15 per share, in line with the previous.
The company is getting the attention of the smart money, as 38 hedge funds tracked by Insider Monkey reported owning stakes in Vistra Corp. (NYSE:VST) at the end of the third quarter, up from 32 funds a quarter earlier.
6. Apollo Global Management, Inc. (NYSE:APO)
Moore Global Investments Stake Value: $21,587,000
Percentage of Moore Global Investments’ 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 47
Dividend Yield: 2.92%
Apollo Global Management, Inc. (NYSE:APO) is an alternative investment management organization based in the United States. Credit, private equity, and real estate are among the assets it invests in. On December 17, Deutsche Bank analyst Brian Bedell raised his price target on Apollo Global Management, Inc. (NYSE:APO) to $110 from $91 and kept a “Buy” rating on the shares.
Apollo Global Management (NYSE:APO) issued a quarterly dividend of $0.50 per share in November, the same as the previous quarter. Moore Global Investments holds 350,500 shares in Apollo Global Management (NYSE:APO) worth $21.59 million. This represents 0.32% of their portfolio. In addition, the hedge fund’s stake in Apollo Global Management (NYSE:APO) increased by 173% in the third quarter of 2021.
Apollo Global Management, Inc. (NYSE:APO) was in 47 hedge funds portfolios at the end of the third quarter of 2021. There were 37 hedge funds in our database with Apollo Global Management, Inc. holdings at the end of the previous quarter.
Apollo Global Management, Inc. (NYSE:APO) is one of the dividend stocks to buy according to billionaire Louis Bacon, alongside Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Thermo Fisher Scientific Inc. (NYSE:TMO).
Miller Value Partners, an investment management firm, in its second-quarter 2021 investor letter, mentioned Apollo Global Management (NYSE:APO). Here is what the fund said:
“Apollo Global Management (APO) rose 33.5% during the period after reporting Q1 distributable earnings of $0.66, topping consensus of $0.57 and the quarterly dividend of $0.50/share (3.3% annualized yield). Fee-related earnings came in at $287M ($0.65/share and a 55.9% margin) while Transaction & Advisory fees of $55.5M beat by $10M. Net accrued performance fees rose 66% quarter-overquarter (Q/Q) to $1.346Bn, or $3.04/share on strong performance with Private Equity +22%, Credit +3% to +6%, and Real Assets +4%. Total fundraising of $13.4Bn was in-line, driving total assets under management (AUM) to $461Bn and fee-paying AUM to $345Bn.”
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Disclosure: None. 10 Dividend Stocks to Buy According to Billionaire Louis Bacon is originally published on Insider Monkey.
