In this article, we discuss the 10 dividend stocks to buy according to Hoon Kim’s Quantinno Capital based on Q3 holdings of the fund.
Hoon Kim started his career as the Head of Quantitative Equity Research at Mellon Capital. Hoon Kim has also worked as a Principal in AQR’s Global Stock Selection Group. He managed hundreds of institutional equities accounts and hedge fund strategies as the Head of Portfolio Construction and Implementation. He also served as a senior member of the GSS research team.
Hoon Kim founded Quantinno Capital, a New York-based hedge fund, in 2018. Across the North American markets, the hedge fund invests employing equity-market agnostic techniques.
In the third quarter of 2021, the hedge fund’s 13F public stock portfolio was valued at $89.58 million, with a top 10 holdings concentration of 7.81%.
Hoon Kim likes to diversify his portfolio. His hedge fund has stakes in small and large companies with strong fundamentals and future growth potential. Some of these companies include Microsoft Corporation (NASDAQ:MSFT), The Home Depot, Inc. (NYSE:HD), and Thermo Fisher Scientific Inc. (NYSE:TMO).
Hoon Kim is bullish on the tech behemoth Microsoft Corporation (NASDAQ:MSFT). In the third quarter, he increased his holding in the firm by 27% to 1,331 shares worth $375,000. On October 16, Credit Suisse analyst Phil Winslow initiated coverage of Microsoft with an “Outperform” rating and gave a price target of $400.
Hoon Kim is also bullish on The Home Depot, Inc. (NYSE:HD), according to his hedge fund’s disclosed holdings data in the third quarter of 2021. The fund increased its holding in the company by 2% in the third quarter, with over 1,730 shares. On November 17, Truist analyst Keith Hughes increased his price target on Home Depot to $420 from $325 but kept a “Hold” rating on the shares.
Hoon Kim’s Quantinno Capital increased its hold in Thermo Fisher Scientific Inc. (NYSE:TMO) by 4% in the third quarter, with 935 shares worth $534,000. SVB Leerink analyst Puneet Souda upgraded Thermo Fisher’s price objective to $685 from $675 in October and rated the stock as “Outperform.” The firm had another great quarter, according to the analyst.
Image by Nattanan Kanchanaprat from Pixabay
With this background in mind, let’s start our list of 10 dividend stocks to buy according to Hoon Kim’s Quantinno Capital. We used Kim’s 13F portfolio for Q3 2021 for this analysis.
Dividend Stocks to Buy According to Hoon Kim’s Quantinno Capital
10. Four Corners Property Trust, Inc. (NYSE:FCPT)
Quantinno Capital Stake Value: $302,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 15
Dividend Yield: 4.53%
Four Corners Property Trust, Inc. (NYSE:FCPT) is a California-based real estate investment trust specializing in purchasing and leasing restaurant assets. In October, Four Corners Property Trust paid $1.7 million for a Carrabba’s restaurant in Missouri.
In August, four Corners Property Trust was downgraded from “Strong Buy” to “Outperform” by Raymond James, with a price target of $30, down from $34.
15 hedge funds in our database held stakes in Four Corners Property Trust, Inc. at the end of the second quarter, compared to 18 funds in the previous quarter. Israel Englander’s Millennium Management is the company’s most significant stakeholder, with 636,528 shares worth $17.10 million.
Microsoft Corporation (NASDAQ:MSFT), The Home Depot, Inc. (NYSE:HD) and Thermo Fisher Scientific Inc. (NYSE:TMO) are some of the dividend stocks to buy according to Hoon Kim’s Quantinno Capital, along with Four Corners Property Trust, Inc. (NYSE:FCPT).
9. Unum Group (NYSE:UNM)
Quantinno Capital Stake Value: $520,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders: 23
Dividend Yield: 4.55%
Unum Group (NYSE:UNM) is in the business of providing financial protection. The company’s biggest stakeholder is Arrowstreet Capital, with 4.59 million shares worth $115.12 million.
In the third quarter of 2021, Unum Group had an EPS of $1.03, missing estimates by $0.12. The company’s revenue was $2.97 billion, below 1% year over year and beating estimates by $10 million. Tracy Benguigui, a Barclays analyst, boosted her price objective on Unum Group to $28 from $24 in October and maintained an “Underweight” rating on the stock.
According to our database, the number of Unum Group’s long hedge funds positions decreased at the end of the second quarter of 2021. As a result, 23 hedge funds hold a position in the company, compared to 33 funds in the first quarter.
8. CareTrust REIT, Inc. (NASDAQ:CTRE)
Quantinno Capital Stake Value: $603,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.67%
Number of Hedge Fund Holders: 13
Dividend Yield: 5.12%
CareTrust REIT, Inc. (NASDAQ:CTRE) is a publicly listed, self-administered REIT specializing in the ownership, purchase, development, and leasing of senior’s housing and healthcare-related assets. On November 18, RBC Capital analyst Michael Carroll lowered his price target on CareTrust REIT to $22 from $24 and maintained a “Sector Perform” rating on the shares. The analyst informs investors that his lower price forecast reflects larger CPI rent increases and a lower investment rate.
Hoon Kim’s Quantinno Capital currently holds 29,657 shares of CareTrust REIT, Inc. that amounts to $603,000. The company occupies 0.67% of the hedge fund’s total portfolio. CareTrust REIT, Inc. recently announced a Q3 2021 dividend of $0.265 per share, consistent with the previous dividend payout.
CareTrust REIT, Inc. saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 13 at the end of the second quarter compared to 15 positions in the previous quarter.
7. Spirit Realty Capital, Inc. (NYSE:SRC)
Quantinno Capital Stake Value: $497,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.55%
Number of Hedge Fund Holders: 19
Dividend Yield: 5.38%
Spirit Realty Capital, Inc. (NYSE:SRC) is a Dallas-based net-lease real estate investment trust. The company announced a Q3 dividend of $0.638 per share, in line with the previous quarter’s dividend payout.
John Khoury’s Long Pond Capital is the biggest stakeholder of Spirit Realty Capital, Inc., with $175.85 million stakes in the company. RBC Capital analyst Brad Heffern commenced coverage of Spirit Realty in September, giving the company a “Sector Perform” rating and a $53 price target.
Spirit Realty Capital, Inc. (NYSE:SRC) has also gained about 24.32% in the past twelve months and 20.59% year to date. In addition, hedge funds are loading up on Spirit Realty Capital, Inc., as Insider Monkey’s data shows that 19 hedge funds held stake in the company as of the end of the second quarter of 2021, compared to 18 funds in the previous quarter.
6. OneMain Holdings, Inc. (NYSE:OMF)
Quantinno Capital Stake Value: $304,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 41
Dividend Yield: 5.5%
OneMain Holdings, Inc. (NYSE:OMF) is a holding company in the financial services industry that specializes in consumer loans and insurance. In October, BMO Capital analyst James Fotheringham trimmed his price target on OneMain Holdings to $60 from $65 and reiterated a “Market Perform” rating on the shares. In a research note, the analyst says that while the company’s Q3 earnings were modest, loan yields are falling and operational expenditures are expanding faster than projected.
In the third quarter of 2021, OneMain Holdings, Inc. had an EPS of $2.37, beating consensus estimates by $2.28. The company’s revenue was $1.03 billion, up 10.2% year over year. Due to strong demand for its core loan products and good economic conditions, OneMain Holdings exceeded Q3 profits and revenue projections.
As of the end of the second quarter, 41 hedge funds in Insider Monkey’s database of 873 funds held stakes in OneMain Holdings, Inc. compared to 43 funds in the quarter earlier.
Just like Microsoft Corporation (NASDAQ:MSFT), The Home Depot, Inc. (NYSE:HD) and Thermo Fisher Scientific Inc. (NYSE:TMO), OneMain Holdings, Inc. (NYSE:OMF) is one of the dividend stocks in Hoon Kim’s Quantinno Capital portfolio.
5. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
Quantinno Capital Stake Value: $476,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.53%
Number of Hedge Fund Holders: 27
Dividend Yield: 5.73%
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is in the business of buying, financing, and holding real estate that is leased to gaming companies under triple-net leasing agreements. In November, Mizuho analyst Haendel St. Juste raised his price target on Gaming and Leisure Properties to $56 from $52 and maintained a “Buy” rating on the shares.
In the third quarter of 2021, Gaming and Leisure Properties, Inc. had an FFO of $0.89, beating estimates by $0.05. The company’s revenue was $298.7 million, down 2.9% year over year, beating estimates by $3.23 million. Shares of the company are up 10.21% in the past twelve months and 12.73% year to date.
Out of the hedge funds being tracked by Insider Monkey, Gates Capital Management is a leading shareholder in Gaming and Leisure Properties, Inc. with 3.65 million shares worth more than $169.26 million, corresponding to 4.65% of its total 13F portfolio.
4. National Health Investors, Inc. (NYSE:NHI)
Quantinno Capital Stake Value: $258,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 13
Dividend Yield: 6.37%
National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in senior housing and medical assets through sale-leaseback, joint-venture, mortgage, and mezzanine finance. The company is a good option for dividend investors. It declared a quarterly dividend of $0.90 per share on November 8, in line with the previous. In addition, National Health Investors was raised to “Overweight” from “Equalweight” by Capital One analyst Daniel Bernstein on November 11th, with a price objective of $65.
In the third quarter of 2021, the company had an FFO of $1.15, missing estimates by $0.03. In addition, the company’s revenue was $73.83 million, below estimates by $0.38 million.
By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in National Health Investors, Inc. worth roughly $45.55 million. This is compared to 11 hedge funds in the previous quarter, with a total stake value of about $30.14 million.
3. Office Properties Income Trust (NASDAQ:OPI)
Quantinno Capital Stake Value: $331,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.36%
Number of Hedge Fund Holders: 8
Dividend Yield: 8.33%
Office Properties Income Trust (NASDAQ:OPI) owns, operates, and rents single and multi-tenant office properties. Shares of the company rallied 15.14% in the last twelve months. Moreover, in October the company declared a quarterly dividend of $0.55 per share, in line with the previous.
In October, Office Properties Income Trust posted an FFO of $1.24 and a Rental income of $147.57 million for the third quarter of 2021. The smart money is taking notice of the firm, with 8 hedge funds tracked by Insider Monkey reporting ownership holdings in the company at the end of the third quarter, up from 7 funds a quarter earlier.
In the third quarter of 2021, Hoon Kim’s Quantinno Capital owned 13,068 shares in Office Properties Income Trust worth $331,000. This represented 0.36% of the investment portfolio of the hedge fund.
2. Sabra Health Care REIT, Inc. (NASDAQ:SBRA)
Quantinno Capital Stake Value: $256,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 14
Dividend Yield: 8.42%
Sabra Health Care REIT, Inc. (NASDAQ:SBRA) is a real estate investment trust that manages and invests in healthcare-related assets. The company posted $128.59 million in third-quarter revenue while EPS stood at around $0.05, both missing the estimates by $15.21 million and $0.12 respectively. In addition, the company announced a quarterly dividend of $0.30 per share, in line with previous.
Baird analyst Amanda Sweitzer initiated coverage of Sabra Health Care REIT in October with an “Outperform” rating and gave a price target of $18. Cliff Asness’s AQR Capital Management was the leading stakeholder in the company. At the same time, Ken Griffin’s Citadel Investment Group is the second-largest shareholder of Sabra Health Care REIT.
Hedge funds sentiment decreased in Sabra Health Care REIT, Inc. As of Q2 2021, 14 hedge funds have positions in the company, compared with 21 in the previous quarter.
1. Global Net Lease, Inc. (NYSE:GNL)
Quantinno Capital Stake Value: $233,000
Percentage of Quantinno Capital’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 13
Dividend Yield: 10.45%
Global Net Lease, Inc. (NYSE:GNL) is a real estate investment services company. Its primary goal is to build a diverse worldwide portfolio of commercial properties, concentrating on sale-leaseback transactions involving single tenant, mission-critical net-leased assets in the United States, Western Europe, and Northern Europe. In October, the company declared a quarterly dividend of $0.40 per share, in line with the previous.
Among hedge funds being tracked by Insider Monkey, Millennium Management held the most valuable stake in Global Net Lease, Inc., worth $16.75 million in the third quarter. On November 4, the company posted earnings results for the third quarter, reporting an FFO of $0.43, missing the estimates by $0.02. However, the revenue over the period was more than $95.75 million, up 15.8% year-on-year.
At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $26.16 million in Global Net Lease, Inc., down from 16 in the preceding quarter worth $38.69 million.
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Disclosure: None. 10 Dividend Stocks to Buy According to Hoon Kim’s Quantinno Capital is originally published on Insider Monkey.
