In this article, we discuss the 10 best dividend stocks according to Matthew Barrett’s Glendon Capital.
Glendon Capital Management was founded by the former head of distressed debts at Barclays, Matthew Barrett, and former managing directors Holly Kim and Brian Berman. The trio was later joined by Eitan Melamed in 2007, who previously worked at Goldman Sachs. In 2013, Glendon Capital spun out of Barclays and continued to manage the investment bank’s money. At that time, Glendon had about $2.8 billion in assets under management. While working at Barclays, the team managed to generate an annual average return of 17% from 2007 to 2013, as reported by Reuters. Matthew Barrett is currently serving as the partner in the firm.
Glendon Capital Management makes credit and equity investments in distressed securities. In December 2021, the hedge fund announced to initiate fundraising on Glendon Opportunities Fund III, the firm’s third distressed fund, in the first quarter of 2022. The sources said that the hedge fund will target somewhere around $3 billion and will be activated in over three years, based on market conditions.
As of Q4 2021, Glendon Capital Management holds a 13F portfolio value of over $1.9 billion, up from $1.68 billion in the previous quarter. As mentioned before, the hedge fund invests in distressed securities, so the portfolio does not contain any major blue-chip holdings. In Q4, the fund invested heavily in the financial, utilities, and basic materials sectors. Some of the fund’s notable holdings in Q4 include PG&E Corporation, Realty Income Corporation (NYSE:O), and Chesapeake Energy Corporation (NASDAQ:CHK).
Photo by Vitaly Taranov on Unsplash
Our Methodology:
In this article, we discuss the dividend stocks in Matthew Barrett’s portfolio. For this list, we took data from Glendon Capital Management’s 13F portfolio as of Q4 2021.
10 Dividend Stocks to Buy According to Matthew Barrett’s Glendon Capital Management
10. Whiting Petroleum Corporation (NYSE:WLL)
Number of Hedge Fund Holders: 25
Dividend Yield as of March 1: 1.31%
Glendon Capital’s Stake Value: $29,306,000
Whiting Petroleum Corporation (NYSE:WLL) is an American energy company that is engaged in the exploration of hydrocarbons. On February 8, the company initiated its dividend policy, paying a quarterly dividend of $0.25 per share. The stock’s dividend yield stood at 1.31%, as of March 1.
In Q4 2021, Glendon Capital did not change its position in Whiting Petroleum Corporation, and held shares worth roughly $30 million. The company made up 1.54% of Matthew Barrett’s portfolio. This January, Truist presented a positive outlook on Exploration & Production companies and raised its oil price deck for 2022 by 10%. In view of this, the firm lifted its price target on Whiting Petroleum Corporation to $104, while maintaining a Buy rating on the shares.
By the end of Q4 2021, 25 hedge funds tracked by Insider Monkey reported owning stakes in Whiting Petroleum Corporation, up from 20 in the preceding quarter. The total value of these stakes is over $226.4 million. Valueworks LLC held the largest stake in the company in Q4, worth $34.2 million.
Some other notable holdings of Glendon Capital in the fourth quarter are PG&E Corporation, Realty Income Corporation, and Chesapeake Energy Corporation.
9. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 58
Dividend Yield as of March 1: 1.47%
Glendon Capital’s Stake Value: $363,329,000
CF Industries Holdings, Inc. (NYSE:CF) is an American manufacturing company that specializes in agriculture-related products. In Q4 2021, the number of hedge funds tracked by Insider Monkey holding stakes in the company grew to 58, from 49 in the previous quarter. The total value of these stakes is over $1.54 billion.
Though CF Industries Holdings, Inc. has not raised its dividends since 2015, the company has sustained dividend payments, even during the pandemic. Currently, the company pays a quarterly dividend of $0.30 per share, with a dividend yield of 1.47%, as recorded on March 1. On February 28, Piper Sandler raised its price target on CF Industries Holdings, Inc. to $88, with an Overweight rating on the shares, providing a constructive view of nitrogen markets.
Glendon capital management started building its position in CF Industries Holdings, Inc. during the fourth quarter of 2014. In Q4 2021, the company was the second-largest holding of the hedge fund and represented 19.11% of its portfolio. The fund held shares worth over $363.3 million in the company, after increasing its stake by 4%.
8. Chesapeake Energy Corporation (NASDAQ:CHK)
Number of Hedge Fund Holders: 50
Dividend Yield as of March 1: 2.26%
Glendon Capital’s Stake Value: $205,242,000
In Q4 2021, Glendon Capital increased its position by 7% in Chesapeake Energy Corporation, an American energy company. The hedge fund held stakes worth over $205.2 million in the company, which accounted for 10.79% of Matthew Barrett’s portfolio.
In 2020, Chesapeake Energy Corporation suspended dividends in the face of the pandemic. However, the company resumed its dividend payments in 2021. Currently, the company pays a quarterly dividend of 0.4375 per share, having raised it by 27.3% from its previous dividend. The stock’s dividend yield stood at 2.26%, as of March 1. Appreciating the company’s free cash flow, on February 11, JPMorgan initiated its coverage on Chesapeake Energy Corporation with an Overweight rating and an $85 price target.
Of the 924 elite funds tracked by Insider Monkey in Q4, 50 hedge funds held stakes in Chesapeake Energy Corporation, worth $2.33 billion. In comparison, 44 hedge funds held positions in the company in the previous quarter, with stakes valued at $2.17 billion. Among these hedge funds, Oaktree Capital Management was the company’s largest shareholder in Q4, with stakes worth $774.3 million.
7. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 48
Dividend Yield as of March 1: 2.54%
Glendon Capital’s Stake Value: $116,568,000
This December, Raymond James appreciated Ally Financial Inc. (NYSE:ALLY), an American bank holding company, for its diversification and steady consumer growth. The firm initiated its coverage on the stock with an Outperform rating and a $55 price target.
In Q4 2021, 48 hedge funds in Insider Monkey’s database were bullish on Ally Financial Inc., down from 57 in the previous quarter. The consolidated value of these stakes is nearly $2.4 billion.
On January 11, Ally Financial Inc. announced a 20% growth in its quarterly dividend at $0.30 per share. The stock’s dividend yield, as of March 1, was recorded to be at 2.54%. Ally Financial Inc. is one of the best dividend stocks for income investors as its 5-year dividend CAGR stands at 44%. In Q4 2021, the company represented 6.13% of Matthew Barrett’s portfolio.
6. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 40
Dividend Yield as of March 1: 3.10%
Glendon Capital’s Stake Value: $73,349,000
On February 23, Vistra Corp. (NYSE:VST), a Texas-based electricity generation company, announced a quarterly dividend of $0.17 per share, up 13% from its previous dividend. The stock’s dividend yield stood at 3.10%, as of March 1. Vistra Corp. has been raising its dividend consistently since 2019.
Oaktree Capital Management held a stake worth over $658 million in Vistra Corp., becoming its largest shareholder in Q4. Overall, 40 hedge funds tracked by Insider Monkey held positions in the company in the fourth quarter of 2021, up from 38 in the previous quarter. The total value of these stakes is over $1.5 billion.
In Q4 2021, Glendon Capital held over 3.2 million shares in Vistra Corp., valued at $73.3 million. The company constituted 3.85% of Matthew Barrett’s portfolio. Besides Vistra Corp., the hedge fund also has substantial positions in PG&E Corporation, Realty Income Corporation, and Chesapeake Energy Corporation.
5. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 28
Dividend Yield as of March 1: 3.84%
Glendon Capital’s Stake Value: $60,477,000
In Q4 2021, an American energy company, NRG Energy, Inc. (NYSE:NRG) saw a decline in the number of hedge funds holding positions in it. As of Insider Monkey’s Q4 data, 28 hedge funds held stakes in the company, down from 34 in the preceding quarter. These stakes are valued at over $1.83 billion.
NRG Energy, Inc.’s increasing debt led the company to cut its dividend by 79% in 2016. However, the company maintained dividend payments over the years, growing it by 8% on January 21. The company currently pays a quarterly dividend of $0.35 per share, with a dividend yield of 3.84%, as reported on March 1. This January, UBS set a $42 price target on NRG Energy, Inc., with a Neutral rating on the shares.
In Q4 2021, Glendon Capital held over 1.4 million shares in NRG Energy, Inc., valued at $60.4 million. The company accounted for 3.18% of Matthew Barrett’s portfolio.
4. Edison International (NYSE:EIX)
Number of Hedge Fund Holders: 25
Dividend Yield as of March 1: 4.42%
Glendon Capital’s Stake Value: $24,647,000
Edison International (NYSE:EIX) is an American public utility company. This January, Mizuho presented a positive outlook on the company and lifted its price target on the stock to $82, while maintaining a Buy rating on the shares.
Edison International has been growing its dividend consistently for the past 17 years, raising it by 7.5% in the last ten years. In December 2021, the company hiked its quarterly dividend by 6% at $0.70 per share. The stock’s dividend yield stood at 4.42%, as of March 1. In Q4 2021, Glendon Capital held a stake worth over $24.6 million in Edison International, which represented 1.29% of Matthew Barrett’s portfolio.
By the end of Q4 2021, 25 hedge funds tracked by Insider Monkey held stakes in Edison International, valued at over $1.3 billion. With shares worth over $1 billion, Pzena Investment Management was the company’s largest stakeholder in Q4.
3. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 30
Dividend Yield as of March 1: 4.49%
Glendon Capital’s Stake Value: $132,934,000
Realty Income Corporation, an American real estate investment trust, is a recent acquisition of Glendon Capital in Q4. The hedge fund started building its position in the company with shares worth roughly $133 million. The company accounted for 6.99% of Matthew Barrett’s portfolio.
Since Realty Income Corporation went public in 1994, the company has grown its monthly dividend at a CAGR of 4.4%. In 2021, the company grew its monthly dividend by 4% at $0.2465 per share. The stock’s dividend yield, as of March 1, stood at 4.49%. As the real estate sector outperformed S&P 500 in 2021, Mizuho in January set a $76 price target on Realty Income Corporation, while maintaining a Buy rating on the shares.
In Q4 2021, the number of hedge funds tracked by Insider Monkey having stakes in Realty Income Corporation grew to 30, from 22 in the previous quarter. These stakes are valued at roughly $399 million.
2. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 22
Dividend Yield as of March 1: 6.71%
Glendon Capital’s Stake Value: $17,715,000
An American real estate investment trust, EPR Properties (NYSE:EPR) pays monthly dividends to shareholders. In 2020, the company temporarily cut its dividend due to the pandemic. Currently, EPR Properties pays a monthly dividend of $0.25 per share, with a solid dividend yield of 6.71%, as of March 1.
By the end of the fourth quarter of 2021, 22 hedge funds tracked by Insider Monkey held stakes in EPR Properties, valued at $248.6 million. In comparison, 19 hedge funds held positions in the company in the preceding quarter, with stakes valued at $220 million.
On February 23, Stifel lifted its price target on EPR Properties to $56.50, while maintaining a Hold rating on the shares. Glendon Capital started building its position in EPR Properties during Q4 2021, with shares worth over $17.7 million. The company made up 0.93% of Matthew Barrett’s portfolio.
1. CVR Partners, LP (NYSE:UAN)
Number of Hedge Fund Holders: 4
Dividend Yield as of March 1: 9.38%
Glendon Capital’s Stake Value: $11,041,000
CVR Partners, LP (NYSE:UAN) is an American company that manufactures nitrogen fertilizer products. In Q4 2021, Glendon Capital held a stake worth over $11 million in the company, which accounted for 0.58% of Matthew Barrett’s portfolio.
On February 25, CVR Partners, LP announced a quarterly dividend of solid $5.24 per share, an increase of 79% from its previous dividend. The stock’s dividend yield stood at 9.38%, as of March 1. Since the start of 2022, the stock delivered a 24.8% return to shareholders, as of the market close of March 1.
By the end of Q4 2021, 4 hedge funds tracked by Insider Monkey reported owning stakes in CVR Partners, LP, down from 5 in the previous quarter. The total value of these stakes is over $15.4 million.
You can also take a look at Billionaire Andreas Halvorsen’s Top Stock Picks and 14 Best Internet of Things Stocks To Buy Now
Follow Insider Monkey on Twitter
Suggested articles:
- 10 Best Tech Stocks To Invest in Now
- 10 Best Climate Change Stocks to Buy Now
- Top 10 ESG Stocks To Buy
This article is originally published at Insider Monkey.
