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11 Best ESG Dividend Stocks to Buy According to Al Gore

In this article, we discuss 11 best ESG dividend stocks to buy according to Al Gore. You can skip our detailed analysis of Al Gore’s sustainable investing and current scenarios, and go directly to read 5 Best ESG Dividend Stocks to Buy According to Al Gore

Former Vice President of the US and Generation Investment Management’s co-founder Al Gore has been a staunch supporter of ESG investing. His hedge fund aims to integrate sustainability into the investment process and uses related tools to carry out the financial analysis.

In one of his interviews with NordSip this September, Al Gore discussed the availability of various political and economic solutions to tackle climate change. He also talked about the Inflation Reduction Act and said that all countries need to take more ambitious steps to reverse the climate crisis. In another interview with Reuters last month, Al Gore said that the current environment with rising oil prices can encourage governments to decarbonize faster. He further mentioned that investments in a clean economy are expected to exceed $1 trillion over the next few years.

Al Gore’s firm launched a new fund earlier this year that targets companies contributing to lower emissions. The $1.7 billion Sustainable Solutions Fund IV will allow the hedge fund to invest in corporations that are shifting their industries and operations toward sustainability. Moreover, the fund recently announced its collaboration with other ESG-centric programs to make investments in limiting global warming to 1.5 degrees Celsius above pre-industrial levels. Overall ESG stocks are gaining ground among investors as they try to increase their sustainable investing exposure. Since 2010, ESG funds have significantly outperformed non-ESG funds in America and Europe, according to a report by Economist.

At the end of Q2 2022, Generation Investment Management’s 13F portfolio had a total value of over $18.3 billion, compared with $21.8 billion in the previous quarter. The hedge fund held major investments in the healthcare, technology, finance, and services sectors. Some of its major holdings include Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT). Moreover, dividend stocks also make up a significant portion of the firm’s portfolio. In view of this, we will discuss the best ESG dividend stocks to buy according to Al Gore.

Our Methodology:

For this list, we selected stocks from Generation Investment Management’s 13 F portfolio as of Q2 2022. The companies mentioned below are increasingly considering environmental, social, and governance (ESG) issues as part of their financial investments and analysis. Moreover, these companies pay dividends to shareholders. The stocks are ranked according to their stake values in the hedge fund’s portfolio.

Best ESG Dividend Stocks to Buy According to Al Gore

11. Microchip Technology Incorporated (NASDAQ:MCHP)

Generation Investment Management’s Stake Value: $76,630,000

Microchip Technology Incorporated (NASDAQ:MCHP) is an Arizona-based manufacturing company that specializes in microcontrollers, mixed-signal, and other related circuits. The company also focuses on its environmental and social responsibility which influences its decision-making processes.

Microchip Technology Incorporated (NASDAQ:MCHP) started paying dividends to its shareholders in 2003 and has raised its dividends 70 times since then. This makes the company one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.301 per share and has a dividend yield of 1.94%, as of October 28.

Generation Investment Management started investing in Microchip Technology Incorporated (NASDAQ:MCHP) during the second quarter of 2018, purchasing shares worth over $31 million. In Q2 2022, the hedge fund owned over 1.3 million shares in the company, worth over $76.6 million. The company represented 0.41% of the firm’s 13F portfolio.

In October, Needham maintained a Buy rating on Microchip Technology Incorporated (NASDAQ:MCHP) with an $82 price target, forecasting a positive growth rate in the upcoming quarter.

At the end of Q2 2022, 41 hedge funds tracked by Insider Monkey owned stakes in Microchip Technology Incorporated (NASDAQ:MCHP), compared with 42 in the previous quarter. These stakes have a collective value is over $1.04 billion. With nearly 4 million shares, Platinum Asset Management was the company’s leading stakeholder in Q2.

In addition to Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), Microchip Technology Incorporated (NASDAQ:MCHP) is another important stock in Al Gore’s portfolio.

Aristotle Capital Management, LLC mentioned Microchip Technology Incorporated (NASDAQ:MCHP) in its Q2 2022 investor letter. Here is what the firm has to say:

Microchip Technology Incorporated (NASDAQ:MCHP), the microcontroller (MCU) and analog semiconductor producer, was also a primary detractor for the period. Shares declined during the quarter despite strong fundamentals, as the company posted its fifth consecutive quarter of record revenues. After years of industry consolidation and cost cutting, led by Microchip’s disciplined and frugal executives, the business is executing on our catalyst of enhanced profitability, with operating margins exceeding 40%. FREE cash flow generation has continued to improve, allowing the company to pay out $1.6 billion in dividends and repurchase $426 million shares since fiscal year 2019. Having paid down $5 billion in debt during the same period, Microchip’s credit rating was upgraded to investment grade in 2021, reflecting its higher-quality balance sheet. While we recognize Microchip operates in a cyclical industry, we admire the company’s history of strong FREE cash flow generation through the cycles. Moreover, our conviction remains in Microchip’s ability to grow its market share while uniquely benefiting from the secular trend of expanded usage of MCUs across segments that include 5G products, Internet of Things (IoT), data centers, electric vehicles and autonomous driving systems.”

10. The Cooper Companies, Inc. (NYSE:COO)

Generation Investment Management’s Stake Value: $394,222,000

The Cooper Companies, Inc. (NYSE:COO) is a California-based medical device company that markets specialty healthcare products. The company has increased its use of renewable energy by reducing emissions.

At the end of Q2 2022, Generation Investment owned over 1.2 million shares in The Cooper Companies, Inc. (NYSE:COO), worth over $394.2 million. The company represented 2.14% of the firm’s 13F portfolio.

The Cooper Companies, Inc. (NYSE:COO) currently pays a quarterly dividend of $0.015 per share, with a dividend yield of 0.02%, as of October 28.

Citigroup maintained its Buy rating on The Cooper Companies, Inc. (NYSE:COO) in October with a $348 price target. The firm presented a positive stance on medical device companies in this current market environment.

As of the end of June, 36 hedge funds tracked by Insider Monkey owned stakes in The Cooper Companies, Inc. (NYSE:COO), up from 33 in the previous quarter. These stakes have a total value of over $1 billion.

Artisan Partners mentioned The Cooper Companies, Inc. (NYSE:COO) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Cooper Companies, Inc. (NYSE:COO) is the second largest contact lens manufacturer and a leading provider of women’s health and fertility products and services. We believe the company is well positioned to benefit from several profit cycle drivers. First, a broad shift from reusable contact lenses to soft, daily disposable lenses is underway. The convenience of less upkeep and increased comfort makes daily lenses an attractive option with higher recurring revenues to Cooper. We are also drawn to the company’s MiSight soft contact lens product, which is used to treat myopia (nearsightedness). Myopia is a global health issue—associated with increased screen time and indoor activity—affecting ~30% of the population and is expected to reach 50% over the coming decades (with particularly high prevalence among children). MiSight is the first and only FDA-approved myopia control contact lens, and we believe it could open a multi-billion-dollar market and be a meaningful growth driver in the years ahead. Meanwhile, the company has made several acquisitions to accelerate the growth of its smaller (~25% of revenue) women’s health business.”

9. Carlisle Companies Incorporated (NYSE:CSL)

Generation Investment Management’s Stake Value: $408,039,000

Carlisle Companies Incorporated (NYSE:CSL) is an Arizona-based manufacturing company that specializes in a wide range of products including optical fibers and defense electronics. The company is one of the best dividend stocks as it has been raising its dividends consistently for the past 46 years. Currently, it pays a quarterly dividend of $0.75 per share and has a dividend yield of 1.24%, as of October 28.

During the second quarter of 2022, Generation Investment increased its position in Carlisle Companies Incorporated (NYSE:CSL) by 3%. The firm owned over 1.7 million CSL shares at the end of the quarter, worth over $408 million. The company represented 2.22% of the firm’s 13F portfolio.

In October, Credit Suisse upgraded Carlisle Companies Incorporated (NYSE:CSL) to Outperform with a $363 price target. The firm expects the company to continue to benefit from the positive secular trend of greater building efficiency.

At the end of Q2 2022, 30 hedge funds tracked by Insider Monkey owned stakes in Carlisle Companies Incorporated (NYSE:CSL), compared with 29 in the previous quarter. These stakes have a total value of $866 million. Harris Associates was one of the company’s leading stakeholders in Q2.

Polen Capital mentioned Carlisle Companies Incorporated (NYSE:CSL) in its Q2 2022 investor letter. Here is what the firm has to say:

CSL’s recent update indicated that the worst COVID-19 impacts on the business are likely past, with plasma collections now snapping back. CSL’s core business continues to enjoy significant competitive advantages, in our view, and, as collected plasma is processed into finished products, we believe sales will return to their pre-COVID-19 levels. It will take time for this to play out, but it is a welcome improvement. Most of the other segments of the business are performing well, and steady demand for CSL’s products, which are less economically sensitive, has likely contributed to the stability of shares recently.”

8. Thermo Fisher Scientific Inc. (NYSE:TMO)

Generation Investment Management’s Stake Value: $486,718,000

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American supplier of scientific instruments, reagents, and other software products. During the second quarter of 2022, Generation Investments owned shares worth over $486.7 million in the company, after raising its position by 2%. The company represented 2.65% of the firm’s 13F portfolio.

Thermo Fisher Scientific Inc. (NYSE:TMO) has been raising its dividends consistently for the past five years, coming through as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.30 per share with a dividend yield of 0.24%, as of October 28.

Morgan Stanley appreciated the ability of Thermo Fisher Scientific Inc. (NYSE:TMO) to execute despite current economic conditions. In view of this, the firm maintained an Overweight rating on the stock in October with a $613 price target.

As of the close of Q2 2022, 93 hedge funds tracked by Insider Monkey owned stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), compared with 101 in the previous quarter. These stakes have a collective value of over $7.8 billion.

Baron Funds mentioned Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q3 2022 investor letter. Here is what the firm has to say:

Thermo Fisher Scientific Inc. (NYSE:TMO) is the world’s largest life sciences tools company. Shares fell due to the rotation out of life sciences tools stocks, driven by concerns about a possible global recession, foreign currency exposure, COVID-related lockdowns in China, and reduced levels of biotechnology funding. We continue to believe Thermo Fisher has a strong long-term growth outlook given a large and growing addressable market coupled with its industry-leading scale, commercial infrastructure, e-commerce platform, supply-chain capabilities, and R&D investment.”

7. Intel Corporation (NASDAQ:INTC)

Generation Investment Management’s Stake Value: $552,560,000

Intel Corporation (NASDAQ:INTC) is an American multinational semiconductor company that also specializes in cloud computing and data centers. It actively pursues innovative ways to apply technology in order to address global challenges.

Intel Corporation (NASDAQ:INTC) is one of the best dividend stocks on our list as it has been paying dividends consistently for the past 28 years. Moreover, the company has raised its dividends for 7 years in a row. It currently pays a quarterly dividend of $0.365 per share and has a dividend yield of 5.19%, as of October 28.

During Q2 2022, Generation Investment increased its position in Intel Corporation (NASDAQ:INTC) by 14%. The firm’s total stake in the company amounted to over $552.5 million, which represented 3.01% of its 13F portfolio.

In October, Summit Insights upgraded Intel Corporation (NASDAQ:INTC) to Buy from Hold.

As of the end of the June quarter, 65 hedge funds in Insider Monkey’s database owned stakes in Intel Corporation (NASDAQ:INTC), compared with 76 in the previous quarter. These stakes have a consolidated value of over $2.5 billion. Ken Griffin and Cliff Asness were some of the company’s leading stakeholders in Q2.

6. Applied Materials, Inc. (NASDAQ:AMAT)

Generation Investment Management’s Stake Value: $555,224,000

Applied Materials, Inc. (NASDAQ:AMAT) is a California-based manufacturing company that supplies services and software for the manufacturing of semiconductor chips. During the second quarter of 2022, Generation Investment increased its position in the company by 44%. The firm’s total AMAT stake amounted to over $555.2 million, which represented 3.02% of its 13F portfolio. The company is one of the prominent holdings of Al Gore alongside Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).

Applied Materials, Inc. (NASDAQ:AMAT) currently pays a quarterly dividend of $0.26 per share. The company has been raising its dividends consistently for the past five years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.19%, as of October 28.

In October, New Street upgraded Applied Materials, Inc. (NASDAQ:AMAT) to Buy with a $115 price target. The firm presented a positive stance on semiconductor companies.

At the end of Q2 2022, 67 hedge funds tracked by Insider Monkey owned stakes in Applied Materials, Inc. (NASDAQ:AMAT), down from 74 in the previous quarter. The collective value of these stakes is over $3.68 billion.

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Disclosure. None. 11 Best ESG Dividend Stocks to Buy According to Al Gore is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…