In this article, we discuss 12 best environmental dividend stocks to buy according to Al Gore. You can skip our detailed analysis of Al Gore’s sustainable investing, and go directly to read 5 Best Environmental Dividend Stocks To Buy According To Al Gore.
Al Gore is an American politician, investor, environmentalist, and advocate for climate action. In addition to his political career, Al Gore is widely known for his work in raising awareness about climate change and promoting environmental activism. He is the founder and chairman of The Climate Reality Project, a non-profit organization focused on climate education and advocacy. He co-founded Generation Investment Management (GIM) in 2004, which follows a peculiar investment approach. The hedge fund employs a variety of strategies to identify and invest in sustainable companies, including analyzing environmental, social, and governance (ESG) factors, engaging with company management to encourage sustainable practices, and seeking out companies that are leaders in their industries in terms of sustainability.
Earlier this year, Gore spoke about climate change at an annual meeting of the World Economic Forum’s session at Davos. He said that the crisis is worsening at a rapid pace. He also lauded Greta Thunberg’s recent actions to prevent the expansion of coal mines in Germany. Here are some comments from the environmentalist:
“There are a lot of words and there are some meaningful commitments, but we are still failing badly. We need to have a supermajority process instead of unanimity in the COP. We cannot let oil companies, gas companies, and petro-states tell us what is permissible.”
In May 2022, GIM launched a $1.7 billion Sustainable Solutions Fund IV, which focuses on investing in high-growth companies that are leaders in sustainability, with a particular focus on those that are driving positive environmental and social impact. In our previous article, we also reported that this fund is collaborating with other ESG-centric programs to make investments in reducing global warming levels.
At the end of the fourth quarter of 2022, Generation Investment Management’s 13F portfolio had a total value of over $17.3 billion, compared with $16.8 billion in the previous quarter. Some of the fund’s major holdings include Amazon.com, Inc. (NASDAQ:AMZN), Mastercard Incorporated (NYSE:MA), and Microsoft Corporation (NASDAQ:MSFT). Dividend stocks also take up a significant portion of the portfolio. In this article, we will discuss the best environmental dividend stocks to buy according to Al Gore.
Our Methodology:
For this list, we selected dividend stocks from Generation Investment Management’s 13F portfolio as of Q4 2022. These companies are increasingly deploying environmental, social, and governance (ESG) tools in their financial investments and analysis. We analyzed the hedge fund sentiment for these stocks using Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the fourth quarter of 2022. The stocks are ranked in ascending order of the number of hedge funds having stakes in them.
12 Best Environmental Dividend Stocks To Buy According To Al Gore
12. Equifax Inc. (NYSE:EFX)
Number of Hedge Fund Holders: 26
Generation Investment Management’s Stake Value: $931,796,050
Equifax Inc. (NYSE:EFX) is a Georgia-based consumer credit reporting company that also provides a wide range of other business solutions to its consumers. At the end of Q4 2022, Generation Investment Management owned roughly 4.8 million shares in the company, worth over $931.7 million. The company represented 5.37% of Al Gore’s portfolio. Amazon.com, Inc. (NASDAQ:AMZN), Mastercard Incorporated (NYSE:MA), and Microsoft Corporation (NASDAQ:MSFT) are some other important holdings of the firm.
Equifax Inc. (NYSE:EFX), one of the best dividend stocks on our list, has pledged to reduce its global environmental impact and has committed to net-zero greenhouse gas emissions by 2040.
On February 2, Equifax Inc. (NYSE:EFX) declared a quarterly dividend of $0.39 per share, which fell in line with its previous dividend. The company has been paying uninterrupted dividends to shareholders since 1987. The stock has a dividend yield of 0.80%, as of April 15.
At the end of December 2022, 26 hedge funds tracked by Insider Monkey reported having stakes in Equifax Inc. (NYSE:EFX), compared with 33 in the previous quarter. The collective value of these stakes is over $2.2 billion.
TimesSquare Capital Management mentioned Equifax Inc. (NYSE:EFX) in its Q3 2022 investor letter. Here is what the firm has to say:
“New to the portfolio is Equifax Inc. (NYSE:EFX), a credit bureau that also provides human capital management outsourcing services. Their Workforce Solutions segment continues to grow at a steady pace.”
11. Carlisle Companies Incorporated (NYSE:CSL)
Number of Hedge Fund Holders: 41
Generation Investment Management’s Stake Value: $253,481,636
Carlisle Companies Incorporated (NYSE:CSL) is an American diversified company that designs and manufactures a wide range of products that belong to different industries. The company is committed to deploying sustainable and efficient processes in the design and manufacturing of its products.
Carlisle Companies Incorporated (NYSE:CSL) currently offers a quarterly dividend of $0.75 per share and has a dividend yield of 1.42%, as of April 15. The company is one of the best dividend stocks on our list as it has raised its payouts for 46 years in a row.
At the end of Q4 2022, Generation Investment Management owned over 1 million shares in Carlisle Companies Incorporated (NYSE:CSL), with a total value of over $253.4 million. The company made up 1.46% of Al Gore’s portfolio.
As of the close of Q4 2022, 41 hedge funds in Insider Monkey’s database owned stakes in Carlisle Companies Incorporated (NYSE:CSL), worth roughly $8 billion collectively.
Madison Funds mentioned Carlisle Companies Incorporated (NYSE:CSL) in its Q4 2022 investor letter. Here is what the firm has to say:
“The bottom five detractors for the quarter were Carlisle Companies Incorporated (NYSE:CSL), Brown & Brown, Brookfield, CarMax, and Armstrong World Industries. Following robust outperformance during the first three quarters of the year, Carlisle shares took a step back this quarter as investors worried about commercial roofing demand in a potentially slowing economy.”
10. Baxter International Inc. (NYSE:BAX)
Number of Hedge Fund Holders: 41
Generation Investment Management’s Stake Value: $553,844,048
Baxter International Inc. (NYSE:BAX) is an Illinois-based multinational healthcare company that deals in products that treat various chronic diseases. The company has set goals to reduce its environmental footprint, including reducing greenhouse gas emissions, water usage, and waste generation. Moreover, it has also implemented sustainable practices in its supply chain, such as using recycled materials and reducing packaging waste.
Generation Investment Management started investing in Baxter International Inc. (NYSE:BAX) during the fourth quarter of 2019 with over 6.8 million shares. At the end of Q4 2022, the hedge fund’s total stakes in the company amounted to over $553.8 million, which represented 3.19% of its 13F portfolio.
One of the best dividend stocks on our list, Baxter International Inc. (NYSE:BAX) has been raising its dividends consistently for the past five years. The company currently pays a quarterly dividend of $0.29 per share for a dividend yield of 2.69%, as of April 15.
As per Insider Monkey’s Q4 database, 41 hedge funds reported having stakes in Baxter International Inc. (NYSE:BAX), with a total value of over $1.88 billion. Among these hedge funds, Ken Griffin and Larry Robbins were some of the company’s leading stakeholders in Q4.
9. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 46
Generation Investment Management’s Stake Value: $82,367,633
Microchip Technology Incorporated (NASDAQ:MCHP) is an Arizona-based company that specializes in the manufacturing of integrated circuits and related products. At the end of Q4 2022, Generation Investment Management owned roughly 1.2 million shares in the company with a total value of $82.3 million. The company accounted for 0.47% of Al Gore’s portfolio.
Microchip Technology Incorporated (NASDAQ:MCHP) has implemented a range of energy-efficient technologies in its facilities and has invested in renewable energy sources such as solar power.
On February 2, Microchip Technology Incorporated (NASDAQ:MCHP) declared a 9.1% hike in its quarterly dividend to $0.358 per share. The company started its dividend policy in 2003 and has raised its dividends 76 times since then. The stock’s dividend yield on April 15 came in at 1.80%. It is among the best dividend stocks on our list.
As of the close of Q4 2022, 46 hedge funds in Insider Monkey’s database owned stakes in Microchip Technology Incorporated (NASDAQ:MCHP), up from 45 in the previous quarter. These stakes have a consolidated value of nearly $1.3 billion.
TimesSquare Capital Management mentioned Microchip Technology Incorporated (NASDAQ:MCHP) in its Q4 2022 investor letter. Here is what the firm has to say:
“Microchip Technology Incorporated (NASDAQ:MCHP) is a semiconductor manufacturer offering smart, connected, and secure embedded control solutions. Revenues in the latest quarter exceeded the consensus and that lifted the stock by 16%. While the company acknowledges the weak macro environment, they are not seeing much of an impact on their business. They have a sizable business backlog, multi-year agreements with large customers, and secular growth trends in areas such as 5G and Data Centers. While there has been weakness in some consumer end markets, Microchip has little exposure in areas such as personal computers and smartphones.”
8. Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 52
Generation Investment Management’s Stake Value: $491,592,671
Becton, Dickinson and Company (NYSE:BDX) is a New Jersey-based multinational medical device company. On January 24, the company announced a quarterly dividend of $0.91 per share, which was consistent with its previous dividend. The company maintains a 51-year streak of dividend growth. It is one of the best dividend stocks on our list with a dividend yield of 1.42%, as of April 15.
Generation Investment Management slashed its position Becton, Dickinson and Company (NYSE:BDX) by 40% during the fourth quarter of 2022. The hedge fund’s total stake in the company amounted to nearly $491.6 million, which represented 2.83% of its 13F portfolio.
7. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 61
Generation Investment Management’s Stake Value: $446,329,605
Texas Instruments Incorporated (NASDAQ:TXN) is a Texas-based semiconductor manufacturing company. During the fourth quarter of 2022, Generation Investment Management increased its position in the company by 451% to over $446.3 million. The company made up 2.57% of Al Gore’s 13F portfolio.
Texas Instruments Incorporated (NASDAQ:TXN) is focused on improving energy efficiency, reducing GHG emissions, reducing water, and reusing more water.
Texas Instruments Incorporated (NASDAQ:TXN) currently pays a quarterly dividend of $1.24 per share and has a dividend yield of 2.77%, as of April 15. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 19 years.
At the end of December 2022, 61 hedge funds in Insider Monkey’s database owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), up from 59 in the previous quarter. These stakes have a collective value of nearly $2 billion.
6. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 70
Generation Investment Management’s Stake Value: $678,106,508
Applied Materials, Inc. (NASDAQ:AMAT) is a California-based company that supplies services and software for the manufacturing of semiconductor chips. The company’s ESG strategy includes sustainability in its operations and culture in alignment with its corporate strategy.
On March 13, Applied Materials, Inc. (NASDAQ:AMAT) declared a 23.1% hike in its quarterly dividend to $0.32 per share. Through this increase, the company took its dividend growth streak to six years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.13%, as of April 15.
At the end of Q4 2022, Generation Investment Management owned nearly 7 million shares in Applied Materials, Inc. (NASDAQ:AMAT), after increasing its position in the company by 4% during the quarter. The firm’s total AMAT stake stood at 3.91%, which represented 3.91% of its 13F portfolio. In addition to AMAT, Amazon.com, Inc. (NASDAQ:AMZN), Mastercard Incorporated (NYSE:MA), and Microsoft Corporation (NASDAQ:MSFT) are some other major holdings of Al Gore.
Of the 943 hedge funds tracked by Insider Monkey at the end of Q4 2022, 70 funds owned stakes in Applied Materials, Inc. (NASDAQ:AMAT), up from 67 in the previous quarter. These stakes have a total value of over $3.78 billion.
Davis Advisers mentioned Applied Materials, Inc. (NASDAQ:AMAT) in its annual 2022 investor letter. Here is what the firm has to say:
“If Berkshire represents “growing value” then Applied Materials, Inc. (NASDAQ:AMAT) might be said to represent “undervalued growth.” Founded more than a half century ago, Applied Materials has grown to be the largest supplier of manufacturing tools, services and software to the semiconductor industry. Holding more than 15,000 patents, Applied has become the irreplaceable supplier to the critical global growth industry, semiconductors. Because this company’s earnings can be uneven, short-sighted investors often label this company as “cyclical” and assign it a relatively low valuation.
We disagree and, having perused more than 50 years of data, conclude that Applied is unquestionably a growth company trading at a value price. Figure 8 shows the two sustainable drivers of this growth. The green bars indicate that semiconductor manufacturers have grown industry revenue at 7.5% over the last decade, more than three times the growth of the U.S. economy over this same decade. The orange line indicates that the percentage of this revenue that the industry commits to capital spending has gradually risen from roughly 20% to 30%. Putting these two trends together, it should come as no surprise that Applied has grown revenue at a rate of 11%, and operating income at more than 19% over this same time period.
In the near term, the impact of the chip industry’s post-pandemic inventory correction, which could reduce equipment demand, may more than offset the benefit of recent supply chain issues that limited Applied Materials’ ability to meet customer demand. Longer term, geopolitical tensions between China and the U.S. are driving investment in potentially redundant chip production globally, while at the same time the U.S. and her allies are restricting export of leading edge production tools into China. Even though the near term is frustratingly veiled in uncertainty, the recent shortages and trade restrictions have firmly established that access to chip-production technology is essential to every major industrial economy. Given this, we see more opportunity than risk and estimate that Applied Materials could sell at about 10 times what the company could be earning three-to-five years from now.”
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Disclosure. None. 12 Best Environmental Dividend Stocks To Buy According To Al Gore is originally published on Insider Monkey.
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