5 Best Dividend Stocks According to Anthony Bozza’s Lakewood Capital

3. Diageo plc (NYSE:DEO)

Number of Hedge Fund Holders: 19
Dividend Yield as of February 24: 2.78%
Lakewood Capital’s Stake Value: $12,145,000

Diageo plc (NYSE:DEO) is a London-based multinational beverage alcohol company with operations in over 180 countries. Wall Street analysts have appreciated the company’s strategic acquisitions during the pandemic. In February, both Barclays and Credit Suisse lifted their price targets on the stock.

On February 23, Diageo plc (NYSE:DEO) announced a 5% increase to its interim dividend at 0.2936 GBP per share, giving shares a dividend yield of  2.78% as of February 24. Diageo plc (NYSE:DEO) maintains a 34-year track record of consistent dividend growth, falling in the category of Dividend Aristocrats.

In Q4, the company accounted for 0.51% of Anthony Bozza’s portfolio, with Lakewood owning 55,168 shares. Lakewood was one of 19 hedge funds tracked by Insider Monkey that reported owning stakes in Diageo plc (NYSE:DEO) as of December 31, up from 18 in the previous quarter. The total value of those stakes was roughly $936 million. Ako Capital held a $383 million stake in the company, being its largest shareholder among that group.

Weitz Investment Management mentioned Diageo plc (NYSE:DEO) in its Q1 2021 investor letter. Here is what the firm had to say:

“We sold Diageo after twelve years of very profitable ownership. The global spirits company has done a fine job of growing earnings, and the stock has enjoyed an extra boost from substantial, multiple expansions along the way. While the business is in good hands, we think a repeat of our mid-double-digit annualized return experience is far less likely. We simply see better risk/reward profiles in the Fund’s other quality holdings.”