Below are the 5 best dividend stocks according to George Soros. For a comprehensive list and to read our analysis of George Soros’ latest portfolio moves and his hedge fund returns, please see 10 Best Dividend Stocks According to George Soros.
5. Darden Restaurants (NYSE: DRI)
Soros Fund Management initiated a position in Darden Restaurants (NYSE: DRI) during the pandemic selloff and slashed its position by 50% in Q4 to capitalize on share price gains. Despite that, Darden is accounting for 1.14% of Soros’ portfolio at the end of the fourth quarter. Besides shares price gain of 20% year to date, DRI also offers a quarterly dividend of $0.88 per share to shareholders.
The smart money was in a bullish mood for DRI. Darden Restaurants was in 42 hedge funds’ portfolios at the end of December.
4. OneMain Holdings, Inc. (NYSE: OMF)
Financial services holding OneMain Holdings, Inc. (NYSE: OMF) is ranked fourth in the list of 10 best dividend stocks according to George Soros. The company offers a dividend yield of 3.28% with a quarterly dividend of $0.45 per share. Soros Fund Management held 383,782 shares of OneMain Holdings at the end of the fourth quarter. OMF stock price appreciated 50% in the last twelve months.
Miller Value Partners, an investment management firm, highlighted a few stocks including OneMain Holdings in the Q4 investor letter. Here is what Miller Value Partners stated:
“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”
3. VICI Properties Inc. (NYSE: VICI)
Soros Fund Management slashed its stake by 44% in VICI Properties Inc. (NYSE: VICI) during the fourth quarter to capitalize on its significant share price rally. The firm held more than 3 million shares of VICI at the end of December, representing 1.46% of the overall portfolio. In addition to the share price gain of 12% year to date, the company also rewarded investors with a quarterly dividend of $0.33 per share, yielding around 4.60%.
VICI Properties investors should be aware of a decrease in activity from the world’s largest hedge funds as of late. VICI Properties was in 38 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all-time high for this statistic is 59.
2. Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI)
Soros Fund Management initiated a position in Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI) during the fourth quarter. FTAI is a good stock to buy and hold amid the management’s strategy of returning significant cash to investors in the form of dividends. Its dividend yield is currently hovering above 4.50%. The company has paid dividends every year since 2015, thanks to sustainable growth in financial numbers. Its earnings per share is forecasted to grow around 41% in 2021 from the previous year. FTAI stock price surged 183% in the last twelve months.
1. AGNC Investment Corp. (NASDAQ: AGNC)
With a dividend yield of 8.44%, AGNC Investment Corp. (NASDAQ: AGNC) ranks first in the list of 10 best dividend stocks according to George Soros. Soros’ firm held 1.37 million shares of AGNC at the end of the fourth quarter. AGNC offers dividends on a monthly basis. Moreover, its share price has also been gaining upside momentum on the back of improvement in economic indicators that support real estate markets.
AGNC Investment Corp. shareholders have witnessed a decrease in support from the world’s most elite money managers in recent months. AGNC Investment was in 25 hedge funds’ portfolios at the end of December. The all-time high for this statistic is 37.
You can also take a peek at George Soros’ Top 10 Stock Picks and 15 Most Valuable Cloud Computing Companies.
