In this article, we discuss the 5 best dividend stocks in Richard Chilton’s portfolio. If you want to read our detailed analysis of Chilton Investment Management’s past performance and its latest 13F portfolio, go directly to read 10 Best Dividend Stocks According to Richard Chilton’s Chilton Investment Company.
5. Wells Fargo & Company (NYSE:WFC)
Dividend Yield as of May 20: 2.40%
Number of Hedge Fund Holders: 94
Chilton Investment Company’s Stake Value: $1,723,000
Wells Fargo & Company (NYSE:WFC) is an American multinational financial services company based in California. In its Q1 2022 earnings, the company did not meet the analysts’ expectations and generated revenue of $17.5 billion, missing estimates by $230 million.
In January 2022, Wells Fargo & Company (NYSE:WFC) announced a 25% hike in its annual dividend, with a quarterly dividend of $0.25 per share. The stock’s dividend yield was recorded at 2.40% on May 20. Chilton Investment Company first invested in Wells Fargo & Company (NYSE:WFC) in 2011, purchasing shares worth over $3 million. In Q1 2022, the hedge fund slashed its stake in the company by 2% and held shares worth over $1.7 million. The company represented 0.04% of Richard Chilton’s portfolio.
In its Q1 2022 investors’ note, Barclays appreciated the overall performance of Wells Fargo & Company (NYSE:WFC) and its step to increase its 2022 net interest income and loan growth outlook. The firm lifted its price target on the stock to $64, while maintaining an Overweight rating on the shares.
By the end of December 2021, 94 hedge funds tracked by Insider Monkey held stakes in Wells Fargo & Company (NYSE:WFC), up from 88 in the previous quarter. These stakes hold a consolidated value of over $6.1 billion.
Davis Funds mentioned Wells Fargo & Company (NYSE:WFC) in its Q4 2021 investor letter. Here is what the firm has to say:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”
4. Union Pacific Corporation (NYSE:UNP)
Dividend Yield as of May 20: 2.43%
Number of Hedge Fund Holders: 59
Chilton Investment Company’s Stake Value: $231,572,000
Union Pacific Corporation (NYSE:UNP) is a Nebraska-based transport company and is the second-largest railroad in the US. It operates over 8,300 locomotives in over 23 US states. In Q4 2021, the company saw a decline in hedge fund interest. 59 hedge funds tracked by Insider Monkey held over $5.6 billion worth of stakes in Union Pacific Corporation (NYSE:UNP) in Q4. In comparison, 63 hedge funds held stakes in the company in the previous quarter, valued at $4.8 billion.
In April, Raymond James acknowledged the solid quarterly performance and improved service and expressed confidence that the company is well-positioned to benefit from the growing truck market. The firm lifted its price target on Union Pacific Corporation (NYSE:UNP) to $285, with a Strong Buy rating on the shares.
Chilton Investment Company initiated its position in Union Pacific Corporation (NYSE:UNP) in 2011 with shares worth only $2 million. The hedge fund has increased its position in the company over time and in Q1 2022, the company was the sixth-largest holding of the hedge fund. It held shares worth over $231.5 million in the company, which represented 5.56% of Richar Chilton’s portfolio.
In May 2022, Union Pacific Corporation (NYSE:UNP) announced a 10% increase in its annual dividend and pays a quarterly dividend of $1.30 per share. The company has been increasing its dividend for the past 15 years, falling into the category of Dividend Contenders. Moreover, Union Pacific Corporation (NYSE:UNP) has been offering dividends to shareholders on its common stock for the past 123 years, consecutively. As of May 20, the stock’s dividend yield stood at 2.43%.
ClearBridge Investments mentioned Union Pacific Corporation (NYSE:UNP) in its Q4 2021 investor letter. Here is what the firm has to say:
“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. These consistent growers were complemented by solid contributions from structural holdings including Union Pacific.”
3. The Home Depot, Inc. (NYSE:HD)
Dividend Yield as of May 20: 2.65%
Number of Hedge Fund Holders: 68
Chilton Investment Company’s Stake Value: $220,059,000
The Home Depot, Inc. (NYSE:HD) is an American home improvement retailer dealing in supplying tools, construction products, and related products. In May, Citigroup increased its earnings estimates on the company for fiscal 2022 and raised its price target on the stock to $348. The firm rated the stock as Buy.
With shares worth over $2.4 billion, Fisher Asset Management was the leading shareholder of The Home Depot, Inc. (NYSE:HD) in Q1 2022. Overall, 68 hedge funds tracked by Insider Monkey held stakes in the company in Q4 2021, up from 58 in the previous quarter. These stakes hold a consolidated value of over $6 billion.
The Home Depot, Inc. (NYSE:HD) currently pays a quarterly dividend of $1.90, after announcing a 15% hike in its annual dividend in February. This marked the company’s 14th annual dividend increase. The stock’s dividend yield was recorded to be at 2.65%, as of May 20.
The Home Depot, Inc. (NYSE:HD) has been a part of Chilton Investment Company’s portfolio since 2010. In Q1 2022, the hedge fund raised its stake in the company by 2% to $220 million. The company represented 5.28% of Richard Chilton’s portfolio.
Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:
“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
2. The Coca-Cola Company (NYSE:KO)
Dividend Yield as of May 20: 2.89%
Number of Hedge Fund Holders: 70
Chilton Investment Company’s Stake Value: $2,905,000
An American beverage company, The Coca-Cola Company (NYSE:KO) got the investors’ attention after it announced an 18% growth in its organic sales in Q1 2022, versus the analysts’ expectations of 9%. The stock is up 2.83% for 2022 so far.
Following the strong Q1 results, Wall Street analysts have presented a positive stance on The Coca-Cola Company (NYSE:KO). In April, both Truist and Cowen lifted their price targets on the stock to $75 and $68, respectively. In Q1 2022, Chilton Investment Company increased its position in The Coca-Cola Company (NYSE:KO) by 84% and held shares worth roughly $3 million. The company accounted for 0.06% of Richard Chilton’s portfolio.
In February, The Coca-Cola Company (NYSE:KO) announced a 4.8% increase in its annual dividend and pays a quarterly dividend of $0.44 per share. The company has maintained a 60-year track record of consistent dividend growth. The stock’s dividend yield, as of May 20, stood at 2.89%.
As per Insider Monkey’s Q4 2021 data, 70 elite funds held stakes in The Coca-Cola Company (NYSE:KO), up from 61 in the previous quarter. These stakes hold a consolidated value of over $28.6 billion.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm has to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
1. JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of May 20: 3.41%
Number of Hedge Fund Holders: 107
Chilton Investment Company’s Stake Value: $1,715,000
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services company headquartered in New York. In its Q1 2022 financial results, the company generated a revenue of $30.7 billion, which beat analysts’ estimates by $170 million.
JPMorgan Chase & Co. (NYSE:JPM) has been increasing its annual dividends for the past 12 years consecutively. Recently, the company increased its annual dividend in 2021 by 11.1%, which takes its quarterly dividend to $1.00 per share. The stock’s dividend yield was recorded at 3.41%, as of May 20. In Q1 2022, Chilton Investment Company held a stake worth over $1.7 million in JPMorgan Chase & Co. (NYSE:JPM), which represented 0.04% of Richard Chilton’s portfolio.
In April, Piper Sandler appreciated the underlying fundamental trends of JPMorgan Chase & Co. (NYSE:JPM) and raised its price target on the stock to $170, while maintaining an Overweight rating on the shares.
Of the 900+ elite funds tracked by Insider Monkey, 107 hedge funds held stakes in JPMorgan Chase & Co. (NYSE:JPM) as of the end of December 2021. These stakes hold a collective value of over $6.5 billion. In comparison, 101 hedge funds held stakes in the New York-based company in the previous quarter, worth $5.6 billion.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
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