In this article, we discuss the 5 best dividend stocks according to Tiger Cub Rob Citrone. If you want to read our detailed analysis of Discovery Capital Management, go directly to read 10 Best Dividend Stocks According to Tiger Cub Rob Citrone.
5. Intercorp Financial Services Inc. (NYSE:IFS)
Number of Hedge Fund Holders: 5
Dividend Yield as of February 2: 2.50%
Discovery Capital Management’s Stake Value: $2,296,000
Intercorp Financial Services Inc. (NYSE:IFS) is a financial services company based in Peru.
Intercorp Financial Services Inc. (NYSE:IFS) currently pays a quarterly dividend of $0.65 per share. The stock’s annual dividend yield stands at 2.50%. Discovery Capital Management started building its position in Intercorp Financial Services Inc. (NYSE:IFS) during the third quarter of 2019, with a stake worth $1.5 million. In Q3 2021, the hedge fund held shares worth roughly $2.3 million in the company, which represented 0.17% of its 13F portfolio.
NWI Management held a stake worth $22.6 million in Intercorp Financial Services Inc. (NYSE:IFS), becoming its largest shareholder in Q3. Overall, 5 hedge funds tracked by Insider Monkey reported owning stakes in the company in Q3, up from 4 in the previous quarter. These stakes are valued at roughly $30 million.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Dividend Yield as of February 2: 2.98%
Discovery Capital Management’s Stake Value: $2,936,000
Intel Corporation (NASDAQ:INTC) announced a 5% increase in its dividend on January 26, to $0.365 per share. This increase marked the company’s 8th consecutive dividend growth, while its 5-year average dividend growth rate stands at 6%. According to analysts, Intel Corporation’s (NASDAQ:INTC) strong balance sheet and stable cash flow would result in further dividend growth in the coming years.
In Q3 2021, Discovery Capital Management held a stake worth roughly $3 million in Intel Corporation (NASDAQ:INTC), which represented 0.21% of its 13F portfolio. In January, Northland set a $62 price target on Intel Corporation (NASDAQ:INTC), while maintaining an Outperform rating on the shares, acknowledging the company’s Q4 earnings beat.
With stakes worth over $6.4 billion, 66 hedge funds tracked by Insider Monkey held positions in Intel Corporation (NASDAQ:INTC) in Q3. In comparison, 78 hedge funds held stakes in the company in Q2, worth $6.7 billion. Ken Fisher’s Fisher Asset Management was the company’s largest shareholder in Q3, owning shares worth over $1.7 billion.
O’Keefe Stevens Advisory Inc. mentioned Intel Corporation (NASDAQ:INTC) in its recently-published Q4 2021 investor letter. Here is what the firm has to say:
“Intel Corp (INTC) – We originally purchased Intel in August 2020 due to the substantial FCF generated and $10B+ yearly in R&D and Capex invested over the past several years. The technology lead it once had was gone as competitors such as TSMC, AMD, and others in the CPU and Data Center group surpassed Intel. Even though Intel had years of business underperformance because of delays in releasing new products, we believed the amount of capital spent at the company would allow them to catch up and reclaim market share. We knew this type of turnaround, given the company’s size, was not going to be quick or easy. However, we believed the price offered more than compensated us for the risk of failing once again.
In January, Intel announced Pat Gelsinger as the new CEO. We were happy with the hire as Pat was Intels original CTO, helping Intel become the dominant player in the industry it once was. We became increasingly worried that Pat was not the right guy in the months and quarters following the announcement. Mr. Gelsinger appears to be viewing the world through rosecolored glasses (though we do recognize the CEO is the heart and soul of the organization, so we understand to a certain extent why he talked the way he did). Intel’s FCF gave us some comfort that it could afford to continue investing in new products while repurchasing shares or making acquisitions.
In the most recent quarter, the company announced an ambitious spending plan. In 2022, Intel expects to spend between $25-$28B in capital expenditures plus another $15B in R&D, with the potential to spend more if an opportunity presents itself! The FCF cushion we once had is likely gone for the next few years as Intel bets the farm to return to a market-leading position. While the future for Semiconductors is very bright, and end markets such as Data Centers and Autonomous vehicles are growing rapidly, we worry about the potential ramifications should INTC’s investments prove to be ill-fated like the past decade. Understanding what INTC will earn next year is a challenge in and of itself. Thinking about what it could be in 3-5 years is likely nothing more than a guess. With our downside protection gone and uncertainty surrounding the business’s future, we decided to sell the position. We are long-term-minded and are willing to ride out short-term pain. However, when the facts change, we must update our prior views.”
3. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 74
Dividend Yield as of February 2: 3.01%
Discovery Capital Management’s Stake Value: $25,638,000
Pfizer Inc. (NYSE:PFE), an American pharmaceutical and biotech company, announced a quarterly dividend of $0.40 per share on December 10, 2021. This represented a 2.6% increase in its dividend, as the company has been increasing its dividend consistently for the past 11 years. Moreover, Pfizer Inc. (NYSE:PFE) has been paying dividends to shareholders consecutively for 333 quarters, becoming one of the best dividend stocks in Rob Citrone’s portfolio.
Insider Monkey’s Q3 data showed that the number of hedge funds having stakes in Pfizer Inc. (NYSE:PFE) grew to 74, from 67 in the previous quarter. These stakes are valued at over $2.66 billion.
In Q3 2021, Discovery Capital Management increased its position in Pfizer Inc. (NYSE:PFE) by 80%, which constituted 1.91% of its 13F portfolio. The hedge fund held shares worth over $25.6 million in the company. On January 28, JPMorgan appreciated the company’s vaccine sales and further believes earnings to exceed expectations in 2022. The firm lifted its price target on Pfizer Inc. (NYSE:PFE) to $57, with a Neutral rating on the shares.
Saturna Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q3 2021 investor letter. Here is what the firm has to say:
“The Fund’s strongest performer during the quarter was pharmaceutical manufacturer Pfizer. The company submitted trial data to the FDA for use of its COVID-19 vaccine for younger children, and it is widely expected that the FDA will approve it. Health authorities also began recommending booster shots of the Pfizer vaccine for select populations, further increasing demand for vaccinations.”
2. JOYY Inc. (NASDAQ:YY)
Number of Hedge Fund Holders: 21
Dividend Yield as of February 2: 4.20%
Discovery Capital Management’s Stake Value: $18,851,000
JOYY Inc. (NASDAQ:YY) is a video-based social media platform that engages users on personal computers and mobile devices. The company is based in Singapore. In Q3 2021, Discovery Capital Management increased its stake in JOYY Inc. (NASDAQ:YY) significantly by 1,031%, which represented 1.41% of Rob Citrone’s portfolio.
JOYY Inc. (NASDAQ:YY) currently pays a quarterly dividend of $0.51 per share, with a dividend yield of 4.20%. In December, Morgan Stanley presented a positive stance on the company, calling it a Research Tactical Idea due to its user growth. The firm maintained an Overweight rating on JOYY Inc. (NASDAQ:YY)’s shares. Since the beginning of 2022, the stock has delivered a 5.7% return to shareholders, as of the market close of February 2.
As of Q3 2021, 21 hedge funds tracked by Insider Monkey reported owning stakes in JOYY Inc. (NASDAQ:YY), down from 24 in the previous quarter. These stakes hold a consolidated value of over $250 million.
Tao Value mentioned JOYY Inc. (NASDAQ:YY) in its Q1 2021 investor letter. Here is what the firm has to say:
“We exited YY after 3.5 years near all-time high. The annualized return (13~%) yet is below expectation, especially compared to founder CEO David Xueling Li’s net worth (mainly in YY shares) ballooning from $1.1B in 2018 to $2.3B in 2021. On value realization, I think YY did a good job, acquiring Bigo, spinning off then selling Huya & selling YY Live to Baidu. But as a minority shareholder, we were treated unfairly. E.g. the Bigo deal (for buying shares from executives including Li) was done by YY stock when the price was severely depressed, causing significant dilution for our ownership. We learned our lessons and will evaluate more rigorously in management’s partnership mindset in the future.”
1. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 19
Dividend Yield as of February 2: 6.75%
Discovery Capital Management’s Stake Value: $19,629,000
EPR Properties (NYSE:EPR), an American real estate investment trust, pays monthly dividends to its shareholders. The company suspended its dividend payouts in 2020 in the face of the pandemic, however, it currently pays a monthly dividend of $0.25 per share. The stock’s dividend yield stands at 6.75%. According to analysts, EPR Properties (NYSE:EPR) boasts a solid financial position due to its growing restaurant sales since 2020.
Discovery Capital Management started investing in EPR Properties (NYSE:EPR) during the first quarter of 2021, with shares worth $13 million. The hedge fund increased its stake in the company by 6% in Q3 2021, which represented 1.46% of its 13F portfolio. This December, Citigroup lifted its price target on EPR Properties (NYSE:EPR) to $58, while maintaining a Neutral rating on the shares.
According to Insider Monkey’s data for Q3, 19 hedge funds held stakes in EPR Properties (NYSE:EPR), worth over $220 million. In comparison, 20 hedge funds held positions in the company in the preceding quarter, with stakes valued at over $231 million.
You can also take a look at 10 Best Healthcare Dividend Stocks and Top 15 Dividend Stocks With Upside Potential
