In this article we discuss the 5 best dividend stocks to buy according to billionaire James Dinan. If you want to read our detailed analysis of Dinan’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire James Dinan.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at Dinan’s dividend picks:
5. Union Pacific Corporation (NYSE: UNP)
Dinan’s Stake Value: $4,451,000
Percentage of James Dinan’s 13F Portfolio: 0.64%
Dividend Yield: 1.93%
Number of Hedge Fund Holders: 68
Union Pacific Corporation (NYSE: UNP) is a specialist in the railroad business in the United States. The company mainly conducts its business operations through its subsidiary Union Pacific Railroad Company. It is ranked fifth on our list of 10 best dividend stocks to buy according to billionaire James Dinan.
In May, Union Pacific Corporation (NYSE: UNP) announced plans to open a new intermodal terminal to serve Southern California’s import distribution region. The company recently reported a net income of $1.3 billion, or $2.00 per diluted share in Q1 2021, a drop from $1.5 billion, or $2.15 per diluted share, reported in Q1 2020.
Union Pacific Corporation (NYSE: UNP) added 110 basis points to its operating ratio to 60.1%. The operating ratio was negatively affected by weather and rising fuel prices in the quarter. During the quarter, Union Pacific Corporation (NYSE: UNP) increased its quarterly dividend by 10.3% to $1.07 per share compared to $0.97 in Q1 2020. In January, Bernstein upgraded the stock to “Outperform” from “Market Perform.”
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and International Union Pacific Corporation (NYSE: UNP) was one of them. Here is what the fund said:
“There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations.”
