In this article we discuss the 5 best dividend stocks to buy according to billionaire Michael Price. If you want to read our detailed analysis of Price’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Michael Price.
5. Dow Inc. (NYSE: DOW)
Price’s Stake Value: $1,292,000
Percent of Michael Price’s 13F Portfolio: 0.15%
Dividend Yield: 4.12%
Number of Hedge Fund Holders: 41
Dow Inc. (NYSE: DOW) manufactures basic material solutions for different industries across the world. It has operations in the US, Canada, Europe, Africa, Middle East, India, and Latin America. This Michigan-based company reported a net income of $1.0 billion in Q1 of 2021. Moreover, net sales for the company rose by 11% to $11.9 billion representing a 22% year-over-year increase with all segments of the company performing exceedingly well. The EPS amounted to $1.32 compared to $0.59 per share in the same period of the previous year.
The company’s strong financial performance is reflected in its share prices which have gained over 23% in the past 6 months. Dow Inc. (NYSE: DOW) announced a quarterly cash dividend of $0.70 per share which was paid on June 11, 2021. With a dividend yield of 4.12%, DOW ranks fifth in the list of the 10 best dividend stocks to buy according to billionaire Michael Price.
4. Vornado Realty Trust (NYSE: VNO)
Price’s Stake Value: $4,984,000
Percent of Michael Price’s 13F Portfolio: 0.59%
Dividend Yield: 4.22%
Number of Hedge Fund Holders: 25
Vornado Realty Trust (NYSE: VNO) is a New York-based real estate company that owns and manages retail and office assets located in New York City, San Francisco, and Chicago. The company has established itself as an industry leader with its collection of premier assets across the country. Vornado Realty Trust (NYSE: VNO)’s earnings in Q1 of 2021 reflected a strong financial position for the company. Net quarterly income was reported to be $4.08 million or $0.02 per share compared to $4.96 million or $0.03 per share in the preceding quarter.
The company has ranked as a top dividend stock due to its high dividend yield of 4.22%. For the quarter ended March 31, 2021, Vornado Realty Trust (NYSE: VNO) paid a quarterly cash dividend of $0.53 per share on May 21st. Furthermore, the company’s board has also declared dividends for preferred stocks with the Series A convertible earning $0.8125 per share, payable on July 1, 2021. Vornado Realty Trust (NYSE: VNO) ranks fifth in the list of the 10 best dividend stocks to buy according to billionaire Michael Price.
This real estate investment trust was mentioned in Third Avenue Management’s investor letter for Q3 2020. Here is what they had to say:
“Third Avenue has long championed enterprises with sound business practices run by aligned control groups that exhibit strong stewardship. Within Third Avenue’s real estate strategy, this oftentimes leads the Fund to “pass” on investments in companies with uncertain environmental liabilities, business models that could be deemed predatory, and corporate governance structures that are stacked against key stakeholders. Consequently, the select-set of real estate and real estate-related business that make it into the Third Avenue Real Estate Value Fund represent some of the true industry leaders in respect to their ESG practices, including Vornado Realty Trust (a New York City-centric owner of office properties) that has more than 26 million square feet of LEED-certified properties (Leadership in Energy and Environmental Design) and is a 10-time recipient of NAREIT’s ‘Leader in the Light Award.”
3. Plains All American Pipeline, L.P. (NASDAQ: PAA)
Price’s Stake Value: $3,809,000
Percent of Michael Price’s 13F Portfolio: 0.45%
Dividend Yield: 5.96%
Number of Hedge Fund Holders: 7
Plains All American Pipeline, L.P. (NASDAQ: PAA) is an oil and gas company based in Houston, Texas. It is involved in the transportation and storage of natural gas liquids and crude oil with operations in US and Canada. The company reported revenues of $8.38 billion in its earnings report for Q1 2021, which beat estimates by $1.34 billion. The EPS was reported to be $0.25 while the adjusted EBITDA amounted to $546 million representing a decrease of 31%, year-over-year.
Plains All American Pipeline, L.P. (NASDAQ: PAA) has signed an agreement with Hartree Partners, LP to sell its Southern and Pine Prairie storage facilities. The agreement is valued at $850 million. The company also announced a quarterly dividend of $0.18 per common share. At a stock price of $12.09, the dividend yield for the company amounts to 5.96% making it one of the 10 best dividend stocks to buy according to billionaire Michael Price. Price’s hedge fund has ownership of around 418,518 shares of PAA worth over $3.8 million as of Q1 2021.
2. One Liberty Properties, Inc. (NYSE: OLP)
Price’s Stake Value: $6,146,000
Percent of Michael Price’s 13F Portfolio: 0.73%
Dividend Yield: 6.15%
Number of Hedge Fund Holders: 8
One Liberty Properties, Inc. (NYSE: OLP) is a REIT involved in the management of properties across the US. Based in Maryland, the company owns a diversified portfolio of premium properties. One Liberty Properties, Inc. (NYSE: OLP) reported a net income of $3.0 million for Q1 of 2021 which is a decrease of $4.8 million year-over-year. However, the rental income amounted to $20.7 million for the quarter ended March 31, 2021 compared to $21.2 million for the same quarter of the previous year.
On June 10, 2021, a cash dividend of $0.45 was announced for the quarter which is payable on June 25, 2021. This will be the 114th consecutive quarterly dividend that the company will pay to its shareholders. With a dividend yield of 6.15%, OLP is one of the 10 best dividend stocks to buy according to billionaire Michael Price.
1.Brookfield Property Partners L.P. (NASDAQ: BPY)
Price’s Stake Value: $6,141,000
Percent of Michael Price’s 13F Portfolio: 0.73%
Dividend Yield: 7.15%
Number of Hedge Fund Holders: 17
Brookfield Property Partners L.P. (NASDAQ: BPY) is a renowned real estate company with presence in over 30 countries worldwide. The company is involved in asset management, operational expertise, and capital management services to real estate investors. Brookfield Property Partners L.P. (NASDAQ: BPY) reported a net income of $731 million for Q1 of 2021 as compared to a loss of $373 million in Q1 of 2020. This increase in income can be attributed to the gains in LP investments which amounted to $188 million for the quarter.
The company’s board announced a cash dividend on preferred stock equal to $0.406 per unit which is to be paid on June 30, 2021. Billionaire Michael Price’s hedge fund owns 345,200 shares in Brookfield Property Partners L.P. (NASDAQ: BPY) valued at over $6.14 million. With a high dividend yield of 7.15%, the company has earned the top spot in the list of the 10 best dividend stocks to buy according to billionaire Michael Price.
Horos Asset Management mentioned Brookfield Property Partners L.P. (NASDAQ: BPY) in its Q1 2021 investor letter. This is what the firm stated:
“There have been significant portfolio changes this quarter in the real estate sector, with several new stakes, discussed below, and one corporate transaction. In particular, here we provide an update on the status of our investment in Brookfield Property Partners (“BPY”). In our latest quarterly letter, we noted that on January 4 the company received a takeover bid from Brookfield Asset Management (“BAM”) for the remaining shares it does not control, at a price of 16.5 dollars per share, which seemed too low to us. Hence, our intention was to decline the takeover bid and hold our shares, awaiting a potential increase in the offer price that BAM had in fact historically made in other similar acquisitions. Finally, on April 1, BAM announced it had increased its offer by 10% to 18.17 dollars per share. In this case, shareholders will have a choice of cash, BAM common stock or BPY preferred stock, limited to a maximum of 50% cash for the total offer, 42% for BAM common stock and 8% for BPY preferred stock. The offer price represents a discount to BPY’s NAV of 32%, very much in line with the historical average at which this vehicle has historically traded.”
You can also take a peek at 10 Best Dividend Stocks to Buy Now According to Billionaire Kerr Neilson and 10 Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman.
