5 Best Dividend Stocks to Buy According to Diamond Hill Capital

2. ConocoPhillips (NYSE:COP)

Diamond Hill Capital’s Stake Value: $591,671,000

ConocoPhillips (NYSE:COP) is a Texas-based natural gas liquids company that specializes in the exploration and production of hydrocarbons. In August, Barclays raised its price target on the stock to $153 with an ‘Overweight’ rating on the shares, highlighting the company’s maintenance of its free cash flow yields.

ConocoPhillips (NYSE:COP) does not hold a dividend growth track record but the company has paid uninterrupted dividends to shareholders since 1993. The company currently pays a quarterly dividend of $0.46 per share and shares have an attractive dividend yield of 4.09% as of August 31.

Diamond Hill Capital opened its position in ConocoPhillips (NYSE:COP) during the first quarter of this year, purchasing shares worth $703 million. In Q2, the hedge fund slashed its position in the company by 7%, which dropped its total COP stake to $592 million in value. The company represented 2.58% of the firm’s portfolio.

At the end of Q2, 71 hedge funds tracked by Insider Monkey owned stakes in ConocoPhillips (NYSE:COP), up from 67 in the previous quarter. The collective value of those stakes was over $2.42 billion. With over 6.7 million shares, Fisher Asset Management owned the largest position in the energy company in Q2.

Diamond Hill Capital mentioned ConocoPhillips (NYSE:COP) in its Q1 2022 investor letter. Here is what the firm had to say:

“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”