5 Best Dividend Stocks to Buy According to John Rogers’ Ariel Investments

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In this article, we discuss 5 best dividend stocks to buy according to John Rogers’ Ariel Investments. If you want to read our detailed analysis of the hedge fund’s past performance and Rogers’ investment strategies, go directly to read 10 Best Dividend Stocks to Buy According to John Rogers’ Ariel Investments

5. The Interpublic Group of Companies, Inc. (NYSE:IPG)

Number of Hedge Fund Holders: 32
Dividend Yield as of May 26: 3.76%
Ariel Investments’ Stake Value: $265,327,000

The Interpublic Group of Companies, Inc. (NYSE:IPG) is an American advertising company and a global provider of marketing solutions. Recently, the company acquired a stake in The Famous Group for better client and media partner experiences. In Q1 2022, The Interpublic Group of Companies, Inc. (NYSE:IPG) reported an 11.5% growth in its net revenue in the US and a growth of 10.2% internationally.

At the end of Q1 2022, the number of hedge funds tracked by Insider Monkey holding stakes in The Interpublic Group of Companies, Inc. (NYSE:IPG) grew to 32, from 24 in the previous quarter. These stakes hold a consolidated value of $650.4 million, up from $601.5 million worth of stakes held by hedge funds in Q4 2021. Harris Associates was the company’s largest shareholder in Q1 2022, holding stakes worth over $467.2 million.

This February, The Interpublic Group of Companies, Inc. (NYSE:IPG) announced a 7.4% increase in its quarterly dividend to $0.29 per share. The company has been raising its dividend consecutively for the past 11 years. The stock’s dividend yield stood at 3.76% on May 26.

At the end of Q1 2022, Ariel Investments held roughly 7.5 million shares in The Interpublic Group of Companies, Inc. (NYSE:IPG), valued at $265.3 million. The company represented 2.35% of John Rogers’ portfolio. The firm also mentioned the company in its Q3 2021 investor letter. Here is what Ariel Investments has to say:

“Marketing communication company, Interpublic Group of Companies, Inc. (IPG) was the top contributor over the trailing one-year period. Notably, IPG is delivering a stronger than expected revenue mix between Technology and Healthcare relative to its peer group, solid cost containment and margin expansion. Meanwhile, the company continued to focus on de-levering the balance sheet. In our view, IPG’s Acxiom acquisition for data has proven to be a winner, helping the company increase their revenue across all eight major advertising sectors by industry. We believe these results continue to demonstrate the strength and resiliency of the business model and expect IPG to be a beneficiary of increasing advertising and marketing budgets across an improving global economy.”



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