5 Best Dividend Stocks to Buy According to Michael Burry

2. Lumen Technologies, Inc. (NYSE: LUMN)

Number of hedge fund holders: 32 

Dividend Yield: 7.07% 

Lumen Technologies, Inc. (NYSE: LUMN) is a Louisiana-based telecommunication firm founded in 1968. It is placed second on our list of 10 best dividend stocks to buy according to Michael Burry. Lumen stock has returned more than 46% to investors year-to-date. Scion Asset Management owns 650,000 shares in the telecom firm worth over $8.6 million, representing 0.64% of their portfolio. Lumen serves more than 4.5 million broadband customers across the United States. 

In earnings results for the first quarter of 2021, Lumen Technologies, Inc. (NYSE: LUMN) reported earnings per share of $0.44 per share, beating market estimates by $0.03. The revenue over the period was over $5 billion. 

At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Lumen Technologies, Inc. (NYSE: LUMN), up from 29 in the preceding quarter worth $772 million. 

In its Q1 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE: LUMN) was one of them. Here is what the fund said:

“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”