1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 111
Topping the 10 best dividend stocks to buy according to Stanley Druckenmiller is JPMorgan Chase & Co. (NYSE:JPM). The New York-based investment bank and financial services holding company has over 30,000 middle-market customers, 1,700 corporate banking customers, and 1,100 commercial real estate banking customers users. Earlier this year, cryptocurrency infrastructure software development startup ConsenSys secured $65 million in a fundraising round sponsored by JPMorgan Chase. On May 27, JPMorgan Chase & Co. (NYSE: JPM) Board of Directors announced a quarterly dividend of $0.90 per share, payable to shareholders by the end of July.
JPMorgan Chase & Co.’s (NYSE:JPM) net income came in at $8.1 billion in the first quarter of 2021, up from $4.0 billion in the first quarter of 2020. Shares of JPM surged 68% over the last three months. On April 30, Wells Fargo maintained an Overweight rating on JPMorgan Chase & Co. (NYSE:JPM) and raised the price target to $195.
Bretton Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2020 investor letter:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
You can also take a peek at Eagle Capital’s Top 10 Stock Picks and Billionaire David Siegel’s Top 10 Stock Picks.
