5 Best Dividend Stocks to Buy According to Traci Lerner’s Chescapmanager

4. Cigna Corporation (NYSE: CI)

Lerner’s Stake Value: $26,493,000
Percentage of Traci Lerner’s 13F Portfolio: 2.82%
Dividend Yield: 1.68%
Number of Hedge Fund Holders: 53

Cigna Corporation (NYSE: CI) is an American healthcare and insurance company. It was founded in 1792 and is ranked fourth on the list of 10 best dividend stocks to buy according to Traci Lerner’s Chescapmanager. Cigna currently has a $81.68 billion market capitalization and was able to deliver a 24.96% return in the past 12 months.

On May 7, Cigna posted earnings for the first quarter of 2021. Its earnings per share was $4.73, beating market predictions by $0.35. The company also declared its revenue of $41 billion, up 6.8% YoY, beating the estimates by $730 million. Cigna’s adjusted revenues expectations for 2021 is forecasted to be no less than $166 billion. 

Chescapmanager LLC holds 109,593 shares in the company worth over $26.49 million, representing 2.82% of their portfolio. Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Glenview Capital is a leading shareholder in Cigna with 1.86 million shares worth more than $449 million.

In its fourth quarter 2020 investor letter, Artisan Partners Limited Partnership, a high value-added investment management firm, highlighted a few stocks, and Cigna Corporation (NYSE: CI) was one of them. Here is what the fund said:

“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”