In this article, we will be looking at the 5 best dividend stocks to buy in August according to hedge funds. To see our detailed analysis of dividend investing and these stocks, you can go directly to the 10 Best Dividend Stocks to Buy in August According to Hedge Funds.
5. OneMain Holdings, Inc. (NYSE: OMF)
Number of Hedge Fund Holders: 43
Dividend Yield: 3.1%
OneMain Holdings, Inc. (NYSE: OMF) is a financial service holding company and ranks 5th on our list of the best dividend stocks to buy in August according to hedge funds. The company operates in the consumer finance and insurance businesses in the US.
Arren Cyganovich, an analyst at Citigroup, recently raised his price target on shares of OneMain Holdings, Inc. (NYSE: OMF). This July, the analyst upped the target to $71, versus the previous $64 target, while reiterating a Buy rating on the shares in light of the company’s positive Q2 results.
In the second quarter of 2021, OneMain Holdings, Inc. (NYSE: OMF) had an EPS of $2.66, beating estimates by $0.46. The company’s revenue was $989 million, up 3.67% year over year and also beating estimates by $23.72 million. OneMain Holdings, Inc. (NYSE: OMF) has also gained 8.54% in the past 6 months and 24.06% year to date.
By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in OneMain Holdings, Inc. (NYSE: OMF) worth roughly $886 million. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $654 million.
“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”