5 Best Dividend Stocks to Buy Now According to Billionaire Cliff Asness

In this article we discuss the 5 best dividend stocks to buy now according to billionaire Cliff Asness. If you want to read our detailed analysis of Asness’ history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Billionaire Cliff Asness.

5. Two Harbors Investment Corp. (NYSE: TWO)

Asness’ Stake Value: $312,000
Percentage of Cliff Asness’ 13F Portfolio: 0.001%
Dividend Yield: 9.65%
No. of Hedge Fund Holders: 18

Two Harbors Investment Corp. (NYSE: TWO) is essentially a real estate investment trust (REIT) that manages and finances mortgage-backed residential securities (RMBS), mortgage servicing rights, and non-agency securities, among other financial assets in the U.S. The stock ranks 5th in the list of best dividend stocks to buy now based on Cliff Asness’ 13F portfolio.

Two Harbors Investment operates as a REIT for reasons related to Federal income tax. REITs are required by law to distribute 90% or more of their taxable income to shareholders. The company recently announced its Q1 2021 financials, revealing that its book value at the end of the quarter ended March 31 was $7.29 per share. The quarterly return on that book value was (2.2)%.

The company’s core earnings were $45.8 million or $0.17 per weighted share (common stock). Its comprehensive income was $(48.5) million, representing a 9.3% annualized return on equity. Two Harbors declared its Q1 2021 dividend at $0.17 per share. Some of the key developments in Q1 include the issuance of 5-year convertible senior notes due 2026, whose principal amount was $287.5 million. It bought back and retired convertible senior notes due 2022, whose principal amount was $143.7 million. Two Harbors Investment Corp. (NYSE: TWO) finalized the redemption of $200 million Series E, and $75 million Series D preferred shares.