5 Best Environmental Dividend Stocks To Buy According To Al Gore

In this article, we discuss 5 best environmental dividend stocks to buy according to Al Gore. If you want to read our detailed analysis of Al Gore’s sustainable investing, go directly to read 12 Best Environmental Dividend Stocks To Buy According To Al Gore. 

5. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 74
Generation Investment Management’s Stake Value: $1,218,280,388

An American financial services company, The Charles Schwab Corporation (NYSE:SCHW) was the largest holding of Generation Investment Management in Q4 2022. The hedge fund owned stakes worth over $1.2 billion in the company, which represented 7.03% of its 13F portfolio. The fund boosted its position in the company by 1% during the quarter.

The Charles Schwab Corporation (NYSE:SCHW), one of the best dividend stocks on our list, is committed to ESG through sustainable real estate practices, responsible workflows, and investment stewardship.

The Charles Schwab Corporation (NYSE:SCHW) currently offers a quarterly dividend of $0.25 per share for a dividend yield of 1.97%, as of April 15.

As of the close of Q4 2022, 74 hedge funds in Insider Monkey’s database held investments in The Charles Schwab Corporation (NYSE:SCHW), worth over $8.1 billion collectively.

LVS Advisory mentioned The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2023 investor letter. Here is what the firm has to say:

“We exited The Charles Schwab Corporation (NYSE:SCHW) during the week leading up to the Silicon Valley Bank failure at a price in the high $60s. I sent an ad hoc note to partners on March 11 discussing our decision to sell the stock but I will add some additional context here. We invested in Charles Schwab during the summer of 2022 (discussed in our Q3 2022 letter) shortly after making our investment in Interactive Brokers. While Interactive Brokers is focused on faster-growing international markets and more sophisticated traders, Charles Schwab is a more mature US business focused on retirement accounts and wealth managers. Our investment thesis was that Schwab would benefit from higher interest rates and after years of investment would begin returning a significant amount of capital to shareholders.

My view changed when it became clear that liquidity would become a greater issue for all banks in early March. We believe Schwab has enough liquidity to operate its business, but we no longer believe the company is in a position to return capital. Furthermore, Schwab saw a higher degree of deposit flight in Q4 than we expected leading us to believe the problem could get worse before it gets better. Schwab may even need to raise additional equity capital to reassure the market of its liquidity position which would drastically change the risk/reward calculation of investing in the stock. While we realized a ~6% loss on our investment, our ability to quickly recalibrate our views during the early stages of the March banking crisis prevented us from losing an additional 20%+ if we had held on until today.”

4. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holders: 75
Generation Investment Management’s Stake Value: $838,396,699

Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor manufacturing company that also specializes in power management technology. On February 14, the company declared a 13% hike in its quarterly dividend to $0.86 per share. This was the company’s 20th dividend increase in the last 19 years. The stock has a dividend yield of 1.82%, as of April 15.

During the fourth quarter of 2022, Generation Investment Management boosted its position in Analog Devices, Inc. (NASDAQ:ADI) by 3%, ending the period with stakes worth nearly $838.4 million. The company represented 4.84% of Al Gore’s portfolio.

The number of hedge funds tracked by Insider Monkey owning stakes in Analog Devices, Inc. (NASDAQ:ADI) grew to 75, from 66 a quarter earlier. These stakes have a collective value of roughly $5 billion.

Giverny Capital mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q4 2022 investor letter. Here is what the firm has to say:

“Ashtead Group and Analog Devices, Inc. (NASDAQ:ADI) were new purchases, made in May. They both performed well from our original purchase prices and I believe we upgraded the quality of our portfolio by adding them.

We established four new positions during the year, each of about 2%: Analog Devices, Ashtead Group, Floor & Décor, and Installed Building Products. We discussed these in prior letters and I’m pleased to report that Ashtead and Analog were among our best performing positions for the year.”

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 92
Generation Investment Management’s Stake Value: $487,833,143

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American provider of medical equipment, analytical instruments, and other consumables. The company aims to manufacture products with minimal environmental impact. At the end of Q4 2022, Generation Investment Management owned stakes worth over $487.8 million in the company, which represented 2.81% of its 13F portfolio.

Thermo Fisher Scientific Inc. (NYSE:TMO) currently pays a quarterly dividend of $0.35 per share, having raised it by 17% on February 22. Through this increase, the company took its dividend growth streak to six years. The stock has a dividend yield of 0.24%, as recorded on April 15. It is among the best dividend stocks on our list.

At the end of Q4 2022, 92 hedge funds in Insider Monkey’s database owned stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), the same as in the previous quarter. The collective value of these stakes is over $7 billion.

Polen Capital mentioned Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is a leader in attractive end markets with a skilled management team who has demonstrated the ability to consistently and wisely allocate capital. It is the world leader in serving science. It is a globally scaled supplier serving more than 400,000 customers working within pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, research institutions, and government agencies. Thermo provides many of the products and services that companies in these industries, particularly pharma and biotech, need to operate and drive science forward. The company manufactures and sells instruments, reagents, and consumables used for a wide range of applications in labs. (Click here to view the full text)

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 139
Generation Investment Management’s Stake Value: $650,968,296

An American financial services company, Mastercard Incorporated (NYSE:MA) is next on our list of the best dividend stocks. The company currently pays a quarterly dividend of $0.57 per share and has a dividend yield of 0.61%, as of April 15. It has been raising its dividends consistently for the past 10 years.

Mastercard Incorporated (NYSE:MA) announced the reduction of first-use plastic in payment card production, replacing it with recyclable, bio-sourced, chlorine-free, and ocean plastics.

Mastercard Incorporated (NYSE:MA) was the eleventh-largest holding of Generation Investment Management at the end of Q4 2022. The hedge fund owned MA stakes worth nearly $651 million, which accounted for 3.75% of its 13F portfolio.

At the end of the December quarter 2022, 139 hedge funds owned stakes in Mastercard Incorporated (NYSE:MA), compared with 146 a quarter earlier. The collective value of these stakes is over $15.6 billion.

Oakmark Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q1 2023 investor letter. Here is what the firm has to say:

“A brief discussion of Mastercard Incorporated (NYSE:MA) is also appropriate given we have held this company for nearly 13 years. It’s the 13th-largest contributor to performance for the Fund in our nearly 24-year history, but the largest in total dollars and percentage terms at nearly 1760%. While a terrific company, there were better priced alternatives in the quarter, so we sold our position. Our history with Mastercard fits the adage that all good things must come to an end.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259
Generation Investment Management’s Stake Value: $967,881,866

Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech company, which has a dedicated sustainability science team that ensures that it is reducing its carbon footprint. The company currently pays a quarterly dividend of $0.68 per share for a dividend yield of 0.95%, as of April 15. It is one of the best dividend stocks on our list as it has been raising its dividends for 16 years.

At the end of Q4 2022, Generation Investment Management owned over 4 million shares in Microsoft Corporation (NASDAQ:MSFT), worth over $967.8 million. The company made up 5.58% of Al Gore’s portfolio.

Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) outperformed despite a mixed fiscal first quarter due to macro challenges that negatively impacted results and guidance, including foreign exchange headwinds, weakening PC demand, and a cyclical slowdown in advertising spending. Total revenue beat Street expectations at 16% constant-currency growth (vs. estimates of 14%), but its Azure cloud computing business missed analyst projections by 1% for the second straight quarter, though it still grew a robust 42% year-over-year, as Microsoft helped its customers optimize existing workloads due to the macro backdrop. While the optimization of workloads is a short-term headwind, we believe it is the right thing to do and should help drive more consumption with customers over time. Our research continues to indicate that the longer-term secular trend of cloud computing remains healthy and intact. For example, in its fourth quarter CIO survey report, Morgan Stanley showed, among other things, that cloud computing was the second highest CIO spending priority (behind only security software), that cloud application workloads were expected to increase from 27% of total workloads today to 46% by the end of 2025, and that Azure was listed as the preferred cloud vendor and likely to take share over the short and long term.9 Additionally, Microsoft is positioned to be a prime beneficiary of ChatGPT. Microsoft invested $1 billion in OpenAI in 2020 and is rumored to be considering investing an additional $10 billion for a 49% stake in the company. Moreover, ChatGPT runs on Microsoft’s Azure platform, and Microsoft recently announced the general availability of its Azure OpenAI Service enabling Azure customers to access advanced AI models, including ChatGPT itself soon. We remain bullish on Microsoft’s long-term opportunity in the cloud, and believe AI has the potential to be additive to growth for years to come.”

You can also take a look at 10 Best Music Stocks to Buy Now and 12 Best Warren Buffett Stocks To Buy

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