5 Best November Dividend Stocks To Buy

4. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Shareholders: 52

November 30 Dividend Payout: $0.40

CF Industries Holdings, Inc. (NYSE:CF)’s dividend doesn’t jump off the page, boasting just a 1.51% yield and a 5-year CAGR of just 3.13%. But after remaining flat for five years, the ammonia producer was able to boost its dividend by 33% this year thanks to enjoying its most profitable year ever in 2021. Thanks to soaring ammonia prices, CF Industries’ average product price jumped by 74% last year, which pushed its free cash flow to $2.17 billion, nearly triple what it was a year earlier. With just a 9% payout ratio and strong demand for its products, the next few years could be good ones for CF’s dividend.

Hedge fund ownership of CF Industries Holdings, Inc. (NYSE:CF) jumped by 34% between the third quarter of 2021 and the first quarter of 2022, hitting an all-time high. However, there was a big smart money sell off of the stock during Q2, with a 21% net decline in the number of funds long CF. Crispin Odey’s Odey Asset Management Group and Jonathan Dawson’s Southport Management were among the funds selling off CF Industries during Q2.

Chartwell Investment Partners also sold off its CF Industries Holdings, Inc. (NYSE:CF), fearing that potential capacity additions would drag down nitrogen pricing, as revealed in the fund’s Q2 2022 investor letter:

“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”