In this article, we will be taking a look at the 5 best value dividend stocks to buy now. To read our detailed analysis of dividend investing, you can go directly to see the 10 Best Value Dividend Stocks to Buy Now.
5. Lazard Ltd (NYSE: LAZ)
Number of Hedge Fund Holders: 18
Dividend Yield: 3.98%
Lazard Ltd (NYSE: LAZ), a financial advisory and asset management firm, operates in North America, Europe, Asia, Australia, and Central and South America. The company ranks 5th on our list of the best value dividend stocks to buy now.
This April, Morgan Stanley’s Manan Gosalia upgraded shares of Lazard Ltd (NYSE: LAZ) from Equal Weight to Overweight. The analyst also raised his price target on the stock from $52 to $61.
In the second quarter of 2021, Lazard Ltd (NYSE: LAZ) had an EPS of $1.28, beating estimates by $0.40. The company’s revenue was $821.45 million, up 51.30% year over year and beating estimates by $163.27 million. Lazard Ltd (NYSE: LAZ) has gained 20.08% in the past 6 months and 14.83% year to date.
By the end of the second quarter of 2021, 18 hedge funds out of the 873 tracked by Insider Monkey held stakes in Lazard Ltd (NYSE: LAZ) worth roughly $785 million. This is compared to 19 hedge funds in the previous quarter with a total stake value of approximately $770 million.
Third Avenue Management, an investment management firm, mentioned Lazard Ltd (NYSE: LAZ) in its fourth-quarter 2020 investor letter. Here’s what they said:
“Lazard Ltd. (“Lazard”) – During the quarter, the Fund initiated a position in Lazard, which houses two distinct businesses – financial advisory and asset management. Lazard is one of the formidable competitors in the global financial advisory industry, though Lazard is not involved in investment banking lines of business which are balance sheet-intensive or those which take on credit risk. Lazard’s advisory business is the world’s fifth largest by revenues, putting the company’s advisory business on par with those of far larger companies, such as Bank of America and Citi. Meanwhile, Lazard’s advisory revenues are meaningfully larger than the likes of Credit Suisse and UBS. While advisory revenues represent a low single-digit percentage of revenues for those peers, the figure is slightly more than 50% for Lazard. One further point of attraction for Lazard’s advisory business is its sterling reputation in restructuring advisory, which often shines in challenging environments in which insolvencies and near-insolvencies rise. The remaining portion of Lazard’s revenue is derived from the company’s asset management business, which operates completely independent of the advisory business and at last report had approximately $248 billion of assets under management. Lazard’s assets under management are focused on several niches in active management commanding management fees at the higher end of the industry, and the performance of its strategies has been sufficiently strong to have generated inflows of late, an unusual accomplishment for an active manager. The company in total is very well-capitalized and has a long history of controlling the relationship between compensation, its primary expense, and revenue. We believe that our purchase price implies a modest multiple of current operating earnings and that the operating environment can certainly improve, most likely as M&A activity continues to accelerate, but from other sources as well. External to the company however, it is clear that there are a number of companies that would almost certainly be very eager to purchase one or both of Lazard’s businesses. Consolidation is rampant in the asset management industry and several purchases of asset management companies of similar size to Lazard, though arguably of lower quality, have been announced recently. Separately, several European investment banks, including ones named earlier in this paragraph, have publicly declared a desire to grow their advisory businesses, especially in cross-border M&A capabilities, which is a core competency within Lazard. Using conservative estimates of prices we believe could be realized in the sale of Lazard’s businesses, the current share price appears to meaningfully undervalue the company.”
4. AltaGas Ltd. (OTC: ATGFF)
Number of Hedge Fund Holders: N/A
Dividend Yield: 4.03%
AltaGas Ltd. (OTC: ATGFF) is an energy infrastructure company operating through its Utilities and Midstream segments. The company mainly has a presence in North America and ranks 4th on our list of the best value dividend stocks to buy now.
National Bank has raised its price target on AltaGas Ltd. (OTC: ATGFF) to $22.73 as of this July, and the firm has also reiterated its Outperform rating on the shares.
In the second quarter of 2021, AltaGas Ltd. (OTC: ATGFF) had an EPS of $0.063, beating estimates by $0.055. The company’s revenue was $1.58 billion, up 89.6% year over year and beating estimates by $807 million. AltaGas Ltd. (OTC: ATGFF) has gained 27.20% in the past 6 months and 35.68% year to date.
Like Merck & Co., Inc. (NYSE: MRK), Pfizer Inc. (NYSE: PFE), NextEra Energy, Inc. (NYSE: NEE), and Moody’s Corporation (NYSE: MCO), AltaGas Ltd. (OTC: ATGFF) is a good stock to invest in.
3. Algonquin Power & Utilities Corp. (NYSE: AQN)
Number of Hedge Fund Holders: 24
Dividend Yield: 4.34%
Algonquin Power & Utilities Corp. (NYSE: AQN) is a utility and energy company that operates regulated and non-regulated utility assets in Canada, the US, Chile, and Bermuda. The company also provides electrical energy through its non-regulated renewable energy power generation facilities. It ranks 3rd on our list of the best value dividend stocks to buy now.
As of this May, Credit Suisse has a price target of $12.95 on Algonquin Power & Utilities Corp. (NYSE: AQN). The firm also holds a Neutral rating on the stock.
In the second quarter of 2021, Algonquin Power & Utilities Corp. (NYSE: AQN) had an EPS of $0.15, beating estimates by $0.02. The company’s revenue was $527.5 million, up 53.52% year over year and beating estimates by $64.29 million. Algonquin Power & Utilities Corp. (NYSE: AQN) has gained 13.11% in the past year.
By the end of the second quarter of 2021, 24 hedge funds out of the 873 tracked by Insider Monkey held stakes in Algonquin Power & Utilities Corp. (NYSE: AQN) worth roughly $310 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $172 million.
2. TELUS Corporation (NYSE: TU)
Number of Hedge Fund Holders: 13
Dividend Yield: 4.44%
TELUS Corporation (NYSE: TU), a communication services company, is next on our list of the best value dividend stocks to buy now and ranks 2nd. The company operates through its Wireless and Wireline segments to provide communications services in Canada.
Desjardins just this August raised the price target on shares of TELUS Corporation (NYSE: TU) to $23.54 while reiterating a Buy rating on the stock.
In the second quarter of 2021, TELUS Corporation (NYSE: TU) had an EPS of $0.21, beating estimates by $0.01. The company’s revenue was $3.29 billion, up 18.35% year over year and beating estimates by $29.01 million. TELUS Corporation (NYSE: TU) has gained 12.86% in the past 6 months and 15.02% year to date.
By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in TELUS Corporation (NYSE: TU) worth roughly $215 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $200 million.
1. Enbridge Inc. (NYSE: ENB)
Number of Hedge Fund Holders: 19
Dividend Yield: 6.82%
Enbridge Inc. (NYSE: ENB) is an energy company that operates through its Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services segments. It ranks 1st on our list of the best value dividend stocks to buy now.
BMO Capital just this August raised the price target on shares of Enbridge Inc. (NYSE: ENB) to $43.15, alongside reiterating an Outperform rating on the stock.
In the second quarter of 2021, Enbridge Inc. (NYSE: ENB) had an EPS of $0.54, beating estimates by $0.08. The company’s revenue was $8.77 billion, up 47.12% year over year and beating estimates by $1.61 billion. Enbridge Inc. (NYSE: ENB) has gained 11.03% in the past 6 months and 21.49% year to date.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Enbridge Inc. (NYSE: ENB) worth roughly $166 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $144 million.
ClearBridge Investments, an investment management firm, mentioned Enbridge Inc. (NYSE: ENB) in its first-quarter 2021 investor letter. Here’s what they said:
“Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. The first quarter saw the market giving the energy sector credit for its leverage to the eventual economic recovery as COVID-19 vaccines get rolled out through 2021.”
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