In this article, we discuss the 5 dividend stock picks by Martin Whitman’s Third Avenue. If you want our comprehensive analysis of these stocks, go directly to the 10 Dividend Stock Picks by Martin Whitman’s Third Avenue.
5. Monmouth Real Estate Investment Corporation (NYSE:MNR)
Third Avenue’s Stake Value: $562,000
Percentage of Third Avenue’s 13F Portfolio: 0.07%
Dividend Yield: 3.75%
Number of Hedge Fund Holders: 18
Monmouth Real Estate Investment Corporation (NYSE:MNR) is a REIT engaged in renting and selling high-quality net-leased industrial properties, on long-term leases, to investment-grade tenants. The REIT’s major assets are located near airports, major transportation hubs, and manufacturing plants, since Monmouth Real Estate Investment Corporation (NYSE:MNR) caters mostly to businesses. This is one of the best dividend stock picks by Martin Whitman’s Third Avenue, with a yield of 3.75%.
Third Avenue owns stakes worth $562,000 in Monmouth Real Estate Investment Corporation (NYSE:MNR). John Orrico’s Water Island Capital is the leading stakeholder in the REIT, with 1.69 million shares worth $31.65 million. Overall, 18 hedge funds in Insider Monkey’s exclusive database were long Monmouth Real Estate Investment Corporation (NYSE:MNR) at the end of Q2.
Heartland Advisors mentioned Monmouth Real Estate Investment Corporation (NYSE:MNR) in its Q2 2021 investor letter. Here is what they said:
“A recently announced acquisition of one of our holdings appears to confirm our investment thesis that attractive valuations are the basis of good investing.
Portfolio holding Monmouth Real Estate Investment (MNR) announced in early May that it had agreed to be purchased by Equity Commonwealth (EQC), an office real estate trust chaired by legendary investor Sam Zell. We originally took a stake in Monmouth, which specializes in warehouses and distribution centers, last year as the sector was still recovering from the steep COVID-19 selloff.
Our confidence came from management’s history of prudent capital allocation, a growing list of Fortune 500 customers and a focus on warehouse properties where demand was likely to balloon to meet the growing needs of online retailers. Perhaps due to its smaller market cap, the business was priced at a significant discount to larger competitors while sporting a handsome cap rate and well-financed dividend.
In mid-December of 2020, Monmouth rebuffed a buyout offer from another peer, holding out instead for a more lucrative offer, which arrived this spring.
With interest rates near all-time lows, we believe the search for under-appreciated assets and sustainable dividends will intensify. The portfolio should be a beneficiary.”
4. Washington Trust Bancorp, Inc. (NASDAQ:WASH)
Third Avenue’s Stake Value: $9,384,000
Percentage of Third Avenue’s 13F Portfolio: 1.24%
Dividend Yield: 3.76%
Number of Hedge Fund Holders: 9
The next stock on our list of top dividend stocks in Third Avenue’s Q2 portfolio is Washington Trust Bancorp, Inc. (NASDAQ:WASH), which is an American bank holding company offering personal banking, commercial banking, mortgage banking, wealth management, and trust services.
Out of the 873 hedge funds tracked by Insider Monkey, 9 held stakes in Washington Trust Bancorp, Inc. (NASDAQ:WASH) at the end of June, up from 7 in Q1.
3. The RMR Group Inc. (NASDAQ:RMR)
Third Avenue’s Stake Value: $889,000
Percentage of Third Avenue’s 13F Portfolio: 0.11%
Dividend Yield: 4.33%
Number of Hedge Fund Holders: 13
The RMR Group Inc. (NASDAQ:RMR) is a well-known U.S. alternative asset management company, focused on commercial real estate and related businesses. The RMR Group Inc. (NASDAQ:RMR) employs over 600 real estate professionals across 30 offices in the United States, and has $32 billion in assets under management. The RMR Group Inc. (NASDAQ:RMR) offers a dividend yield of 4.33%, making it one of the top high dividend stock picks by Martin Whitman’s Third Avenue.
Third Avenue holds a $889,000 stake in The RMR Group Inc. (NASDAQ:RMR) as of the end of Q2. The leading stakeholder for The RMR Group Inc. (NASDAQ:RMR) is Nantahala Capital Management, with 660,984 shares worth $25.54 million.
2. Vornado Realty Trust (NYSE:VNO)
Third Avenue’s Stake Value: $9,276,000
Percentage of Third Avenue’s 13F Portfolio: 1.22%
Dividend Yield: 4.62%
Number of Hedge Fund Holders: 29
Vornado Realty Trust (NYSE:VNO) is one of the top dividend stock picks by Martin Whitman’s Third Avenue, with a yield of 4.62%. Vornado Realty Trust (NYSE:VNO) is a real estate investment trust, based in New York City.
On September 24, BofA analyst James Feldman upgraded the stock from Underperform to Neutral.
Jonathan Kolatch’s Redwood Capital Management is the leading stakeholder in Vornado Realty Trust (NYSE:VNO), with 931,901 shares worth $43.4 million.
Baron Funds mentioned Vornado Realty Trust (NYSE:VNO) in its Q2 2021 investor letter. Here is what they said:
“Vornado Realty Trust: Vornado is a REIT that owns a high-quality portfolio of office and street retail assets concentrated in New York City. As economic activity improves and employees return to work, we expect leasing and occupancy trends to improve. At its recent price of $47, we believe the shares are attractively valued at a 40% discount to our estimate of net asset value of $78 per share.”
1. CTO Realty Growth, Inc. (NYSE:CTO)
Third Avenue’s Stake Value: $1,033,000
Percentage of Third Avenue’s 13F Portfolio: 0.13%
Dividend Yield: 7.35%
Number of Hedge Fund Holders:12
CTO Realty Growth, Inc. (NYSE:CTO) is the best dividend stock in Third Avenue’s Q2 portfolio, with a yield of 7.35%. CTO Realty Growth, Inc. (NYSE:CTO) is a real estate company based out of Florida, with properties spanning 2.3 million square feet across several states in the US. The REIT owns several multi-tenant and single-tenant properties, as well as a 16% stake in Alpine Income Property Trust, Inc. (NYSE:PINE).
Third Avenue owns 19,293 shares in CTO Realty Growth, Inc. (NYSE:CTO), worth $1.03 million, representing 0.13% of the firm’s investment portfolio as of the end of June.
12 hedge funds in Insider Monkey’s database held stakes worth $26.86 million at the end of Q2, down from 13 in Q1, with stakes valued at $22.69 million.
You can also take a look at 12 Best Long-Term Dividend Stocks To Buy Now and 12 Best Software Stocks To Buy According To Hedge Funds.
