In this article, we discuss 10 dividend stocks in Michael Price’s portfolio.
Michael F. Price was an American value investor, who founded MFP Investors in 1998. He learned the strategy of investing in overlooked stocks under the tutelage of Max Heine at Mutual Series, where Price began his investment career. These investment tactics built his repute as a perceptive investor who broke the market records during the 1980s and 1990s. The billionaire passed away in March 2022.
Price used an activist approach to investing. He invested in beaten-down securities in companies that were going through bankruptcy or undergoing a restructuring process. His investment in those companies led him to profit from their eventual turnaround.
At the end of Q1 2022, MFP Investors held a 13F portfolio value of over $846.4 million, down from $903.4 million in the previous quarter. The hedge fund invested heavily in the finance and technology sector, with basic materials, healthcare, and services taking up a small portion of the portfolio. Some of the hedge fund’s major holdings in Q1 include Meta Platforms, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and Intel Corporation (NASDAQ:INTC).
Michael Price of MFP Investors
Our Methodology:
In this article, we discuss the best dividends in MFP Investors’ portfolio. The data used in this list is taken from MFP Investors’ 13F portfolio, as of Q1 2022.
10. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Number of Hedge Fund Holders: 28
Dividend Yield as of May 25: 0.98%
MFP Investors’ Stake Value: $15,058,000
RenaissanceRe Holdings Ltd. (NYSE:RNR) is an American company that provides insurance, reinsurance, and other related business services to consumers.
In February, RenaissanceRe Holdings Ltd. announced a 3% hike in its quarterly dividend to $0.37 per share. This was the company’s 27th consecutive year of dividend growth. The stock’s dividend yield, as of May 25, stood at 0.98%. Along with this, RenaissanceRe Holdings Ltd. also announced the renewal of the share repurchase program for shares worth over $500 million.
MFP Investors started building its position in RenaissanceRe Holdings Ltd. during the third quarter of 2021, with shares worth over $11 million. During Q1 2022, the hedge fund increased its position in the company by 2%, which equaled stakes worth over $15 million. The company represented 1.87% of the hedge fund’s 13F portfolio. Along with RNR, Meta Platforms, Inc., Amazon.com, Inc., and Intel Corporation are some other major holdings of MFP Investors.
At the end of Q1 2022, 28 hedge funds in Insider Monkey’s database held stakes in RenaissanceRe Holdings Ltd., down from 30 in the previous quarter. These stakes hold a consolidated value of roughly $605 million. Among these hedge funds, Southeastern Asset Management was the company’s largest shareholder, with shares worth over $148.8 million.
Longleaf Partners Fund mentioned RenaissanceRe Holdings Ltd. in its Q4 2021 investor letter. Here is what the firm has to say:
“RenaissanceRe (11%, 0.54%; 22%, 0.99%) the Bermuda-domiciled reinsurance company and a new position in 2021, was a top contributor in the fourth quarter. We know the reinsurance industry well, having invested in the sector for multiple decades, and we were thrilled to have the opportunity to invest in the business at a discount. RenRe has a reputation as a leading Catastrophe risk reinsurance underwriter – although the business mix has diversified over time into third party capital management, casualty and other property risk. RenRe traded below 10x earnings power and around 1x tangible book value in the third quarter as catastrophe headlines punished the entire industry, giving us the opportunity to invest. Management also took advantage of the temporary price discount by buying back 10% of outstanding shares, while the CEO, CFO and several other senior executives invested over $4 million buying shares personally. The share price appreciated in the fourth quarter as the company announced an excess capital buffer of $1 billion, even after third quarter catastrophe hits, and likely continued share repurchases. RenRe is a leader in insurance risk modeling and portfolio construction, and best in class data gathering and analytics are in the company DNA. In the face of significant volatility and disruption for the industry in the form of technology innovation, capital access innovation and climate change risks, RenRe’s competitive advantages in pricing risk and in putting together a sound global portfolio of risk should be well placed to add excess return.”
9. Banc of California, Inc. (NYSE:BANC)
Number of Hedge Fund Holders: 14
Dividend Yield as of May 25: 1.31%
MFP Investors’ Stake Value: $22,003,000
Banc of California, Inc. (NYSE:BANC) is a commercial bank serving the state of California with over 30 branches in Southern California. The company posted tremendous results in its Q1 2022 earnings report, generating revenue of $82.3 million, which presented a 32.2% year-over-year growth. Moreover, the company’s GAAP EPS of $0.69, beat the consensus by $0.09.
At the end of Q1 2022, MFP Investors held over 1 million shares in Banc of California, Inc., worth over $22 million. The company accounted for 2.73% of the hedge fund’s portfolio. The hedge fund has been investing in the company since 2017. In May, Banc of California, Inc. declared a quarterly dividend of $0.06 per share, in line with its previous quarterly dividend. The stock’s dividend yield, as of May 25, stood at 1.31%.
The number of hedge funds tracked by Insider Monkey owning stakes in Banc of California, Inc. grew to 14 in Q1 2022, from 12 in the previous quarter. These stakes hold a consolidated value of over $78.4 million, compared with $63.7 million worth of stakes held by hedge funds in Q4 2021.
8. Oasis Petroleum Inc. (NASDAQ:OAS)
Number of Hedge Fund Holders: 34
Dividend Yield as of May 25: 1.60%
MFP Investors’ Stake Value: $4,755,000
Oasis Petroleum Inc. (NASDAQ:OAS) is an American company that is engaged in the exploration of hydrocarbons and also focuses on the acquisition of natural resources. In February, the company announced a quarterly base dividend of $0.585 per share, presenting a 17% growth from its previous dividend. Moreover, Oasis Petroleum Inc. also announced a variable dividend of $2.94 per share, which will be payable to shareholders on June 15, 2022. The stock’s dividend yield, as of May 25, came in at 1.60%.
As per Insider Monkey’s Q1 2022 database, 34 hedge funds held stakes in Oasis Petroleum Inc., valued at $382 million. In comparison, 27 hedge funds held positions in the company in the previous quarter, with stakes valued at $375.7 million. With shares worth roughly $70 million, Condire Investments held the largest position in Oasis Petroleum Inc. in Q1 2022.
Due to the continued strong commodity prices, in April, Truist lifted its price target on Oasis Petroleum Inc. to $225, with a Buy rating on the shares. At the end of Q1 2022, MFP Investors held stakes worth over $4.7 million in the company, which made up 0.59% of its portfolio.
7. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 93
Dividend Yield as of May 25: 2.31%
MFP Investors’ Stake Value: $9,692,000
MFP Investors initiated its position in Wells Fargo & Company during the fourth quarter of 2020, with shares worth $604,000. At the end of Q1 2022, the hedge fund held 200,000 shares in the company, worth roughly $9.7 million. The company accounted for 1.2% of MFP Investors’ portfolio.
Wells Fargo & Company currently pays a quarterly dividend of $0.25 per share, having raised it by 25% in January. The stock’s dividend yield was recorded at 2.31% on May 25.
At the end of Q1 2022, 93 hedge funds tracked by Insider Monkey held a $6.86 billion worth of collective stake in Wells Fargo & Company. In the previous quarter, 94 hedge funds held positions in the company, with stakes valued at $6.1 billion.
Davis Funds mentioned Wells Fargo & Company in its Q4 2021 investor letter. Here is what the firm has to say:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”
6. SouthState Corporation (NASDAQ:SSB)
Number of Hedge Fund Holders: 17
Dividend Yield as of May 25: 2.57%
MFP Investors’ Stake Value: $24,069,000
SouthState Corporation (NASDAQ:SSB) is an American regional bank that provides services in consumer, commercial, and wealth management to over one million customers. The company currently pays a quarterly dividend of $0.49 per share, with a dividend yield of 2.57%, as recorded on May 25.
In Q1 2022, SouthState Corporation posted an EPS of $1.69, which beat the analysts’ expectations by $0.38. However, the company’s revenue of $347.5 million missed the estimates by $2.41 million. SouthState Corporation is one of the latest acquisitions of MFP Investors. The hedge fund initiated its position in the company with shares worth over $24 million. The company represented 2.99% of the hedge fund’s portfolio.
SouthState Corporation is down by 7.99% for 2022 so far. Along with this, Meta Platforms, Inc., Amazon.com, Inc., and Intel Corporation are also down for 2022, as tech stocks are underperforming the broader market.
At the end of Q1 2022, Select Equity Group was the leading shareholder of SouthState Corporation, with shares worth over $277.4 million. In addition to this, 17 hedge funds tracked by Insider Monkey were bullish on the company in Q1 2022, up from 16 in the previous quarter. The collective value of these stakes is $337.3 million.
5. Popular, Inc. (NASDAQ:BPOP)
Number of Hedge Fund Holders: 34
Dividend Yield as of May 25: 2.81%
MFP Investors’ Stake Value: $25,609,000
Popular, Inc. (NASDAQ:BPOP) is a financial services company based in Puerto Rico that has operated on the island for over 125 years. MFP Investors started building its position in the company in 2014, with shares worth over $4.7 million. At the end of Q1 2022, the hedge fund held stakes worth over $25.6 million in the company, which accounted for 3.18% of its portfolio.
As per Insider Monkey’s Q1 2022 database, 34 hedge funds held shares in Popular, Inc., down slightly from 35 in the previous quarter. The consolidated value of these stakes is over $784.6 million.
In February, Popular, Inc. announced a quarterly dividend of $0.55 per share, reflecting a 22.2% growth from its prior dividend. The company has been increasing its dividend for six consecutive years. The stock’s dividend yield came in at 2.81%, as of the close of May 25.
According to Keefe Bruyette, given the expanding Puerto Rican economy, Popular, Inc. is well-positioned to reap benefits. In April, the firm lifted its price target on the stock to $115, with an Outperform rating on the shares.
4. BCB Bancorp, Inc. (NASDAQ:BCBP)
Number of Hedge Fund Holders: 12
Dividend Yield as of May 25: 3.39%
MFP Investors’ Stake Value: $18,630,000
BCB Bancorp, Inc. (NASDAQ:BCBP), an American bank holding company, experienced a positive hedge fund sentiment in Q1 2022, as 12 hedge funds tracked by Insider Monkey were bullish on the company, up from 5 in the previous quarter. The consolidated value of these stakes is over $34.5 million. Along with MFP Investors, Renaissance Technologies was also one of the leading shareholders in this New Jersey-based company, with shares worth over $8.5 million.
BCB Bancorp, Inc. has been paying dividends to shareholders for over a decade now. Currently, the company pays a quarterly dividend of $0.16 per share, in line with its previous dividend. The stock’s dividend yield was recorded at 3.39%, as of the close of May 25.
MFP Investors did not change its position in BCB Bancorp, Inc. during Q1 2022. The hedge fund held stakes worth over $18.6 million in the company, which accounted for 2.31% of MFP Investors’ portfolio.
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 76
Dividend Yield as of May 25: 3.50%
MFP Investors’ Stake Value: $103,102,000
Intel Corporation was the largest holding of MFP Investors in Q1 2022. The hedge fund started building its position in the company during 2011, with shares worth over $1.2 million. In Q1 2022, the fund increased its position in the company by 1%, equaling shares worth over $103.1 million. Intel Corporation accounted for 12.82% of MFP Investors’ portfolio.
Intel Corporation is a Dividend Challenger as it has been increasing its dividend consecutively for the past 7 years. In January, the company announced a 5% hike in its quarterly dividend to $0.365 per share, with a dividend yield of 3.50%, as of the close of May 25. Moreover, the company has been paying dividends to shareholders since 1992. This April, Northland set a $62 price target on Intel Corporation, with an Outperform rating on the shares.
As per Insider Monkey’s Q1 2022 data, 76 hedge funds tracked by Insider Monkey held stakes in Intel Corporation, up from 72 in the previous quarter. The total value of these stakes is over $3.15 billion. Among these hedge funds, Seth Klarman’s Baupost Group held the largest stake in Intel Corporation in Q1 2022, worth $822.3 million.
2. Kearny Financial Corp. (NASDAQ:KRNY)
Number of Hedge Fund Holders: 16
Dividend Yield as of May 25: 3.64%
MFP Investors’ Stake Value: $2,417,000
Kearny Financial Corp. (NASDAQ:KRNY) is an American bank holding company, headquartered in New Jersey.
At the end of Q1 2022, 16 hedge funds tracked by Insider Monkey held stakes in Kearny Financial Corp., down from 17 in the previous quarter. These stakes hold a consolidated value of $96.2 million. Among these hedge funds, Renaissance Technologies was the company’s largest shareholder in Q1 2022, with shares worth over $55.8 million.
In 2021, Kearny Financial Corp. announced a 10% growth in its quarterly dividend to $0.11 per share. In the past five years, the company has increased its dividend at a compound annual rate of 34%. The stock’s dividend yield is 3.64%, as recorded on May 25. At the end of Q1 2022, MFP Investors held stakes worth over $2.4 million in Kearny Financial Corp., which represented 0.3% of its 13F portfolio.
1. Franklin Resources, Inc. (NYSE:BEN)
Number of Hedge Fund Holders: 30
Dividend Yield as of May 25: 4.47%
MFP Investors’ Stake Value: $12,216,000
Franklin Resources, Inc. (NYSE:BEN) is an American holding company that provides investment services to its customers.
In February, Franklin Resources, Inc. announced its quarterly dividend of $0.29 per share, having raised it by 4% in 2021. The stocks dividend yield, as of May 25, stood at 4.47%. This April, Citigroup set a $28 price target on Franklin Resources, Inc., with a Neutral rating on the shares.
MFP Investors started building its position in Franklin Resources, Inc. during the fourth quarter of 2015, purchasing shares worth over $2 million. At the end of Q1 2022, the hedge fund held 437,530 shares in the company, valued at over $12.2 million. The company represented 1.52% of the hedge fund’s portfolio.
By the end of Q1 2022, 30 hedge funds tracked by Insider Monkey held stakes in Franklin Resources, Inc., with a total value of roughly $250 million. In the previous quarter, 29 hedge funds held shares in the California-based company, valued at 401.1 million.
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This article is originally published at Insider Monkey.
