In this article, we discuss the 5 dividend stocks in Adage Capital’s portfolio. If you want to read our detailed analysis of these stocks, go directly to the 10 Dividend Stocks in Adage Capital’s Portfolio.
5. Pfizer Inc. (NYSE:PFE)
Dividend Yield: 2.82%
Adage Capital Management Stake Value: $247,699,000
Percentage of Adage Capital Management’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 74
COVID-19 vaccine maker Pfizer Inc. (NYSE:PFE) has been gaining the attention of investors in recent months. On January 3, the New York-based pharmaceutical company received FDA approval for its COVID-19 booster shots for teenagers aged 12 to 15. The CDC also backed Pfizer Inc.’s (NYSE:PFE) booster shot.
Adage Capital Management re-initiated its position in Pfizer Inc. (NYSE:PFE) in the third quarter of 2021 and bought 5.76 million shares of the company worth $248 million. At the end of the third quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Pfizer Inc. (NYSE:PFE), up from 67 in the previous quarter worth $2.36 billion.
On January 5, BofA analyst Geoff Meacham upgraded his rating on Pfizer Inc. (NYSE:PFE) to Buy from Neutral and expressed his bullishness on the drugmaker’s COVID-19 pill, Paxlovid. Meacham increased his price target on the stock to $70 from $59.
Saturna Capital, in its Q3 2021 investor letter, mentioned Pfizer Inc. (NYSE:PFE) and discussed its stance on the firm. Here is what the fund said:
“The Fund’s strongest performer during the quarter was pharmaceutical manufacturer Pfizer. The company submitted trial data to the FDA for use of its COVID-19 vaccine for younger children, and it is widely expected that the FDA will approve it. Health authorities also began recommending booster shots of the Pfizer vaccine for select populations, further increasing demand for vaccinations.”
4. The Coca-Cola Company (NYSE:KO)
Dividend Yield: 2.83%
Adage Capital Management Stake Value: $234,393,000
Percentage of Adage Capital Management’s 13F Portfolio: 0.46%
Number of Hedge Fund Holders: 61
Dividend king The Coca-Cola Company (NYSE:KO) is among the dividend-paying stocks in Adage Capital’s portfolio in Q3 2021. Between June and September, the fund increased its stake in the Atlanta-based beverage company by 6%. The Coca-Cola Company (NYSE:KO) accounts for 0.46% of the hedge fund’s total holdings.
Laurent Grandet of Guggenheim Securities is bullish on Coca-Cola Company (NYSE:KO), noting that the beverage company is transitioning into 2022 with a rebounding business. One of the positive insights Grandet shared is how consumers are crowding restaurants faster than expected during the pandemic recovery. The analyst increased his price target for The Coca-Cola Company (NYSE:KO) to $66 from $61.
Berkshire Hathaway is The Coca-Cola Company’s (NYSE:KO) largest shareholder, owning 400 million shares of the company worth $21 billion as of the end of the third quarter of 2021. Overall, 61 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in The Coca-Cola Company (NYSE:KO) at the end of September 2021.
3. Amgen Inc. (NASDAQ:AMGN)
Dividend Yield: 3.42%
Adage Capital Management Stake Value: $35,988,000
Percentage of Adage Capital Management’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 52
Biotech firm Amgen Inc. (NASDAQ:AMGN) grew its revenue in the third quarter of 2021 by 4% to $6.7 billion. Strong sales from the drugmaker’s two osteoporosis medications, Prolia and Evenity, as well as its psoriasis drug, Otezla, aided the company’s sales growth. The three medications generated $1.6 billion in revenue in the third quarter.
At the end of the third quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $1.45 billion in Amgen Inc. (NASDAQ:AMGN), compared to 53 in the preceding quarter worth $1.65 billion.
Here is what ClearBridge Investments has to say about Amgen Inc. (NASDAQ:AMGN) in its Q3 2021 investor letter:
“In health care, Amgen, a biotechnology company, has endured several pipeline setbacks recently, including a slow transition of its Lumakras treatment into first-line lung cancer, a slower than expected development of its treatment for myeloma as well as the company’s asthma treatment Tezepelumab missing its primary endpoint in a Phase III study. We remain positive on the stock, with Amgen’s investments in biosimilars and its pipeline part of our long-term thesis.”
2. International Paper Company (NYSE:IP)
Dividend Yield: 3.95%
Adage Capital Management Stake Value: $23,067,000
Percentage of Adage Capital Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 30
Another dividend stock in Adage Capital Management’s portfolio is the paper and packaging company International Paper Company (NYSE:IP). During the third quarter of 2021, Adage Capital boosted its stake in the company by 940% bringing its total holdings to 412,492 shares worth $23 million.
The Tennessee packaging company sells industrial packaging, cellulose fibers, and printing paper products internationally. In the third quarter of 2021, International Paper Company (NYSE:IP) had a revenue of $5.71 billion.
International Paper Company (NYSE:IP) was given a Hold rating by Deutsche Bank analyst Kyle White in December, with a price target of $47.
At the end of the third quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $263 million in International Paper Company (NYSE:IP), compared to 31 in the preceding quarter worth $210 million.
1. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield: 5.54%
Adage Capital Management Stake Value: $512,123,000
Percentage of Adage Capital Management’s 13F Portfolio: 1%
Number of Hedge Fund Holders: 64
Between June and September, the hedge fund boosted its stake in the oil and gas company by 34%. With a stake of 8.7 million shares worth $512 million, Exxon Mobil Corporation (NYSE:XOM) represents 1% of Adage Capital’s portfolio.
Exxon Mobil Corporation (NYSE:XOM) was recently upgraded to Hold from Sell by Truist analyst Neal Dingmann, who is more optimistic in Exxon Mobil’s shareholder return strategy while concurrently decreasing debt.
Here is what Goehring & Rozencwajg Associates has to say about Exxon Mobil Corporation in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects.
According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since the production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
You can also take a look at the 10 Best Money-Making Stocks to Buy Now and 10 Real Estate Dividend Stocks with High Yields.
