5 Dividend Stocks to Buy According to Billionaire Carl Icahn’s Icahn Capital LP

In this article, we discuss 5 dividend stocks to buy according to billionaire Carl Icahn’s Icahn Capital LP. If you want to read our detailed analysis of Icahn’s investment strategy and his performance in the past, go directly to read 10 Dividend Stocks to Buy According to Billionaire Carl Icahn’s Icahn Capital LP. 

5. FirstEnergy Corp. (NYSE:FE)

Icahn’s Capital Stake Value: $728,172,000
Dividend Yield as of September 8: 3.79%

FirstEnergy Corp. (NYSE:FE) is an Ohio-based electric services company that specializes in the distribution and generation of electricity. The company was a part of 42 hedge fund portfolios in Q2 2022, growing from 33 in the previous quarter. The stakes owned by these hedge funds hold a collective value of over $1.78 billion.

Billionaire Icahn initiated his position in FirstEnergy Corp. (NYSE:FE) during the first quarter of 2021 with shares worth roughly $658 million. At the end of Q2 2022, his hedge fund held nearly 19 million shares in the company with a total value of over $728 million. The company accounted for 3.49% of its 13F portfolio.

Though FirstEnergy Corp. (NYSE:FE) hasn’t raised its dividends since 2019 due to the pandemic, the company maintained its payouts during this period. Its quarterly dividend currently stands at $0.39 per share and has a yield of 3.79%, as of September 8.

In July, Barclays reiterated its Equal Weight rating on FirstEnergy Corp. (NYSE:FE) as the firm upgraded price targets on North America’s power and utility sector.

ClearBridge Investments mentioned FirstEnergy Corp. (NYSE:FE) in its Q4 2021 investor letter. Here is what the firm has to say:

“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).
During the quarter we initiated new positions in U.S. electric utility FirstEnergy.  With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S.”