5 Dividend Stocks to Buy According to Billionaire Dan Loeb’s Third Point

2. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 80
Dividend Yield as of March 4: 2.29%
Third Point’s Stake Value: $100,660,000

This January, Cowen raised its price target on Comcast Corporation (NASDAQ:CMCSA), an American tech company, to $64 and appreciated the company’s free cash flow and growth after the pandemic. The firm maintained an Outperform rating on the shares.

First Eagle Investment Management was the largest shareholder of Comcast Corporation (NASDAQ:CMCSA) in Q4, holding a stake worth roughly $1.5 billion. Overall, 80 hedge funds tracked by Insider Monkey held stakes in the company in Q4, up from 75 in the previous quarter. The total value of these stakes is over $8.6 billion.

In January, Comcast Corporation (NASDAQ:CMCSA) announced an 8% increase in its quarterly dividend at $0.27 per share, with a dividend yield of 2.29%, as recorded on March 4. This marked the company’s 14^th consecutive year of dividend growth. Third Point started building its position in Comcast Corporation (NASDAQ:CMCSA) during the fourth quarter of 2021, with shares worth over $100.6 million. The company represented 0.7% of Dan Loeb’s portfolio.

Artisan Partners mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what the firm has to say:

“Comcast is the leading broadband cable company in North America and a global content producer. Comcast and other cable companies are seeing decreased net subscriber additions as they are lapping tough comparisons from a year ago when net additions were high earlier in the pandemic. Interestingly, churn remains at record low levels—a positive metric that speaks to cable’s value proposition. For Comcast, an additional headwind is a delayed recovery in its theme parks business due to the ongoing pandemic. Additionally, increased investment in 5G by wireless competitors may be weighing on shares. However, 5G is not currently competitive with cable, and based on the economics of 5G capex, it’s unlikely to be competitive for many years, if ever. Cable continues to have a competitive advantage with respect to network speeds and reliability. High recurring revenue, pricing power and low capital intensity make for a powerful economic model that contribute to Comcast’s free cash flow generation, allowing the company to play offense with regards to capital allocation. In summary, Comcast is a well-financed business with a wide competitive moat, that trades cheaply at under 13X our estimate of normalized earnings.”