In this article, we discuss 5 dividend stocks to buy according to Caxton Associates LP. If you want to read our detailed analysis of the hedge fund’s performance and investment strategy, go directly to read 10 Dividend Stocks to Buy According to Bruce Kovner’s Caxton Associates LP.
5. Telephone and Data Systems, Inc. (NYSE:TDS)
Caxton Associates’ Stake Value: $1,783,000
Telephone and Data Systems, Inc. (NYSE:TDS) is a multinational telecommunications company based in Chicago that provides wireless and broadband services to its consumers. The company is one of the recent holdings of Caxton Associates. The hedge fund opened its position in the company with 112,923 shares, valued at over $1.78 million. The company made up 0.17% of the firm’s portfolio in Q2.
On August 11, Telephone and Data Systems, Inc. (NYSE:TDS) declared a quarterly dividend of $0.11 per share, consistent with its previous dividend. In 2022, the company extended its dividend growth streak to 47 years and its 5-year dividend CAGR stands at 3.22%. As of September 2, the stock’s dividend yield came in at 4.39%.
The number of hedge funds tracked by Insider Monkey owning stakes in Telephone and Data Systems, Inc. (NYSE:TDS) jumped to 16 in Q2 2022, from 12 in the previous quarter. These stakes hold a collective value of nearly $63.6 million. GAMCO Investors was the company’s leading stakeholder in Q2, owning stakes worth over $27 million.
4. Medtronic plc (NYSE:MDT)
Caxton Associates’ Stake Value: $1,801,000
Medtronic plc (NYSE:MDT) is an Ireland-based medical device company that provides services and solutions in medical technology. On August 18, the company declared a quarterly dividend of $0.68 per share. The company raised its dividend by 8% in May. This was the company’s 45th consecutive year of dividend growth. As of September 2, the stock has a yield of 3.07%.
Caxton Associates initiated its position in Medtronic plc (NYSE:MDT) during the second quarter of 2022, purchasing 20,065 shares. The firm’s total stake in the company amounted to over $1.8 million, which represented 0.17% of its 13F portfolio.
In August, Wells Fargo maintained its Equal Weight rating on Medtronic plc (NYSE:MDT) and a $96 price target, highlighting the company’s earnings beat in Q1. The firm also appreciated the company’s revised guidance for its FY23 organic growth.
At the end of Q2 2022, 54 hedge funds tracked by Insider Monkey owned stakes in Medtronic plc (NYSE:MDT), the same as in the previous quarter. The collective value of these stakes is over $2.48 billion, compared with $1.9 billion worth of stakes owned by hedge funds in Q1 2022.
Polen Capital mentioned Medtronic plc (NYSE:MDT) in its Q1 2022 investor letter. Here is what the firm has to say:
“Ireland-based Medtronic is a leading health care company focused on supplying many important life-saving devices like pacemakers, defibrillators, and insulin pumps. This is another company with attractive pricing power and a business model that can hold up well during inflationary periods. Medtronic has increased market share across almost 70% of its portfolio since the start of the pandemic, which is a higher percentage than even before the pandemic. With growth-oriented companies falling out of favor over the quarter, the stock’s relatively discounted valuation (at approximately 19x earnings) also bolstered its performance.”
3. Dover Corporation (NYSE:DOV)
Caxton Associates’ Stake Value: $1,807,000
Dover Corporation (NYSE:DOV) is an American corporation that specializes in industrial products and delivers innovative equipment to a wide range of markets. In July, Mizuho reiterated its Buy rating on the stock as advanced customer ordering behavior normalize after the pandemic.
Dover Corporation (NYSE:DOV) holds one of the strongest dividend growth track records in the market. 2022 marked the company’s 67th consecutive year of dividend growth. The company pays a quarterly dividend of $0.505 per share and has a yield of 1.56%, as of September 2.
Dover Corporation (NYSE:DOV) was one of the latest acquisitions of Caxton Associates, as the hedge fund opened its position with 14,897 shares in Q2. The fund’s total stake in the company stood at over $1.8 million, representing 0.17% of its 13F portfolio.
Adage Capital Management owned stakes worth over $100 million in Dover Corporation (NYSE:DOV), becoming the company’s leading stakeholder in Q2. Overall, 30 hedge funds tracked by Insider Monkey owned stakes in the company in Q2, compared with 27 in the previous quarter. The collective value of these stakes is over $420.3 million.
2. Best Buy Co., Inc. (NYSE:BBY)
Caxton Associates’ Stake Value: $1,811,000
Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based consumer electronics company that also sells other related products to consumers. According to Insider Monkey’s data, 26 hedge funds owned stakes in the company in Q2 2022, up from 25 in the previous quarter. The consolidated value of these stakes is over $406.8 million, compared with $251.4 million worth of stakes owned by hedge funds in the preceding quarter.
Caxton Associates resumed building its position in Best Buy Co., Inc. (NYSE:BBY) during Q2 2022, after selling off its stake worth $315,000 in the fourth quarter of 2021. Currently, the fund owns 27,788 BBY shares, valued at over $1.8 million, as of the end of the second quarter. The company represented 0.17% of the firm’s 13F portfolio.
In March 2022, Best Buy Co., Inc. (NYSE:BBY) announced a 26% hike in its quarterly dividend, which was its ninth consecutive year of dividend growth. It currently pays a quarterly dividend of $0.88 per share, with a yield of 4.92%, as of September 2.
In August, Wedbush raised its price target on Best Buy Co., Inc. (NYSE:BBY) to $80 with a Neutral rating on the shares, highlighting the company’s Q2 results and its guidance for upcoming quarters.
1. 3M Company (NYSE:MMM)
Caxton Associates’ Stake Value: $3,198,000
In Q2 2022, Caxton reported owning 24,714 shares in the company, valued at nearly $3.2 million. The hedge fund boosted its stake in the company by 93% during the quarter. The company represented 0.31% of Caxton’s portfolio.
On August 12, 3M Company (NYSE:MMM) declared a quarterly dividend of $1.49 per share, in line with its previous dividend. The company has been making consistent dividend payments for the past 100 years and raised its payouts every year for the past 65 years. As of September 2, the stock’s dividend yield came in at 4.85%.
In July, Wells Fargo raised its price target on 3M Company (NYSE:MMM) to $144 with an Equal Weight rating on the shares, as the company announced to spin off its healthcare business by the end of 2023.
The number of hedge funds tracked by Insider Monkey owning stakes in 3M Company (NYSE:MMM) grew to 54 in Q2 2022, from 51 in the previous quarter. The collective value of these stakes is over $1.38 billion. Ken Fisher, Ken Griffin, and Jim Simons were the company’s most prominent stakeholders in Q2.
Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:
“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.
You can also take a look at 10 Best Paper Stocks To Buy Now and 10 Best Long-Term Stocks to Buy Now
