In this article, we discuss the 5 dividend stocks to buy according to Christian Leone’s Luxor Capital. If you want to read our detailed analysis of Leone’s history and hedge fund performance, go directly to the 10 Dividend Stocks to Buy According to Christian Leone’s Luxor Capital.
5 . Ally Financial Inc. (NYSE:ALLY)
Luxor Capital’s Stake Value: $73.457 million
Percentage of Luxor Capital’s 13F Portfolio: 0.65%
Number of Hedge Fund Holders: 57
Div. Yield: 2.41%
Ally Financial Inc. (NYSE:ALLY) is an American bank holding company and financial services company. With 4.5 million customers annually, the company is one of the largest car financing companies in the United States.
Ally Financial Inc. (NYSE:ALLY) has a forward dividend yield of 2.28% with a forward annual payout of $1.20. The next quarterly dividend of the company will be paid out on February 15, in the amount of $0.30 per share.
4. NRG Energy, Inc. (NYSE:NRG)
Luxor Capital’s Stake Value: $86.14 million
Percentage of Luxor Capital’s 13F Portfolio: 3.18%
Number of Hedge Fund Holders: 32
Div. Yield: 3.64%
NRG Energy, Inc. (NYSE:NRG) is a Texas-based energy company that focuses on energy generation in the form of coal, oil, nuclear, wind, natural gas, and solar energy. NRG Energy, Inc. (NYSE:NRG) used to be the wholesale wing of Xcel Energy Inc.(NASDAQ:XEL) and became independent in 2000. The company has eleven subsidiaries and generates more than 23000 MW from 40 powerplants around the United States and serves 2.9 million customers in North-East United States and Texas.
According to Luxor Capital’s third-quarter filings, the fund owned 2.1 million shares of NRG Energy, Inc. (NYSE:NRG) worth $86.14 million, representing 0.77% of Luxor Capital’s portfolio.
3. Ritchie Bros. Auctioneers Incorporated (NYSE:RBA)
Luxor Capital’s Stake Value: $92.39 million
Percentage of Luxor Capital’s 13F Portfolio: 1.6%
Number of Hedge Fund Holders: 13
Div. Yield: 1.95%
Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) is an auction and industrial product distribution company. It mainly focuses on heavy industrial machinery and vehicles.
According to our database, in the third quarter of 2021, 13 hedge funds held stakes worth $277.55 million in Ritchie Bros. Auctioneers Incorporated (NYSE:RBA). Meanwhile, in the second quarter, 22 of them held stakes worth $378.8 million. As of the third quarter, Ross Turner’s Pelham Capital owns the largest stake in the company with 1.59 million shares worth $98.26 million, making up 5.44% of Pelham Capital’s portfolio.
The investment management firm Upslope Capital Management mentioned Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) in their third-quarter 2021 investor letter. Here is what the firm said:
“Ritchie Bros. (RBA) is the world’s leading auctioneer/operator of marketplaces for used heavy equipment. RBA thrived in the early COVID days, but has faced a tough 12 months due to cyclical headwinds (tight equipment market = lower volumes). While the headwinds will abate, management messaging, turnover, and capital allocation decisions have become increasingly concerning, in my view, leading me to sell the position.”
2. Blue Owl Capital Inc. (NYSE:OWL)
Luxor Capital’s Stake Value: $137.48 million
Percentage of Luxor Capital’s 13F Portfolio: 1.22%
Number of Hedge Fund Holders: 20
Div. Yield: 3.25%
Blue Owl Capital Inc. (NYSE:OWL) is a New York-based asset management firm. Through its subsidiaries Owl Rock and Dyal Capital the company offers services like direct lending and offers capital solutions with a focus on alternative asset management and private middle-market companies.
On October 18, Blue Owl Capital Inc. (NYSE:OWL) announced a merger agreement to take over Oak Street Real Estate Capital and its investment advisory business for $950 million.
Among the hedge funds tracked by Insider Monkey, Hong Kong-based firm Blue Pool Capital is the leading shareholder in Blue Owl Capital Inc. (NYSE:OWL) with 60.87 million worth $947.26 million.
1. Pegasystems Inc. (NASDAQ:PEGA)
Luxor Capital’s Stake Value: $40.6.82 million
Percentage of Luxor Capital’s 13F Portfolio: 3.63%
Number of Hedge Fund Holders: 25
Div. Yield: 0.15%
Pegasystems Inc. (NASDAQ:PEGA) is a publicly-traded software company that develops software for organizations’ customer relationships and business process management.
Out of the 867 hedges funds in the database of Insider Monkey, 25 funds held stakes in Pegasystems Inc. (NASDAQ:PEGA) worth $1.89 billion in the third quarter of 2021, down from 27 funds holding stakes in the firm worth $2.02 billion in the last quarter. Luxor Capital also decreased its activity in the company by 8% in the third quarter.
Carillon Tower Advisers mentioned Pegasystems Inc. (NASDAQ:PEGA) in its second-quarter investor letter. Here is what the firm said:
“Pegasystems develops software used in automating business tasks. The company’s artificial intelligence-driven recommendations for customer service contact centers is a key growth driver, and a mixed shift towards cloud computing should result in a higher valuation over time. Investors have appreciated this dynamic, sending the shares higher.”
You can also take a peek at Top Tech Stock Picks of Amir Mokari’s Emerson Point Capital and Top 10 Stock Picks of Chinese Billionaire Lei Zhang.
