5 Dividend Stocks to Buy According to Donald Yacktman’s Hedge Fund

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 64
Dividend Yield: 5.75%

This October, Morgan Stanley presented a positive outlook on Exxon Mobil Corporation (NYSE:XOM), an American oil and gas company, as the exploration and production sector is strengthening post-Covid. The firm lifted its price target on the stock to $84, while keeping an Overweight rating on the shares.

Exxon Mobil Corporation (NYSE:XOM) pays an annual dividend of $3.52 per share. The stock’s current dividend yield stands at 5.75%. As of Q3, the company represents 0.13% of Yacktman Asset Management’s 13F portfolio. After hitting an all-time low of $32.7 per share, the stock has bounced back, gaining 56.4% in the past year and 48.3% in 2021.

Of the 867 hedge funds tracked by Insider Monkey, 64 hedge funds held positions in Exxon Mobil Corporation (NYSE:XOM) in Q3, with stakes valued at $4.6 billion. In the previous quarter, 67 hedge funds had stakes in the company, valued at $3.7 billion.

First Eagle Investment Management mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter. Here is what the firm has to say:

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”