In this article, we discuss the 10 dividend stocks to buy according to Ken Fisher based on Q3 holdings of his fund.
Kenneth Lawrence Fisher is a billionaire investor and hedge fund manager. He studied forestry at Humboldt State University and earned an associate degree in economics in 1972. Fisher received the Distinguished Alumni Award from Humboldt State in 2007. Fisher founded Fisher Asset Management 1979 and served as CEO until July 2016, when Damian Ornani, a long-time Fisher Investments employee, took over.
Fisher currently serves as the hedge fund’s executive chairman and co-chief investment officer.
Fisher Asset Management has a portfolio value of $161 billion at the end of the third quarter of 2021. The portfolio’s top 10 holdings account for 31.09% of the total. In the third quarter, the fund added $1 billion to its portfolio, mostly from new acquisitions of 78 stocks.
Fisher prefers to diversify his portfolio by investing in various industries, such as technology, energy, pharmaceuticals, and banking. Fisher Asset Management has shares in Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V), as of the third quarter of 2021.
Ken Fisher of Fisher Asset Management
The fund reduced its holding in Apple Inc. by 7% in the third quarter, ending the period with 60.89 million shares.
Microsoft Corporation is also a vital holding of the fund management. The hedge fund owns 25.52 million shares of the company worth $7.20 billion.
Visa Inc. is another large-cap stock in Ken Fisher’s portfolio. Fisher Asset Management holds 18.34 million shares of the company worth $4.08 billion.
Here is a list of 10 dividend stocks to buy according to Ken Fisher. We used Fisher’s 13F portfolio for Q3 2021 for this analysis.
Dividend Stocks to Buy According to Ken Fisher
10. Eni S.p.A. (NYSE:E)
Fisher Asset Management Stake Value: $26,160,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 3
Dividend Yield: 5.90%
Eni S.p.A. (NYSE:E) deals in oil, gas, power, and chemicals exploration, production, refining, and sales. On December 3, Deutsche Bank analyst James Hubbard raised his price target on Eni S.p.A. to EUR 14.70 from EUR 14.10 and kept a “Buy” rating on the shares.
Among the hedge funds being tracked by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital is a leading shareholder in Eni S.p.A. with 1.82 million shares worth more than $48.67 million. In the third quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $75.41 million in Eni S.p.A..
Apple Inc., Microsoft Corporation and Visa Inc. are some of the dividend stocks to buy according to Ken Fisher, along with Eni S.p.A..
9. Brigham Minerals, Inc. (NYSE:MNRL)
Fisher Asset Management Stake Value: $1,394,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 16
Dividend Yield: 5.9%
Brigham Minerals, Inc. (NYSE:MNRL) specializes in purchasing and managing mineral and royalty interests. Fisher Asset Management manages 72,731 shares in Brigham Minerals, Inc. worth $1.39 million, representing 0.01% of the fund’s portfolio. The hedge fund increased its stake in the firm by 42% in the third quarter of 2021.
In November, Brigham Minerals, Inc. posted earnings for the third quarter of 2021, reporting EPS of $0.31, beating the estimates by $0.04. In October, Piper Sandler analyst Pearce Hammond raised his price target on Brigham Minerals, Inc. to $24 from $20 and kept an “Overweight” rating on the shares.
Hedge fund sentiment increased for Brigham Minerals, Inc. in the third quarter. Insider Monkey’s data shows that 16 hedge funds held stakes in the company at the end of the third quarter, up from 14 funds a quarter earlier.
8. Energy Transfer LP (NYSE:ET)
Fisher Asset Management Stake Value: $99,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 29
Dividend Yield: 6.4%
Energy Transfer LP (NYSE:ET) is a natural gas and propane pipeline delivery firm. In September, Tudor, Pickering, Holt & Co. analyst Colton Bean upgraded Energy Transfer LP to “Buy” from “Hold” and gave a price target of $14.
Energy Transfer LP and Enable Midstream Partners, LP (NYSE:ENBL) announced on December 3 that their previously announced merger had been completed. According to Energy Transfer LP, the merged business will possess over 114K miles of pipeline throughout the United States and achieve more than $100 million in yearly cost savings.
In the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $727.72 million in Energy Transfer LP, the same as the preceding quarter worth $835.29 million.
7. Enterprise Products Partners L.P. (NYSE:EPD)
Fisher Asset Management Stake Value: $334,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 25
Dividend Yield: 7.7%
Enterprise Products Partners L.P. (NYSE:EPD) is a holding company specializing in natural gas and petrochemicals production and trading. In October, Enterprise Products Partners L.P. declared a quarterly dividend of $0.45 per share, in line with the previous.
In October, Wolfe Research analyst Keith Stanley downgraded Enterprise Products Partners L.P. to “Peer Perform” from “Outperform” and gave a price target of $24.
Jean-Marie Eveillard’s First Eagle Investment Management is the leading shareholder of Enterprise Products Partners L.P., with 2.82 million shares worth $61.12 million.
In its first-quarter 2021 investor letter, investment management firm ClearBridge Investments cited Enterprise Products Partners L.P.. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
6. British American Tobacco p.l.c. (NYSE:BTI)
Fisher Asset Management Stake Value: $315,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 9
Dividend Yield: 7.0%
British American Tobacco p.l.c. (NYSE:BTI) manufactures and distributes cigarettes. Kent, Dunhill, Lucky Strike, and Pall Mall are among the company’s brands. William B. Gray’s Orbis Investment Management is the leading shareholder of British American Tobacco p.l.c. (NYSE:BTI) with a $573.22 million stake.
The hedge fund managed by Ken Fisher owns 8,919 shares in British American Tobacco p.l.c. (NYSE:BTI) worth $315,000, representing close to 0.01% of their portfolio. The hedge fund has strengthened its stake in the firm by 4% in the third quarter of 2021.
In the third quarter of 2021, 9 hedge funds out of the 867 tracked by Insider Monkey held stakes worth $724.38 million in British American Tobacco p.l.c. (NYSE:BTI), down from 12 the preceding quarter worth $1.01 billion.
Like Apple Inc., Microsoft Corporation, and Visa Inc., British American Tobacco p.l.c. (NYSE:BTI) is a notable dividend stock to buy, according to Ken Fisher.
5. Artisan Partners Asset Management Inc. (NYSE:APAM)
Fisher Asset Management Stake Value: $68,290,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 15
Dividend Yield: 9.3%
Artisan Partners Asset Management Inc. (NYSE:APAM) is an investment management firm that offers investment solutions to customers worldwide. In October, Artisan Partners Asset Management Inc.’s (NYSE:APAM) third-quarter revenue came in at $316.6 million, up 36.1% Y/Y, surpassing analysts’ expectations by $1.51 million.
Fisher Asset Management started building its position in Artisan Partners Asset Management Inc. in the fourth quarter of 2015 and currently holds over 1.40 million shares in the company, valued at $68.29 million. The company represents 0.04% of the hedge fund’s 13F portfolio.
15 hedge funds in our database held stakes in Artisan Partners Asset Management Inc.’s (NYSE:APAM) in the third quarter of 2021, compared to 19 funds in the previous quarter.
4. Annaly Capital Management, Inc. (NYSE:NLY)
Fisher Asset Management Stake Value: $645,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 15
Dividend Yield: 11.1%
Annaly Capital Management, Inc. (NYSE:NLY) is a real estate investment trust that invests in real estate. Out of the hedge funds being tracked by Insider Monkey, Citadel Investment Group is the most significant shareholder in Annaly Capital Management, Inc., with 2.22 million shares worth more than $18.68 million.
Annaly Capital Management, Inc. was downgraded to “Equal Weight” from “Overweight” by Barclays analyst Mark DeVries in October and gave a price target of $9.
According to regulatory filings, Fisher Asset Management owned 76,618 shares in Annaly Capital Management, Inc., worth $645,000. The hedge fund’s stake in Annaly Capital Management, Inc. increased by 52% in the third quarter of 2021.
3. FS KKR Capital Corp. (NYSE:FSK)
Fisher Asset Management Stake Value: $210,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 14
Dividend Yield: 11.09%
FS KKR Capital Corp. (NYSE:FSK) is a closed-end management investment and financing business that invests mainly in the debt securities of private middle-market US corporations. It is externally managed and non-diversified. According to regulatory filings, Fisher Asset Management holds 9,540 shares in FS KKR Capital Corp. in the third quarter of 2021, worth $210,000.
FS KKR Capital declared a quarterly dividend of $0.62 per share in November, down 4.6% from the previous dividend of $0.65. For the third quarter ended September 30, 2021, FS KKR Capital Corp. reported a net investment income of $0.64, beating the estimates by $0.02.
In the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $204.77 million in FS KKR Capital, down from 17 the preceding quarter worth 208.38 million.
2. BHP Group (NYSE:BBL)
Fisher Asset Management Stake Value: $447,539,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.25%
Number of Hedge Fund Holders: 21
Dividend Yield: 10.78%
BHP Group (NYSE:BBL) is a mining and oil and gas exploration, development, production, processing, and marketing company. Ken Fisher’s Fisher Asset Management is the company’s biggest shareholder with 8 million shares worth $405.50 million.
In September, RBC Capital analyst Tyler Broda initiated coverage of BHP Group, downgrading BHP Group to “Sector Perform” from “Outperform” and gave a price target of 1,900 GBp, down from 2,300 GBp. According to Broda, while the demerger of petroleum may restrict the growth of the company and make its portfolio less diversified.
BHP Group recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 21 in the third quarter of 2021 compared to 24 positions in the previous quarter.
In its first-quarter 2021 investor letter, Harding Loevner, mentioned BHP Group (NYSE:BHP). Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low-cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
1. Vale S.A. (NYSE:VALE)
Fisher Asset Management Stake Value: $486,355,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders: 27
Dividend Yield: 14%
Vale S.A. (NYSE:VALE) manufactures and exports iron ore, pellets, manganese, and iron alloys. In November, Wolfe Research analyst Timna Tanners initiated coverage of Vale S.A., rating the stock as “Peerperform” and gave a price target of $13.
In the third quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $1.98 billion in Vale S.A..
In its third-quarter 2021 investor letter, Miller Value Partners mentioned Vale S.A.. Here is what the fund said:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
You can also take a peek at 10 Best Blue Chip Dividend Stocks and 11 Cheap High Dividend Stocks to Buy Right Now
Follow Insider Monkey on Twitter
Suggested articles:
- 10 Blue Chip Dividend Stocks with Over 8% Yield
- 10 Dividend Stocks to Buy and Hold
- 10 Dividend Stocks to Buy According to Donald Yacktman’s Hedge Fund
This article is originally published at Insider Monkey.
