In this article, we discuss the top 5 dividend stocks to buy according to Mark Coe’s Coe Capital Management. If you want to read our detailed analysis of Mark Coe’s history, investment philosophy, and hedge fund performance, go directly to the 10 Dividend Stocks to Buy According to Mark Coe’s Coe Capital Management.
5. Target Corporation (NYSE:TGT)
Coe Capital Management’s Stake Value: $3,068,000
Percentage of Coe Capital Management’s 13F Portfolio: 2.89%
Dividend Yield: 1.47%
Number of Hedge Fund Holders: 66
Target Corporation (NYSE:TGT) is the eighth largest American retail corporation, offering discounted prices to its customers.
Coe Capital Management owns 12,691 shares in Target Corporation (NYSE:TGT) as of the end of June, amounting to $3.06 million, and making up 2.89% of Coe’s 13F portfolio.
On October 14, Morgan Stanley analyst James Faucette kept an Overweight rating on the stock, with a price target of $140. Target Corporation (NYSE:TGT)’s FY2022 estimates look positive because of Affirm and Buy Now, Pay Later options provided to vendors and merchants, according to Faucette.
Nelson Capital Management mentioned Target Corporation (NYSE:TGT) in its Q2 2021 investor letter. Here is what they said:
“We added Target (tkr: TGT) to our consumer staples sector. Target offers a broad array of products in owned and known brand items at affordable prices. Its omni channel fulfilment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target is an attractive holding.”
4. CME Group Inc. (NASDAQ:CME)
Coe Capital Management’s Stake Value: $3,071,000
Percentage of Coe Capital Management’s 13F Portfolio: 2.89%
Dividend Yield: 1.70%
Number of Hedge Fund Holders: 62
Coe Capital Management owns 14,441 shares in CME Group Inc. (NASDAQ:CME) as of the end of the second quarter, valued at $3.07 million, representing 2.89% of Coe’s 13F portfolio.
GuardCap Asset Management is the leading stakeholder in CME Group Inc. (NASDAQ:CME), with 3.75 million shares worth $798.7 million. Overall, 62 hedge funds were bullish on CME Group Inc. (NASDAQ:CME) at the end of June, up from 60 in the previous quarter.
Here is what Cooper Investors’ Global Equities Fund (Hedged) has to say about CME Group Inc. in their Q1 2021 investor letter:
“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
3. Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND)
Coe Capital Management’s Stake Value: $3,108,000
Percentage of Coe Capital Management’s 13F Portfolio: 2.92%
Dividend Yield: 1.93%
Number of Hedge Fund Holders: 6
Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) is the third stock on our extensive list of dividend stocks to buy according to Mark Coe’s Coe Capital Management. The ETF tracks the performance of a wide, market-weighted bond index. Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) offers investors extensive exposure to the taxable investment-grade bond market, with a high potential for investment income. The diversified ETF makes for an excellent medium to long term investment, with share values rising and falling modestly.
Coe Capital Management owns 37,831 shares in Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) as of the end of June, worth $3.1 million, making up 2.92% of Coe’s 13f portfolio.
6 hedge funds held stakes in Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) according to Insider Monkey’s elite database at the end of the second quarter. This is compared to the same number of hedge funds in the previous quarter as well.
Ken Griffin’s Citadel Investment Group held a $38.3 million stake in Vanguard Total Bond Market Index Fund ETF Shares (NASDAQ:BND) at the end of June.
2. Abbott Laboratories (NYSE:ABT)
Coe Capital Management’s Stake Value: $3,298,000
Percentage of Coe Capital Management’s 13F Portfolio: 3.1%
Dividend Yield: 1.53%
Number of Hedge Fund Holders: 61
As of the end of the second quarter of 2021, 61 hedge funds reported owning stakes worth $4.36 billion in Abbott Laboratories (NYSE:ABT), down from 65 in the previous quarter, with stakes valued at $5.13 billion.
On October 14, Redburn analyst Simon Baker initiated coverage of Abbott Laboratories (NYSE:ABT) with a Neutral rating.
Polen Capital mentioned Abbott Laboratories (NYSE:ABT) in its Q2 2021 investor letter. Here is what they said:
“Abbott Laboratories was the lone detractor in the quarter as the company preannounced that revenue and earnings this year would be below their previous guidance. We still expect the company to grow earnings more than 20% this year and continue double-digit earnings growth in the years to come. However, weakness in COVID-19 testing revenue is primarily responsible for the guidance reduction. Abbott is a leader in multiple types of COVID-19 diagnostic tests, and the largely successful vaccine rollout globally is leading to less COVID testing than the company expected. Two years ago, these tests obviously accounted for $0 in revenue but recently accounted for nearly $10 billion in annualized revenues as of the fourth quarter of 2020. We have expected COVID testing revenues to decline sequentially every quarter and eventually level out at less than $1 billion per year. We are not surprised by the current reality, but the decline has been more rapid than what management had expected.
Abbott is a diversified medical products company with likely strong growth to come from its core businesses outside of COVID testing— our investment thesis was not dependent on pandemic related revenue. While the reduction in guidance is atypical for Abbott’s conversative management team, we do not believe it changes our long-term growth assumptions or the investment case in Abbott.”
1. JPMorgan Chase & Co. (NYSE:JPM)
Coe Capital Management’s Stake Value: $3,482,000
Percentage of Coe Capital Management’s 13F Portfolio: 3.28%
Dividend Yield: 2.4%
Number of Hedge Fund Holders: 108
JPMorgan Chase & Co. (NYSE:JPM) is a New York-based multinational investment bank and financial services corporation, incorporated in Delaware. As of 2021, JPMorgan Chase & Co. (NYSE:JPM) is the leading bank in the US, and the fifth largest bank worldwide according to total assets.
JPMorgan Chase & Co. (NYSE:JPM) is a popular stock among hedge funds. At the end of the second quarter, 108 funds were long JPMorgan Chase & Co. (NYSE:JPM), down from 111 in the previous quarter.
After the positive Q3 results, Barclays analyst Jason Goldberg kept an Overweight rating on JPMorgan Chase & Co. (NYSE:JPM), with a price target of $193, up from $187 on October 15.
Vltava Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2021 investor letter. Here is what the fund said:
“While all the previous names could be categorised as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include also Jamie Dimon and Herman Gref.
We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.
The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”
You can also take a look at Kevin Oram’s Praesidium Investment’s Top Stock Picks: ServiceNow, Wix, and More and 11 Best 5G Stocks To Buy According To Hedge Funds.
