In this article, we discuss the 10 dividend stocks to buy according to Murray Stahl’s Horizon Asset Management based on Q3 holdings of the fund.
Horizon Asset Management, a subsidiary of Horizon Kinetics LLC, was created by Murray Stahl in 1994. Stahl graduated from Brooklyn College with a B.A. and an M.A degree. He is also an M.B.A from Pace University. He worked at Bankers Trust Company for 16 years as a senior portfolio manager and research analyst. Mr. Stahl is also the Chairman and Chief Executive Officer of FRMO Corporation.
Horizon Asset Management is a contrarian investment firm that tries to profit from the short-term emphasis in the equity markets. The fund believes that short-termism in the stock market leads to sub-optimal long-term performance. The hedge fund develops and manages mutual funds and securitizations that invest in real estate, development and reconstruction projects, and development land.
During the third quarter of 2021, Murray Stahl and his colleagues executed a portfolio rebalance, with the investment hedge fund reducing 159 investments and selling out 11 positions, adding 4 new assets and boosting exposure to 61 existing investments. The hedge fund’s 13F public stock portfolio was worth $4.28 billion in the third quarter of 2021.
Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Mastercard Incorporated (NYSE:MA) were among the top holdings in Murray Stahl’s Horizon Asset Management portfolio at the end of the third quarter of 2021.
Horizon Asset Management has a $2.46 million stake in the tech giant Microsoft Corporation (NASDAQ:MSFT). In November, Wells Fargo analyst Michael Turrin initiated coverage of Microsoft, rating the stock as “Overweight” and gave a price target of $400. Shares of Microsoft Corporation (NASDAQ:MSFT) rallied 56.35% in the last twelve months.
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Another notable stock in Horizon Asset Management’s portfolio in Visa Inc. (NYSE:V). The investor owns a $6.59 million stake in the company. In November, UBS analyst Rayna Kumar initiated coverage of Visa with a “Buy” rating and gave a price target of $275. In addition, Visa Inc. (NYSE:V) declared a quarterly dividend of $0.375 per share in October, up 17.2% from the previous payout of $0.320 per share.
Based on the 13F holdings for the third quarter of 2021, Horizon Asset Management owns 39,730 shares in Mastercard Incorporated (NYSE:MA) worth $13.81 million.
With this background in mind, let’s start our list of 10 dividend stocks to buy according to Murray Stahl’s Horizon Asset Management. We used Stahl’s 13F portfolio for Q3 2021 for this analysis.
Dividend Stocks to Buy According to Murray Stahl’s Horizon Asset Management
10. Capital Southwest Corporation (NASDAQ:CSWC)
Horizon Asset Management Stake Value: $428,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 8
Dividend Yield: 6.96%
Capital Southwest Corporation (NASDAQ:CSWC) is a publicly listed business development firm that invests in private equity. In September, Oppenheimer analyst Mitchel Penn initiated coverage of Capital Southwest Corporation (NASDAQ:CSWC), rating the stock as “Perform.”
Capital Southwest Corporation’s (NASDAQ:CSWC) second-quarter total investment income came in at $20.3 million, up 21.6% YoY, beating the market estimates by $0.61 million. Murray Stahl’s Horizon Asset Management currently owns 17,000 shares of Capital Southwest Corporation (NASDAQ:CSWC) worth $428,000.
There were 8 hedge funds in our database that held stakes in Capital Southwest Corporation (NASDAQ:CSWC) at the end of the third quarter. Two Sigma Advisors is the company’s most significant stakeholder, with 203,900 shares worth $5.13 million.
Along with Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Mastercard Incorporated (NYSE:MA), Capital Southwest Corporation (NASDAQ:CSWC) is one of the dividend stocks in the portfolio of Murray Stahl’s Horizon Asset Management.
9. DNP Select Income Fund Inc. (NYSE:DNP)
Horizon Asset Management Stake Value: $140,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 2
Dividend Yield: 7.23%
DNP Select Income Fund Inc. (NYSE:DNP) is a closed-end fund that invests in the stock market. It invests primarily in a portfolio of public utility companies shares and fixed income instruments to generate current income, long-term income growth, and capital appreciation.
DNP Select Income Fund Inc. (NYSE:DNP) declared a monthly dividend of $0.065 per share in September, in line with the previous. The shares of DNP Select Income Fund Inc. (NYSE:DNP) are up 3.93% in the past twelve months.
Of the exclusive hedge funds tracked by Insider Monkey, 2 held stakes amounting to $ 251,000 in DNP Select Income Fund Inc. (NYSE:DNP) in the third quarter of 2021. In addition, Horizon Asset Management holds 13,113 shares in DNP Select Income Fund Inc. (NYSE:DNP) worth over $140,000.
8. Enterprise Products Partners L.P. (NYSE:EPD)
Horizon Asset Management Stake Value: $2,937,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 25
Dividend Yield: 8.42%
Enterprise Products Partners L.P. (NYSE:EPD) is a holding company specializing in natural gas and petrochemicals production and trading. Wolfe Research analyst Keith Stanley downgraded Enterprise Products Partners L.P. (NYSE:EPD) from “Outperform” to “Peer Perform” in October, with a price target of $24. He doesn’t see any near-term catalysts for Enterprise Products shares.
Enterprise Products Partners L.P. (NYSE:EPD) posted earnings for the third quarter in November, reporting revenue of $10.83 billion, up 54.9% year-on-year, beating market expectations by $2.32 billion. Out of the hedge funds being tracked by Insider Monkey, First Eagle Investment Management is a leading shareholder in Enterprise Products Partners L.P. (NYSE:EPD), with 2.82 million shares worth more than $61.12 million.
At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $419.86 million in Enterprise Products Partners L.P. (NYSE:EPD), down from 28 in the preceding quarter worth $246.06 million.
ClearBridge Investments, an investment management firm, in its first-quarter 2021 investor letter, mentioned Enterprise Products Partners L.P. (NYSE:EPD). 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.”
7. Dorchester Minerals, L.P. (NASDAQ:DMLP)
Horizon Asset Management Stake Value: $19,349,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.45%
Number of Hedge Fund Holders: 5
Dividend Yield: 8.62%
Dorchester Minerals, L.P. (NASDAQ:DMLP) is a royalty and net profit interests company that buys, owns, and manages royalty properties and net profit interests.
In October, Dorchester Minerals, L.P. (NASDAQ:DMLP) issued a quarterly dividend of $0.5076 per share, up 5.6% from the previous payout of $0.4805. Dorchester Minerals, L.P. (NASDAQ:DMLP) shares have offered investors returns of 58% in the past twelve months.
At the end of the third quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $32.85 million in Dorchester Minerals, L.P. (NASDAQ:DMLP), up from 4 the preceding quarter worth $28.28 million.
6. Black Stone Minerals, L.P. (NYSE:BSM)
Horizon Asset Management Stake Value: $2,486,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.05%
Number of Hedge Fund Holders: 7
Dividend Yield: 8.94%
Black Stone Minerals, L.P. (NYSE:BSM) is an oil and gas company established in Houston, Texas. Black Stone Minerals, L.P. (NYSE:BSM) issued a $0.25 per share quarterly dividend in November, a 25% increase over the previous distribution of $0.20.
Black Stone Minerals, L.P. (NYSE:BSM) posted earnings results for the third quarter, reporting EPS of $0.26, beating market predictions by $0.10. The revenue over the period was $59.83 million, missing the estimates by $25.39 million.
Black Stone Minerals, L.P.’s (NYSE:BSM) stock has gained 49% over the last twelve months. At the end of the third quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $31.78 million in Black Stone Minerals, L.P. (NYSE:BSM).
Like Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Mastercard Incorporated (NYSE:MA), Black Stone Minerals, L.P. (NYSE:BSM) is one of the dividend stocks to buy according to Murray Stahl’s Horizon Asset Management.
5. Eaton Vance Limited Duration Income Fund (NYSE:EVV)
Horizon Asset Management Stake Value: $176,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 5
Dividend Yield: 9.18%
Eaton Vance Limited Duration Income Fund (NYSE:EVV) established and managed the Eaton Vance Limited Duration Income Fund, a closed-ended fixed income mutual fund. Eaton Vance Limited Duration Income Fund (NYSE:EVV) shares have offered investors returns of 7.11% in the past twelve months.
Eaton Vance Limited Duration Income Fund (NYSE:EVV) declared a monthly dividend of $0.10 per share, in line with the previous. The hedge fund managed by Murray Stahl owns 13,332 shares in Eaton Vance Limited Duration Income Fund (NYSE:EVV) worth over $176,000. The hedge fund has reduced its stake in the firm by 2% in the third quarter of 2021.
Out of the hedge funds being tracked by Insider Monkey, Citadel Investment Group is a leading shareholder in Eaton Vance Limited Duration Income Fund (NYSE:EVV) with 510,668 shares worth $6.73 million. As of Q3 2021, 5 hedge funds have positions in the company, compared with 3 in the previous quarter.
4. PIMCO Dynamic Credit and Mortgage Income Fund (NYSE:PCI)
Horizon Asset Management Stake Value: $909,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 2
Dividend Yield: 10.12%
PIMCO Dynamic Credit and Mortgage Income Fund (NYSE:PCI) is a closed-end managed investment firm with a diverse portfolio. The primary investing goal of PIMCO Dynamic Credit and Mortgage Income Fund (NYSE:PCI) is to provide current income, with capital appreciation as a secondary goal.
PIMCO Dynamic Credit and Mortgage Income Fund (NYSE:PCI) declared a monthly dividend of $0.174 per share on November 29, the same as the previous month. The hedge fund chaired by Murray Stahl owns 43,042 shares in the PIMCO Dynamic Credit and Mortgage Income Fund (NYSE:PCI) worth over $909,000, representing 0.02% of their investment portfolio.
PIMCO Dynamic Credit and Mortgage Income Fund (NYSE:PCI) was in 2 hedge funds’ portfolios at the end of the third quarter of 2021.
3. PIMCO Dynamic Income Fund (NYSE:PDI)
Horizon Asset Management Stake Value: $3,058,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 1
Dividend Yield: 10.48%
PIMCO Dynamic Income Fund (NYSE:PDI) is a closed-end managed investment business that is non-diversified. Its primary purpose is to provide current income, with capital appreciation coming in second. On November 29, PIMCO Dynamic Income Fund (NYSE:PDI) declared a monthly dividend of $0.2205 per share, in line with the previous.
Horizon Asset Management holds 115,062 shares in PIMCO Dynamic Income Fund (NYSE:PDI) worth over $3.06 million, representing 0.07% of their portfolio. The hedge fund has trimmed its stake in PIMCO Dynamic Income Fund (NYSE:PDI) by 1% in the third quarter of 2021. At the end of the third quarter of 2021, 1 hedge fund in the database of Insider Monkey held stakes worth $3.06 million in PIMCO Dynamic Income Fund (NYSE:PDI), down from 2 the preceding quarter worth $3.70 million.
2. Annaly Capital Management, Inc. (NYSE:NLY)
Horizon Asset Management Stake Value: $162,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 15
Dividend Yield: 10.86%
Annaly Capital Management, Inc. (NYSE:NLY) is a real estate investment trust that invests in real estate. In the third quarter of 2021, Annaly Capital Management, Inc. (NYSE:NLY) had an EPS of $0.28, beating estimates by $0.01.
In October, Barclays analyst Mark DeVries downgraded Annaly Capital Management, Inc. (NYSE:NLY) from “Overweight” to “Equal Weight,” with a price target of $9. The stock’s upside potential, according to the analyst, is restricted at 1.0 times book value.
There were 15 hedge funds in our database that held stakes in Annaly Capital Management, Inc. (NYSE:NLY) at the end of the third quarter, compared to 19 funds in the preceding quarter. Citadel Investment Group is Annaly Capital Management, Inc.’s (NYSE:NLY) most significant stakeholder, with 2.22 million shares worth $18.68 million.
1. Icahn Enterprises L.P. (NASDAQ:IEP)
Horizon Asset Management Stake Value: $28,033,000
Percentage of Horizon Asset Management’s 13F Portfolio: 0.65%
Number of Hedge Fund Holders: 4
Dividend Yield: 15.83%
Icahn Enterprises L.P. (NASDAQ:IEP), a diversified holding company, holds a controlling interest in ten different types of enterprises. Icahn Enterprises works in various industries, including automotive, energy, food packaging, gaming, home fashion, investment, metals, mining, real estate, and train cars.
In the third quarter of 2021, Horizon Asset Management owned 561,214 shares in Icahn Enterprises L.P. (NASDAQ:IEP), worth $28.03 million. This represented 0.65% of the investment portfolio of the hedge fund. In November, Icahn Enterprises L.P. (NASDAQ:IEP) declared a quarterly dividend of $2.00, in line with previous.
In the third quarter of 2021, Icahn Enterprises L.P. (NASDAQ:IEP) posted EPS of -$0.55, missing the Street estimates by $0.66. However, revenue in the quarter jumped 265.1% to $2.64 billion, beating the Street’s forecast by $10 million. Out of the hedge funds being tracked by Insider Monkey, Icahn Capital LP is a leading shareholder in Icahn Enterprises L.P. (NASDAQ:IEP) with 247.12 million shares worth more than $12.34 billion.
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Disclosure: None. 10 Dividend Stocks to Buy According to Murray Stahl’s Horizon Asset Management is originally published on Insider Monkey.
