Below we present the list of 5 dividend stocks to buy now according to billionaire Leon Cooperman. For our methodology and a more comprehensive list, please see 10 Dividend Stocks to Buy Now According to Billionaire Leon Cooperman.
5. Energy Transfer LP (NYSE:ET)
Dividend Yield as of March 24: 7.07%
Value of Omega Advisors‘ 13F Position: $57.61 million
There was a nearly 25% spike in hedge fund ownership of Energy Transfer LP (NYSE:ET) during Q4 as money managers are increasingly taking note of the natural gas midstream, transportation, and storage company. Cooperman has owned a stake in ET since the middle of 2017.
Energy Transfer LP (NYSE:ET) was forced to slash its dividend by 50% in 2020 in an effort to tackle its debt. The company’s been successful on that front, cutting its long-term debt by $6.3 billion in 2021. That success allowed the company to boost its dividend by 15% heading into 2022, with a quarterly payout of $0.175 per share.
Energy Transfer LP (NYSE:ET) is still projecting to take in billions of dollars in excess free cash flow in 2022 after pulling in $13 billion in adjusted EBITDA last year.
4. Trinity Industries, Inc. (NYSE:TRN)
Dividend Yield as of March 24: 2.68%
Value of Omega Advisors‘ 13F Position: $58.89 million
Trinity Industries, Inc. (NYSE:TRN) hasn’t experienced the same boost in hedge fund ownership that ET has, as 31% of the company’s hedge fund shareholders on March 31 had sold off their positions by the end of 2021. Cooperman, who’s also owned TRN since mid-2017 was not one of them, maintaining his position of 1.95 million shares throughout Q4.
Trinity Industries, Inc. (NYSE:TRN), which supplies a wide range of equipment and parts for the railroad, construction, and energy industries, among others, has been one of the most dependable dividend payers among its peers. The company is in the midst of a 32-year run of making dividend payments, as well as an 11-year run of increasing those payments.
Trinity Industries, Inc. (NYSE:TRN) declared a $0.23 per share quarterly dividend earlier this month, to be payable on April 29 to shareholders of record as of April 14. That payout was in line with the previous quarter’s.
3. Ashland Global Holdings Inc. (NYSE:ASH)
Dividend Yield as of March 24: 1.27%
Value of Omega Advisors‘ 13F Position: $93.88 million
Hedge fund ownership of Ashland Global Holdings Inc. (NYSE:ASH) has declined during each of the past six quarters, falling by 42% during that time. Cooperman has held fast to his holding however, which dates back to 2014, as he maintained his position of 871,965 ASH shares throughout Q4.
Ashland Global Holdings Inc. (NYSE:ASH) has been making dividend payments for the past 26 years and declared a $0.30 per share quarterly distribution near the end of January, in line with previous. Its modest 2-year run of annual dividend increases ended in 2020 when its dividend was left at $0.28 for eight consecutive quarters.
In an effort to combat cost inflation, Ashland Global Holdings Inc. (NYSE:ASH) just announced that it will increase prices by as much as 15% across the entire breadth of its products, which serve the life sciences, personal care, and specialty additives industries, among others. Ashland had previously guided for $2.25 to $2.35 billion in revenue in FY 2022, along with between $550 and $570 million in EBITDA.
2. Cigna Corporation (NYSE:CI)
Dividend Yield as of March 24: 1.84%
Value of Omega Advisors‘ 13F Position: $103 million
Hedge fund ownership of Cigna Corporation (NYSE:CI) has dipped by 16% over the past two quarters and stands 32% lower than its all-time high levels reached in early 2018. Cooperman has been a CI shareholder since Q3 2018 and left his position of 450,000 shares unchanged during Q4 2021.
Cigna Corporation (NYSE:CI), which switched from annual dividend payments to quarterly payments beginning last year, has a 31-year run of making distributions to shareholders, though its annual payments for the past 13 years had been a paltry $0.04. Its forthcoming quarterly payment of $1.12, to be made on March 24 to shareholders of record as of March 9, represents a 12% increase over the previous quarter’s.
Cigna Corporation (NYSE:CI) returned $9 billion to shareholders last year in the form of dividends and share buybacks after pulling in $20.47 in adjusted earnings per share, an 11% year-over-year increase. The health services provider is projecting EPS of at least $22.40 in 2022.
Davis Funds, an investment management firm, published its “Davis Opportunity Fund” fourth-quarter 2021 investor letter and mentioned Cigna Corporation (NYSE:CI). Here‘s what the fund said:
“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”
1. Devon Energy Corporation (NYSE:DVN)
Dividend Yield as of March 24: 6.51%
Value of Omega Advisors‘ 13F Position: $120 million
Topping the list of top dividend stocks to buy according to billionaire Leon Cooperman isDevon Energy Corporation (NYSE:DVN), which ranks as his fourth-largest holding overall. Cooperman’s family office did sell off 12% of its stake in Devon Energy during Q4, taking advantage of the stock’s stellar performance in 2021. That left Omega with over 2.72 million shares of the stock, which gained 170.73% last year.
Thanks to the strength of its financial performance, the natural gas exploration and production company have been rapidly jacking up its dividend in recent quarters, boosting its quarterly payout (which includes a variable payment of up to 50% of DVN’s excess FCF) from just $0.30 in March 2021 to $1.00 this month. Devon Energy Corporation (NYSE:DVN) has boosted its distribution for four straight years and made payments for 22 consecutive years.
Given oil prices are expected to continue rising, Devon Energy Corporation (NYSE:DVN)’s dividend could likewise do the same in the quarters to come. The company is coming off a spectacular year of record free cash flow, while its operating cash flow tripled year-over-year.
For more on the latest trades made by some of the biggest hedge fund managers in the world, check out 10 Real Estate Stocks to Buy Now According to Charles Fitzgerald’s V3 Capital and 10 Best Gas Stocks To Buy Now.
