In this episode, we discuss 5 high beta dividend stocks. If you want our detailed analysis of dividend investing and these stocks, go directly to 10 High Beta Dividend Stocks.
5. Ventas, Inc. (NYSE:VTR)
Dividend Yield as of January 26: 3.51%
Number of Hedge Fund Holders: 23
Beta Value: 1.15
Ventas, Inc. (NYSE:VTR) is a Chicago-based real estate investment trust that owns and manages healthcare establishments in the United States, Canada, and the United Kingdom. Ventas, Inc. (NYSE:VTR) delivers a dividend yield of 3.51% as of January 26.
On December 7, Ventas, Inc. (NYSE:VTR) declared a $0.45 per share quarterly dividend, in line with previous. The dividend was paid on January 19, to shareholders of record on January 3.
Mizuho analyst Vikram Malhotra on January 20 upgraded Ventas, Inc. (NYSE:VTR) to Buy from Neutral with a price target of $61, up from $45. Ventas, Inc. (NYSE:VTR) is a longer-term value play on senior housing with upside in its operating segment via growth on revenue per occupied room basis, Malhotra tells investors in a research note.
In its Q4 guidance published on January 20, Ventas, Inc. (NYSE:VTR) expects Q4 normalized FFO per share to be at the high end of its previously issued guidance range before the benefit of approximately $6 million of HHS proceeds received in Q4 2021. In November, the REIT issued guidance for Q4 normalized FFO per share of $0.67-$0.71 while the consensus was $0.70.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 23 funds were long Ventas, Inc. (NYSE:VTR), with stakes totaling $464.6 million. Zimmer Partners is the largest stakeholder of the company, owning 3.6 million Ventas, Inc. (NYSE:VTR) shares worth $203.5 million.
4. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 26: 4.28%
Number of Hedge Fund Holders: 51
Beta Value: 1.08
Chevron Corporation (NYSE:CVX), an American multinational energy company supplying gasoline, natural gas, and petrochemicals, made it to our list of the high beta dividend stocks since a beta value of 1.08 is associated with the company.
Chevron Corporation (NYSE:CVX) declared on January 25 a $1.42 per share quarterly dividend, which is a 6% increase from its prior dividend of $1.34. The dividend is payable on March 10, to shareholders of record on February 16. Chevron Corporation (NYSE:CVX) delivers a dividend yield of 4.28% as of January 26.
On January 14, Truist analyst Neal Dingmann raised the price target on Chevron Corporation (NYSE:CVX) to $167 from $150 and kept a Buy rating on the shares as part of a broader research note updating his Exploration & Production group model. While he increases his price estimates for oil-weighted energy names in 2022 and 2023, the analyst observes that the current natural gas strip has “largely flattened out”, driving price target declines across most of his covered natural gas names.
Of the 51 hedge funds that were bullish on Chevron Corporation (NYSE:CVX) in Q3 2021, Ric Dillon’s Diamond Hill Capital is the leading Chevron Corporation (NYSE:CVX) stakeholder, holding 5.1 million shares worth $523.8 million.
Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
3. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of January 26: 4.75%
Number of Hedge Fund Holders: 64
Beta Value: 1.07
Exxon Mobil Corporation (NYSE:XOM), a Texas-based multinational oil and gas corporation, has a rich dividend history and offers a yield of 4.75%. Exxon Mobil Corporation (NYSE:XOM) supplies crude oil, oil products, natural gas, and petrochemicals.
On January 26, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.88 per share, in line with previous. The dividend is payable on March 10, to shareholders of record on February 10.
RBC Capital analyst Biraj Borkhataria on January 19 upgraded Exxon Mobil Corporation (NYSE:XOM) to Sector Perform from Underperform with a price target of $90, up from $70.
In the third quarter of 2021, 64 hedge funds reported owning stakes in Exxon Mobil Corporation (NYSE:XOM), worth $4.64 billion. GQG Partners is the largest stakeholder of the company, owning 26.5 million shares valued at $1.56 billion.
Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:
“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.”
2. Culp, Inc. (NYSE:CULP)
Dividend Yield as of January 26: 5.17%
Number of Hedge Fund Holders: 9
Beta Value: 1.05
Culp, Inc. (NYSE:CULP) is an American company supplying mattress and upholstery fabrics worldwide. Culp, Inc. (NYSE:CULP) has distribution and manufacturing facilities across the United States, Canada, and China, and the company is a global partner of leading home furnishing retailers and manufacturers.
On January 7, Culp, Inc. (NYSE:CULP) declared a $0.115 per share quarterly dividend, which reflects a 4.5% increase from the prior dividend of $0.110. The dividend was paid on January 19, to shareholders of record on January 11. Culp, Inc. (NYSE:CULP) delivers a dividend yield of 5.17% as of January 26.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 9 funds reported owning stakes in Culp, Inc. (NYSE:CULP), totaling $25.2 million. Renaissance Technologies is the biggest Culp, Inc. (NYSE:CULP) stakeholder, with 848,517 shares worth approximately $11 million.
1. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Dividend Yield as of January 26: 6.7%
Number of Hedge Fund Holders: 23
Beta Value: 1.44
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a multinational state-owned oil and gas corporation based in Brazil, supplying a product portfolio that includes petroleum, petroleum products, natural gas, lubricant, petrochemicals, fertilizers, and biofuels. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) offers a dividend yield of 15% and a beta value of 1.44 as of January 26.
On August 16, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) declared a $0.616 per share dividend, which was paid on September 1. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) stock has returned almost 32% in the last 12 months.
Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) on December 15 to Buy from Neutral with a $14.20 price target. The analyst said he now sees a better risk/reward for Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) despite the existing risks of a change in the fuel pricing policy and capital allocation strategy going into the 2022 presidential election in Brazil.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 23 funds were long Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), with collective stakes exceeding $3 billion. Fisher Asset Management is one of the largest Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) stakeholders, with 43.7 million shares worth $452.8 million.
You can also take a look at Warren Buffett’s Performance in 2021: 10 Best Stock Picks and 10 ESG Dividend Stocks to Buy.
