In this article, we will take a look at billionaire Mario Gabelli’s 11 high dividend stock picks.
Billionaire investor, financial analyst, and investment advisor Mario Gabelli is the founder, chairman, and chief executive officer of the New York-based investment firm, GAMCO Investors.
According to the recent 13F Holdings, GAMCO Investors, as an investment management fund, manages more than $11.79 billion in its investment portfolio. The fund’s portfolio branches out to 13 primary segments, with the Industrials segment being the largest, making up 14.6% of the fund’s total portfolio value. A majority of the companies in the fund’s portfolio are considered to be large-cap stocks, with stocks scaling up to sizes of more than $10 billion in market cap making up 19% of the total investment value.
Some of the most notable stocks present in the investment portfolio of GAMCO Investors at the end of the second quarter of 2021 include JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT), among others.
Mario Gabelli of GAMCO Investors
Our Methodology
With this background in mind, let us now look towards the 11 high dividend stocks picked by billionaire Mario Gabelli. We made use of GAMCO Investors’ 13F portfolio for the second quarter for this analysis.
Why should we pay attention to Mario Gabelli’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
11 High Dividend Stocks Picked by Billionaire Gabelli
11. 3M Company (NYSE:MMM)
GAMCO Investors’ Stake Value: $1.3 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 42
Dividend Yield: 3.25%
3M Company (NYSE:MMM) is a multinational conglomerate based in Minnesota. The company operates through its four business sectors: Industry, Healthcare, Electrics and Consumer goods. The company has a market capitalization of $105.03 billion, and ranks eleventh on our list of the 11 high dividend stocks picked by billionaire Mario Gabelli.
In its second-quarter earnings report of 2021, 3M Company (NYSE:MMM) declared an EPS of $2.59, beating estimates by $0.30. The company’s revenue was $8.95 billion, an increase of 24.72% on a year-over-year basis, surpassing market estimates by $371.42 million.
Langenberg analyst Brian Langenberg upgraded 3M Company (NYSE:MMM) to Buy from Hold with an unchanged price target of $210.
Much like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT), 3M Company (NYSE:MMM) is a notable stock in Mario Gabelli’s portfolio.
10. Vornado Realty Trust (NYSE:VNO)
GAMCO Investors’ Stake Value: $1.85 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 29
Dividend Yield: 4.70%
Vornado Realty Trust (NYSE:VNO) is a New York-based real estate investment trust (REIT) that invests in office buildings and street retail in Manhattan.
Mario Gabelli’s GAMCO Investors owns 40,391 shares in Vornado Realty Trust (NYSE:VNO), valued at $1.85 million, making up 0.01% of Gabelli’s 13F portfolio. By the end of the second quarter of 2021, 29 hedge funds out of the 873 tracked by Insider Monkey held stakes in Vornado Realty Trust (NYSE:VNO) worth roughly $213.6 million. This is compared to 25 hedge funds in the preceding quarter with a total stake value of about $216 million.
On September 24, BofA analyst James Feldman upgraded the stock from Underperform to Neutral, noting that despite the company’s balance of risk and rewards, the decreasing rents in New York and elevated sublease space are still creating headwinds.
Baron Funds mentioned Vornado Realty Trust (NYSE:VNO) in its Q2 2021 investor letter. Here is what they said:
“Vornado Realty Trust: Vornado is a REIT that owns a high-quality portfolio of office and street retail assets concentrated in New York City. As economic activity improves and employees return to work, we expect leasing and occupancy trends to improve. At its recent price of $47, we believe the shares are attractively valued at a 40% discount to our estimate of net asset value of $78 per share.”
9. AbbVie Inc. (NYSE:ABBV)
GAMCO Investors’ Stake Value: $2.4 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 82
Dividend Yield: 4.79%
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company, which engages in the development and sale of pharmaceutical products across the globe.
Of the 873 elite funds tracked by Insider Monkey, 82 were long in AbbVie Inc. (NYSE:ABBV) at the end of June, up from 72 in the first quarter of 2021. Mario Gabelli holds over 21,630 shares of the company, amounting to more than $2.4 million, representing 0.02% of the fund’s portfolio value.
On September 8, JPMorgan analyst Chris Schott keeps an Overweight rating on the shares of AbbVie Inc. (NYSE:ABBV) alongside a $140 price target.
In addition to JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT), AbbVie Inc. (NYSE:ABBV) is a prominent stock in the investment portfolio of GAMCO Investors.
8. Walgreens Boots Alliance, Inc. (NYSE:WBA)
GAMCO Investors’ Stake Value: $3.1 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 41
Dividend Yield: 4.81%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a holding company that owns and operates the retail pharmacy chains, Walgreens and Boots, among other pharmaceutical manufacturing companies. Ranked eighth on our list of the 11 high dividend stocks picked by billionaire Mario Gabelli, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has a market capitalization of $40.92 billion.
On October 15, Truist analyst David MacDonald raised his price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $56 from $52, and kept a Hold rating on the shares.
Mario Gabelli’s hedge fund holds over 59,109 shares of the company, worth roughly $3.1 million, and accounting for 0.02% of the fund’s portfolio.
7. Chevron Corporation (NYSE:CVX)
GAMCO Investors’ Stake Value: $3.58 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 50
Dividend Yield: 4.88%
Chevron Corporation (NYSE: CVX) is an energy company exploring, developing, and producing crude oil and natural gas. It ranks seventh on our list of the 11 high dividend stocks picked by billionaire Mario Gabelli.
On October 7, Truist analyst Neal Dingmann raised the price target on Chevron Corporation (NYSE:CVX) to $150 from $145, and kept a Buy rating on the shares of the company. Shares of the company rose by 2.3% following the rise in the prices of Brent crude oil.
In the second quarter of 2021, Chevron Corporation (NYSE: CVX) had an EPS of $1.71, beating estimates by $0.11. The company’s revenue was $37.60 billion, up 178.62% year over year and beating estimates by $1.15 billion.
By the end of the second quarter of 2021, 50 hedge funds out of the 873 tracked by Insider Monkey held stakes in Chevron Corporation (NYSE: CVX) worth roughly $4.3 billion. This is compared to 41 hedge funds in the previous quarter with a total stake value of approximately $4.9 billion.
6. Exxon Mobil Corporation (NASDAQ:XOM)
GAMCO Investors’ Stake Value: $3.6 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 68
Dividend Yield: 5.55%
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest multinational oil and gas company that manufactures and transports crude oil, natural gas and petroleum products. The Texas-based company ranks sixth on the list of the 11 high dividend stocks picked by billionaire Mario Gabelli.
On October 7, Truist analyst Neal Dingmann raised his price target on Exxon Mobil Corporation (NYSE:XOM) to $66 from $64, and kept a Hold rating on the shares.
Mario Gabelli’s GAMCO Investors owns 58,155 shares in Exxon Mobil Corporation (NYSE:XOM), valued at $3.6 million, making up 0.03% of Gabelli’s 13F portfolio.
5. International Business Machines Corporation (NASDAQ:IBM)
GAMCO Investors’ Stake Value: $4.3 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 41
Dividend Yield: 4.59%
International Business Machines Corporation (NYSE:IBM) is a multinational technology company that produces, manufactures and sells computer hardware and software, as well as electronic components. The company also offers integrated solutions and services to its customers. The IT company ranks fifth on our list of the 11 high dividend stocks picked by billionaire Mario Gabelli.
In the second quarter of 2021, International Business Machines Corporation (NYSE: IBM) reported an EPS of $2.33, beating market estimates by $0.04. The company’s revenue for the quarter was $18.75 billion, surpassing estimates by $447.5 million.
According to the recent 13F Filings, GAMCO Investors holds over 29,980 shares of International Business Machines Corporation (NYSE:IBM), amounting to more than $4.3 million in worth. These shares account for 0.03% of the fund’s total portfolio value. By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in International Business Machines Corporation (NYSE:IBM) worth roughly $1.4 billion. The number of hedge funds that held stakes in the company remained the same for both the first and second quarters of 2021.
On October 5, Credit Suisse analyst Matthew Cabral raised his price target on International Business Machines Corporation (NYSE:IBM) to $176 from $167 and kept an Outperform rating on the shares.
4. The Kraft Heinz Company (NASDAQ:KHC)
GAMCO Investors’ Stake Value: $4.57 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 33
Dividend Yield: 4.32%
The Kraft Heinz Company (NASDAQ:KHC), more commonly known simply as Kraft Heinz, is one of the world’s leading food and beverage companies. The Illinoi-based company ranks fourth on our list of the 11 high dividend stocks picked by billionaire Mario Gabelli.
By the end of the second quarter of 2021, 33 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Kraft Heinz Company (NASDAQ:KHC) worth roughly $13.57 billion. The number of hedge funds that held stakes within the company remained the same for the first and second quarter of 2021.
Mario Gabelli’s GAMCO Investors owns 112,233 shares in The Kraft Heinz Company (NASDAQ:KHC), valued at $4.57 million, making up 0.03% of the fund’s 13F portfolio.
On September 21, Morgan Stanley analyst Pamela Kaufman initiated coverage of The Kraft Heinz Company (NASDAQ:KHC) with an Equal Weight rating alongside a price target of $37 on its shares.
3. Verizon Communications Inc. (NYSE:VZ)
GAMCO Investors’ Stake Value: $9.85 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 63
Dividend Yield: 4.93%
On September 20, Loop Capital analyst Stephan Bisson initiated coverage of Verizon Communications Inc. (NYSE:VZ) with a Hold rating and $57 price on its shares.
Mario Gabelli of GAMCO Investors holds over 175,710 shares of Verizon Communications Inc. (NYSE:VZ) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 63 funds were bullish on Verizon Communications Inc. (NYSE:VZ) by the end of the June quarter, compared to 69 in the previous quarter.
2. AT&T Inc. (NYSE:T)
GAMCO Investors’ Stake Value: $30.8 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 68
Dividend Yield: 8.20%
On October 7, MoffettNathanson analyst Craig Moffett upgraded AT&T Inc (NYSE:T) to Neutral from Sell, with a price target of $28, up from $23.
Mario Gabelli’s hedge fund owns over 1 million shares of AT&T Inc. (NYSE:T), worth more than $30.8 million and representing 0.26% of his fund’s investment portfolio. By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in AT&T Inc. (NYSE: T) worth roughly $2.9 billion.
1. Newmont Corporation (NYSE:NEM)
GAMCO Investors’ Stake Value: $39.5 million
Percentage of GAMCO Investors’ 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 55
Dividend Yield: 3.87%
Newmont Corporation (NYSE:NEM) is a Colorado-based materials company involved in the production and exploration of precious metals and minerals, including gold, silver and zinc, among others. The company ranks second on our list of the 11 best dividend aristocrats with over 3% yield.
This September, KeyBanc analyst Adam Josephson initiated coverage of Newmont Corporation (NYSE:NEM) with a Sector Weight rating on its shares.
You can also take a look at 10 Best Undervalued Stocks to Buy Now According to Reddit and 10 Best Undervalued Dividend Stocks to Buy Now.
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Disclosure: None. 11 High Dividend Stocks Picked By Billionaire Gabelli is originally published on Insider Monkey.
