In this article, we discuss the 10 high-yield dividend stocks to buy according to Ken Fisher.
Ken Fisher is the chief of Fisher Asset Management, a Washington-based hedge fund with a portfolio value of more than $159 billion at the end of June 2021. Fisher is one of the wealthiest individuals in the world with a personal net worth of over $6 billion, ranking 502 on the list of billionaires in the world maintained by news platform Forbes. The ascent to wealth for Fisher has been nothing short of extraordinary. From a fruit seller in a small California town to high school dropout, his story is a true “rags-to-riches” tale of legends.
Over the years, Fisher has made a name for himself on Wall Street by pioneering an investment strategy that carefully balances growth and dividend stocks. This has paid off handsomely for Fisher. During the second quarter of this year, the portfolio value of his hedge fund jumped by more than $18 billion.
Investors eager to replicate the success of Fisher at the stock market should check out his top picks in the dividend sector, especially as inflation fears are increasing uncertainty around growth stocks. Some of the top high-yield dividend stocks in the investment portfolio of Fisher Asset Management at the end of the second quarter of 2021 were Intel Corporation (NASDAQ:INTC), JPMorgan Chase & Co. (NYSE:JPM), and Cisco Systems, Inc. (NASDAQ:CSCO), among others discussed in detail below.
Our Methodology
With this context in mind, here is our list of the 10 high-yield dividend stocks to buy according to Ken Fisher. These were picked from the investment portfolio of Fisher Asset Management at the end of the second quarter of 2021. Only those companies that have a dividend yield of 2% or more were selected.
The list is compiled according to the value of each holding in the portfolio of Fisher Asset Management. The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? 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 more than 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.
High-Yield Dividend Stocks to Buy According to Ken Fisher
10. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 12
Forward Dividend Yield: 2.53%
As investments in electric vehicles increase, Toyota Motor Corporation (NYSE:TM) has taken a giant step towards embracing the future by announcing that it will make a $3.4 billion investment into EV battery manufacturing in the US through 2030. The amount represents a part of the $13.5 billion the company has set aside for EV battery development globally. Morgan Stanley analyst Shinji Kakiuchi has an Overweight rating on the stock with a 2,300 yen price target.
According to 13F filings, Fisher Asset Management owned 4.6 million shares in Toyota Motor Corporation (NYSE:TM) worth over $810 million at the end of the second quarter of 2021, representing 0.50% of the portfolio of the fund.
At the end of the second quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $903 million in Toyota Motor Corporation (NYSE:TM), down from 18 the preceding quarter worth $824 million.
Just like Intel Corporation (NASDAQ:INTC), JPMorgan Chase & Co. (NYSE:JPM), and Cisco Systems, Inc. (NASDAQ:CSCO), Toyota Motor Corporation (NYSE:TM) is one of the dividend stocks attracting the attention of hedge funds.
9. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 27
Forward Dividend Yield: 18.51%
Vale S.A. (NYSE:VALE) is one of the mining stocks that have benefited from the ongoing crackdown against miners in China, pushing the prices of metals like iron very high in the market. Exane BNP Paribas recently upgraded the stock to Neutral from Underperform with a price target of $15.80. In late September, the company had declared a quarterly dividend of $1.542 per share, in line with previous, continuing an impressive dividend history.
According to the latest data, Fisher Asset Management owned 36 million shares in Vale S.A. (NYSE:VALE) at the end of June 2021 worth more than $837 million, representing 0.52% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Vale S.A. (NYSE:VALE) with 43 million shares worth more than $998 million.
In addition to Intel Corporation (NASDAQ:INTC), JPMorgan Chase & Co. (NYSE:JPM), and Cisco Systems, Inc. (NASDAQ:CSCO), Vale S.A. (NYSE:VALE) is one of the dividend stocks on the radar of institutional investors.
8. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 69
Forward Dividend Yield: 2.76%
Morgan Stanley (NYSE:MS) is one of the large-cap banks that have recently earned upgrades from several investment advisors. Citi, BMO Capital, and Piper Sandler have all raised price targets on the stock this month. Last week, the company beat market expectations on earnings per share and revenue by $0.36 and $800 million respectively. The solid earnings beat was driven by investment banking and new acquisitions.
Securities filings reveal that Fisher Asset Management owned 9.7 million shares in Morgan Stanley (NYSE:MS) at the end of the second quarter of 2021 worth over $893 million, representing 0.56% of the portfolio of the fund.
At the end of the second quarter of 2021, 69 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Morgan Stanley (NYSE:MS), down from 79 in the preceding quarter worth $5.2 billion.
Along with Intel Corporation (NASDAQ:INTC), JPMorgan Chase & Co. (NYSE:JPM), and Cisco Systems, Inc. (NASDAQ:CSCO), Morgan Stanley (NYSE:MS) is one of the dividend stocks that hedge funds are buying.
In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Morgan Stanley (NYSE:MS) was one of them. Here is what the fund said:
“Top three contributor Morgan Stanley, a leading global financial services company, came into the portfolio in Q4 as a result of its purchase of E*TRADE. E*TRADE is a great fit on Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked Morgan Stanley’s business by adding less volatile fee streams and deemphasizing the risk-obtuse culture of prior management. We believe the market will come to appreciate this mix shift over time.”
7. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 22
Forward Dividend Yield: 3.89%
Novartis AG (NYSE:NVS) makes and sells healthcare products across the world. The company is one of the largest holdings of Fisher. This isn’t surprising since the fundamentals of the firm make for good reading for investors. In the second quarter results, the firm beat market predictions on earnings per share by $0.17. The revenue over the period was $12.9 billion, up 14% year-on-year and beating market estimates by $550 million.
Regulatory filings show that Fisher Asset Management owned more than 9.9 million in Novartis AG (NYSE:NVS) at the end of June 2021 worth $908 million, representing 0.57% of the portfolio of the fund.
At the end of the second quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $1.78 billion in Novartis AG (NYSE:NVS), up from 19 the preceding quarter worth $1.70 billion.
Intel Corporation (NASDAQ:INTC), JPMorgan Chase & Co. (NYSE:JPM), and Cisco Systems, Inc. (NASDAQ:CSCO) are some of the top dividend stocks to buy now, just like Novartis AG (NYSE:NVS).
In its Q4 2020 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Novartis AG (NYSE:NVS) was one of them. Here is what the fund said:
“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”
6. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 16
Forward Dividend Yield: 4.02%
Sanofi (NASDAQ:SNY) is another healthcare stock that is one of the most high-yield dividend picks in the Fisher portfolio. JPMorgan and SVB Leerink are both bullish on the stock. JPMorgan analyst Richard Vosser recently raised the price target on the stock to EUR105 from EUR100 with an Overweight rating. SVB Leerink analyst Geoffrey Porges had earlier upgraded the stock to Outperform from Market Perform with a price target of EUR122.
Fisher Asset Management owned more than 17.8 million shares in Sanofi (NASDAQ:SNY) at the end of the second quarter of 2021 worth over $941 million, representing 0.59% of the portfolio of the fund.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Sanofi (NASDAQ:SNY), up from 15 the preceding quarter worth $1.1 billion.
Intel Corporation (NASDAQ:INTC), JPMorgan Chase & Co. (NYSE:JPM), and Cisco Systems, Inc. (NASDAQ:CSCO) are some of the elite dividend stocks to buy now, in addition to Sanofi (NASDAQ:SNY).
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Sanofi (NASDAQ:SNY) was one of them. Here is what the fund said:
“Top detractors in Q4 included Sanofi. This defensive security was out of favor as vaccine distribution started in earnest and the market shifted focus to a post-COVID world. Sanofi performed about in line with other global pharmaceuticals companies. We believe Sanofi’s management team will have success improving the pipeline and managing costs through restructuring. For perspective, Swedish Match was down ~4% in the quarter but provided a 54% total return for 2020.”
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 108
Forward Dividend Yield: 2.40%
JPMorgan Chase & Co. (NYSE:JPM) stock has returned more than 67% to investors over the course of the past twelve months. On October 13, the firm reported earnings for the third quarter, posting earnings per share of $3.74, beating market estimates by $0.74. The revenue over the period was $29 billion, in line with market expectations. Barclays, Credit Suisse, and Jefferies are all bullish on the stock.
According to 13F filings, Fisher Asset Management owned over 6.9 million shares in JPMorgan Chase & Co. (NYSE:JPM) at the end of June 2021 worth $1 billion, representing 0.67% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in JPMorgan Chase & Co. (NYSE:JPM) with 2.9 million shares worth more than $456 million.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
4. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 21
Forward Dividend Yield: 9.73%
Rio Tinto Group (NYSE:RIO) is a diversified metals and mining company. It is placed fourth on our list of the top high-yield dividend picks of Ken Fisher. Some of the materials the company has interests in include aluminum, copper, diamonds, gold, iron ore, and uranium, among others. The firm beat market expectations on earnings per share and revenue in the first half of the year.
According to the latest data, Fisher Asset Management owned more than 12.9 million shares in Rio Tinto Group (NYSE:RIO) at the end of the second quarter of 2021 worth $1 billion, representing 0.68% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Rio Tinto Group (NYSE:RIO) with 1.8 million shares worth more than $156 million.
3. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 37
Forward Dividend Yield: 2.32%
UBS analyst Michael Leuchten recently raised the price target on AstraZeneca PLC (NASDAQ:AZN) stock to GBP10,000 from GBP9,200 with a Buy rating on the shares. Stifel and Deutsche Bank are also bullish on the firm. The company was one of the first to come up with a COVID-19 vaccine – the stock has soared by 20% year-to-date. The company has a market cap of over $185 billion and posted over $26 billion in revenue last year.
Securities filings show that Fisher Asset Management owned over 18.8 million shares in AstraZeneca PLC (NASDAQ:AZN) at the end of June 2021 worth $1.1 billion, representing 0.70% of the portfolio of the fund.
At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in AstraZeneca PLC (NASDAQ:AZN), up from 34 in the previous quarter worth $2.6 billion.
In its Q4 2020 investor letter, Baron Health Care Fund, an asset management firm, highlighted a few stocks and AstraZeneca PLC (NASDAQ:AZN) was one of them. Here is what the fund said:
“AstraZeneca PLC is a multinational pharmaceutical company developing drugs across multiple therapeutic areas such as oncology and respiratory diseases. Shares were impacted by news of AstraZeneca’s joint development with Oxford University of a viral-based COVID-19 vaccine. Given a mixed data set due to an unforeseen error in dosing that occurred in the Brazilian market, the vaccine timelines slipped, hurting share performance. Our investment thesis on AstraZeneca is not dependent on COVID-19 but rather its best-in-class large-cap growth profile, and we retain conviction.”
2. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 60
Forward Dividend Yield: 2.68%
Cisco Systems, Inc. (NASDAQ:CSCO) recently declared a quarterly dividend of $0.37 per share, in line with previous. The company, a communications equipment manufacturer, was one of the most valuable companies in the world until tech giants like Apple and Google overtook almost every other tech stock on the market. The firm expects to grow revenue by 7% in the next four years as it attempts to jump back into mainstream relevance.
Regulatory filings reveal that Fisher Asset Management owned over 22 million shares in Cisco Systems, Inc. (NASDAQ:CSCO) worth more than $1.1 billion at the end of the second quarter of 2021, representing 0.74% of the portfolio of the fund.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Cisco Systems, Inc. (NASDAQ:CSCO), up from 59 in the previous quarter worth $5.1 billion.
1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 78
Forward Dividend Yield: 2.55%
Intel Corporation (NASDAQ:INTC) is one of the surprise inclusion on our high-yield dividend stock list of Fisher. The company, traditionally considered a growth stock, also hands out regular and healthy dividend payments. Morgan Stanley analyst Joseph Moore recently maintained an Overweight rating on the stock with a price target of $67.
Fisher Asset Management owned more than 31 million shares in Intel Corporation (NASDAQ:INTC) worth $1.7 billion at the end of June 2021, representing 1.1% of the portfolio of the fund.
At the end of the second quarter of 2021, 78 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in Intel Corporation (NASDAQ:INTC), down from 83 in the previous quarter worth $7.6 billion.
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.
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Disclosure. None. 10 High-Yield Dividend Stocks to Buy According to Ken Fisher is originally published on Insider Monkey.
