9 Dividend Stocks to Buy According to Jacob Mitchell’s Antipodes Partners

In this article, we discuss 9 dividend stocks to buy according to Jacob Mitchell’s Antipodes Partners.

Jacob Mitchell founded Antipodes Partners in 2015 and is currently serving as the chief investment officer and lead portfolio manager of the firm. Before founding his own hedge fund, Mitchell honed his investment skills while working at Platinum Asset Management for 14 years. In addition to this, he also worked as head of technology and emerging industrial research at UBS Warburg Australia from 1996 to 2000.

Antipodes Partners is a pragmatic value hedge fund that specializes in global shares. The fund aims to grow on shareholders’ investment by meticulously observing relevant industries and business cycles. Additionally, it focuses on structural changes and macroeconomic forces that contribute to the companies’ performance in which the firm invests. The hedge fund follows a careful approach to building a high conviction portfolio, adding at least 30 stocks every quarter. Antipodes’ recent quarterly report shows that it managed to perform well even during uncertain economic conditions dominated by supply chain issues and interest rate hikes. Antipodes Global Fund gained 2% in the last three months, while its Asia Fund is up 5.8% during the same period.

At the end of Q1 2022, the hedge fund owned investments in various sectors, with the tech and basic material sectors dominating the portfolio. During the quarter, the hedge fund reduced its position in some of the major tech stocks such as Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) but boosted its stake in Twitter, Inc. (NYSE:TWTR) by 82%. The hedge fund’s 13F portfolio was valued at over $2.8 billion in Q1.

Photo by Vitaly Taranov on Unsplash

Our Methodology: 

The data for the list was compiled by using Antipodes Partners’ 13F portfolio as of Q1 2022.

9 Dividend Stocks to Buy According to Jacob Mitchell’s Antipodes Partners

9. Capital One Financial Corporation (NYSE:COF)

Dividend Yield as of August 8: 2.20%

Antipodes Partners’ Stake Value: $43,751,000

Capital One Financial Corporation (NYSE:COF) is an American bank holding company that deals in credit cards, banking, loans, and saving accounts. Antipodes Partners started building its position in the company during the fourth quarter of 2016, purchasing stakes worth over $23.8 million. In Q1 2022, the hedge fund slashed its position in the company by 42% and its total stake amounted to over $43.7 million. The company represented 1.55% of Jacob Mitchell’s portfolio.

Capital One Financial Corporation (NYSE:COF) trimmed its quarterly dividend in 2020 in face of the pandemic but the company’s payouts remained consistent during this time. It currently pays a quarterly dividend of $0.60 per share, with a yield of 2.20%, as of August 8.

In July, BMO Capital set a $173 price target on Capital One Financial Corporation (NYSE:COF) with an Outperform rating on the shares, highlighting the company’s valuation.

At the end of Q1 2022, 56 hedge funds in Insider Monkey’s database owned stakes in Capital One Financial Corporation (NYSE:COF), down from 58 a quarter earlier. These stakes are valued at over $3.54 billion. Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q1.

In addition to Amazon.com, Inc. (NASDAQ:AMZN), Twitter, Inc. (NYSE:TWTR), and Microsoft Corporation (NASDAQ:MSFT), Capital One Financial Corporation (NYSE:COF) is also one of the prominent holdings of Antipodes Partners in Q1.

Davis Funds mentioned Capital One Financial Corporation (NYSE:COF) in its Q4 2021 investor letter. Here is what the firm has to say:

“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.

Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Capital One Financial.”

8. Wells Fargo & Company (NYSE:WFC)

Dividend Yield as of August 8: 2.75%

Antipodes Partners’ Stake Value: $46,216,000

Wells Fargo & Company (NYSE:WFC) is a California-based multinational financial services company that provides banking and investment-related services to its consumers. The company has been making dividend payments to shareholders for over a decade now. On July 26, it declared a quarterly dividend of $0.30 per share, having raised it by 20%. As of August 8, the stock’s dividend yield came in at 2.75%.

Wells Fargo & Company (NYSE:WFC) was one of the recent holdings of Antipodes Partners. The hedge fund opened its position in the company with 953,703 shares, valued at over $46.2 million. The company accounted for 1.63% of Jacob Mitchell’s portfolio.

Following the company’s Q2 earnings, Barclays set a $58 price target on Wells Fargo & Company (NYSE:WFC) and maintained an Overweight rating on the shares.

As per Insider Monkey’s Q1 2022 data, 93 hedge funds owned stakes in Wells Fargo & Company (NYSE:WFC), down from 94 in the previous quarter. These stakes hold a collective value of over $6.8 billion.

7. Flowserve Corporation (NYSE:FLS)

Dividend Yield as of August 8: 2.34%

Antipodes Partners’ Stake Value: $47,147,000

Flowserve Corporation (NYSE:FLS) is a Texas-based multinational company that supplies industrial and environmental machinery. The company is the recent holding of Antipodes Partners, as the hedge fund initiated its position in the company with over 1.3 million shares. The fund’s FLS stake amounted to over $47 million, which represented 1.67% of Jacob Mitchell’s portfolio.

Flowserve Corporation (NYSE:FLS) reinstated its quarterly dividends in 2007 and has paid uninterrupted dividends since then. It pays a quarterly dividend of $0.20 per share, with a dividend yield of 2.34%, as of August 8.

On August 1, Citigroup raised its price target on Flowserve Corporation (NYSE:FLS) to $39 with a Buy rating on the shares, as the company manages the challenging environment better and is now positioned for good margin expansion in 2023.

At the end of Q1 2022, 21 hedge funds tracked by Insider Monkey owned stakes in Flowserve Corporation (NYSE:FLS), down from 23 in the previous quarter. The collective value of these stakes is over $277.5 million. With over 10.7 million shares, First Eagle Investment Management owned the largest stake in the company in Q1.

6. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Dividend Yield as of August 8: 4.82%

Antipodes Partners’ Stake Value: $105,657,000

An American pharmaceutical company, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has steadily boosted its dividends for 47 years consecutively. The company pays a quarterly dividend of $0.48 per share, with a yield of 4.82%, as of August 8.

Antipodes Partners started building its position in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) during the third quarter of 2020 with shares worth over $8 million. In Q1 2022, the hedge fund bought additional 118,885 WBA shares, which took its stake in the company to over $105.6 million. The company represented 3.75% of Jacob Mitchell’s portfolio.

In July, JPMorgan lowered its price target on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to $42 following the company’s fiscal Q3 results. The firm maintained a Neutral rating on the shares.

At the end of Q1 2022, 38 hedge funds tracked by Insider Monkey owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), down from 42 in the previous quarter. These stakes hold a combined value of over $736.8 million.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is down 25.7% year-to-date, just like famous tech stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Twitter, Inc. (NYSE:TWTR), and Microsoft Corporation (NASDAQ:MSFT) which have also lost their value in 2022 so far.

Miller Howard Investments mentioned Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter. Here is what the firm had to say:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”

5. The Coca-Cola Company (NYSE:KO)

Dividend Yield as of August 8: 2.79%
Antipodes Partners’ Stake Value: $105,727,000

The Coca-Cola Company (NYSE:KO) holds one of the strongest dividend growth track records, raising its payouts consistently for the past 60 years. The company pays a quarterly dividend of $0.44 per share, with a dividend yield of 2.79%, as of August 8.

Antipodes Partners opened its position in The Coca-Cola Company (NYSE:KO) during the third quarter of 2019, purchasing shares worth over $56.6 million. In Q1 2022, the hedge fund raised its position in the company by 2%, taking its total stake worth over $105.7 million. The company represented 3.74% of Jacob Mitchell’s portfolio.

In July, JPMorgan set a $70 price target on The Coca-Cola Company (NYSE:KO) with an Overweight rating on the shares, calling the stock one of the best defensive names in the sector.

Warren Buffett’s Berkshire Hathaway owned 400 million shares in The Coca-Cola Company (NYSE:KO), worth $24.8 billion, becoming the company’s leading stakeholder in Q1. Overall, 64 hedge funds in Insider Monkey’s database owned stakes in the Georgia-based company, with a total value of over $29 billion.

ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm had to say:

Based in Virginia, Northrop Grumman is one of the world’s largest defense contractors with annual revenue of more than $30 billion. The company operates in a cozy oligopoly, that after decades of consolidation the US defense market is now controlled by five large companies: The Boeing Company, General Dynamics Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation. (Click here to view the full text)

3. Oracle Corporation (NYSE:ORCL)

Dividend Yield as of August 8: 1.66%
Antipodes Partners’ Stake Value: $166,732,000

Oracle Corporation (NYSE:ORCL) is a Texas-based computer software company that specializes in cloud applications and cloud platform services. The company holds a 12-year track record of consistent dividend growth and has a 5-year dividend CAGR of 14.68%. It pays a quarterly dividend of $0.32 per share, with a dividend yield of 1.66%, as of August 8.

Oracle Corporation (NYSE:ORCL) has been a part of Antipodes Partners’ portfolio since the third quarter of 2017. In Q1 2022, the hedge fund owned over 2 million ORCL shares, increasing its position in the company by 37%. The firm owned a stake worth over $166.7 million in the company, which represented 5.91% of Jacob Mitchell’s portfolio.

At the end of Q1 2022, 61 hedge funds tracked by Insider Monkey owned stakes in Oracle Corporation (NYSE:ORCL), valued at over $4.3 billion. In the previous quarter, 57 hedge funds held positions in the company, with stakes valued at over $4 billion. Brandon Haley and Ken Fisher were some of the company’s prominent stakeholders in Q1.

Oakmark Funds mentioned Oracle Corporation (NYSE:ORCL) in its Q2 2022 investor letter. Here is what the firm has to say:

“The sell-off in the enterprise software sector, combined with the complexity related to the acquisition of Cerner, provided an opportunity for us to re-establish a position in Oracle (NASDAQ:ORCL). Oracle is one of the world’s largest and most profitable software companies-generating more than $42 billion in revenue and 40% operating margins. We have always admired the stability of Oracle’s business and the strength of its customer relationships. Now, the company’s organic growth is beginning to accelerate. Specifically, total revenue grew 7% in fiscal year 2022 and 10% in the fourth fiscal quarter. In addition, management believes that Cerner’s growth and margins can be higher under Oracle’s ownership than it could on a standalone basis. Finally, we commend Oracle’s repurchase of roughly half its share base over the past decade, which has nearly doubled each remaining share’s interest in the business. Trading for only 12x calendar 2023 earnings ex-cash, we believe Oracle’s risk/reward is attractive.”

2. Merck & Co., Inc. (NYSE:MRK)

Dividend Yield as of August 8: 3.13%
Antipodes Partners’ Stake Value: $179,496,000

Antipodes Partners opened its position in Merck & Co., Inc. (NYSE:MRK) during the second quarter of 2019, with shares worth over $122.8 million. In Q1 2022, the hedge fund raised its position in the pharmaceutical company by 12%, owning over 2 million shares, with a total value of roughly $180 million. The company represented 6.36% of Jacob Mitchell’s portfolio.

Merck & Co., Inc. (NYSE:MRK) has raised its dividends 11 years in a row, with a 5-year dividend CAGR of 8.81%. The company pays a quarterly dividend of $0.69 per share, with a dividend yield of 3.13%, as of August 8.

In July, Barclays lifted its price target on Merck & Co., Inc. (NYSE:MRK) to $101 with an Overweight rating on the shares, appreciating the company’s Q2 earnings beat.

The number of hedge funds tracked by Insider Monkey owning stakes in Merck & Co., Inc. (NYSE:MRK) grew to 84 in Q1 2022, from 80 in the previous quarter. The collective value of these stakes stood at over $5.8 billion.

Sound Shore Fund mentioned Merck & Co., Inc. (NYSE:MRK) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:

“On the positive side, a number of our health care names outperformed, including drug maker Merck & Co. Benefitting from a best in class research and development team, Merck’s progress is being fueled by the impressive growth of its immunooncology cancer drug, Keytruda. The stock remains attractive at less than 12 times 2023 earnings.”

1. EQT Corporation (NYSE:EQT)

Dividend Yield as of August 8: 1.43%
Antipodes Partners’ Stake Value: $193,069,000

An American energy company, EQT Corporation (NYSE:EQT) was the largest holding of Antipodes Partners in Q1 2022. The hedge fund owned over 5.6 million shares in the company, raising its position by 3%. These shares are valued at over $193 million. The company represented 6.84% of Jacob Mitchell’s portfolio.

On July 20, EQT Corporation (NYSE:EQT) declared a quarterly dividend of $0.15 per share, raising it by 20%. The company temporarily ceased its payouts in 2021 to repay its debt but reinstated dividends in March 2022. As of August 8, the stock’s dividend yield stood at 1.43%.

In July, Scotiabank assumed its coverage of EQT Corporation (NYSE:EQT) with an Outperform rating and a $54 price target, highlighting the company’s efficient capital allocation.

Dan Loeb’s Third Point owned nearly 9 million shares in EQT Corporation (NYSE:EQT), becoming the company’s largest stakeholder in Q1 2022. Overall, 52 hedge funds in Insider Monkey’s database owned stakes in the Pennsylvania-based company in Q1, with a total value of over $2.1 billion.

ClearBridge Investments mentioned EQT Corporation (NYSE:EQT) in its Q1 2022 investor letter. Here is what the firm has to say:

“In the early days of the invasion, we made two measured changes to the portfolio based on longer-term fallout we anticipate from Russia’s invasion of Ukraine. First, we initiated small positions in U.S. natural gas producer EQT (NYSE:EQT).

Given its superior environmental profile compared to other fossil fuels, we have long favored natural gas in our energy holdings. Combustion of natural gas releases 50% less CO2 than coal, 25% less CO2 than gasoline and dramatically less particulate and pollution, per the U.S. Energy Information Administration. With the advances in shale production this century, the U.S. has become a natural gas powerhouse with some of the lowest-cost and largest reserves in the world. But because natural gas is difficult to ship across the ocean (it must be liquefied, which requires expensive infrastructure on both ends of the voyage), America’s gas bounty has ironically proved a burden for U.S. producers. (Click here to see the full text)

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Disclosure. None. 10 Dividend Stocks to Buy According to Jacob Mitchell’s Antipodes Partners is originally published on Insider Monkey.