Billionaire Seth Klarman’s Top 9 Dividend Stock Picks

Published on November 15, 2022 at 2:54 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss top 9 dividend stocks to buy according to billionaire Seth Klarman. You can skip our detailed analysis of Klarman’s investment strategy and overall performance of Baupost Group, and go directly to read Billionaire Seth Klarman’s Top 5 Dividend Stock Picks.

Seth Klarman is one of Wall Street’s highly influential investors. His hedge fund Baupost Group is widely known for delivering an annual average return of 15% in the past four decades while reporting only four years of losses during this time, as reported by Business Insider. Just like Warren Buffett, Klarman also follows value investing philosophy and believes that value investing requires patience, skill, and discipline. In addition to this, he also advises investors to focus on risks before returns and the relative performance of the stock. As someone who picked his first stock at the age of ten, Klarman’s decades of experience and skill culminated in the phenomenal performance of his fund. As of November 2022, the billionaire has a real-time net worth of $1.5 billion, according to Forbes.

In one of his interviews with Business Insider this October, Klarman mentioned that value investing mainly involves realizing a company’s worth and not its overall returns. He further mentioned that investors today are drawn to new investing ideas and assets, but the main focus should be on the long-term opportunities provided by these assets. In his interview with Harvard Business School in June, Klarman asserted that gold is one of the safest assets in the current market environment and investors should have gold assets in their portfolios.

As of the close of Q3 2022, Baupost Group held a 13F portfolio valued at roughly $5.8 billion, compared with $6.7 billion in the previous quarter. The hedge fund has major investments in the tech and services sectors, with finance and healthcare making up the smaller portions of the portfolio. Some of the fund’s most prominent holdings include Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), and Amazon.com, Inc. (NASDAQ:AMZN). However, we will discuss the fund’s top dividend stocks in this article.

Our Methodology:

For this list, we analyzed data from Baupost Group’s Q3 2022 13F portfolio. The stocks are ranked according to their stake value in the portfolio.

9. DigitalBridge Group, Inc. (NYSE:DBRG)

Baupost Group’s Stake Value: $41,154,000

Dividend Yield as of November 15: 0.27%

DigitalBridge Group, Inc. (NYSE:DBRG) is a Florida-based digital infrastructure investment firm. The company owns and invests in several businesses including data centers, small cells, fibers, and cell towers.

DigitalBridge Group, Inc. (NYSE:DBRG) is one of the latest acquisitions of Baupost Group as the hedge fund opened its position in the company in Q3. The firm bought roughly 3.3 million DBRG shares, worth over $41 million. The company represented 0.71% of billionaire Seth Klarman’s portfolio and is his important holding alongside Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), and Amazon.com, Inc. (NASDAQ:AMZN).

On September 14, DigitalBridge Group, Inc. (NYSE:DBRG) reinstated its quarterly dividends after suspending its payouts for over two years in recognition of the pandemic. It currently pays a quarterly dividend of $0.01 per share for a dividend yield of 0.27%, as of November 15.

In its recently-announced Q3 2022 results, DigitalBridge Group, Inc. (NYSE:DBRG) posted revenue of $296.6 million, which showed a 17.6% growth from the same period last year. At the end of September, the company had $636.3 million available in cash and cash equivalents, and its total assets amounted to over $11.7 billion.

In November, Raymond James maintained a Strong Buy rating on DigitalBridge Group, Inc. (NYSE:DBRG) with a $34 price target, highlighting the company’s focus on Digital Infrastructure assets that would continue to attract capital.

As of the close of Q2 2022, 26 hedge funds in Insider Monkey’s database owned stakes in DigitalBridge Group, Inc. (NYSE:DBRG), compared with 27 in the previous quarter. These stakes are collectively worth nearly $340 million.

Ave Maria mentioned DigitalBridge Group, Inc. (NYSE:DBRG) in its Q2 2022 investor letter. Here is what the firm has to say:

“DigitalBridge Group, Inc. (NYSE:DBRG) is a new holding. The company is an asset manager that invests, through private investment funds, in digital infrastructure assets such as data centers, cellular towers, small cells, fiber and edge installations. DigitalBridge could benefit from multiple tailwinds, including the proliferation of data, which needs infrastructure to transmit, process and store. We took advantage of the recent downward pressure on the stock price to add to the Fund’s position.”

8. Fidelity National Information Services, Inc. (NYSE:FIS)

Baupost Group’s Stake Value: $46,476,000

Dividend Yield as of November 15: 2.89%

Fidelity National Information Services, Inc. (NYSE:FIS) is an American multinational IT service management company that offers a wide range of financial products and services. The company currently pays a quarterly dividend of $0.47 per share, having raised it by 21% in January. This was the company’s second consecutive dividend growth after the pandemic. The stock’s dividend yield on November 15 came in at 2.89%.

Baupost Group opened its position in Fidelity National Information Services, Inc. (NYSE:FIS) in the most recent quarter, purchasing shares worth over $46.7 million. The company accounted for 0.8% of billionaire Seth Klarman’s portfolio.

In Q3 2022, Fidelity National Information Services, Inc. (NYSE:FIS) missed Street estimates on various fronts but the company’s revenue of $3.6 billion saw a 2.6% growth from the same period last year. During the quarter, the company remained committed to its shareholder obligation as it paid $1.3 billion in dividends and share repurchases.

Appreciating the company’s Q3 earnings, Barclays maintained an Overweight rating on Fidelity National Information Services, Inc. (NYSE:FIS) in November with a $90 price target.

Fidelity National Information Services, Inc. (NYSE:FIS) was a part of 67 hedge fund portfolios in Q2 2022, compared with 68 in the previous quarter. The stakes owned by these hedge funds are collectively valued at over $3.3 billion.

ClearBridge Investments mentioned Fidelity National Information Services, Inc. (NYSE:FIS) in its Q3 2022 investor letter. Here is what the firm has to say:

“We also sold out of payments and financial software maker Fidelity National Information Services, Inc. (NYSE:FIS), choosing to concentrate our digital payments exposure in PayPal (PYPL), which we believe has a more attractive risk/reward at these levels and more internal levers to generate returns. We bought FIS in 2019 for its mix of offense and defense with banking software and services as a stable business and payments that could keep up with fintech. The shares outperformed the benchmark up to the sale, illustrating the resiliency of the core business; however, FIS has underperformed higher-growth payment names.”

7. Gray Television, Inc. (NYSE:GTN)

Baupost Group’s Stake Value: $46,683,000

Dividend Yield as of November 15: 2.81%

Gray Television, Inc. (NYSE:GTN) is a Georgia-based television broadcasting company that operates over 180 stations across the country in 113 markets. In November, Barrington maintained an Outperform rating on the stock with a $15 price target, acknowledging the company’s performance and its fundamentals post-pandemic.

On November 4, Gray Television, Inc. (NYSE:GTN) declared a quarterly dividend of $0.08 per share, in line with its previous dividend. As of November 15, the stock has a dividend yield of 2.81%.

Baupost Group started investing in Gray Television, Inc. (NYSE:GTN) during the first quarter of 2022, with shares worth over $28.4 million. Over the quarters, the hedge fund has raised its stake in the company and currently owns shares worth over $46.6 million. The firm raised its stake in the company by 45% during Q3. The company made up 0.8% of billionaire Seth Klarman’s portfolio.

In the third quarter of 2022, Gray Television, Inc. (NYSE:GTN) reported revenue of $909 million, which showed a 51.2% growth from the same period last year. The company returned $124 million to shareholders during the quarter, $20 million of which represented dividend payments. At the end of the quarter, the company had $144 million available in cash.

Gray Television, Inc. (NYSE:GTN) experienced a positive hedge fund sentiment in Q2 2022, as 25 hedge funds in Insider Monkey’s database owned stakes in the company, up from 18 in the previous quarter. These stakes have a total value of $236.3 million.

6. Lithia Motors, Inc. (NYSE:LAD)

Baupost Group’s Stake Value: $53,638,000

Dividend Yield as of November 15: 0.68%

Lithia Motors, Inc. (NYSE:LAD) is an American automotive dealership that is also the third-largest new vehicle automotive dealership company in the US. The company currently has over 267 stores in 24 states across the country.

Lithia Motors, Inc. (NYSE:LAD) is one of the latest holdings of Baupost Group. The hedge fund opened its position in the company with 25,000 shares, worth over $53.6 million. The company made up 0.92% of billionaire Seth Klarman’s portfolio in Q3. It is another prominent holding of the hedge fund in Q3 in addition to Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), and Amazon.com, Inc. (NASDAQ:AMZN).

On October 19, Lithia Motors, Inc. (NYSE:LAD) declared a quarterly dividend of $0.42 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 11 years. As of November 15, the company’s shares boast a yield of 0.68%.

In October, Benchmark maintained a Buy rating on Lithia Motors, Inc. (NYSE:LAD) with a $300 price target. The firm believes that higher-margin service businesses will grow at a faster rate than the overall market.

At the end of Q2 2022, 40 hedge funds in Insider Monkey owned stakes in Lithia Motors, Inc. (NYSE:LAD), worth over $2 billion. In the previous quarter, 46 hedge funds owned positions in the company, with stakes valued at $2.5 billion.

Click to continue reading and see Billionaire Seth Klarman’s Top 5 Dividend Stock Picks.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up