In this article, we will take a look at the Billionaire Steven Cohen’s Top 5 Dividend Stock Picks. For deeper discussion and analysis, read Billionaire Steven Cohen’s Top 11 Dividend Stock Picks.
Steven Cohen of Point72 Asset Management
5. Bank of America Corporation (NYSE:BAC)
Point72 Asset Management’s Stake Value: $179,771,914
Dividend Yield as of June 26: 1.94%
On June 26, Truist raised its price recommendation on Bank of America Corporation (NYSE:BAC) to $64 from $61. It reiterated a Buy rating on the shares. The update came as part of a broader research note covering universal and regional banks. Analyst John McDonald said the bank’s first sales and trading guidance for the quarter was raised to “better than” 15% year over year in early June, supported by strong equity market performance, particularly in the Asia-Pacific region. He added that the same strength is also contributing to higher expenses during the quarter.
A few days earlier, on June 23, Citi increased its price goal on BAC to $66 from $62. It kept a Buy rating on the stock as part of its second-quarter preview. The firm said Bank of America’s commentary at recent investor conferences has been constructive and believes stronger banking and trading results could drive upside to second-quarter estimates.
Bank of America Corporation (NYSE:BAC) is a bank holding company and a financial holding company. Its business segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
4. Micron Technology, Inc. (NASDAQ:MU)
Point72 Asset Management’s Stake Value: $191,743,457
Dividend Yield as of June 26: 0.053%
On June 25, Deutsche Bank raised its price recommendation on Micron Technology, Inc. (NASDAQ:MU) to $1,550 from $1,500. It reiterated a Buy rating on the shares. In a research note, the analyst said the company’s latest earnings report “cleared a high bar, both financially and strategically.” Deutsche described the quarter as “stunning,” pointing to favorable pricing dynamics that pushed revenue and gross margins to “extraordinary levels.” Following the results, the firm also raised its estimates for Micron.
The same day, DA Davidson increased its price goal on MU to $2,000 from $1,500. It kept a Buy rating on the stock after the company’s third-quarter earnings beat. The firm said Micron has entered a period where it offers some of the best visibility in the semiconductor industry, a sharp contrast to its historical position in the sector. The analyst added that another blowout quarter, along with positive forward-looking commentary, suggests the memory cycle is far from over.
Micron Technology, Inc. (NASDAQ:MU) develops memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products under its Micron and Crucial brands.
3. Entergy Corporation (NYSE:ETR)
Point72 Asset Management’s Stake Value: $197,460,565
Dividend Yield as of June 26: 2.21%
On June 10, BTIG lowered its price recommendation on Entergy Corporation (NYSE:ETR) to $126 from $131. It reiterated a Buy rating on the shares. The firm said Entergy used its Investor Day to make a strong case for what it sees as best-in-class growth potential that could remain sustainable well into the next decade. The analyst noted that the company’s near-term financial outlook was largely unchanged. The new 2030 capital and financing plan, along with its earnings-per-share guidance, was broadly in line with consensus expectations. Even so, BTIG said the event provided meaningful detail on the company’s execution plans and potential upside opportunities.
Also on June 10, BMO Capital lowered its price goal on ETR to $123 from $127. It maintained an Outperform rating on the stock. The firm said that after the “meaningful” update provided during the first-quarter earnings call following Meta’s latest announcement, investors were not expecting many additional disclosures. The analyst added that management’s earnings-per-share outlook for 2026 through 2029 remained unchanged.
Entergy Corporation (NYSE:ETR) is an integrated energy company focused primarily on electric power generation and retail electricity distribution. The company operates mainly through its Utility segment.
2. Ross Stores, Inc. (NASDAQ:ROST)
Point72 Asset Management’s Stake Value: $237,888,552
Dividend Yield as of June 26: 0.83%
On June 23, Wells Fargo downgraded Ross Stores, Inc. (NASDAQ:ROST) to Equal Weight from Overweight. It kept its price target unchanged at $245. The firm said the downgrade was based on valuation following the stock’s strong re-rating. The analyst noted that Ross’ execution “has been essentially flawless,” but believes risks tied to its lower-income customer base, tougher year-over-year comparisons, and rising inventory levels justify a more cautious stance. Wells Fargo added that the “easy money” in the stock has already been made.
Earlier, on May 26, Barclays raised its price recommendation on ROST to $260 from $242. It reiterated an Overweight rating on the shares. The firm said the company’s first-quarter comparable sales growth of 17% comfortably exceeded the consensus estimate of 8.6%. The analyst added that Ross’ “compelling” merchandise assortment and marketing efforts helped attract new customers, while its higher fiscal 2026 outlook still appears conservative.
Ross Stores, Inc. (NASDAQ:ROST) operates two off-price retail chains: Ross Dress for Less and dd’s DISCOUNTS. The company sells apparel and home fashion products through both brands.
1. Applied Materials, Inc. (NASDAQ:AMAT)
Point72 Asset Management’s Stake Value: $586,895,128
Dividend Yield as of June 26: 0.34%
On June 26, Wells Fargo raised its price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $740 from $715. It reiterated an Overweight rating on the shares. The firm said the company’s Memory & AP Master Class reinforced its positive view of Applied Materials’ broad product portfolio. The analyst believes the company is well-positioned to deliver integrated, co-optimized materials solutions that will support continued semiconductor scaling.
Also on June 26, B. Riley increased its price goal on AMAT to $790 from $550. It kept a Buy rating on the stock. The firm said the company’s DRAM and Advanced Packaging Master Class highlighted a larger long-term opportunity than previously expected. The analyst added that Applied Materials is well-positioned in leading-edge foundry and logic markets, while rising process intensity across DRAM and advanced packaging should support demand. B. Riley believes these trends could drive a sustained multi-year investment cycle in semiconductor equipment and create further opportunities for the company to gain market share.
Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company. It provides equipment, services, and software to the semiconductor, display, and related industries. The company operates through two business segments: Semiconductor Systems and Applied Global Services (AGS).
While we acknowledge the potential of AMAT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMAT and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Dividend Stocks to Buy for Passive Income and 10 Best Canadian Dividend Stocks to Buy for the Next 5 Years
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center