Clint Carlson’s Carlson Capital Portfolio: 5 Dividend Stock Picks

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In this article, we discuss 5 dividend stocks in Clint Carlson’s portfolio. If you want to read our detailed analysis of Carlson Capital’s past performance and Carlson’s investment strategies, go directly to read Clint Carlson’s Carlson Capital Portfolio: 10 Dividend Stock Picks.

5. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 99
Dividend Yield as of May 29: 2.27%
Carlson Capital’s Stake Value: $11,426,000

Bank of America Corporation (NYSE:BAC) was one of the latest additions to Carlson Capital’s portfolio in Q1. The hedge fund initiated a position in the company with shares worth roughly $11.5 million. The company constituted 0.78% of Clint Carlson’s portfolio.

The number of hedge funds tracked by Insider Monkey holding positions in Bank of America Corporation (NYSE:BAC) grew to 99 in Q1 2022, from 84 in the previous quarter. The total value of these stakes is roughly $45.5 billion. Warren Buffett’s Berkshire Hathaway was one of the largest shareholders of the North Carolina-based company, with a stake worth over $41.6 billion.

Bank of America Corporation (NYSE:BAC) currently pays a quarterly dividend of $0.21 per share, with a dividend yield of 2.27%, as of May 29. The company raised its quarterly dividend last year in June by 17%. In May, Oppenheimer appreciated the consistent dividends of Bank of America Corporation (NYSE:BAC) and set a $50 price target on the stock, while maintaining an Outperform rating on the shares.

Miller Value Partners mentioned Bank of America Corporation (NYSE:BAC) in its Q1 2022 investor letter. Here is what the firm has to say:

“There are many times when volatility and beta give false signals. Banks outperformed in the post-tech bubble bear market of the early 2000s. At the market peak prior to the financial crisis (when risk was the highest in those names!), Bank of America (NYSE:BAC) had a 0.9x beta (based on the trailing 5 years) suggesting its “risk” was below the market’s. Wrong! It massively underperformed in the financial crisis. Realized beta over the 5 years from the pre-crisis’ 2006 peak measured 2.3x.

A much better indicator of actual risk, both before and after the financial crisis, was the quality of the balance sheet and risk-taking appetite. Beta is backwards looking and non-stationary. Relying on it underestimated risk going into the financial crisis and overestimated coming out of it (its beta has continued to fall over the past decade).

We care greatly about risk. We spend a significant amount of time thinking about the risks to our investments. We measure risk as permanent impairment of capital, which means the prices and values don’t bounce back. Business fundamentals determine risk.”


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