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.”
4. First Horizon Corporation (NYSE:FHN)
Number of Hedge Fund Holders: 44
Dividend Yield as of May 29: 2.60%
Carlson Capital’s Stake Value: $29,128,000
First Horizon Corporation (NYSE:FHN), an American bank holding company, remained popular among hedge funds in Q1 2022, as 44 hedge funds in Insider Monkey’s database held positions in the company, up from 24 in the previous quarter. The consolidated value of these stakes is over $1.05 billion, showing significant growth from a $170.6 million worth of stake held by hedge funds in Q4 2021.
In Q1 2022, First Horizon Corporation (NYSE:FHN) posted an EPS of $0.38 in Q1 2022, surpassing expectations by $0.03. However, the company’s revenue of $704 million missed estimates by $3.92 million. The company currently pays a quarterly dividend of $0.15 per share, with a dividend yield of 2.60%, as of May 29. First Horizon Corporation (NYSE:FHN) has not raised its dividend since 2020, however, the company sustained its dividend payments over the years.
Carlson Capital initiated its position in First Horizon Corporation (NYSE:FHN) during the first quarter of 2022, purchasing over 1.2 million shares, worth over $29 million. The company accounted for 1.99% of Clint Carlson’s portfolio.
3. PNM Resources, Inc. (NYSE:PNM)
Number of Hedge Fund Holders: 37
Dividend Yield as of May 29: 2.93%
Carlson Capital’s Stake Value: $19,573,000
PNM Resources, Inc. (NYSE:PNM) is a New Mexico-based energy and electric services company. In Q1 2022, the company reported earnings above consensus, posting an EPS of $0.50, beating expectations by $0.12. The company generated revenue of $444.12 million versus the estimates of $382 million.
Carlson Capital resumed building its position in PNM Resources, Inc. (NYSE:PNM) during the fourth quarter of 2020, after pulling off its entire stakes in 2011. At the end of Q1 2022, the hedge fund owned a roughly $20 million worth of stake in the company, which represented 1.33% of Clint Carlson’s portfolio.
Along with Carlson Capital, 37 hedge funds in Insider Monkey’s database held stakes in PNM Resources, Inc. (NYSE:PNM) in Q1 2022, up from 32 in the previous quarter. The collective value of these stakes is over $876.4 million.
In February, PNM Resources, Inc. (NYSE:PNM) announced a 6% hike in its quarterly dividend to $0.3475 per share. The stock’s dividend yield, as of May 29, came to be recorded at 2.93%.
2. The PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 49
Dividend Yield as of May 29: 3.43%
Carlson Capital’s Stake Value: $25,674,000
The PNC Financial Services Group, Inc. (NYSE:PNC) is an American bank holding company and financial services corporation. The company has been paying dividends to shareholders consecutively for the past 30 years, compared with a sector average of 13 years. In April, The PNC Financial Services Group, Inc. (NYSE:PNC) announced a quarterly dividend of $1.50 per share, presenting a 20% growth from its previous dividend. The stock’s dividend yield stood at 3.43%, as of the close of May 29.
Carlson Capital increased its position in The PNC Financial Services Group, Inc. (NYSE:PNC) by 28% during the first quarter of 2022. The hedge fund owned 139,193 shares in the company, valued at over $25.6 million. The company represented 1.75% of Clint Carlson’s portfolio. In May, Wolfe Research set a $177 price target on The PNC Financial Services Group, Inc. (NYSE:PNC), with an Outperform rating on the shares.
As per Insider Monkey’s Q1 2022 database, 49 hedge funds held positions in The PNC Financial Services Group, Inc. (NYSE:PNC), with stakes valued at roughly $1.5 billion. In comparison, 40 hedge funds owned stakes in the Pennsylvania-based company in the previous quarter, worth over $663 million.
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 74
Dividend Yield as of May 29: 5.21%
Carlson Capital’s Stake Value: $14,655,000
Though AT&T Inc. (NYSE:T) surpassed analysts’ estimates in its subscribers’ growth in the first quarter of 2022, its revenue of $38.1 billion missed the market estimates by $190 million. However, the telecommunications company reported a 5% year-over-year growth in its services revenue at $14.7 billion, driven by subscribers’ growth.
In March, AT&T Inc. (NYSE:T) announced a quarterly dividend of $0.2775 per share, after it acquired a position in Warner Bros. Discovery. The company maintains a 35-year track record of consistent dividend growth. As of the close of May 29, the stock’s dividend yield was recorded at 5.21%.
At the end of Q1 2022, 74 hedge funds tracked by Insider Monkey were bullish on AT&T Inc. (NYSE:T), up from 70 in the previous quarter. The collective value of these stakes is over $4 billion. With a stake worth over $678.5 million, Arrowstreet Capital owned the largest position in the Texas-based company in Q1 2022.
In April, Goldman Sachs initiated its coverage on AT&T Inc. (NYSE:T) with a $23 price target and a Buy rating on the shares, highlighting the company’s communications-focused business model.
At the end of Q1 2022, Carlson Capital owned a stake worth over $14.6 million in AT&T Inc. (NYSE:T), after purchasing roughly half a million additional shares in the company during the quarter. The company accounted for 1% of Clint Carlson’s portfolio.
Weitz Investment Management mentioned AT&T Inc. (NYSE:T) in its Q4 2021 investor letter. Here is what the firm has to say:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
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