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Five Capital Goods Stocks Hedge Funds Are Betting On

#3 United Technologies Corporation (NYSE:UTX)

– Number of Hedge Fund Holders (as of March 31): 51
– Total Value of Hedge Fund Holdings (as of March 31): $3.81 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 4.60%

United Technologies Corporation (NYSE:UTX)’s scale and stability ensures that its dividend is very safe. The company has raised its dividend for more than 20 straight years and has grown its dividend by an average of 8% a year for the last five years. For its most recent quarter, United Technologies Corporation continued its dividend raising tradition, hiking its quarterly dividend up by $0.02 to $0.66 per share. That gives United Technologies Corporation a dividend yield of 2.62%, or around 50% higher than the current 10-year yield.

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#2 Honeywell International Inc. (NYSE:HON)

– Number of Hedge Fund Holders (as of March 31): 55
– Total Value of Hedge Fund Holdings (as of March 31): $1.84 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 2.10%

Honeywell International Inc. (NYSE:HON) reported excellent earnings for its first quarter, with EPS of $1.53 on revenue of $9.52 billion, beating by $0.03 per share and $150 million. Despite the strong dollar, revenue grew 3.4% year-over-year, led by a 13% jump in automation and control solutions sales. Guidance is strong, with management raising the 2016 adjusted EPS outlook to $6.55-$6.70 from the previous $6.45-$6.70. In late April, the company’s board also authorized a repurchase of $5 billion. Overall, 55 funds tracked by Insider Monkey owned $1.84 billion worth of Honeywell International Inc. (NYSE:HON)’s shares, which accounted for 2.10% of the float on March 31, versus 49 funds and $2.05 billion a quarter earlier.

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#1 General Motors Company (NYSE:GM)

– Number of Hedge Fund Holders (as of March 31): 67
– Total Value of Hedge Fund Holdings (as of March 31): $3.72 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 7.60%

With 67 elite fund holders holding shares of the company at the end of March, General Motors Company (NYSE:GM) is the top capital goods stock in our list. Shares yield a 4.84% payout at current prices, making General Motors, which has one of the widest moats in the industry, one of the most attractive dividend offerings on the market. Warren Buffett’s Berkshire Hathaway kept its stake in GM the same quarter-over-quarter at 50 million shares, while David Einhorn’s Greenlight Capital raised its holding by 10% to over 15 million shares.

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Disclosure: none

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