In this article, we discuss 10 dividend stocks with over 15% yield from Jim Simons’ Renaissance Technologies’ portfolio. If you want to skip our detailed analysis of these stocks, go directly to Jim Simons’ Renaissance Technologies Portfolio: 5 Dividend Stocks With Over 15% Yield.
The American billionaire hedge fund manager and renowned quant genius, Jim Simons founded Renaissance Technologies in 1982, which is a New York-based hedge fund following a quantitative investment strategy. Simons, with his PhD focused on Mathematics, has a unique approach to investing, using patterns and algorithms to identify market inefficiencies, leveraging automated programs to predict price fluctuations and trends in investment vehicles.
Simons remained the CEO of Renaissance Technologies from 1982 till 2010, and currently, he serves as the non-executive chairman of the hedge fund. According to the 13F filings from September 2021, the portfolio of Renaissance Technologies is worth more than $77 billion, down from approximately $80 billion in the preceding quarter.
With a top ten holdings concentration of 12.38%, Simons’ fund is concentrated in the information technology, industrials, healthcare, consumer staples, communications, and consumer discretionary sectors. The largest holding in the Renaissance Technologies’ portfolio as of the third quarter is Novo Nordisk A/S (NYSE:NVO), with the hedge fund holding 21.64 million shares of the company, valued at more than $2 billion.
The most notable stocks in the Q3 portfolio of Jim Simons’ Renaissance Technologies include Microsoft Corporation (NASDAQ:MSFT), Zoom Video Communications, Inc. (NASDAQ:ZM), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG).
Jim Simons of Renaissance Technologies
Our Methodology
We used the Q3 portfolio of Renaissance Technologies to screen for dividend stocks, selecting the stocks with a yield of more than 15%.
Ranking the stocks according to the yield, we have mentioned important metrics like the third quarter earnings, hedge fund sentiment around each stock, and analyst ratings to give additional context on each company. The hedge fund sentiment was gauged from the 867 elite funds that were tracked by Insider Monkey in Q3 2021.
Jim Simons’ Renaissance Technologies’ Portfolio: Dividend Stocks With Over 15% Yield
10. China Yuchai International Limited (NYSE:CYD)
Renaissance Technologies’ Stake Value: $6,855,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 8
Dividend Yield as of December 21: 15.28%
Headquartered in Singapore, China Yuchai International Limited (NYSE:CYD) is a holding company that operates via its subsidiaries, engaged in engine manufacturing and the hospitality industry.
Jim Simons’ Renaissance Technologies holds 504,393 shares of China Yuchai International Limited (NYSE:CYD) as of September 2021, worth $6.85 million. Overall, 8 hedge funds tracked by the database of Insider Monkey were bullish on China Yuchai International Limited (NYSE:CYD) in the third quarter, with total stakes amounting to $58.1 million.
China Yuchai International Limited (NYSE:CYD)’s subsidiary, GYMCL, entered into an agreement with the Government of Nanning Municipality for the research and development of a new production facility for up and coming energy technologies, including fuel cell systems, range extenders, hybrid power, and electric drive systems. GYMCL has established a wholly-owned subsidiary, Yuchai Xin-Lan New Energy Power Technology, as the primary investment vehicle for the construction of the Yuchai Xin-Lan New Energy Power Project.
Shah Capital Management is the largest company stakeholder as of Q3, with 3.51 million shares worth $47.7 million. With a dividend yield of 15.28%, China Yuchai International Limited (NYSE:CYD) is one of the best dividend stocks to buy according to Jim Simons’ Renaissance Technologies.
9. KNOT Offshore Partners LP (NYSE:KNOP)
Renaissance Technologies’ Stake Value: $23,204,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 3
Dividend Yield as of December 21: 16.12%
KNOT Offshore Partners LP (NYSE:KNOP) owns and operates a fleet of shuttle tankers that it charters to companies like Royal Dutch Shell plc (NYSE:RDS-A), Equinor ASA (NYSE:EQNR), and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), among others. Jim Simons’ fund holds a $23.2 million stake in KNOT Offshore Partners LP (NYSE:KNOP) as of Q3 2021, which represents 0.02% of the total investments of Renaissance Technologies.
In the third quarter of 2021, 3 hedge funds were bullish on KNOT Offshore Partners LP (NYSE:KNOP), namely Renaissance Technologies, Citadel Investment Group, and McKinley Capital Management, with total stakes worth $25.1 million.
On November 17, KNOT Offshore Partners LP (NYSE:KNOP) posted its Q3 results. The company announced an EPS of $0.41, missing estimates by $0.23.
With a yield of 16.12%, KNOT Offshore Partners LP (NYSE:KNOP)’s latest quarterly dividend was paid on November 10, amounting to $0.52 per share, to shareholders of record on October 28.
In addition to Microsoft Corporation (NASDAQ:MSFT), Zoom Video Communications, Inc. (NASDAQ:ZM), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG), KNOT Offshore Partners LP (NYSE:KNOP) is a notable stock from the Q3 portfolio of Renaissance Technologies.
8. Orchid Island Capital, Inc. (NYSE:ORC)
Renaissance Technologies’ Stake Value: $79,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.00%
Number of Hedge Fund Holders: 10
Dividend Yield as of December 21: 17.49%
Orchid Island Capital, Inc. (NYSE:ORC), a specialty finance company investing in residential mortgage-backed securities, is one of the highest paying dividend stocks from Jim Simons’ fund in the third quarter, with a yield of 17.49%. Renaissance Technologies added Orchid Island Capital, Inc. (NYSE:ORC) to its portfolio in Q3 2021, holding 16,200 shares of the company, worth $79,000.
In the Q3 earnings report published on October 28, Orchid Island Capital, Inc. (NYSE:ORC) posted earnings per share of $0.22, missing estimates by $0.03.
On December 9, Orchid Island Capital, Inc. (NYSE:ORC) announced a monthly dividend of $0.065 per share, payable on January 27, 2022 to shareholders of record on December 31.
In Q3 2021, 10 hedge funds were bullish on Orchid Island Capital, Inc. (NYSE:ORC), with total stakes amounting to $16.1 million. Balyasny Asset Management is the largest stakeholder of the company, increasing its stake in Orchid Island Capital, Inc. (NYSE:ORC) by 1131% in the third quarter, holding 1.71 million shares worth $8.40 million.
7. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Renaissance Technologies’ Stake Value: $74,552,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 23
Dividend Yield as of December 21: 19.29%
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), a state-owned oil and gas corporation from Brazil, is one of the best dividend stocks in Jim Simons’ fund, with Renaissance Technologies increasing its stake in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) by 23% in the third quarter, holding a $74.5 million position in the company. The stock accounts for 0.09% of the total Q3 investments at Renaissance Technologies.
Publishing its Q3 earnings on October 28, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) posted earnings per share of $0.47, beating estimates by $0.14. Revenue for the period totaled $21.61 billion, missing analysts’ consensus estimates by $296.05 million.
Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to Buy from Neutral with a $14.20 price target on December 15. The analyst said that there is a better risk/reward for Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) despite the existing risks of a change in the fuel pricing policy, the capital allocation strategy going into 2022, and next year’s presidential election in Brazil. Amorim noted, however, that cash returns in 2022 provide a cushion, as he assumed Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) will pay not only the 60% stated in their dividend policy but also distribute as dividends any excess cash generated in 2022.
Of the 23 hedge funds that were long Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) in the third quarter, Rajiv Jain’s GQG Partners is the largest company stakeholder, increasing its stake in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) by 25% in Q3, holding a $1.79 billion position.
6. Vale S.A. (NYSE:VALE)
Renaissance Technologies’ Stake Value: $61,172,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 27
Dividend Yield as of December 21: 19.39%
Another high dividend stock with a yield of 19.39% from Jim Simons’ Renaissance Technologies’ portfolio is Vale S.A. (NYSE:VALE). Vale S.A. (NYSE:VALE), a Brazilian multinational metals and mining corporation, is a new arrival in the third quarter portfolio of Renaissance Technologies, with the hedge fund holding 4.38 million shares of the company, worth $61.17 million. The stock accounts for 0.07% of the fund’s total Q3 investments.
Goldman Sachs analyst Marcio Farid on December 10 initiated coverage of Vale S.A. (NYSE:VALE) with a Neutral rating and a $15 price target. According to the analyst, despite its “apparent discounted valuation”, Vale S.A. (NYSE:VALE) lacks catalysts for a re-rating due to deteriorating iron ore fundamentals and uncertainties regarding production growth and cost improvement.
The third quarter results were published by Vale S.A. (NYSE:VALE) on October 28. The company posted an EPS of $1.26, exceeding estimates by $0.06. The revenue jumped 17.84% on a year-over-year basis to $12.68 billion, but missed estimates by $1.31 billion.
In Q3 2021, 27 funds tracked by Insider Monkey reported owning stakes worth $1.97 billion in Vale S.A. (NYSE:VALE). The largest Vale S.A. (NYSE:VALE) stakeholder as of September 2021 is Fisher Asset Management, with 34.8 million shares worth $486.3 million.
Vale S.A. (NYSE:VALE) is a notable stock pick of Jim Simons’ hedge fund in the third quarter, just like Microsoft Corporation (NASDAQ:MSFT), Zoom Video Communications, Inc. (NASDAQ:ZM), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG).
Here is what Miller Value Partners has to say about Vale S.A. (NYSE:VALE) in its Q3 2021 investor letter:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
Click to continue reading and see Jim Simons’ Renaissance Technologies Portfolio: 5 Dividend Stocks With Over 15% Yield.
Suggested articles:
- 10 Stocks Under Investors’ Radar After Posting Their Financial Results
- 10 Electric Car Stocks to Buy for 2022
- Cathie Wood Portfolio: Green Energy Stock Picks
Disclosure: None. Jim Simons’ Renaissance Technologies’ Portfolio: 10 Dividend Stocks With Over 15% Yield is originally published on Insider Monkey.
