Jim Simons’ Renaissance Technologies Portfolio: 5 Dividend Stock Picks

In this article, we discuss 5 dividend stocks in Jim Simons’ portfolio. If you want to read our detailed analysis of Renaissance Technologies’ returns and overall performance, go directly to read Jim Simons’ Renaissance Technologies Portfolio: 10 Dividend Stock Picks. 

5. The Home Depot, Inc. (NYSE:HD)

Dividend Yield as of May 19: 2.64%
Number of Hedge Fund Holders: 68
Renaissance Technologies’ Stake Value: $563,524,000

The Home Depot, Inc. (NYSE:HD) is one of the latest acquisitions of Renaissance Technologies in the first quarter of 2022. The firm initiated its position in the company with shares worth over $563.5 million, which represented 0.66% of Jim Simons’ portfolio.

On February 22, The Home Depot, Inc. (NYSE:HD) announced a 15% increase in its annual dividend to $1.90 per share. The stock’s dividend yield stood at 2.64%, as of May 19. The company has increased its dividend consecutively for the past 14 years. This May, Citigroup set a $327 price target on The Home Depot, Inc. (NYSE:HD), with a Buy rating on the shares.

At the end of Q4 2021, 68 hedge funds tracked by Insider Monkey held positions in The Home Depot, Inc. (NYSE:HD), up from 58 in the previous quarter. The total value of these stakes is over $6.08 billion. Ken Fisher’s Fisher Asset Management was the company’s largest shareholder in Q1 2022, with shares worth over $2.4 billion.

Ensemble Capital mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what the firm has to say:

“Home Depot (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”