Jim Simons’ Renaissance Technologies Portfolio: 5 Dividend Stock Picks

2. Merck & Co., Inc. (NYSE:MRK)

Dividend Yield as of May 19: 3.01%
Number of Hedge Fund Holders: 80
Renaissance Technologies’ Stake Value: $418,400,000

Merck & Co., Inc. (NYSE:MRK) currently pays a quarterly dividend of $0.69 per share, after raising its annual dividend by 6% in 2021. The company maintains an 11-year track record of consistent dividend growth. As of May 19, the stock’s dividend yield stood at 3.01%.

In Q1 2022, Renaissance Technologies increased its position in the company by 2,672% and held stakes worth $418.4 million. The company represented 0.49% of Jim Simons’ portfolio. Merck & Co., Inc. (NYSE:MRK) is one of the oldest holdings of the hedge fund, as it first invested in the company in 2010. In April, Barclays analyst Carter Gould lifted his price target on the stock to $97, while maintaining an Overweight rating on the shares.

ClearBridge Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter. Here is what the firm has to say:

“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”