JPMorgan’s Top Dividend Stocks for 2016, Part 4

Lockheed Martin Corporation (NYSE:LMT)

– Number of Hedge Fund Holders (as of September 30): 39
– Total Value of Hedge Fund Holdings (as of September 30): $1.2 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 1.90%

Lockheed Martin Corporation (NYSE:LMT), a leading defense contractor and the maker of the F-35, is also a leading dividend stock in the eyes of the analysts at JPMorgan. Specifically, the analysts like Lockheed’s shareholder friendly management, as the company plans to return all its excess cash flow to shareholders through dividends and share repurchases through 2017. The buybacks should fuel growth in the defense contractor’s already attractive 3% dividend yield. The buy-side is also bullish, with the number of elite funds from our database long the stock rising by three to 39 during the third quarter. Among the bullish mangers is Cliff Asness’ AQR Capital Management, which owned 652,724 shares at the end of September.

Michaels Companies Inc (NASDAQ:MIK)

– Number of Hedge Fund Holders (as of September 30): 21
– Total Value of Hedge Fund Holdings (as of September 30): $275.18 million
– Hedge Fund Holdings as Percent of Float (as of September 30): 5.70%

The analysts at JPMorgan are buyers in Michaels Companies Inc (NASDAQ:MIK) and management’s turnaround efforts, which show some signs of success given the improving marketing, merchandising, and in-store execution. The analysts also like the company’s high cash generative capability, barriers of entry, and leadership position in the sector. Although Michaels Companies doesn’t pay a dividend, the analysts included it on their list because the company certainly has the potential to. Jonathon Jacobson‘s Highfields Capital Management was long 6.32 million shares of Michaels Companies at the end of September.