Robert Pitts’ Steadfast Capital Portfolio: 5 Dividend Stock Picks

3. Anthem, Inc. (NYSE:ANTM)

Steadfast Capital’s Stake Value: $279,589,000
Dividend Yield as of June 16: 1.13%
Number of Hedge Fund Holders: 69

Anthem, Inc. (NYSE:ANTM) is a health insurance provider, serving over 118 million people in the US. In May, the company was added to Morgan Stanley’s list of stocks that have the potential to weather the bear market due to its earnings growth and stable returns in the past year.

At the end of March 2022, 69 hedge funds in Insider Monkey’s database reported owning stakes in Anthem, Inc. (NYSE:ANTM), up from 63 in the previous quarter. These stakes hold a consolidated value of over $5.7 billion. First Eagle Investment Management was one of the prominent shareholders of the company in Q1, with stakes worth roughly $1 billion.

Anthem, Inc. (NYSE:ANTM) has been raising its dividends for the past 11 years consistently. Currently, the company offers a quarterly payout of $1.28 per share, with a dividend yield of 1.13%, as recorded on June 16. In June, Loop Capital called Anthem, Inc. (NYSE:ANTM) the nation’s largest health insurer in its investors’ note. The firm initiated its coverage on the stock with a Buy rating and a $550 price target, further mentioning that it is in a fit state to achieve organic growth in the coming years.

During the first quarter of 2022, Steadfast Capital increased its position in the company by 1%, taking its total stake to roughly $280 million. The company represented 4.79% of Robert Pitts’ portfolio.

Baron Funds mentioned Anthem, Inc. (NYSE:ANTM) in its Q1 2022 investor letter. Here is what the firm has to say:

“We initiated a position in Anthem, Inc. (NYSE:ANTM) (which recently announced plans to change its name to Elevance Health), one of the largest health benefits companies in the U.S. in terms of medical membership, serving more than 45 million medical members through its affiliated health plans. Anthem serves its members through the Blue Cross and Blue Shield brand name. Similar to many managed care peers, Anthem generates its revenue from the U.S. (which avoids risks related to foreign country exposure) and has pricing power (which enables it to more than offset inflation). More specific to Anthem, the company has multiple growth drivers, including its Medicare Advantage business, its in-house pharmacy benefit management business, and its Diversified Business Group, which includes behavioral health, advanced analytics, and complex and chronic care services. Over the long term, management targets 12% to 15% annual EPS growth. We think Anthem is a high-quality growth company trading at a reasonable valuation.”