In this article, we discuss 5 dividend stocks in Robert Pitts’ portfolio. If you want to read our detailed analysis of Steadfast Capital’s investment strategy and its past performance, go directly to read Robert Pitts’ Steadfast Capital’s Portfolio: 10 Dividend Stock Picks.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Steadfast Capital’s Stake Value: $199,976,000
Dividend Yield as of June 16: 1.45%
Number of Hedge Fund Holders: 103
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage and benefits to its consumers and also specializes in software and data consultancy services. The company is also expanding its telehealth services to cut costs and meet the needs of its patients.
In Q1 2022, UnitedHealth Group Incorporated (NYSE:UNH) reported revenue of $80.1 billion, up 14% from the same period last year. The company’s EPS of $5.49 surpassed Street estimates by $0.14. Moreover, due to the Covid pandemic, the company’s medical care ratio jumped to 82%, from 80.9% last year.
On June 8, UnitedHealth Group Incorporated (NYSE:UNH) hiked its quarterly dividend by 14% for the 12th consecutive year. The company currently offers a quarterly payout of $1.65 per share, with a dividend yield of 1.45%, as of the market close of June 16. In June, Loop Capital mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its investors’ note, stating the company’s leading positions in commercial and government benefit markets. The firm initiated its coverage of the stock with a Buy rating and a $575 price target.
At the end of March 2022, 103 hedge funds in Insider Monkey’s database reported owning roughly $13 billion worth of stakes in UnitedHealth Group Incorporated (NYSE:UNH). In comparison, 96 funds held stakes in the company in the previous quarter, valued at $13.6 billion. Among these hedge funds, Eagle Capital Management owned roughly 3 million UNH shares, worth $1.48 billion, becoming the company’s largest stakeholder in Q1.
At the end of Q1 2022, Steadfast Capital owned 392,133 UNH shares, valued at roughly $200 million. The hedge fund sold shares worth $65,700 during the quarter, slashing its position in the company by 26%. The insurance company accounted for 3.43% of Robert Pitts’ portfolio.
Baron Funds mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2022 investor letter. Here is what the firm has to say:
“UnitedHealth Group Incorporated is a leading diversified health and well- being company whose divisions include insurance arm United Healthcare and Optum, which offers care delivery and other services. Shares increased on a fourth quarter beat and a reaffirmation of what is likely conservative guidance for 2022. We believe UnitedHealth leads the health care industry in innovation and execution, as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
4. Global Payments Inc. (NYSE:GPN)
Steadfast Capital’s Stake Value: $244,656,000
Dividend Yield as of June 16: 0.93%
Number of Hedge Fund Holders: 64
Global Payments Inc. (NYSE:GPN) is an American fintech company that provides payment technology and software solutions and also processes payments made through credit cards and other digital channels. In Q1 2022, the company posted an EPS of $2.07, which beat estimates by $0.03. The company’s revenue for the quarter fell in line with the consensus at $1.95 billion.
Steadfast Capital started investing in Global Payments Inc. (NYSE:GPN) during the second quarter of 2019, with shares worth roughly $42 million. At the end of Q1 2022, the hedge fund owned nearly 1.8 million GPN shares, worth over $244.6 million. The company represented 4.19% of Robert Pitts’ portfolio. Global Payments Inc. (NYSE:GPN) currently offers a dividend of $0.25 per share every quarter. The stock’s dividend yield was recorded at 0.93%, as of June 16.
In May, Goldman Sachs initiated its coverage of Global Payments Inc. (NYSE:GPN) with a Neutral rating and a $151 price target, highlighting the company’s greater Server Message Block (SMB) exposure and its software-based approach.
According to Insider Monkey’s Q1 database, 64 hedge funds held stakes in Global Payments Inc. (NYSE:GPN), falling slightly from 67 in the previous quarter. The collective value of these stakes is over $3.23 billion.
Oakmark Funds mentioned Global Payments Inc. (NYSE:GPN) in its Q1 2022 investor letter. Here is what the firm has to say:
“Global Payments (NYSE:GPN) is a leading provider of merchant acquiring services. The company is also one of the largest providers of payment processing and related technology solutions to credit card issuers. We believe Global Payments’ merchant acquiring business is well positioned given its strength in software-driven payments. This is one of the fastest growing parts of the industry as small business customers are increasingly recognizing the efficiency benefits of having payments seamlessly integrated into the software they use to run their businesses. In addition, Global Payments benefits from the broader secular shift away from cash and toward electronic payment methods. Together, these tailwinds have the potential to drive low-double-digit revenue growth and even faster earnings growth. With this strong outlook and with management returning a significant portion of free cash flow to shareholders via repurchase, we think the stock looks attractive at its current valuation of just 12.5x next year’s expected EPS.
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.”
2. Microsoft Corporation (NASDAQ:MSFT)
Steadfast Capital’s Stake Value: $340,745,000
Dividend Yield as of June 16: 1.01%
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company working to expand its cloud-based solutions to provide consulting and solution support services to consumers. The company gained 0.06% on June 14 when it announced the acquisition of cyber threat analysis and research company, Miburo. However, the stock is down 26.8% for 2022 so far.
On June 14, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.62 per share, with a dividend yield of 1.01%, recorded on June 16. Though the stock offers a relatively low yield, it maintains a 15-year track record of consistent dividend growth. Appreciating the company’s Intelligent Data Platform, Jefferies set a $320 price target on Microsoft Corporation (NASDAQ:MSFT) with a Buy rating on the shares. The firm further viewed the company as a diversified business that should sustain double revenue growth for ‘the foreseeable future’.
Microsoft Corporation (NASDAQ:MSFT) has been a part of Steadfast Capital’s portfolio since the fourth quarter of 2010. At the end of Q1 2022, the hedge fund reduced its stake in the company by 1%, owning over 1.1 million shares worth $340.7 million. The company accounted for 5.84% of Robert Pitts’ portfolio.
As per Insider Monkey’s database for the first quarter, 259 hedge funds owned stakes in Microsoft Corporation (NASDAQ:MSFT), down from 262 in the previous quarter. These stakes hold a consolidated value of over $65.6 billion. With stakes worth roughly $8.6 billion, Fisher Asset Management held the largest position in the company in Q1.
Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter. Here is what the firm has to say:
“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) pulled back with the broader software sector. The company posted another solid quarter, highlighted by total revenues increasing 20% and Microsoft Cloud revenues, now 45% of total revenues, growing 32%. These results were driven, in large part, by strong demand for large Azure contracts. We believe Microsoft can compound revenue in the low double digits for the next three years, underpinned by its expansion in its total addressable market and market share gains.”
1. Fidelity National Information Services, Inc. (NYSE:FIS)
Steadfast Capital’s Stake Value: $407,293,000
Dividend Yield as of June 16: 2.07%
Number of Hedge Fund Holders: 68
Fidelity National Information Services, Inc. (NYSE:FIS) is an American payment service provider. The company provides services in credit and debit card processing, electronic banking, and check risk management. On June 13, Evercore ISI upgraded the stock to Outperform and increased its EPS estimates for the company to $7.36 in FY22, up from $7.32.
In Q1 2022, Fidelity National Information Services, Inc. (NYSE:FIS) posted an EPS of $1.47, exceeding expectations by $0.01. The company’s revenue of $3.49 billion also topped analysts’ estimates by $50 million. Fidelity National Information Services, Inc. (NYSE:FIS) currently pays a quarterly dividend of $0.47 per share, increasing it by 21% in January. The company did not raise its dividends in 2020 due to the pandemic-related financial clampdown. As of June 16, the stock’s dividend yield stood at 2.07%.
At the end of Q1 2022, Fidelity National Information Services, Inc. (NYSE:FIS) was the second-largest holding of Steadfast Capital. The hedge fund increased its position in the company by 19% during the quarter, taking its total stake to over $407.2 million. The company accounted for 6.99% of Robert Pitts’ portfolio.
According to Insider Monkey’s Q1 database, 68 hedge funds reported owning stakes in Fidelity National Information Services, Inc. (NYSE:FIS), down from 75 in the previous quarter. The consolidated value of these stakes is roughly $4 billion.
ClearBridge Investments mentioned Fidelity National Information Services, Inc. (NYSE:FIS) in its Q4 2021 investor letter. Here is what the firm has to say:
“Several encouraging macro trends are emerging in support of two areas outside tech: consumer spending and industrial production. Unlike in past recessions and recoveries, consumer balance sheets have actually improved dramatically since the onset of the pandemic. This should feed through to increased spending on services like travel, which should benefit companies tied to the reopening like Fidelity National Information Services. We expect the supply chain constraints contributing to inflation and goods shortages will begin to lessen with an ambitious rebuilding of inventories.”
You can also take a look at Top 10 Stocks To Buy According to Ken Heebner’s Capital Growth Management and 10 Best Gold Stocks with Dividends
