Should You Follow Billionaire Activist Dan Loeb into His Dividend Picks?

Kraft Heinz Co (NASDAQ:KHC) represents a new position in Third Point’s equity portfolio, the investor reporting a $582.28-million stake that contains 8.25 million shares. In May, at the SALT Conference, Loeb criticized Warren Buffett for discrepancies between what Buffett advocated and his real actions, but looks like it didn’t stop him from following him into Kraft Heinz Co (NASDAQ:KHC), whose stock started trading at the beginning of July, following the merger between Kraft and H.J. Heinz that was orchestrated by Buffett. Kraft Heinz’s stock lost 3% since it went public and currently sports a dividend yield of 3.25%. Another shareholder of Kraft Heinz Co (NASDAQ:KHC) is Philippe Laffont’s Coatue Management, which reported 1.88 million shares in its latest 13F filing.

On the other hand, in Anheuser Busch Inbev SA (ADR) (NYSE:BUD), Third Point reduced its position by 350,000 shares, reporting 1.40 million shares worth $148.85 million as of the end of September. The stock has gained some 7% since the beginning of the year and has a dividend yield of 3.34%. Recently, Anheuser Busch Inbev SA (ADR) (NYSE:BUD) reached an agreement to acquire SABMiller, in a deal worth approximately $105 billion. The deal, if approved by regulators, will increase Anheuser’s portfolio of brands and will expand its presence in many regions, such as Africa. An investor that is betting big on Anheuser Busch Inbev SA (ADR) (NYSE:BUD) is billionaire Ken Fisher of Fisher Asset Management. According to Fisher’s latest 13F filing, it added 4.67 million shares to its stake during the third quarter, taking it to 4.72 million shares as of September 30.

J M Smucker Co (NYSE:SJM) represented one of Third Point’s smallest stakes, the fund holding 1.30 million shares worth $148.32 million. During the third quarter, the fund unloaded 150,000 shares, as the stock inched up by around 6%. Overall, J M Smucker Co (NYSE:SJM)’s shares have gained 11% so far this year, and are currently trading at an earnings multiple of 33, which is above the median for the S&P 500, but significantly below the industry average. Another shareholder of J M Smucker Co (NYSE:SJM) is John W. Rogers’ Ariel Investments, which held 1.93 million shares at the end of the third quarter.

Disclosure: none