10 Best Dividend Stocks to Buy According to Billionaire Ken Griffin
In this article, we will discuss the 10 best dividend stocks to buy according to billionaire Ken Griffin. If you want to skip our detailed analysis of Griffin's history and hedge fund performance, go directly to the 5 Best Dividend Stocks to Buy Now According to Billionaire Ken Griffin.
The self-made billionaire Ken Griffin began investing in his dorm room in 1986 and has since grown Citadel Investment Group into one of today's most prominent hedge funds. The hedge fund was founded on November 1, 1990, with $4.2 million assets under management. Citadel founder and CEO Ken Griffin's net worth as of June 16 is estimated at $16 billion.
Citadel Investment Group invests in equities primarily in consumer, communications, financials, technology, media and entertainment, and healthcare. One of Citadel's most significant funds, Wellington, returned 24.4% in 2020, its best performance in eight years, and is up 6% in the first three months of 2021. Citadel Investment Group benefited from gains across the industries that succeeded during the pandemic, including agriculture, natural gas, power, and oil. In the first quarter of 2021, the hedge fund's portfolio value increased 6% to $408 billion, up from $385 billion in the fourth quarter of 2020.
As of the end of the first quarter, Citadel Investment Group has a significant holding in Amazon.com, Inc. (NASDAQ: AMZN). The hedge fund run by Ken Griffin owns 205,965 shares in the company worth over $637.3 million, representing 0.16% of their investment portfolio. The hedge fund upped its stake on AMZN by 2,408% in the first quarter of 2021. First-quarter revenue came in at $108.5 billion, up from $75.5 billion in the same period in 2020. The company has a market cap of $1.7 billion. As of June 16, Amazon.com, Inc. (NASDAQ: AMZN) shares trade at $3,415.25 and have a P/E ratio of 64.98. The 52-week price range of AMZN is $2,630.08 - $3,554.00. On May 12, Citigroup maintained a Buy rating on Amazon.com, Inc. and raised its price target to $4,175 per share.
Another stock in Griffin's portfolio is tech giant Apple Inc. (NASDAQ: AAPL). Citadel Investment Group owns over 4.7 million shares in the firm worth $576.9 million, representing 0.15% of their investment portfolio. The hedge fund upped its stake on AAPL by 30% in the first quarter of 2021. Apple Inc. (NASDAQ: AAPL) currently pays an annual dividend of $0.88 per share with a 0.68% dividend yield. AAPL stock has offered more than 48% returns to investors in the past twelve months. The company's revenue grew 54% to $89.5 billion in the second quarter of 2021, compared to $58.3 billion in the same time the previous year. As of June 16, Apple Inc. (NASDAQ: AAPL) shares currently trade at $130.15 and have a P/E ratio of 29.25. The 52-week price range of AAPL is $86.29 - $145.09. Apple Inc. has a Buy rating from 27 analysts, with an average price target of $157.10 per share.
Ken Griffin's Citadel Investment Group also holds 1,032,252 shares in NVIDIA Corporation (NASDAQ: NVDA), worth over $551 million, representing 0.14% of the hedge fund's portfolio. Citadel increased its stake in the company by 341% in the first quarter of 2021. NVIDIA Corporation (NASDAQ: NVDA) currently pays an annual dividend of $0.64 per share with a 0.09% dividend yield. NVDA stock has offered more than 93% returns to investors in the past twelve months. The company's revenue in the first quarter of 2021came in at $5.7 billion, up 84% from $3.1 billion in the same quarter of 2020. As of June 16, NVIDIA Corporation (NASDAQ: NVDA) shares trade at $712.41 and has a P/E ratio of 84.21. The 52-week price range of NVDA is $356.00 - $721.58. On May 27, Truist Securities maintained a Buy rating on NVIDIA Corporation, with a price target of $768 per share.
Another dividend-paying stock in Citadel Investment Group's portfolio is American cable company Comcast Corporation (NASDAQ: CMCSA). The hedge fund owns 8,816,164 shares worth over $477 million, representing 0.12% of its investment portfolio. The hedge fund upped its stake in CMCSA by 936% in the first quarter of 2021. The media company's revenue in the first quarter came in at $27.2 billion, an increase of 2.2% from $26.6 billion in the same quarter in 2020. Comcast Corporation (NASDAQ: CMCSA) currently pays an annual dividend of $1 per share with a 1.75% dividend yield. CMCSA stock has offered more than 44% returns to investors in the past twelve months. As of June 16, Comcast Corporation's (NASDAQ: CMCSA) shares trade at $57.12 and have a P/E ratio of 22.58. The 52-week price range of CMCSA is $37.77 - $59.11. On April 30, Oppenheimer upgraded Comcast Corporation with an Outperform rating and a price target of $75 per share.
Ken Griffin of Citadel Investment Group
But in this article, our focus would be on dividend-paying stocks in Griffin's Q1 portfolio.
While Ken Griffin's reputation has remained untainted, the hedge fund industry as a whole has had its reputation tarnished in the last decade, when its hedged returns failed to keep up with the unhedged returns of market indices. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn't keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey's research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter's stock picks returned 206.8%, vs. 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best dividend stocks to buy according to billionaire Ken Griffin.
Best Dividend Stocks to Buy According to Billionaire Ken Griffin
10. Analog Devices, Inc. (NASDAQ: ADI)
Griffin's Stake Value: $372,000,000 Percentage of Ken Griffin's 13F Portfolio: 0.09% Dividend Yield: 1.66% Number of Hedge Fund Holders: 50
We start our list of the 10 best dividend stocks to buy according to billionaire Ken Griffin with chipmaker Analog Devices, Inc. (NASDAQ: ADI). The Massachusetts-based tech company was founded in 1965 and manufactures and sells electronic equipment internationally. Analog Devices, Inc. (NASDAQ: ADI) currently pays an annual dividend of $2.76 per share with a 1.66% dividend yield. ADI stock has offered more than 35% returns to investors in the past twelve months. Shares of ADI also increased 11% in the last month.
The company has a market cap of $61 billion. The company's revenue grew 26% to $1.7 billion in the second quarter of 2021, up from $1.3 billion in the same period the previous year. The company's revenue forecast for the third quarter of 2021 is $1.7 billion. As of June 16, Analog Devices, Inc. (NASDAQ: ADI) shares trade at $166.02 and have a P/E ratio of 39.62. The 52-week price range of ADI is $110.47 - $168.93. On May 20, Truist Securities maintained a Buy rating on Analog Devices, Inc., with a price target of $165 per share.
Citadel Investment Group holds 2,396,923 shares in the company worth over $372 million. The hedge fund has trimmed Analog Devices, Inc. (NASDAQ: ADI) by 29% in the past few months. At the end of the first quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $4.86 billion in Analog Devices, Inc. (NASDAQ: ADI), down from 58 the preceding quarter worth $5.32 billion.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Analog Devices, Inc. (NASDAQ: ADI) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
In its Q4 2020 investor letter, Weitz Investment Management, an investment management firm, highlighted a few stocks, and Analog Devices, Inc. (NASDAQ: ADI) was one of them. Here is what the fund said:
"Analog Devices benefited from several global, long-wave trends such as automation, electric vehicles, and the 5G network build-out. The company's quarterly sales into the auto, industrial, and communications sectors exceeded expectations, giving the stock a lift."
9. Medtronic plc (NYSE: MDT)
Griffin's Stake Value: $349,000,000 Percentage of Ken Griffin's 13F Portfolio: 0.09% Dividend Yield: 2.01% Number of Hedge Fund Holders: 65
Dublin-based medical device firm Medtronic plc (NYSE: MDT) ranks 9th on the 10 best dividend stocks to buy according to billionaire Ken Griffin. The company was founded in 1949 by battery-powered pacemaker inventor Earl E. Bakken. The medical company manufactures everything from minimally invasive treatments such as a surgical stapling device to robot-assisted spine procedures. Medtronic plc also offers insulin pumps and sugar monitoring systems. Medtronic plc (NYSE: MDT) currently pays an annual dividend of $2.52 per share with a 2.01% dividend yield. MDT stock has offered more than 32% returns to investors in the past twelve months. Shares of ADI also increased 5% in the last month.
The company has a market cap of $168 billion. The company's revenue in 2020 decreased 5.4% to $28.9 billion. The company earned $4.789 billion in net income or $3.54 per diluted share. As of June 16, Medtronic plc (NYSE: MDT) shares trade at $125.02 and have a P/E ratio of 47.00. The 52-week price range of MDT is $87.68 - $132.30. On June 3, Argus Research maintained a Buy rating on Medtronic plc, with a price target of $150 per share.
Ken Griffin's Citadel Investment Group holds 2,954,806 shares in the company worth over $349 million. The hedge fund has upped its stakes in Medtronic plc (NYSE: MDT) by 5% in the past few months. Ric Dillon's Diamond Hill Capital is a leading shareholder in Medtronic plc (NYSE: MDT), with 4.34 million shares worth more than $513 million.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Medtronic plc (NYSE: MDT) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
8. Gilead Sciences, Inc. (NASDAQ: GILD)
Griffin's Stake Value: $369,000,000 Percentage of Ken Griffin's 13F Portfolio: 0.1% Dividend Yield: 4.22% Number of Hedge Fund Holders: 65
California-based pharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) ranks 8th on the 10 best dividend stocks to buy according to billionaire Ken Griffin. The research-based biotech firm develops and markets treatment medicines for cancer, HIV, and other blood diseases. The company also offers intravenous injection for COVID-19 treatment. Gilead Sciences, Inc. provides an annual dividend of $2.84 per share with a dividend yield of 4.22%. Year to date, shares of GILD jumped 16% over the last twelve months.
The company has a market cap of $84 billion. The company's revenue in the first quarter of 2021 increased 16% to $6.3 billion, up from $5.5 billion in the same quarter in 2020, driven by sales of COVID-19 intravenous injection Veklury. As of June 16, Gilead Sciences, Inc. (NASDAQ: GILD) shares trade at $67.33 and have a P/E ratio of 280.54. The 52-week price range of GILD is $56.56 - $78.94. On April 30, Morgan Stanley maintained an Overweight rating on Gilead Sciences, Inc., with a price target of $83 per share.
Ken Griffin's Citadel Investment Group holds 6,130,722 shares in the company worth over $369 million. The hedge fund has upped its stakes in Gilead Sciences, Inc. (NASDAQ: GILD) by 54% in the past few months. There were 65 hedge funds that reported owning stakes in Gilead Sciences, Inc. (NASDAQ: GILD) at the end of the first quarter, down from 72 funds a quarter earlier. The total value of these stakes at the end of Q1 is $2.69 billion.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Medtronic plc (NYSE: MDT) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
7. McDonald's Corporation (NYSE: MCD)
Griffin's Stake Value: $385,000,000 Percentage of Ken Griffin's 13F Portfolio: 0.1% Dividend Yield: 2.19% Number of Hedge Fund Holders: 67
Fastfood giant McDonald's Corporation (MCD) ranks 7th on the list of 10 best dividend stocks to buy according to billionaire Ken Griffin. Dividend aristocrat McDonald's Corporation has consecutively increased its dividend payout for the last 45 years. Currently, McDonald's Corporation pays an annual dividend of $5.16, with a 2.19% dividend yield. Founded in 1940, the fast-food retailer that started as a small drive-in restaurant in California now owns and operates nearly 40,000 McDonald's restaurants globally. McDonald's Corporation (NYSE: MCD) plans to open approximately 1,300 restaurants worldwide by the end of the year. McDonald's stock has offered investors returns exceeding 24% in the past twelve months.
The company has a market cap of $176 billion. The company's revenue climbed by 9% to $5.13 billion in the first quarter of 2021, compared to $4.7 billion in the same period of 2020. As of June 16, McDonald's Corporation (NYSE: MCD) shares trade at $235.58 and have a P/E ratio of 34.19. The 52-week price range of MCD is $178.88 - $238.18. McDonald's Corporation was maintained as Overweight by Barclays on June 1, with a price target of $283 per share.
Citadel Investment Group holds 1,719,307 shares in the company worth over $385 million. The hedge fund has increased stakes in McDonald's Corporation (NYSE: MCD) by 62% in the past few months. At the end of the first quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $3.78 billion in McDonald's Corporation (NYSE: MCD), up from 62 the preceding quarter worth $2.9 billion.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), McDonald's Corporation (NYSE: MCD) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
6. Danaher Corporation (NYSE: DHR)
Griffin's Stake Value: $352,000,000 Percentage of Ken Griffin's 13F Portfolio: 0.09% Dividend Yield: 0.34% Number of Hedge Fund Holders: 81
Industrial and medical device manufacturer Danaher Corporation (NYSE: DHR) ranks 6th on the list of 10 best dividend stocks to buy according to billionaire Ken Griffin. The Washington-based life sciences and diagnostic firm manufacture industrial, commercial, and medical devices used in pharmaceutical filtration and purification processes and lab automation. The company also develops software and applications for product inventory. Danaher Corporation (NYSE: DHR) currently pays an annual dividend of $0.84 per share, with a 0.34% dividend yield. DHR stock has offered more than 39% returns to investors in the past twelve months. Shares of MCD also increased 13% in the last month.
In March 2020, Danaher Corporation completed the $21.4 billion acquisition of General Electric Company's (NYSE: GE) biopharmaceutical business and named it Cytiva. Cytiva provides researchers and biopharmaceutical companies with tools and resources to help them develop innovative biological medicines.
The company has a market cap of $175 billion. The company's revenue in the first quarter came in at $6.9 billion, up from $4.3 billion in the same period in 2020. The company earned $1.7 billion in net income or $2.29 per diluted common share. As of June 16, Danaher Corporation (NYSE: DHR) shares trade at $244.74 and have a P/E ratio of 38.44. The 52-week price range of DHR is $168.59 - $261.43. On April 26, Barclays maintained a Buy rating on Danaher Corporation, with a price target of $300 per share.
Citadel Investment Group holds 1,562,692 shares in the company worth over $352 million. The hedge fund has increased Danaher Corporation's (NYSE: DHR) stakes by 17% in the past few months. Ken Fisher's Fisher Asset Management is a leading shareholder in Danaher Corporation (NYSE: DHR), with 3.2 million shares worth more than $723 million.
Like Apple Inc. (NASDAQ: AAPL), NVIDIA Corporation (NASDAQ: NVDA), and Comcast Corporation (NASDAQ: CMCSA), Danaher Corporation (NYSE: DHR) is one of the best dividend stocks to buy according to billionaire Ken Griffin.
In the Q3 2020 investor letter, Del Principe O'Brien Financial Advisors highlighted a few stocks, and Danaher Corp (NYSE: DHR) is one of them. Here is what the fund said:
"Danaher, which designs, manufactures, and markets life science, diagnostics, dental, environmental, and applied solutions, is a prime example of how to use the business strategy of "bolt-on" acquisitions. Led by capital allocation experts from the Rales brothers, Danaher will purchase a company in a fragmented industry, create a strategic platform for providing a unique service, and then spin off the company when it can create even more value as an independent entity.
Since Danaher's bolt-on acquisition of the biopharma business of General Electric's Life Sciences division for $21.4 billion in March 2019, we have realized a gain of well over 100%. The move boosted Danaher's stock from around $90 (our purchase price) to the $210s. A gain like this is one of the big upsides of investing in a serial acquirer."
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Disclosure: None. 10 Best Dividend Stocks to Buy According to Billionaire Ken Griffin is originally published on Insider Monkey.
