Billionaire Steven Cohen’s Top High Dividend Stock Picks
In this article, we discuss billionaire Steve Cohen's top high-dividend stock picks. You can skip our detailed analysis of Point72 Asset Management's holding and recent developments, and go directly to read Billionaire Steven Cohen’s Top 5 High Dividend Stock Picks.
Steve Cohen is a prominent figure in the world of finance and investing, known for his shrewdness and success in the hedge fund industry. He is the Chairman and Chief Executive Officer of Point72 Asset Management, a firm that manages various types of assets worldwide. He started S.A.C. Capital Advisors back in 1992 and shifted his investment work to the family office of Point72 Asset Management in 2014. Eventually, the company evolved into a registered investment advisor, opening its doors to outside investors in 2018. As of November, Cohen’s real-time net worth came in at $19.8 billion and his hedge fund reported $31.4 billion in assets under management.
Steve Cohen is known for his diverse investment strategy, which combines elements of fundamental analysis, quantitative models, and a deep understanding of market dynamics. His approach involves a blend of extensive research on individual companies, macroeconomic trends, and technical analysis of market movements. Cohen's investment approach has consistently led to good profits for his hedge fund. Point72 Asset Management showed strong performance, finishing 2021 with a 9.2% gain for shareholders. Even in 2020, Cohen's hedge fund did well, achieving a 16% gain and maintaining its financial strength.
In the midst of the uncertain market conditions, Cohen has been vocal about ongoing issues, and the current market climate is no different. During the Robin Hood Investors Conference in October, he mentioned the possibility of a brief recession for the US economy this year. Cohen suggested that it might be a momentary setback or what he called "a fake scare," catching people off guard temporarily before a market rebound. He emphasized that this downturn would likely be short-lived, foreseeing a quick recovery possibly by the first quarter of the following year. Mr. Cohen remains optimistic about the economy, expressing a "pretty positive" outlook despite uncertainties. He anticipates a significant surge in economic growth for the upcoming year, projecting a 3% to 5% rally in equity markets. Cohen also suggested that this surge could lead to higher-than-expected interest rates.
Cohen has shown significant enthusiasm for the potential of artificial intelligence alongside his assessment of market trends. At the conference, he highlighted the role of AI, acknowledging that although the technology hasn't yet generated substantial returns for Point72, he holds strong confidence in its future value creation. Cohen believes that despite its current limitations, his firm will harness AI's capabilities to produce significant returns in the future. Here is what he said:
“It’s still early. It’s definitely going to be a productivity enhancer. We’re going to come up with lots of use cases and experiment and try to figure out what works and what doesn’t.”
At the end of Q3 2023, Point72 Asset Management had a 13F portfolio valued at over $34.2 billion, up from $33.6 billion in the previous quarter. The hedge fund made investments in several sectors, with services and healthcare sectors taking up the major portion of the portfolio. In addition to this, the fund also had significant investments in dividend stocks like Walmart Inc. (NYSE:WMT), Microsoft Corporation (NASDAQ:MSFT), and Target Corporation (NYSE:TGT). In view of this, we will discuss the best dividend stocks to buy according to Steve Cohen’s Point72 Asset Management.
Our Methodology:
We chose prominent dividend stocks from Point72 Asset Management’s portfolio, as of Q3 2023. We specifically selected stocks with dividends over 3% as of November 20. These companies not only offer high dividends but also have consistent track records of paying dividends. The stocks are ranked according to the value of Point72 Asset Management’s stake in them.
11. Philip Morris International Inc. (NYSE:PM)
Point72 Asset Management’s Stake Value: $49,540,484
Dividend Yield as of November 20: 5.66%
Philip Morris International Inc. (NYSE:PM) is a multinational tobacco company known for its production and sales of cigarettes, tobacco, and related products. At the end of Q3 2023, Point72 Asset Management owned 535,110 shares in the company, worth collectively over $49.5 million. The company represented 0.14% of the firm's 13F portfolio.
Philip Morris International Inc. (NYSE:PM), one of the best high-dividend stocks in billionaire Steve Cohen's portfolio, currently pays a quarterly dividend of $1.30 per share. In September this year, the company raised its dividend for the 15th consecutive year. The stock has a dividend yield of 5.66%, as of November 20.
At the end of Q2 2023, 54 hedge funds in Insider Monkey's database reported having stakes in Philip Morris International Inc. (NYSE:PM), down from 55 in the previous quarter. The overall value of these stakes is more than $5 billion.
10. The AES Corporation (NYSE:AES)
Point72 Asset Management’s Stake Value: $54,406,150
Dividend Yield as of November 20: 3.91%
The AES Corporation (NYSE:AES) is a multinational power company involved in the generation and distribution of electricity. The company is involved in distributing electricity to homes, businesses, and industries through its power grids and networks.
The AES Corporation (NYSE:AES) currently pays a quarterly dividend of $0.1659 per share and has a dividend yield of 3.91%, as of November 20. It is one of the best high-dividend stocks in Steve Cohen's portfolio as the company has been growing its dividends for 10 consecutive years.
Point72 Asset Management owned over 3.5 million shares in The AES Corporation (NYSE:AES) in the third quarter of 2023, worth over $54.4 million. The hedge fund increased its position in the company by 18% during the quarter. The company represented 0.15% of its 13F portfolio.
As of the close of Q2 2023, 36 hedge funds tracked by Insider Monkey owned stakes in The AES Corporation (NYSE:AES), compared with 44 in the previous quarter. These stakes are collectively valued at more than $946.7 million.
9. The Goldman Sachs Group, Inc. (NYSE:GS)
Point72 Asset Management’s Stake Value: $60,582,982
Dividend Yield as of November 20: 3.24%
The Goldman Sachs Group, Inc. (NYSE:GS) is an American multinational investment banking, securities, and investment management firm. The company provides various financial services to corporations, governments, and institutions. During the third quarter of 2023, Steve Cohen's hedge fund increased its position in the company by nearly 500%, which took its total GS stake to over $60.5 million. The company made up 0.17% of the billionaire's 13F portfolio.
In the third quarter of 2023, The Goldman Sachs Group, Inc. (NYSE:GS) returned $937 million to shareholders through dividends. The company currently pays a quarterly dividend of $2.75 per share and has a dividend yield of 3.24%, as of November 20.
Insider Monkey's database of Q2 2023 showed that 70 hedge funds owned investments in The Goldman Sachs Group, Inc. (NYSE:GS), up from 69 in the preceding quarter. These stakes are collectively valued at more than $1.3 billion. With over 2.8 million shares, Eagle Capital Management was the company's leading stakeholder in Q2.
8. Amgen Inc. (NASDAQ:AMGN)
Point72 Asset Management’s Stake Value: $72,227,369
Dividend Yield as of November 20: 3.20%
Amgen Inc. (NASDAQ:AMGN) is a leading biotechnology company that specializes in the development, manufacturing, and commercialization of innovative medicines. On October 24, the company declared a quarterly dividend of $2.13 per share, which was in line with its previous dividend. Overall, the company holds a 10-year streak of consistent dividend growth, which makes AMGN one of the best high-dividend stocks in billionaire Steve Cohen's portfolio. The stock's dividend yield on November 20 came in at 3.20%.
Point72 Asset Management boosted its position in Amgen Inc. (NASDAQ:AMGN) by 15,616% during the third quarter of 2023. The hedge fund owned 268,743 shares in the company, with a value of over $72.2 million. The company represented 0.21% of the firm's 13F portfolio.
At the end of June 2023, 57 hedge funds tracked by Insider Monkey reported having investments in Amgen Inc. (NASDAQ:AMGN), which remained the same from the previous quarter. The overall value of these stakes is more than $1.56 billion.
7. Nutrien Ltd. (NYSE:NTR)
Point72 Asset Management’s Stake Value: $88,548,462
Dividend Yield as of November 20: 3.78%
Nutrien Ltd. (NYSE:NTR) is a Canada-based agricultural company primarily involved in the production and distribution of agricultural products and services. The company currently offers a quarterly dividend of $0.53 per share, having raised it by 10% earlier this year. This marked the company's fourth consecutive year of dividend growth. With a dividend yield of 3.78% as of November 20, NTR is one of the best high-dividend stocks in billionaire Steve Cohen's portfolio.
During the third quarter of 2023, Cohen's hedge fund lifted its position in Nutrien Ltd. (NYSE:NTR) significantly by 712%. The hedge fund owned over 1.4 million NTR shares by the end of the quarter, worth over $88.5 million. The company made up 0.25% of the firm's 13F portfolio.
At the end of June 2023, 31 hedge funds tracked by Insider Monkey owned stakes in Nutrien Ltd. (NYSE:NTR), compared with 32 in the preceding quarter. The total value of these stakes is $341.1 million. Among these hedge funds, First Eagle Investment Management was the company's leading stakeholder in Q2.
6. Canadian Natural Resources Limited (NYSE:CNQ)
Point72 Asset Management’s Stake Value: $111,614,133
Dividend Yield as of November 20: 4.34%
Canadian Natural Resources Limited (NYSE:CNQ) is one of the largest independent crude oil and natural gas producers in the world, based in Canada. On November 2, the company declared an 11% hike in its quarterly dividend to C$1.00 per share. Through this increase, the company stretched its dividend growth streak to 25 years, which makes CNQ one of the best high-dividend stocks in billionaire Steve Cohen's portfolio. As of November 20, the stock has a dividend yield of 4.34%.
At the end of Q3 2023, Point72 Asset Management owned over 1.7 million shares in Canadian Natural Resources Limited (NYSE:CNQ), worth more than $111.6 million. During the quarter, the hedge fund boosted its stake in the company by 161%. The company accounted for 0.32% of the firm's 13F portfolio.
Canadian Natural Resources Limited (NYSE:CNQ) was a part of 36 hedge fund portfolios at the end of Q2 2023, as per Insider Monkey's database. The consolidated value of stakes owned by these hedge fund is over $1.38 billion.
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Disclosure. None. Billionaire Steven Cohen’s Top High Dividend Stock Picks is originally published on Insider Monkey.
