In this article, we’ll take a look at the top dividend-paying stocks of billionaire Steve Cohen. If you want to learn more about billionaire Steve Cohen’s top dividend-paying stocks, head straight to Billionaire Steve Cohen’s 5 Best Dividend Stocks.
Billionaire Steve Cohen is the founder of Point72 Asset Management which, at the end of September, had a portfolio of 13F stocks worth more than $25 billion. Prior to founding Point72 Asset Management, Cohen was the founder of SAC Capital Advisors which generated above average returns for two decades.
Due to the success of SAC Capital Advisors and Point72 Asset Management, Steve Cohen is worth around $12.8 billion according to the Bloomberg Billionaires Index. In addition to owning stock, Cohen also owns the New York Mets.
When it comes to Point72 Asset Management, the fund offers many different strategies, including long short equity investing and systematic investing.
In terms of long/short equity investing, the strategy is Point72’s largest in terms of asset allocation and is an industry-aligned multi-manager venture where teams are empowered to perform in-depth fundamental research and manage unique investment processes.
For systematic investing, Point72 Asset Management designs and implements computer-driven systematic trading strategies to buy and sell across multiple asset classes.
Since Point72 Asset Management has many different investment teams and the fund also uses computer-driven trading strategies for part of its fund, Point72 Asset Management has many different positions. For the third quarter, for example, the fund has over 1,800 positions in different stocks.
2022
Given high inflation, the Federal Reserve has raised interest rates six times in 2022 so far and US Treasury yields have risen significantly as a result.
Given the higher yields on Treasuries, many dividend-paying stocks have declined since the start of the year as capital has flowed from dividend-paying stocks into Treasuries, which in some cases offer higher yields. students. As a result, some high-quality, blue-chip dividend-paying stocks have fairly low valuations that could be attractive if the Federal Reserve ultimately wins its war on inflation.
Given the current economic uncertainty, however, the market could fall further if economic data fails to meet expectations. As a result, it might make sense for long-term investors to own a well-diversified portfolio of stocks across many different sectors.
Steven Cohen of Point72 Asset Management
Methodology
For Billionaire Steve Cohen’s Top 10 Dividend-Paying Stocks list, we’ve taken 10 dividend-paying stocks from Billionaire Steve Cohen’s Top 25 Positions at Point72 Asset Management according to Q3 2022 13F filings.
We’ve ranked them based on the value of Point72 Asset Management’s stake in the stock.
Billionaire Steve Cohen’s 10 Best Dividend Stocks
10. GlaxoSmithKline plc (NYSE:GSK)
Value of Point72 Asset Management’s stake as of 09/30: $136,021,000
Percentage of Point72 Asset Management’s 13F portfolio as of 09/30: 0.54%
Dividend yield as of 11/18: 4.96%
GlaxoSmithKline plc (NYSE: GSK) is a leading pharmaceutical giant with a dividend yield of nearly 5% as of 11/18. Although GlaxoSmithKline plc (NYSE:GSK) shares are down nearly 27% year-to-date due to general market weakness and legal action against Zantac, Point72 Asset Management has initiated a new stake of more than $136 million, or 0.54% of the fund’s 13F stock portfolio in GlaxoSmithKline. plc (NYSE:GSK) in the third quarter. With average EPS estimated at $3.12 for 2022, $3.39 for 2023 and $3.64 for 2024, GlaxoSmithKline plc’s (NYSE:GSK) annual dividend of $1.64 per share looks safe if the company meets profit expectations.
Alongside Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS) and AstraZeneca plc (NASDAQ:AZN), GlaxoSmithKline plc (NYSE:GSK) is one of the billionaire’s top dividend-paying stocks Steve Cohen’s Point72 Asset Management’s. wallet.
9. Dell Technologies Inc. (NYSE:DELL)
Value of Point72 Asset Management’s stake as of 09/30: $139,308,000
Percentage of Point72 Asset Management’s 13F portfolio as of 09/30: 0.55%
Dividend yield on 18/11: 3.14%
Point72 Asset Management initiated a new stake worth more than $139 million at the end of September in leading hardware company Dell Technologies Inc. (NYSE:DELL) in the third quarter, where the price of the stock ranged from about $34 to $49 per share. Given Dell Technologies Inc.’s (NYSE:DELL) current price of $42.04, Point72 Asset Management could be lower or higher on its position depending on its average price. In terms of analyst estimates, Citi’s Jim Suva recently cut his price target to $55 from $60 per share, but retained a “Buy” rating on Dell Technologies Inc. (NYSE:DELL) citing an environment weakened for PCs, smartphones and printers given the macroeconomic headwinds.
Considering Point72 Asset Management’s ranking, Dell Technologies Inc. (NYSE:DELL) ranks 9th on our list of billionaire Steve Cohen’s top 10 dividend-paying stocks.
8. Ross Stores, Inc. (NASDAQ: ROST)
Value of Point72 Asset Management’s stake as of 09/30: $146,784,000
Percentage of Point72 Asset Management’s 13F portfolio as of 09/30: 0.58%
Dividend yield on 18/11: 1.15%
Point72 Asset Management increased its position in Ross Stores, Inc. (NASDAQ: ROST) by 210% in the third quarter to end the quarter with a position worth more than $146 million in the retail chain of clothing and fashion for the home at low prices. Considering Ross Stores, Inc. (NASDAQ:ROST) rose nearly 10% on Nov. 18 on stronger-than-expected Q3 earnings and guidance, new buying has been profitable at least in the short term.
Madison Mid Cap Fund commented on Ross Stores, Inc. (NASDAQ: ROST) in a third quarter 2022 letter to investors,
“Ross Stores is one of our oldest holdings. Its profits have increased enormously since the start of the pandemic, first due to closings and store closures, then pent-up demand for clothing and, more recently, economic uncertainty. Additionally, Ross finds that consumer spending trends in terms of mix and categories have been harder to predict than usual, leading to mismatches between its assortment of merchandise and what shoppers want. This doesn’t appear to be a Ross-specific issue, as other apparel retailers have reported similar issues. We attribute this to the unusual post-pandemic environment, and while we don’t have a crystal ball as to when this will normalize, we believe it will.
7. Juniper Networks, Inc. (NYSE: JNPR)
Value of Point72 Asset Management’s stake as of 09/30: $163,388,000
Percentage of Point72 Asset Management’s 13F portfolio as of 09/30: 0.65%
Dividend yield on 18/11: 2.66%
Billionaire Steve Cohen’s Point72 Asset Management increased its position in Juniper Networks, Inc. (NYSE:JNPR) by 376% in the third quarter to end the quarter with a position worth 0.65% of the fund’s 13F stock portfolio. Thanks to the broader market recovery, shares of the leading network products and services company rose from $26.12 at the end of September to $31.57 on November 18. Juniper Networks, Inc. (NYSE: JNPR) also has a dividend yield of 2.66%. In terms of preliminary third quarter results, Juniper Networks, Inc. (NYSE: JNPR) achieved adjusted EPS of $0.58 on sales of $1.415 billion versus estimates of $0.50 billion and $1.35 billion.
Considering Point72 Asset Management’s participation, Juniper Networks, Inc. (NYSE: JNPR) ranks 7th on our list of billionaire Steve Cohen’s top 10 dividend-paying stocks.
6. Oracle Corporation (NASDAQ: ORCL)
Value of Point72 Asset Management’s stake as of 09/30: $183,651,000
Percentage of Point72 Asset Management’s 13F portfolio as of 09/30: 0.73%
Dividend yield on 18/11: 1.61%
Point72 Asset Management more than doubled its position in Oracle Corporation (NASDAQ:ORCL) in the third quarter to the end of September with a stake value of over $183 million. Although shares of Oracle Corporation Inc (NASDAQ:ORCL) are down around 8.6% since the start of the year, Deutsche Bank’s Brad Zelnick raised his price target from $110 to $120 and retained a “Buy” rating citing the company’s public cloud growth prospects. Oracle Corporation (NASDAQ:ORCL) has a dividend yield of 1.61%.
As Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Fidelity National Information Services, Inc. (NYSE:FIS) and AstraZeneca plc (NASDAQ:AZN) are among billionaire Steve Cohen’s Point72 Asset top dividend stocks. Management at the end of the third quarter of 2022.
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Disclosure: none. Billionaire Steve Cohen’s 10 Best Dividend Stocks is originally published on Insider Monkey.
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