In this article, we will discuss the 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment. If you want to skip our detailed analysis of Unschuld's history, investment philosophy, and hedge fund performance, go directly to the 5 Best Dividend Stocks to Buy According to Ira Unschuld's Brant Point Investment.
Ira Unschuld oversees Brant Point Investment Management, a New York-based hedge fund that invests in shares, bonds, and equity funds. The firm’s 13F portfolio is a worth of $917.568 million as of the end of the first quarter of 2021. In 2020 the hedge fund posted a return of 34.94% compared to the 18.25% return posted by SPDR S&P 500 ETF Trust (NYSE: SPY).
As of the first quarter of 2021, Ira Unschuld's Brant Point Investment holds stakes in several big companies including PayPal Holdings, Inc. (NASDAQ: PYPL), Thermo Fisher Scientific Inc. (NYSE: TMO), and Fidelity National Information Services, Inc. (NYSE: FIS).
Brant Point Investment owns 20,000 shares of PayPal Holdings, Inc. (NASDAQ: PYPL) worth $4.86 million. On June 24, DA Davidson analyst Christopher Brendler initiated a coverage on PayPal Holdings, Inc. (NASDAQ: PYPL) with a "Buy" rating and a $325 price target. On May 5, PayPal Holdings, Inc. (NASDAQ: PYPL) posted earnings for the first quarter of 2021. It reported earnings of $1.22 per share, beating market predictions by $0.20. The revenue for the first three months of 2021 was $6.03 billion, up 30.5% YoY, beating the estimates by $130 million.
Brant Point Investment Management owns 15,387 shares in Thermo Fisher Scientific Inc. (NYSE: TMO) after reducing its holding by 32%. The stock gained 35.18% over past 12 months. On July 8, Thermo Fisher Scientific Inc. (NYSE: TMO) declared a quarterly dividend of $0.26 per share, in line with the previous. On June 23, Baird analyst Catherine Ramsey Schulte raised the price target on Thermo Fisher Scientific Inc. (NYSE: TMO) to $550 from $545 and kept an “Outperform” rating on the shares.
Another notable stock in Unschuld's portfolio is Fidelity National Information Services, Inc. (NYSE: FIS). The investor owns a $7.14 million stake in the company. On May 10, Barclays raised its price target to $173 from $167 for Fidelity National Information Services, Inc. (NYSE: FIS) maintaining its “Overweight” rating. On April 30, Fidelity National Information Services, Inc. (NYSE: FIS) declared a quarterly dividend of $0.39 per share, in line with the previous.
In this article, we are going to take a look at some of the notable dividend stocks in Ira Unschuld's Brant Point Investment portfolio.
Investing in dividend stocks is a good option to diversify your income stream, especially during times of the pandemic, which is making things difficult even for the smart money. 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 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 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. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That's why we believe hedge fund sentiment is a handy indicator that investors should consider. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context and industry outlook in mind, let’s start the list of the 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment.
Best Dividend Stocks to Buy According to Ira Unschuld's Brant Point Investment
Unschuld's Stake Value: $5,949,000 Percentage of Ira Unschuld's 13F Portfolio: 0.64% Dividend Yield: 1.71% Number of Hedge Fund Holders: 32
Yum! Brands, Inc. (NYSE: YUM) is an American fast-food company. It was founded in 1997 and ranks tenth on the list of 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment. Yum! Brands' shares have gained about 35.81% over the last 12 months.
On June 1, Barclays analyst Jeffrey Bernstein rated the stock as “Equal Weight” and raised the price target to $121 from $115. On May 10, Yum! Brands, Inc. (NYSE: YUM) declared a quarterly dividend of $0.50 per share, in line with the previous.
Brant Point Investment Management holds 54,991 shares in Yum! Brands, Inc. (NYSE: YUM) worth $5.95 million, representing 0.64% of its portfolio. Alkeon Capital Management, with 2.31 million shares, is the biggest stakeholder in the company.
Just like PayPal Holdings, Inc. (NASDAQ: PYPL), Thermo Fisher Scientific Inc. (NYSE: TMO), and Fidelity National Information Services, Inc. (NYSE: FIS), Yum! Brands, Inc. (NYSE: YUM) is one of the best stocks to buy according to Ira Unschuld's Brant Point Investment.
Unschuld's Stake Value: $3,869,000 Percentage of Ira Unschuld's 13F Portfolio: 0.42% Dividend Yield: 1.75% Number of Hedge Fund Holders: 24
Avient Corporation (NYSE: AVNT) is a worldwide supplier of specialized thermoplastic materials and services. It was founded in 1885, and the company stands ninth on the list of 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment. Avient shares has returned 92.73% to investors over the past 12 months.
On July 1, Avient Corporation (NYSE: AVNT) reported that it acquired Magna Colours for $48 million. Magna has introduced the development of next-level aqueous ink technology that gives solutions for brands and printing machines. On May 13, Avient declared a quarterly dividend of $0.2125 per share, in line with the previous. The forward yield is 0.85%. Avient Corporation (NYSE: AVNT) has increased its dividend consistently for the last 10 years.
The hedge fund run by Ira Unschuld owns 81,854 shares in the Avient Corporation (NYSE: AVNT) worth $3.87 million, representing 0.42% of his investment portfolio. There were 24 hedge funds in our database that held stakes in Avient in the first quarter of 2021, compared to 17 funds a quarter earlier.
Unschuld's Stake Value: $10,092,000 Percentage of Ira Unschuld's13F Portfolio: 1.09% Dividend Yield: 1.9% Number of Hedge Fund Holders: 43
Advance Auto Parts, Inc. (NYSE: AAP) is an American automobile parts supplier company. The company was founded in 1929, and it ranks eighth on the list of 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment. Advance Auto Parts shares have returned 56.50% to investors in the last 3 months.
On June 2, Advance Auto Parts, Inc. (NYSE: AAP) posted earnings results for the first three months of 2021. The earnings per share was $3.34, beating market predictions by $0.26. The revenue over the period was $3.33 billion, beating the estimates by $30 million. In addition, the company's comparable-store sales increased 24.7%, up from the consensus estimate of 22.4% in the first quarter of 2021. On June 3, Citi analyst Steven Zaccone raised the firm's price target to $232 from $228 and initiated a “Buy” rating on the shares.
Brant Point Investment Management holds 55,000 shares in the firm worth over $10.09 million. This represents 1.09% of its portfolio. In addition, hedge funds are loading up on Advance Auto Parts, Inc. (NYSE: AAP), as Insider Monkey’s data shows that 43 hedge funds held stakes in the company in the first quarter of 2021, compared to 36 funds a quarter earlier.
Just like PayPal Holdings, Inc. (NASDAQ: PYPL), Thermo Fisher Scientific Inc. (NYSE: TMO), and Fidelity National Information Services, Inc. (NYSE: FIS), Advance Auto Parts, Inc. (NYSE: AAP) is one of the best stocks to buy according to Ira Unschuld's Brant Point Investment.
Unschuld's Stake Value: $4,975,000 Percentage of Ira Unschuld's13F Portfolio: 0.54% Dividend Yield: 1.99% Number of Hedge Fund Holders: 37
Spectrum Brands Holdings, Inc. (NYSE: SPB) is a multinational home essentials company. The company was founded in 2009 and is placed seventh on the list of 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment. Spectrum Brands stock gained about 79.25% in value over the last 12 months.
On June 23, UBS analyst Peter Grom initiated a coverage on Spectrum Brands Holdings, Inc. (NYSE: SPB) with a “Buy” rating and a price target of $102. On May 7, Spectrum Brands posted earnings for the second quarter of 2021. It reported earnings per share of $1.76, beating market predictions by $0.77. The revenue for the second quarter of 2021 was $1.15 billion, up 22.6% YoY, beating the estimates by beats by $120 million.
The hedge fund managed by Ira Unschuld owns more than 58,526 shares in the company worth $4.98 million, representing 0.54% of their portfolio. Brant Point Investment Management has trimmed stake in the firm by 7% in the last three months. Nevertheless, Spectrum Brands Holdings, Inc. (NYSE: SPB) is getting the attention of the smart money, as 37 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the first quarter, up from 35 funds a quarter earlier.
Just like PayPal Holdings, Inc. (NASDAQ: PYPL), Thermo Fisher Scientific Inc. (NYSE: TMO), and Fidelity National Information Services, Inc. (NYSE: FIS), Spectrum Brands Holdings, Inc. (NYSE: SPB) is one of the best stocks to buy according to Ira Unschuld's Brant Point Investment.
Argosy Investors, in their fourth quarter 2020 investor letter, mentioned Spectrum Brands Holdings, Inc. (NYSE: SPB). Here is what the fund said:
“We also say goodbye to our 2-plus year odyssey with Spectrum Brands, a consumer packaged good and home improvement manufacturer. We lost about 15% on this investment, which is obviously not the direction we want to be headed. Looking back on the investment, I didn’t fully appreciate the state the operations were in. Spectrum had invested in additional warehouse and manufacturing capacity prior to our investment, and it took them years to get these assets functioning at appropriate levels. The setup for this investment was attractive given a CEO with strong capital allocation abilities, a business with several #1 or #2 brands, a discount resulting from HRG’s (a hedge fund) concentrated ownership in SPB that could close, and an attractive valuation based on free cash flow. This mattered little during the course of our investment, and I think due to fatigue more than anything we are moving on from this position. Like another of our fatigue-driven exits in Stericycle that led to strong gains for SRCL after our exit, this is probably an ideal buying opportunity if our timing is any indicator.”
Unschuld's Stake Value: $1,382,000 Percentage of Ira Unschuld's13F Portfolio: 0.15% Dividend Yield: 2.17% Number of Hedge Fund Holders: 89
ViacomCBS Inc. (NASDAQ: VIAC) is a multinational media and entertainment company. The company was incorporated in 1986 and is ranked sixth on the list of 10 best dividend stocks to buy according to Ira Unschuld's Brant Point Investment. The stock has offered investors returns of 84.32% over the course of the past 12 months.
On May 26, ViacomCBS Inc. (NASDAQ: VIAC) declared a quarterly dividend of $0.24 per share, in line with the previous. On May 20, BofA Securities analyst Jessica Reif Ehrlich upgraded ViacomCBS Inc. (NASDAQ: VIAC) from “Underperform” to “Buy” and raised the price target to $53 from $38.
The hedge fund run by Ira Unschuld owns 30,636 shares in the company. Brant Point Investment Management increased its stake in the company by 125% in the first quarter, ending the period with $1.38 million shares of the company stock. In addition, hedge fund sentiment increased for ViacomCBS Inc. (NASDAQ: VIAC) in the first quarter.
Just like PayPal Holdings, Inc. (NASDAQ: PYPL), Thermo Fisher Scientific Inc. (NYSE: TMO), and Fidelity National Information Services, Inc. (NYSE: FIS), ViacomCBS Inc. (NASDAQ: VIAC) is one of the best stocks to buy according to Ira Unschuld's Brant Point Investment.
