Ken Griffin Is Snapping Up These Dividend Stocks: Hess And 2 More
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Ken Griffin, founder of Citadel in 1990, is widely regarded as a leading figure among contemporary hedge fund managers. Citadel stands as one of the largest and most successful hedge funds globally. Griffin’s approximately $38 billion net worth places him at No. 42 on the list of the world’s wealthiest individuals.
Although Griffin does not rely on income from his stock holdings, he significantly increased his investments in three dividend stocks during the first quarter of 2024.
Hess Corp. (NYSE:HES)
At the end of 2023, Citadel did not have any of Hess’s best stocks. However, Griffin increased Citadel’s share in Hess almost 18 times, making it the hedge fund’s third-largest position. Hess has a forward dividend yield of less than 1.2%, but the company has raised its dividends by 75% since 2022.
Griffin’s decision to buy more shares of Hess contradicts the sentiment on Wall Street. LSEG polled 21 analysts in May, and 11 recommended holding on to the company, while one predicted it would “underperform.” Griffin might be banking on positive outcomes from Chevron’s planned purchase of Hess, which could lead to a 13% increase in their share price for Hess owners.
Bank of America Corp (NYSE:BAC)
Regarding Citadel’s banking stock investments, Bank of America is a top choice. Griffin acquired more than 22.4 million shares in the first quarter, marking a 389% increase from the previous quarter. Bank of America is known for its robust dividend program. Over the last five years, the dividend has grown by 60%, and the current forward dividend yield is over 2.4%.
The stock has recovered since the banking disaster in 2023 but remains approximately 20% below its early 2022 peak. Despite this, Bank of America’s value exceeds its current standing. Its forward price-to-earnings ratio is 12.2, lower than the S&P 500 banking sector’s average of 15.6.
Merck & Co Inc (NYSE:MRK)
Among the pharmaceutical stocks in Citadel’s portfolio, Merck, emerges as a standout performer. It rose nearly 20% in Q1 to become the eighth-largest holding. Since 2011, Merck has increased its dividend every year., with a 40% growth over the last five years, resulting in a forward dividend yield of almost 2.4%.
In 2024, Merck’s stock performed well, surging by 20%. The company secured new approvals for its bestselling drug, Keytruda, in the U.S. and Europe. Additionally, it also reported positive results from a late-stage pneumococcal conjugate vaccine V116 study. In March, Merck completed its acquisition of Harpoon Therapeutics.
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This article Ken Griffin Is Snapping Up These Dividend Stocks: Hess And 2 More originally appeared on Benzinga.com