In this article, we discuss 12 best high-yield dividend stocks to buy according to billionaire Gabelli. You can skip our detailed analysis of Gabelli's investment strategy and GAMCO Investor's previous performance, and go directly to read 5 Best High Yield Dividend Stocks To Buy According to Billionaire Gabelli.
Mario Gabelli is a renowned investor known for his success in value investing and as the founder, chairman, and CEO of GAMCO Investors. His investment philosophy revolves around the principles of value investing, focusing on identifying undervalued stocks and companies that have growth potential. In addition to value investing, Gabelli employs a bottom-up investment approach, meticulously analyzing individual companies rather than making decisions based on broader market trends. This involves fundamental analysis, studying financial statements, understanding business models, and assessing management quality. His investment methods have led to impressive profits over time. His knack for picking winning stocks became well-known during the 1980s, especially when he made profitable investments in the media and telecom industries. As of November, the billionaire’s real-time net worth is over $1.6 billion.
Mario Gabelli's investment firm, GAMCO Investors, oversees an impressive $30 billion in assets across a variety of investment vehicles like mutual funds, closed-end funds, and ETFs. These funds cover a wide spectrum, ranging from his flagship fund, the Gabelli Asset Fund, to more specialized options such as the Gabelli Global Mini Mites Fund, which focuses on smaller companies, and a newer ETF called the Gabelli Love Our Planet and People ETF. One of his oldest and most successful strategies, the Gabelli Asset Management Value, has been delivering exceptional performance since its inception in 1977, boasting an average annual return of 14.1%. This outperforms the average annual return of about 11.5% for the S&P 500 index over the same period, highlighting the consistent success of Gabelli's investment approach.
As mentioned before, Gabelli is famous for investing in undervalued companies. Recently, in an interview with CNBC, he shared his thoughts on investing in today's market. He talked about his strategies and ideas for making smart investments in the current financial landscape. Here are some of his comments:
“In the market, we want to buy good companies with good management and with good valuations. To the degree that the market comes down and to the degree the magnificent seven are in the trillions, there are opportunities for small companies, and in addition to that we believe corporate lovemaking, M&A, even with the Federal Trade Commission doing what they have been doing.”
As of the close of Q3 2023, GAMCO Investors’ 13F portfolio had a value of roughly $8.6 billion, compared with $9.5 billion in the previous quarter. The hedge fund had major investments in the services, industrial goods, and consumer goods sectors. Some of the firm’s major holdings include Berkshire Hathaway Inc. (NYSE:BRK-B), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG). In this article, we will discuss high-dividend stocks by Gabelli.
12 Best High Yield Dividend Stocks To Buy According to Billionaire Gabelli
Mario Gabelli of GAMCO Investors
Our Methodology:
For this list, we selected high-dividend stocks from GAMCO Investors' 13F portfolio, as of Q3 2023. The dividend stocks mentioned below have yields above 3%, as of November 29. The companies are ranked according to the firm's stake in them.
CVS Health Corporation (NYSE:CVS) is a diversified healthcare company that operates in various segments of the healthcare industry. The company currently pays a quarterly dividend of $0.605 per share, having raised it by 10% last year. This was the company's second consecutive year of dividend growth. The stock's dividend yield came in at 3.49%, as of November 29. CVS is one of the best dividend stocks in billionaire Gabelli's portfolio.
At the end of the third quarter of 2023, GAMCO Investors hold 215,646 shares in CVS Health Corporation (NYSE:CVS), worth over $15 million. The company represented 0.17% of the firm's 13F portfolio.
Of the 910 hedge funds tracked by Insider Monkey as of Q3 2023, 64 funds owned stakes in CVS Health Corporation (NYSE:CVS), compared with 66 in the previous quarter. The collective value of these stakes is over $1.85 billion.
NextEra Energy, Inc. (NYSE:NEE) is a leading clean energy company primarily involved in the generation, transmission, and distribution of electric power. On October 13, the company declared a quarterly dividend of $0.4675 per share, which was in line with its previous dividend. The company maintains a 27-year streak of consistent dividend growth. With a dividend yield of 3.22%, as of November 28, NEE is one of the best high-dividend stocks in billionaire Gabelli's portfolio.
GAMCO Investors owned 294,755 shares in NextEra Energy, Inc. (NYSE:NEE) at the end of Q3 2023, which are valued at over $16.8 million. The company accounted for 0.18% of the firm's 13F portfolio.
At the end of Q3 2023, 58 hedge funds in Insider Monkey's database reported having stakes in NextEra Energy, Inc. (NYSE:NEE), compared with 59 in the preceding quarter. The consolidated value of these stakes is more than $1.44 billion.
Evergy, Inc. (NASDAQ:EVRG) is an American electric utility company that generates and distributes electricity to residential, commercial, and industrial customers in its service territory. At the end of the third quarter of 2023, GAMCO Investors held 349,524 shares in the company, worth over $17.7 million. The company made up 0.2% of billionaire Gabelli's portfolio.
Evergy, Inc. (NASDAQ:EVRG) has been raising its dividends for the past 18 years consistently and it currently pays a quarterly dividend of $0.6125 per share. The stock has a dividend yield of 5.01%, as of November 29.
The number of hedge funds tracked by Insider Monkey owning stakes in Evergy, Inc. (NASDAQ:EVRG) grew to 34 in Q3 2023, from 27 in the previous quarter. The consolidated value of these stakes is roughly $604 million. Among these hedge funds, Citadel Investment Group was the company's leading stakeholder in Q3.
Morgan Stanley (NYSE:MS) is a global financial services firm that operates in various areas of finance. The company has a significant wealth management division that offers a range of financial services to individuals, families, and institutions. It currently pays a quarterly dividend of $0.85 per share and has a dividend yield of 4.42%, as of November 29.
At the end of Q3 2023, GAMCO Investors owned 223,270 shares in Morgan Stanley (NYSE:MS), worth over $18.2 million. The company constituted 0.21% of the firm's 13F portfolio. During the quarter, the hedge fund reduced its position in the company by 3%.
As of the close of Q3 2023, 59 hedge funds tracked by Insider Monkey owned stakes in Morgan Stanley (NYSE:MS), up from 54 in the previous quarter. The collective value of these stakes is over $2.5 billion.
Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the US and offers a wide range of financial services. The bank also offers investment banking services to corporations, institutions, and governments. It currently offers a quarterly dividend of $0.24 per share and has been paying uninterrupted dividends to shareholders for the past 24 years. The stock has a dividend yield of 3.25%, as of November 29, which makes BAC one of the best high-dividend stocks in billionaire Gabelli's portfolio.
Bank of America Corporation (NYSE:BAC) made up 0.26% of GAMCO Investors' portfolio at the end of Q3 2023. The hedge fund owned BAC stakes worth over $23 million.
The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) stood at 88 in Q3 2023, down from 90 in the previous quarter. These stakes are collectively valued at over $31.3 billion. Warren Buffett's Berkshire Hathaway was the company's leading stakeholder in Q3.
The J. M. Smucker Company (NYSE:SJM) is an Ohio-based food and beverage company that operates in various segments of the consumer goods industry. During the third quarter of 2023, GAMCO Investors increased its position in the company by 2% and ended the quarter with SJM stakes worth over $23.7 million. The company represented 0.27% of the firm's 13F portfolio.
On October 19, The J. M. Smucker Company (NYSE:SJM) declared a quarterly dividend of $1.06 per share, growing it by 4% in July. Through this increase, the company stretched its dividend growth streak to 22 years. In addition to this, the stock's dividend yield of 3.87% as of November 29 makes SJM one of the best stocks in billionaire Gabelli's portfolio.
The J. M. Smucker Company (NYSE:SJM) was a part of 33 hedge fund portfolios at the end of Q3 2023, up from 29 in the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a total value of roughly $460 million.
Telephone and Data Systems, Inc. (NYSE:TDS) is a diversified telecommunications company with operations in both wireless and wireline communications. The company is just two years away from becoming a Dividend King, having raised its payouts for 48 consecutive years. It currently offers a quarterly dividend of $0.185 per share and has a dividend yield of 3.91%, as of November 29.
During the third quarter of 2023, GAMCO Investors owned over 2.1 million shares in Telephone and Data Systems, Inc. (NYSE:TDS), worth over $38.8 million. The hedge fund boosted its position in the company by 2%, which now represents 0.45% of the firm's 13F portfolio.
Telephone and Data Systems, Inc. (NYSE:TDS) was a popular stock among elite funds during Q3 2023 as the hedge fund positions jumped to 27 at the end of the quarter, from 18 in the previous quarter, according to Insider Monkey's database. The stakes held by these hedge funds have a collective value of over $225.7 million. Among these hedge funds, Third Point was the company's leading stakeholder in Q3.
