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Charles Clough has an amazing background. He has a B.A. from Boston College and an M.B.A. from University of Chicago. Before founding Clough Capital Partners, he spent 13 years as the Chief Investment Strategist at Merrill Lynch, where he has been selected to the Institutional Investor All-America Research Team for 12 consecutive years. Clough is one of the top strategists in areas including US equities, global investments and fixed income.

In this article, we are going to focus on the high dividend stocks in the 13F portfolio of Clough Capital Partners at the end of September. Below we compiled a list of such stocks. All companies have at least $10 billion market cap and a dividend yield of over 4%. The market data is sourced from Finviz.

Company Name

Ticker

Value

Activity

Dividend

AMERICAN ELECTRIC POWER

AEP

26812

1137%

4.52%

ANNALY CAPITAL

NLY

21857

-25%

13.46%

P P L CORP

PPL

18711

99%

4.72%

FIRSTENERGY CORP

FE

9238

New

4.96%

DUKE ENERGY

DUK

4178

0%

4.57%

P G & E CORP

PCG

3000

0%

4.43%

ENTERGY CORP

ETR

1107

0%

4.54%

The biggest high dividend position in the latest 13F portfolio of Clough Capital Partners is American Electric Powe (NYSE:AEP). At the end of the third quarter, Clough Capital Partners invested $27 million in AEP, up 1137% from the end of June. AEP has a dividend yield of 4.52% and returned 10.65% since the end of the third quarter. Billionaire Jim Simons is also bullish about AEP. At the end of September, his Renaissance Technologies had $69 million invested in this stock.

Annaly Capital Management Inc (NYSE:NLY) has the highest dividend yield among the stocks listed above. It has a dividend yield of 13.46% and returned 1.86% since the end of the third quarter, lower than the 12.41% for SPY. It is very likely that NLY is currently trading at a discount as the stock has a relatively low P/E ratio of 8.82. Clough Capital Partners reported to own $22 million of NLY at the end of the third quarter. Bill Miller’s Legg Mason Capital Management had more than $100 million invested in NLY at the end of September.

During the third quarter, Clough Capital Partners initiated a brand new $9.2 million position in First Energy Corp (NYSE:FE). The stock has a dividend yield of 4.96% and returned 0.02% since the end of the third quarter. It has a market cap of $18.56B and a P/E ratio of 18.49. At the end of September, Jean-Marie Eveillard’s First Eagle Investment Management had $553 million invested in FE. Jim Simons, Israel Englander, and D. E. Shaw were also among the hedge funds with bullish FE positions.

Other high dividend stock picks of Clough Capital Partners include PPL Corp (NYSE:PPL), Duke Energy Corp (NYSE:DUK), PG&E Corp (NYSE:PCG), and Entergy Corp (NYSE:ETR). We like dividend stocks because they historically generated better-than-market returns with lower volatility. They also go up in inflationary environments. We are concerned about the Fed’s inflationary monetary policies and we believe dividend stocks are better investments than long-term treasury bonds. One of the best ways to pick strong dividend stocks is to focus on what good fund managers are bullish about. We believe that by focusing on Clough Capital Partners’ dividend stock picks, investors will be more likely to beat the bonds in the long run.

Source: Clough Capital Partners' High Dividend Stock Picks