Financial institutions, like pension funds and hedge funds, tend to be risk-averse. They may take some risks but those risks are carefully hedged and well-researched. As such, keeping an eye on what institutional investors are buying can be a great strategy for do-it-yourself investors looking for stable returns. The higher the percentage of available shares owned by institutional investors, the better the investment tends to be.
Below we compiled a list of six dividend stocks that have a market cap of over $25 billion, dividend yields higher than 3% and that have had an increase in institutional ownership as a result of recent purchases. We obtained market data from Finviz and institutional ownership from Fidelity.
Stock | Market Cap | Sector* | Dividend Yield | P/E | Beta | Profit Margin |
General Electric Company (GE) | 207.1 | 1 | 3.5% | 16.1 | 1.6 | 9.8% |
Duke Energy Corporation (DUK) | 28.7 | 2 | 4.7% | 16.7 | 0.36 | 11.8% |
The Dow Chemical Company (DOW) | 40.4 | 3 | 3.8% | 18.2 | 2.35 | 4.3% |
BlackRock (BLK) | 34.4 | 4 | 3.1% | 15.2 | 1.51 | 26.0% |
Exelon Corporation (EXC) | 25.8 | 6 | 5.4% | 10.4 | 0.54 | 13.2% |
Procter & Gamble (PG) | 175.3 | 5 | 3.5% | 18.7 | 0.44 | 11.9% |
* 1-Industrial Goods, 2-Utilities, 3-Conglomerates, 4-Financial, 5-Consumer Goods, 6-Diversified Utilities
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General Electric Company is a technology and financial services company operating worldwide. GE recently traded at $19.92 and has a 3.5% dividend yield. GE lost 0.7% during the past 12 months. The stock has a market cap of $207.1 billion, P/E ratio of 16.1 and Total Debt/Equity ratio of 3.69. GE also had an EPS growth rate of -8% during the last five years. Ken Fisher's Fisher Asset Management reduced its holdings in GE by 30% during the last quarter of 2011. Ken Fisher had $396 million invested in GE at the end of December. Phill Gross' Adage Capital Management, Bill Miller's Legg Mason Capital Management and Warren Buffett's Berkshire Hathaway also had more than $100 million positions in GE at the end of December.
Duke Energy is an energy company operating in the United States and Latin America. Duke Energy recently traded at $21.57 and has a 4.7% dividend yield. Duke Energy gained 20.9% during the past 12 months. The stock has a market cap of $28.7 billion, P/E ratio of 16.7 and Total Debt/Equity ratio of 0.92. Duke Energy also had an EPS growth rate of 7.1% during the last five years. Louis Navellier's Navellier & Associates initiated a $41 million brand new position in Duke Energy during the last quarter of 2011.
The Dow Chemical Company provides chemical products used as raw materials. The Dow Chemical Company recently traded at $34.12 and has a 3.8% dividend yield. DOW lost 14.6% during the past 12 months. The stock has a market cap of $40.4 billion, P/E ratio of 18.2 and Total Debt/Equity ratio of 0.89. DOW also had an EPS growth rate of -11.7% during the last five years. James Dinan's York Capital Management initiated a brand new $100 million position in DOW during the last quarter of 2011.
BlackRock is an American multinational investment management corporation. BlackRock recently traded at $192.06 and has a 3.1% dividend yield. BlackRock gained 0.8% during the past 12 months. The stock has a market cap of $34.4 billion, P/E ratio of 15.2 and Total Debt/Equity ratio of 0. BlackRock also had an EPS growth rate of 26.2% during the last five years. Ken Griffin's Citadel Investment Group increased its holdings in BlackRock by 231% during the last quarter of 2011.
Exelon Corporation is the largest owner and operator of nuclear plants in the United States. Exelon Corporation recently traded at $39.23 and has a 5.4% dividend yield. EXC lost 2.7% during the past 12 months. The stock has a market cap of $25.8 billion, P/E ratio of 10.4 and Total Debt/Equity ratio of 0.94. EXC also had an EPS growth rate of 9.8% during the last five years.
Procter & Gamble is a major personal products company. PG recently traded at $63.53 and has a 3.5% dividend yield. PG gained 1.3% during the past 12 months. The stock has a market cap of $175.3 billion, P/E ratio of 18.7 and Total Debt/Equity ratio of 0.52. PG also had an EPS growth rate of 10% during the last five years. Warren Buffett's Berkshire Hathaway had $5.1 billion invested in PG at the end of 2011.
