This $77 Billion Hedge Fund Company Bought Coca-Cola, Pfizer, and Fifth Third Bank

Do these solid and growing dividends interest you?

Mar 11, 2014 at 5:00PM

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider Citadel Advisors, founded and led by Kenneth Griffin. It's one of the biggest hedge fund companies around, with a reportable stock portfolio totaling $76.8 billion in value as of Dec. 31, 2013. According to the folks at Insider Monkey, Griffin and his team use "a combination of advanced computer code, complicated financial algorithms and secrecy. Griffin was using quantitative, technology-based methods before many other firms had cell phones."

Citadel Advisors' latest 13F report shows that it boosted its positions in Fifth Third Bancorp (NASDAQ:FITB), Coca-Cola (NYSE:KO), and Pfizer (NYSE:PFE).

Cincinnati-based Fifth Third Bancorp has been responding to customer preferences in part by experimenting with more self-service features in branches, such as advanced ATMs that do more than take or dispense money. Bank of America Merrill Lynch analyst Erika Najarian upgraded Fifth Third stock to buy last month, citing its valuation and seeing it as a defensive investment. The company's fourth quarter featured earnings per share up 22% from year-ago levels and record full-year net income. Fifth Third Bancorp stock yields 2.1%.

Coca-Cola stock underperformed the market in 2013, facing weak international growth and challenges from regulators and health advocates. Its last quarter was disappointing, with revenue and earnings lower than year-ago levels -- though market share in soda has been steadily growing in recent years. The company has outlined five strategic priorities, including accelerating sparkling-beverage growth, expanding its portfolio, and winning at the point of sale. Coca-Cola stock yields 3.2%.

Pfizer stock also yields 3.2%. As with other big pharmaceutical companies, its blockbuster drugs face patent expirations sooner or later. Pfizer's 2014 and 2015 revenue is expected to pull back because of expirations, therefore its pipeline of new offerings is paramount. Some treatments generating optimism target breast cancer and pneumonia. There's also hope that its drug Lyrica might be approved to treat restless legs syndrome. Pfizer's fourth quarter featured shrinking sales of Viagra and Lipitor due to patent expirations abroad and at home, respectively.

More Dividend Payers to Reward You
Dividend stocks as a group handily outperform their non-dividend-paying brethren.With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Selena Maranjianwhom you can follow on Twitter, owns shares of Coca-Cola. The Motley Fool recommends Coca-Cola. The Motley Fool owns shares of Coca-Cola and Fifth Third Bancorp and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information