One of my favorite ways to find new investment ideas is by keeping an eye on what the smartest players in the game are up to. That’s hardly a novel concept. After all, it’s always wise to study the greats—in investing or anything else.
But investors can do more than just watch the smart money; we can see every stock in their portfolios—and we can do it for free.
Through Form 13F, which every institutional investor in the US with more than $100 million of assets must file with the Securities and Exchange Commission within 45 days of the end of every quarter. Once they’re in, the SEC posts them on its website, where you can search through them in a snap.
The Smart Way to Use 13Fs
Now you may have heard that 13Fs can be unreliable. After all, the investor in question may have sold some of their stocks in the period leading up to the filing deadline. And 13Fs do only show long positions, ignoring short positions altogether.
But these problems really only apply if you blindly piggyback these investors’ moves. If you view 13Fs for what they are—a snapshot in time and a good place to start digging deeper into a stock—they’re more than worth a look.
With that in mind, here are three standout dividend stocks from the latest round of 13Fs (as of the end of the fourth quarter).
They’re all bargains—and they’re all shoveling cash back to investors through buybacks, dividends or both.