Steve Cohen knows a thing or two about making money. So when he speaks, investors listen. The legendary stock picker, who began his investing career at Gruntal & Co. where he managed proprietary capital for 14 years, founded S.A.C Capital Advisors in 1992. In 2014, his investment operations were converted to Point72 Asset Management, a 1,500-plus person registered investment advising firm. Throughout his career, Cohen has consistently delivered huge returns to clients, giving the Point72 Chairman, CEO and President guru-like status on the Street.Turning to Cohen for inspiration, we took a closer look at two dividend stocks Cohen’s Point72 made moves on recently. We’ve used TipRanks’ database to find out what the analyst community has to say about the prospects of these two. Let’s take a closer look.OneMain Holdings (OMF)- ADVERTISEMENT –
The first Cohen’s pick we’re looking at is OneMain. This is a holding company whose subsidiaries offer consumer financing services to retail customers who are unable to access the mainstream banking and credit industry. These are customers who have – for whatever reasons – poor credit histories, but they are not necessarily poor risks. OneMain offers them a range of financial services, including consumer finance, insurance, and personal loans.OneMain’s share price has been gaining steadily for the past year. The stock’s 12 month gain is 135%, far outpacing the broader markets. The gains are standing on a solid, steady revenue stream; the company has posted a top line of $1.2 billion or better in every quarter since 3Q19.In 1Q21, the company reported $1.2 billion in revenue, down slightly from the $1.26 billion in the year-ago quarter – but EPS, at $3.06, was up strongly compared to the 23 cents reported in 1Q20.The company felt confident after the first quarter, and announced an increase in its regular quarterly dividend by 56%, making the new payment 70 cents per common share. The new payment went out on May 13. At an annualized rate of $2.80, the dividend yields 4.7%. This compares favorably to the current low-yield regime promoted by the Federal Reserve.