Akre Capital uses an investment strategy called the “three-legged stool” approach, describing what the Middleburg, Virginia-based company looks for in an investment:
- Extraordinary business
- Talented management
- Great reinvestment opportunities and histories.
When Akre, founded by CEO Charles T. “Chuck” Akre, finds a business that satisfies all three of its requirements, it is referred to as a “compounding machine.”
Here are two dividend stocks Akre increased its stake in, which could become the next “compounding machines.”
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- KKR & Company Inc KKR offers a forward dividend yield of 1.25% or 62 cents per share annually, using quarterly payments with an inconsistent track record of increasing its dividends. KKR & Co. is one of the world's largest alternative asset managers with $496.2 billion in total assets under management, including $397.6 billion in fee-earning AUM at the end of September 2022. In the third quarter, Akre Capital increased its stake in KKR & Co. by 0.5% to more than 15.4 million shares or 5.9% of the total portfolio.
- Moody's Corporation MCO offers a forward dividend yield of 0.96% or $2.80 per share annually, making quarterly payments with a stellar track record of increasing its dividends for 13 consecutive years. Moody’s is a leading provider of credit ratings on fixed-income securities. Its ratings segment is known as Moody's Investors Service (MIS), which includes corporations, structured finance, financial institutions and public finance ratings. During the course of the third quarter, Akre increased its stake in Moody’s by exactly 280 shares, making it the third-largest position, worth 12% of the total portfolio.
Akre Capital Management was launched in 1989. Chuck Akre has spent 21 years in the securities business at NYSE member firm Johnston Lemon & Co.
At the NYSE-member firm, Akre managed various parts of the business, including branch management, research and asset management.
Akre is also Akre Capital's chief investment officer. The firm touts approximately $14.9 billion in private funds, mutual fund (Akre Focus Fund), and separately managed account assets as of Nov. 30, 2022.
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