This Hedge Fund Scored Big Off Amazon's Whole Foods Deal: Check Out Its 2 Dividend Stocks

Zinger Key Points
  • Barry Rosenstein is famously known for earning $300M over the merger of Whole Foods with Amazon.com in 2017.
  • For fiscal 2023, organic net sales growth is expected to be 4% to 5% compared to fiscal 2022 organic net sales of 3.8%.
This Hedge Fund Scored Big Off Amazon's Whole Foods Deal: Check Out Its 2 Dividend Stocks

Jana Partners, the activist hedge fund founded by Barry Rosenstein, grabbed headlines in 2017 when it earned $300 million off Amazon.com's AMZN acquisition of Whole Foods.

The fund's top position is in Treehouse Food Inc. THS. Jana holds more than 5 million shares, accounting for 19% of the portfolio.

Although Treehouse is not offering a dividend, here are two other dividend stocks Rosenstein’s hedge fund holds.

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  • Conagra Brands Inc. CAG offers a dividend yield of 3.89% or $1.32 per share annually, making quarterly payments, with a decent track record of increasing its dividends for two consecutive years. The Chicago-based packaged food company operates predominantly in the U.S. accounting for over 90% of its revenue and profits. For fiscal 2023, organic net sales growth is expected to be 4% to 5% compared to fiscal 2022 organic net sales of 3.8%, and adjusted earnings per share growth of 1% to 5% compared to fiscal 2022.
  • Laboratory Corporation of America Holdings LH offers a dividend yield of 1.33% or $2.88 per share annually, utilizing quarterly payments, with an inconsistent track record of increasing its dividends. Laboratory, based in Burlington, North Carolina, has roughly 20% of the independent lab market acquired. The firm operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing. During the second quarter, Laboratory invested $99.8 million in acquisitions, paid out $66.7 million in dividends, and repurchased $400 million of stock representing approximately 1.7 million shares. Additionally, full-year 2022 guidance adjusted earnings per share was raised to $19.00 to $21.25.

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