Growth is the name of the game for Cathie Wood. Income isn't even an afterthought.
However, you might be surprised at how many of the stocks owned by Wood's Ark Invest exchange-traded funds (ETFs) actually pay dividends. Wood might not be looking for income, but she's getting some anyway.
Here is every dividend stock Wood owns, ranked from highest to lowest dividend yield.
Dividend stars
The dividend yield for the S&P 500 currently stands at 1.51%. Eight stocks in Ark Invest's portfolio are dividend stars that easily beat that level.
| Rank | Stock | Dividend Yield |
|---|---|---|
| 1 | Pfizer(NYSE: PFE) | 4.53% |
| 2 | Magna International(NYSE: MGA) | 2.91% |
| 3 | Garmin(NYSE: GRMN) | 2.78% |
| 4 | Lockheed Martin(NYSE: LMT) | 2.67% |
| 5 | L3Harris Technologies(NYSE: LHX) | 2.4% |
| 6 | Honeywell (NASDAQ: HON) | 2.1% |
| 7 | Caterpillar(NYSE: CAT) | 2.01% |
| 8 | Taiwan Semiconductor Manufacturing(NYSE: TSM) | 1.84% |
Data sources: Ark Invest, Google Finance.
Believe it or not, Wood owns a stake in a high-yield dividend stock -- Pfizer. Ark Genomic Revolution ETF's stake in the big drugmaker is worth close to $17.7 million.
Pfizer isn't the typical kind of stock in the genomic ETF's portfolio. Most of its top holdings are up-and-coming biotech stocks and genomics stocks. However, Pfizer has proven that it remains a top innovator. And when it can't beat smaller drug developers to the punch, it often acquires them.
Not too shabby
Wood's ETFs also have positions in a handful of stocks with dividend yields that are below the S&P 500's yield but still are not too shabby.
| Rank | Stock | Dividend Yield |
|---|---|---|
| 9 | Intercontinental Exchange(NYSE: ICE) | 1.46% |
| 10 | Komatsu(OTC: KMTUY) | 1.24% |
| 11 | John Deere(NYSE: DE) | 1.17% |
Data sources: Ark Invest, Google Finance.
Intercontinental Exchange pays the best dividend in this group with a yield that nearly matches the S&P 500's. However, John Deere ranks as the largest position among these three stocks for her Ark Invest funds. The heavy machinery maker is the eighth-largest holding for Ark Autonomous Technology & Robotics ETF and is also in Ark Space Exploration Innovation ETF's portfolio.
You might have done a double-take seeing that Wood's space exploration ETF owns John Deere stock. That's not a typo, though. Deere plans to use satellites to help farmers.
A quiver of slivers
Most of Wood's dividend stocks only offer relatively paltry dividends with yields of less than 1%. I've called this group her "quiver of slivers."
| Rank | Stock | Dividend Yield |
|---|---|---|
| 12 | Elbit Systems (NASDAQ: ESLT) | 0.99% |
| 13 | Iridium Communications (NASDAQ: IRDM) | 0.99% |
| 14 | General Motors(NYSE: GM) | 0.92% |
| 15 | Microsoft(NASDAQ: MSFT) | 0.82% |
| 16 | Intuit(NASDAQ: INTU) | 0.63% |
| 17 | Dassault Systèmes(OTC: DASTY) | 0.50% |
| 18 | Teradyne(NASDAQ: TER) | 0.4% |
| 19 | Cameco(NYSE: CCJ) | 0.27% |
| 20 | Heico(NYSE: HEI) | 0.11% |
| 21 | Nvidia(NASDAQ: NVDA) | 0.035% |
Data sources: Ark Invest, Google Finance.
Israeli-based defense electronics company Elbit Systems and satellite operator Iridium Communications almost managed to join the "not too shabby" category. A slight drop in their share prices would push their yields above 1%.
Ark Invest's lowest dividend payer isn't one of Wood's favorite stocks these days. She thinks there are better artificial-intelligence stocks than Nvidia. Wood has even sold most of her shares of the chipmaker. However, Ark Financial Innovation ETF, Ark Innovation ETF, Ark Autonomous Technology & Robotics ETF, and Ark Next Generation Internet ETF still own small stakes in Nvidia.
Better picks
With the notable exception of Pfizer, I think that income investors can find better choices than the dividend stocks owned by Wood's ETFs. What about growth investors? They can do better too, in my view. Consider checking out some of the other stocks in Ark Invest's portfolio that don't pay dividends.
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Keith Speights has positions in Microsoft and Pfizer. The Motley Fool has positions in and recommends Garmin, Intuit, Microsoft, Nvidia, Pfizer, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Dassault Systèmes Se, Deere, General Motors, Heico, Intercontinental Exchange, Lockheed Martin, Magna International, and Teradyne and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
