5 Best Dividend Stocks on Robinhood

1. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 258
Dividend Yield: 0.94%

Topping the list of 10 best dividend stocks on Robinhood is American multinational tech firm Microsoft Corporation (NASDAQ: MSFT). Even though its 0.90% yield isn’t particularly attractive on print, with 7.53 billion shares outstanding and a $2.24 annual dividend, Microsoft pays out nearly $17 billion to its shareholders per year. Microsoft shareholders benefit from high-growth cloud services, consistent demand for tech solutions, consistent cash flow from legacy operations, and a balanced capital return strategy.

The company has a market cap of $1.9 trillion. The company’s revenue in the third quarter came in at $41.7 billion, up 19% from $35 billion year over year. Shares of MSFT increased 35% over the past twelve months. On May 13, Rosenblatt initiated a “Buy” coverage on Microsoft Corporation with a $301 price target. 

At the end of the fourth quarter of 2020, 258 hedge funds in the database of Insider Monkey held stakes worth $52.9 billion in Microsoft Corporation (NASDAQ: MSFT) which is an increase from 234 hedge funds in the previous quarter holding stakes worth $42.1 billion. 

Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds.

Polen Global Growth Fund, in its Q1 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT). Here is what Polen Global Growth Fund has to say about Microsoft Corporation in its letter:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

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