5 Best Dividend Stocks to Buy According to Billionaire Stan Druckenmiller

1. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 258
Dividend Yield: 0.86%

Microsoft Corporation (NASDAQ: MSFT) has its headquarters in Redmond, Washington, and mainly specializes in the development, manufacture, support, license, and sale of personal computers, computer software, and consumer electronics, among other products. Microsoft, cuts its online store fees for game developers to 12% from 30%.

Microsoft and Talkdesk Inc recently expanded their partnership to allow contact centers to deliver seamless, highly personalized customer experiences and increase productivity through efficiency and streamlined workflows. Talkdesk is a leading provider of cloud contact center services for innovative businesses.

Citi recently said that Microsoft Corporation (NASDAQ: MSFT)’s quarterly earnings were broadly above the Street’s forecasts but fell short of elevated expectations mainly due to weakness in Azure and personal computing segments. However, the firm believes the company would see better comp sales for Azure in the fiscal fourth quarter.

BMO also maintained an Outperform rating for Microsoft Corporation (MSFT) and increased its price target for the stock from $280 to $290.

Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Microsoft Corporation was in 258 hedge fund portfolios, compared to 234 funds in the third quarter.

Alger Spectra Fund, in their Q1 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT). Here is what Alger Spectra Fund has to say about Microsoft Corporation in their Q1 2021 investor letter:

“Microsoft Corporation was among the top contributors to performance during the quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Recently, Microsoft reported that Azure grew 50% during the fourth quarter. This high unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s operating execution has enabled notable margin expansion that has also helped to increase forward earnings estimates. Microsoft’s subscription-based software offerings and cloud computing services have not been entirely immune to the pandemic-related economic slowdown but are resilient because they enhance customers’ growth initiatives and help them to reduce costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”

You can also take a peek at 15 Largest FMCG Companies in the World and 17 Largest Fintech Companies in the World.

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