5 Best Dividend Stocks To Buy and Hold

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Dividend Yield as of January 17: 1.54%

Mastercard Incorporated (NYSE:MA) is an American multinational financial technology company that provides transaction processing and other payment-related products and services in the United States and internationally. On December 6, Mastercard Incorporated (NYSE:MA) declared a $0.57 per share quarterly dividend, a 16.3% increase from its prior dividend of $0.49. The dividend is distributable on February 9, to shareholders of record on January 9. Mastercard Incorporated (NYSE:MA) also announced a new stock buyback program of up to $9 billion of its class A stock.

On January 9, KeyBanc analyst Josh Beck upgraded Mastercard Incorporated (NYSE:MA) to Overweight from Sector Weight with a $425 price target. The analyst noted that his previous travel-related dislocation concerns have faded and new flows beyond consumer cards are improving the company’s diversification and growth. New payment flows should expand the growth runway at Mastercard Incorporated (NYSE:MA), prompting an upgrade for both, the analyst wrote in a research note.

According to Insider Monkey’s third quarter database, Mastercard Incorporated (NYSE:MA) was part of 146 hedge fund portfolios, compared to 137 funds in the prior quarter. Charles Akre’s Akre Capital Management is the biggest stakeholder of the company, with roughly 6 million shares worth $1.6 billion.  

Ensemble Capital made the following comment about Mastercard Incorporated (NYSE:MA) in its 2022 annual investor letter:

“Mastercard Incorporated (NYSE:MA) (8.43%* weight in fund): Mastercard declined just 1.61% during the Fund’s fiscal year, adding 1.30% to relative performance. After worries last year about Buy Now, Pay Later lenders being disruptive to Mastercard’s payment network provided to be misguided, Mastercard avoided much of the decline in the broader stock market this year. In addition, with inflation worries being the main driver of the market selloff, the company’s inflation resistant business model calmed worried investors.”