5 Best Dow Jones Dividend Stocks that Hedge Funds Love

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258

Microsoft Corporation (NASDAQ:MSFT) recently reported its fiscal Q1 2023 earnings. The company’s operating cash flow came in at over $23 billion, compared with $24.5 billion during the same period last year. Its shareholder return remained strong as it distributed $9.7 billion to shareholders in dividends and share repurchases.

On September 20, Microsoft Corporation (NASDAQ:MSFT) raised its quarterly dividend by 10% to $0.68 per share. This was the company’s 16th straight year of dividend growth. As of October 26, the stock has a dividend yield of 1.06%.

At the end of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among hedge funds, with 258 funds taking up investments in the company, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $56 billion.

Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2022 investor letter. Here is what the firm has to say:

“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.

As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”

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