5 Best S&P 500 Stocks That Don’t Pay Dividends

In this article, we will be taking a look at the 5 best S&P 500 stocks that don’t pay dividends. To read our detailed analysis of these stocks and the performance of the S&P 500 so far this year, you can go directly to see the 15 Best S&P 500 Stocks That Don’t Pay Dividends.

5. salesforce.com, inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

salesforce.com, inc. (NYSE:CRM) is an application software company. It provides customer relationship management technology bringing companies and customers together globally.

Raymond James’ Brian Peterson reiterated a Strong Buy rating on salesforce.com, inc. (NYSE:CRM) on December 1.

It is expected that salesforce.com, inc. (NYSE:CRM) will see revenue growth of 17% in the fourth quarter. The company has a solid balance sheet with $6.4 billion in net cash. Deferred revenue growth in the third quarter stood at 11%.

In total, 117 hedge funds were long salesforce.com, inc. (NYSE:CRM) in the third quarter, with a total stake value of $8.2 billion.

Aristotle Atlantic Partners, LLC, an investment advisor, mentioned salesforce.com, inc. (NYSE:CRM) in its third-quarter 2022 investor letter. Here’s what the firm said:

“We sold Salesforce, Inc. (NYSE:CRM) to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”

4. Paypal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 126

Paypal Holdings, Inc. (NASDAQ:PYPL) is a technology platform operator enabling digital payments. The company is based in San Jose, California.

An Outperform rating was reiterated on Paypal Holdings, Inc. (NASDAQ:PYPL) on November 7 by James Fotheringham at BMO Capital.

Until this November, Paypal Holdings, Inc. (NASDAQ:PYPL) had returned about 24% between then and the preceding four months, which is a strong return for that period. The company also outperformed the S&P 500, which only increased by about 3.5% in that time.

Out of 920 funds tracked in the third quarter, 126 funds were long Paypal Holdings, Inc. (NASDAQ:PYPL). Their total stake value was $6.8 billion.

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156

Alphabet Inc. (NASDAQ:GOOG) is a communication services company. It operates through its Google Services, Google Cloud, and Other Bets segments.

Societe Generale’s Christophe Cherblanc holds a Buy rating on Alphabet Inc. (NASDAQ:GOOG) shares as of November 30.

Alphabet Inc.’s (NASDAQ:GOOG) cloud service segment is representing rapid growth this year. It contributes about 10% of the company’s total revenue, and in the third quarter, the segment’s revenue increased by 37.6% year-over-year. Analysts expect the company to maintain high revenue growth rates with a CAGR of 32% per year over the next few years.

Our hedge fund data shows 156 companies long Alphabet Inc. (NASDAQ:GOOG) in the third quarter, with a total stake value of $19.3 billion.

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 177

Meta Platforms, Inc. (NASDAQ:META) is another communication services company on our list. It offers a range of social media applications and connectivity products and services.

Brian Nowak at Morgan Stanley holds an Equal Weight rating on Meta Platforms, Inc. (NASDAQ:META) shares as of November 15.

Meta Platforms, Inc. (NASDAQ:META) has recently begun profiting immensely off of advertisement revenues. In the second quarter, the annualized revenue run rate for Instagram Reels ads crossed $1 billion. The company also has a Click-to-Message product on its apps allowing businesses to establish direct contact with their customers, which now creates $9 billion in annual run rate revenue as of this year.

Meta Platforms, Inc. (NASDAQ:META) was found among the 13F holdings of 177 funds in the third quarter. Their total stake value was $14.2 billion.

ClearBridge Investments, an investment management company, mentioned Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2022 investor letter. Here’s what the firm said:

“We initiated a new position in Meta Platforms, Inc. (NASDAQ:META), in the communication services sector, which operates the Facebook and Instagram social media platforms and is a leading digital advertising provider. We have been carefully watching the company over the last few quarters and believe headwinds from lower monetizing in Facebook and Instagram Reels and pressures from consumer privacy measures are poised to lessen. We believe the company has begun to fully acclimate to this new environment, will achieve greater effectiveness in Reels monetization and find ways to adapt to new privacy standards which will rebound advertising efficiency. Combined with a greater focus on cost control, we believe these initiatives will help contribute to further margin expansion and leave the company well-positioned moving forward.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is an internet and direct marketing retail company. It is based in Seattle, Washington.

An Outperform rating was reiterated on Amazon.com, Inc. (NASDAQ:AMZN) by Nicholas Jones at JMP Securities on November 30.

Analysts expect Amazon.com, Inc. (NASDAQ:AMZN) shares to rise by 69% from current levels in 2023. Its Amazon Web Services cloud business shows strength, with AWS commitments rising by 57% year-on-year in the third quarter.

There were 269 hedge funds long Amazon.com, Inc. (NASDAQ:AMZN) in the third quarter, with a total stake value of $34.6 billion.

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