In this article, we discuss the 5 dividend stocks billionaire D. E. Shaw is buying. If you want to read our detailed analysis of billionaire’s hedge fund and its performance, go directly to read 10 Dividend Stocks Billionaire D. E. Shaw is Buying.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Dividend Yield as of January 11: 1.49%
Number of Hedge Fund Holders: 70
QUALCOMM Incorporated (NASDAQ:QCOM) is an American semiconductor company that also develops software and provides related wireless services to consumers. As of Q3, D E Shaw holds shares worth $438.5 million in the company. It represented 0.39% of D. E. Shaw’s portfolio.
In fiscal 2021, QUALCOMM Incorporated (NASDAQ:QCOM)’s free cash flow stood at $8.6 billion, $2.9 billion of which was paid in dividends. The company has been increasing its dividend since 2003 and currently pays a quarterly dividend of $0.68 per share. The stock’s dividend yield stands at 1.49%. This December, JPMorgan added QUALCOMM Incorporated (NASDAQ:QCOM) to its Analyst Focus List, expecting positive performance from the company in 2022. The firm lifted its price target on the stock to $225, with an Overweight rating on the shares.
As of Q3 2021, 70 hedge funds tracked by Insider Monkey reported owning stakes in QUALCOMM Incorporated (NASDAQ:QCOM), compared with 72 in the previous quarter. The total value of these stakes is over $3.5 billion.
ClearBridge Investments mentioned QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2021 investor letter. Here is what the firm has to say:
“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurt wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”
4. Intel Corporation (NASDAQ:INTC)
Dividend Yield as of January 11: 2.49%
Number of Hedge Fund Holders: 66
An American technology and semiconductor company, Intel Corporation (NASDAQ:INTC) has been paying dividends since 1993. However, the company cut its dividend in 2013 and 2014, but still holds a 7-year track record of consistent dividend growth.
Insider Monkey’s Q3 data shows a decline in the number of hedge funds having stakes in Intel Corporation (NASDAQ:INTC) to 66, from 78 in Q2. The consolidated value of these stakes is over $6.4 billion.
D E Shaw made its first investment in Intel Corporation (NASDAQ:INTC) during the fourth quarter of 2010. In Q3 2021, the hedge fund increased its stake in the company by 10% and now holds shares worth $532.1 million. Intel Corporation (NASDAQ:INTC) represented 0.48% of D. E. Shaw’s portfolio. Due to the company’s investment in processor development, recently, Tigress Financial lifted its price target on the stock to $72. The firm maintained its Buy rating on the shares.
Andaz Private Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2021 investor letter. Here is what the firm has to say:
“Intel (INTC) is trading on a high single digit earnings multiple and is essentially: 1) an oligopolistic foundry set to benefit from large government incentives; and 2) a semiconductor business that is returning to competitiveness after years of being a laggard.”
3. Walmart Inc. (NYSE:WMT)
Dividend Yield as of January 11: 1.53%
Number of Hedge Fund Holders: 71
Walmart Inc. (NYSE:WMT) is an American retail company that operates a chain of department and grocery stores. In Q3 2021, D E Shaw held over 4.4 million shares in the company, worth $618.1 million. The company constituted 0.55% of the hedge fund’s portfolio.
The number of hedge funds having stakes in Walmart Inc. (NYSE:WMT) stood at 71, the same as in the previous quarter. These stakes hold a value of roughly $8 billion. Among these hedge funds, Bill & Melinda Gates Foundation Trust was one of the company’s most prominent shareholders in Q3, holding shares worth $964.7 million.
Walmart Inc. (NYSE:WMT) has been increasing its dividend since 1974, the year it declared its first annual dividend of $0.05 per share. Currently, the company pays a quarterly dividend of $0.55 per share, with a dividend yield of 1.53%. Acknowledging the company’s winter sales, recently, MKM Partners lifted its price target on Walmart Inc. (NYSE:WMT) to $166, while maintaining a Buy rating on the shares.
ClearBridge Investments mentioned Walmart Inc. (NYSE:WMT) in its Q2 2021 investor letter. Here is what the firm has to say:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
2. Marathon Petroleum Corporation (NYSE:MPC)
Dividend Yield as of January 11: 3.19%
Number of Hedge Fund Holders: 43
Marathon Petroleum Corporation (NYSE:MPC) is an American energy company that also operates the country’s largest refining system. The company reported solid Q3 results, posting an EPS of $0.73, which beat estimates by $0.03. As of the close of January 11, Marathon Petroleum Corporation (NYSE:MPC) delivered a 59.4% return to shareholders in the past year.
On October 27, Marathon Petroleum Corporation (NYSE:MPC) announced a quarterly dividend of $0.58 per share, with a dividend yield of 3.19%. Recently, Barclays lifted its price target on Marathon Petroleum Corporation (NYSE:MPC) to $80, while keeping an Overweight rating on the shares. In Q3, D E Shaw increased its activity in the company by 14% and now holds shares worth over $631 million. Marathon Petroleum Corporation (NYSE:MPC) accounted for 0.56% of D. E. Shaw’s portfolio.
At the end of Q3 2021, 43 hedge funds tracked by Insider Monkey reported owning stakes in Marathon Petroleum Corporation (NYSE:MPC), down from 48 in the previous quarter. These stakes hold a consolidated value of over $2.68 billion.
1. Activision Blizzard, Inc. (NASDAQ:ATVI)
Dividend Yield as of January 11: 0.71%
Number of Hedge Fund Holders: 80
An American video game holding company, Activision Blizzard, Inc. (NASDAQ:ATVI) experienced a positive hedge fund sentiment in Q3. 80 hedge funds tracked by Insider Monkey were bullish on the stock, up from 78 in the previous quarter. The total value of these stakes is over $4.28 billion.
Activision Blizzard, Inc. (NASDAQ:ATVI) pays an annual dividend of $0.47 per share, with a dividend yield of 0.71%. This December, Stifel set a $77 price target on Activision Blizzard, Inc. (NASDAQ:ATVI), with a Buy rating on the shares.
D E Shaw started investing in Activision Blizzard, Inc. (NASDAQ:ATVI) during the fourth quarter of 2010, with shares worth $138.3 million. In Q3 2021, the hedge fund increased its stakes in the company significantly by 1,084%, holding roughly 10 million shares, worth $765.2 million. Activision Blizzard, Inc. (NASDAQ:ATVI) was the eighth-largest holding of the fund in Q3 and represented 0.69% of D. E. Shaw’s portfolio.
Baron Funds mentioned Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q3 2021 investor letter. Here is what the firm has to say:
“Core Growth businesses were hurt by the rotation into more value and cyclical businesses. Despite the rotation, this business category still outperformed the broader Index. Activision Blizzard, Inc. were pressured by political activities. Activision faced regulatory concerns in China and investors shifted to more stable businesses.”
You can also take a look at 10 Dividend Stocks in Adage Capital’s Portfolio and 10 Dividend Stocks in Tiger Cub Lee Ainslie’s Portfolio
