5 Dividend Stocks to Buy According to Billionaire Cliff Asness

1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

AQR Capital’s Stake Value: $557,382,000
Percent of AQR Capital’s 13F Portfolio: 1.25%
Dividend Yield as of September 12: 2.89%
Number of Hedge Fund Holders: 72

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based semiconductor company that deals in the manufacturing and design of semiconductors and related products. The company was the fourth-largest holding of AQR Capital in Q2 2022. The hedge fund owned over 6.8 million shares in the company with a total value of over $557.3 million. The company represented 1.25% of billionaire Cliff Asness’ portfolio.

Though Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) does not hold any dividend growth track records, the company has raised its dividends at a CAGR of 10.83% in the past five years. It currently offers NT$2.75 per share in quarterly dividends, with a dividend yield of 2.89%, as of September 12.

In June, Loop Capital initiated its coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a Buy rating and a NT$600 price target, calling the company an industry leader due to its long-term structural growth.

Given how difficult leading edge semiconductor manufacturing is, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is considered as one of the world’s most high tech companies. The company does face competition from Intel Corporation (NASDAQ:INTC) and Samsung, however, and any tension between Taiwan and China would be a headwind.

At the end of June 2022, 72 hedge funds tracked by Insider Monkey had over $9.2 billion invested in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). In the previous quarter, 83 hedge funds owned stakes in the semiconductor company, worth over $10.1 billion. With over $2.1 billion worth of TSM shares, Fisher Asset Management owned the largest position in the company in Q2.

Baron Funds mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2022 investor letter. Here is what the firm has to say:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted in the second quarter due to macroeconomic uncertainties and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”

You can also take a look at 10 High Dividend Stocks to Shore Up Your Cash Position Before Recession Begins and 10 Dividend Stocks to Buy According to Steve Cohen’s Point72 Asset Management

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