5 Dividend Stocks to Buy According to Billionaire Kerr Neilson

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1.  Microchip Technology Incorporated (NASDAQ:MCHP)

Platinum Asset Management’s Stake Value: $301,756,000

Percentage of Platinum Asset Management’s 13F Portfolio: 8.49%

Dividend Yield as of January 7: 1.06%

Microchip Technology Incorporated (NASDAQ:MCHP) is a manufacturer of microcontroller and analog semiconductor products for the aerospace, automotive, computing, consumer, defensive, and industrial sectors, catering to more than 120,000 consumers around the world.

For Q3 FY22, Microchip Technology Incorporated (NASDAQ:MCHP) provided strong guidance as it expects revenue to be around $1.71 billion to $1.78 billion. This is higher than the analysts’ estimate of $1.68 billion. Meanwhile, Microchip Technology Incorporated (NASDAQ:MCHP) expects EPS to be around $1.14 to $1.20, which is also higher than the analysts’ forecast of $1.09.

Along with its quarterly results, the company also announced a 6.2% increase in quarterly dividends to 23.2 cents per share, resulting in a forward dividend yield of 1.06%. In addition to that,  Microchip Technology Incorporated (NASDAQ:MCHP) boosted shareholder return by announcing a share buyback plan of $4 billion that replaced the previously implemented buyback plan of 30 million shares. Microchip Technology Incorporated (NASDAQ:MCHP) will execute the buyback plan from its cash flow from operations after capital expenditure and dividend payments.

On December 6, Mark Lipacis at Jefferies increased the price target on Microchip Technology Incorporated (NASDAQ:MCHP) stock from $98 to $109 while maintaining a Buy rating. The analyst highlighted the increase in dividends and the announcement of a share buyback plan along with investment-grade ratings received from Fitch and Moody’s in mid-November. Lipacis termed the stock as his top Risk vs. Reward idea.

You can also take a peek at the 10 Stocks to Invest in According to Victor Ho’s Yarra Square Partners and Echo Street Capital Management: Greg Poole’s Top 10 Stock Picks.

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