5 Dividend Stocks to Buy According to Steve Cohen’s Point72 Asset Management

3. Analog Devices, Inc. (NASDAQ:ADI)

Dividend Yield as of August 5: 1.72%
Point72 Asset Management’s Stake Value: $235,722,000

Analog Devices, Inc. (NASDAQ:ADI) is a Norwood-based semiconductor company that specializes in data conversion, power management technology, and signal processing. In Q1 2022, Point72 Asset Management owned 1.2 million shares in the company, boosting its position by 363% during the quarter. The hedge fund’s total stake in the company amounted to $235.7 million, which made up 0.93% of Steve Cohen’s portfolio.

On May 18, Analog Devices, Inc. (NASDAQ:ADI) announced a quarterly dividend of $0.76 per share, consistent with its previous dividend. The company has a strong dividend history, raising its dividends 19 times in the past 18 years. Moreover, the company has been paying dividends for 73 consecutive quarters, with a cumulative value of over $8 billion. As of August 5, the stock’s dividend yield stood at 1.72%.

In July Goldman Sachs expressed concerns for the semiconductor industry due to the current supply chain issues. In view of this, the firm lowered its price target on the stock but maintained a Buy rating on the shares.

At the end of Q1 2022, 67 hedge funds tracked by Insider Monkey owned stakes in Analog Devices, Inc. (NASDAQ:ADI), down from 72 in the previous quarter. The combined value of these stakes is over $4.8 billion. Among these hedge funds, Egerton Capital Management was the company’s leading stakeholder in Q1.

Madison Funds mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q3 2021 investor letter. Here is what the firm has to say:

“At its 2017 investor day, Analog Device’s VP of Automotive, Mark Gill, described how the company’s content on well-equipped electric vehicles was $600 per car compared to $250 per car for the traditional 2017 internal combustion engine car. Since then, Analog has highlighted the success of its EV battery management systems (BMS) product nearly every quarter. The BMS product is hardware and software that manages the power into and out of the battery systems. It’s the brains of the operation. Analog says it’s on its fifth generation BMS product, that it has the no. 1 market share in high voltage products, and that it is on 5 of the top 10 selling EVs. While we think that the BMS product is just 1 to 1.5% of Analog Devices, Inc. (NASDAQ:ADI)’s product mix, we think that it could add nearly a point of revenue growth per year to the company’s top-line given the expected ramp in EV production. This is a material amount of growth atop an already nicely growing company revenue line.”