5 Growth Stocks with Decent Dividend Yields

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 238

Forward Dividend Yield: 0.74%  

Microsoft Corporation (NASDAQ:MSFT) is another hedge fund favorite that operates in the growth domain but also pays a healthy dividend. The company has successfully transitioned to a subscription-based business model and made key purchases in the software sector to reinvent itself around the cloud in the past few years. However, it has consistently paid dividends during the time, a remarkable feat for a company in transition. 

Deutsche Bank analyst Brad Zelnick recently initiated coverage of Microsoft Corporation (NASDAQ:MSFT) stock with a Buy rating and a price target of $390, describing the firm as “the gold standard” for software stocks in a bullish investor note. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT)  with 24.8 million shares worth more than $6.7 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

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