5 Reliable Dividend Stocks Billionaires Are Loading Up On

In this article, we discuss 5 reliable dividend stocks billionaires are loading up on. If you want to read our detailed analysis of dividend stocks and their performance, go directly to read 10 Reliable Dividend Stocks Billionaires Are Loading Up On. 

5. Walmart Inc. (NYSE:WMT)

Number of Billionaire Investors: 20
Number of Hedge Fund Holders: 91

Walmart Inc. (NYSE:WMT) is an Arkansas-based multinational retail corporation that owns department stores across the US. The company offers a quarterly dividend of $0.57 per share and has a dividend yield of 1.53%, as recorded on June 2. It is among the list of reliable dividend stocks as the company has raised its dividends for 50 years in a row. Some of the most prominent billionaires having investments in the company include Ray Dalio and Cliff Asness.

Barclays noted that Walmart Inc. (NYSE:WMT)’s volume has improved in the most recent quarter and also appreciated the company’s discretionary initiatives. In May, the firm lifted its price target on the stock to $162 and maintained an Outperform rating on the shares.

Walmart Inc. (NYSE:WMT) was a popular stock among hedge funds in Q1 2023, as 91 funds tracked by Insider Monkey owned stakes in the company, up from 66 a quarter earlier. The collective value of these stakes is over $5.6 billion.

4. Mastercard Incorporated (NYSE:MA)

Number of Billionaire Investors: 20
Number of Hedge Fund Holders: 138

Mastercard Incorporated (NYSE:MA) is one of the most reliable dividend stocks with 20 billionaires in our database having investments in it as of Q1. Street analysts also gave a positive outlook on the stock following its quarterly earnings. In May, Tigress Financial raised its price target on MA to $476 and kept a Strong Buy rating on the shares, adding the stock to its Research Focus List.

Mastercard Incorporated (NYSE:MA) has been raising its dividends consistently for the past 10 years. It currently offers a quarterly dividend of $0.57 per share and has a dividend yield of 0.61%, as of June 2. During the first quarter of 2023, the company returned over $545 million to shareholders in dividends.

At the end of Q1 2023, 138 hedge funds tracked by Insider Monkey owned investments in Mastercard Incorporated (NYSE:MA), down slightly from 139 in the previous quarter. The stakes owned by these hedge funds have a collective value of over $14.22 billion. Billionaire Andreas Halvorsen’s Viking Global was one of the leading stakeholders of the company in Q1.

Oakmark Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q1 2023 investor letter. Here is what the firm has to say:

“A brief discussion of Mastercard Incorporated (NYSE:MA) is also appropriate given we have held this company for nearly 13 years. It’s the 13th-largest contributor to performance for the Fund in our nearly 24-year history, but the largest in total dollars and percentage terms at nearly 1760%. While a terrific company, there were better priced alternatives in the quarter, so we sold our position. Our history with Mastercard fits the adage that all good things must come to an end.”

3. Visa Inc. (NYSE:V)

Number of Billionaire Investors: 24
Number of Hedge Fund Holders: 173

Visa Inc. (NYSE:V) is one of the world’s leading financial services companies with operations in electronic fund transfers. The company pays a quarterly dividend of $0.45 per share and has grown its dividends for 16 years running. With a dividend yield of 0.79%, V is among the most reliable dividend stocks billionaires are loading up on.

As of the close of Q1 2023, 173 hedge funds in Insider Monkey’s database had stakes in Visa Inc. (NYSE:V), compared with 177 in the previous quarter. The total value of these stakes is over $26 billion. Billionaires Chris Hohn and Warren Buffett were some of the most notable billionaire investors having stakes in the company.

Polen Capital made the following comment about Visa Inc. (NYSE:V) in its Q1 2023 investor letter:

“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.

We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Billionaire Investors: 25
Number of Hedge Fund Holders: 116

UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational healthcare and insurance company. Piper Sandler initiated its coverage on the stock with an Overweight rating and a $580 price target, highlighting the company’s medical and pharmacy care services.

UnitedHealth Group Incorporated (NYSE:UNH) is one of the most reliable dividend stocks among billionaires as the company has been continuously raising its dividends every year since 2010. It currently offers a per-share dividend of $1.65 every quarter for a dividend yield of 1.32%, as of June 2.

UnitedHealth Group Incorporated (NYSE:UNH) was a part of 116 elite funds portfolio in Q1 2023, up from 110 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $11.7 billion. Billionaire Rajiv Jain’s GQG Partners was the company’s largest stakeholder.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Billionaire Investors: 33
Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) tops our list of the most reliable dividend stocks billionaires are loading up on. The company holds a 16-year streak of dividend growth and currently pays a quarterly dividend of $0.68 per share. Moreover, the company paid $9.7 billion to shareholders in dividends and share repurchases during the first quarter of 2023. As of June 2, the stock has a dividend yield of 0.89%.

At the end of Q1 2023, 289 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), worth collectively nearly $58 billion. Billionaires Terry Smith and Ken Griffin were two of the company’s most prominent stakeholders.

Ariel Investments mentioned Microsoft Corporation (NASDAQ:MSFT) in its first-quarter 2023 investor letter:

“Enterprise software provider, Microsoft Corporation (NASDAQ:MSFT) also traded higher in the period alongside the investor enthusiasm for Artificial Intelligence. Microsoft is well positioned as this new technology advances given its large investment in Open AI, the parent company of ChatGPT. Looking ahead, we continue to like Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within Azure, its hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

You can also take a look at 15 Best Healthcare Stocks To Buy Now and 10 Chinese Stocks Billionaires Are Loading Up On

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