1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) has established its position as a tech giant over the years of its operation. It is among the top-rated blue-chip stocks that guarantee returns and an inflation hedge. Microsoft Corporation (NASDAQ:MSFT) is one of the few technology stocks that has demonstrated strong financial performance over the past few years and continues to do so, owing to robust demand and preference for its products such as Azure. The company’s Azure platform and other cloud services recorded a 46% year-over-year increase in revenue in the company’s earnings release for the fiscal third quarter of 2022. Microsoft Corporation (NASDAQ:MSFT) also reportedly returned $12.4 billion to investors in the form of share repurchases and dividends in the fiscal third quarter of 2022, up 25% year over year. Solid balance sheets, its industry-leading position in the computing industry, and strong shareholder returns make Microsoft Corporation (NASDAQ:MSFT) one of the safest stocks to invest in.
On April 26, Microsoft Corporation (NASDAQ:MSFT) outperformed Wall Street consensus when it released earnings for the fiscal third quarter of 2022. The company reported earnings per share of $2.22, exceeding EPS estimates by $0.02. The company’s quarterly revenue came in at $49.36 billion, up 18.35% year over year, beating Wall Street estimates by $311.18 million.
Another factor that makes Microsoft Corporation (NASDAQ:MSFT) a safe investment option is the company’s dividend history. Microsoft Corporation (NASDAQ:MSFT) is a notable dividend player and has been growing its dividends for over 18 years now. As of June 9, Microsoft Corporation (NASDAQ:MSFT) has gained 6.63% over the past year and has a forward dividend yield of 0.91% with a 5-year dividend CAGR of 9.60%.
On June 2, Stifel analyst Brad Reback slashed his price target on Microsoft Corporation (NASDAQ:MSFT) to $320 from $350, while maintaining a Buy rating on the shares, noting secular tailwinds, solid execution, and a growing total addressable market driving the company’s growth.
At the close of Q1 2022, 259 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) with stakes worth $65.63 billion in the company.
In the first quarter of 2022, Fisher Asset Management raised its stakes in Microsoft Corporation (NASDAQ:MSFT) by 4%, bringing them to $8.59 billion. Fisher Asset Management is the top shareholder in the company.
Polen Capital recently published its “Polen Global Growth Fund” first-quarter 2022 investor letter in which it mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the firm said:
“Microsoft’s business is firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and both Microsoft and Accenture are positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021. In fact, they represented two of the three top absolute performers for the Global Growth Portfolio last year. As a result, their respective stocks are currently more fully priced. As such, we lowered Microsoft from our largest position within the Portfolio. We maintain high conviction in Microsoft and plan to own it for many years, but recognize the increase in its prices.”
You can also take a look at 10 Stocks to Buy and Hold for Long Term According to Warren Buffett and 11 Best Stocks for Long Term Growth.
