7 Best Warren Buffett Dividend Stocks According to Short Sellers

1. Mastercard Incorporated (NYSE:MA)

Short % of Shares Outstanding: 0.64%

Mastercard Incorporated (NYSE:MA) is an American credit card company that offers payment card services to millions of customers around the world. The company continues to see steady growth in its global card numbers. By the end of Q2 2024, its partners had issued 3.4 billion cards under its brands, including Maestro, which is being gradually discontinued. This marks an increase of roughly 200 million new cards compared to the 3.2 billion total at the same time in 2023. The stock has delivered a 17% return to shareholders year-to-date.

Mastercard Incorporated (NYSE:MA) remains an industry leader, consistently proving its strength through its earnings reports. In the second quarter of 2024, it achieved double-digit growth in both net revenue and earnings. This success was driven by steady consumer spending, a 17% rise in cross-border volume, and high demand for its value-added services and solutions, with net revenue increasing by 18%, or 19% when adjusted for currency fluctuations. These results underscore the unique value created by the synergy between payments and services, further accelerating the shift toward digital solutions.

Mastercard Incorporated (NYSE:MA) has consistently upheld its commitment to fulfilling its obligations to shareholders. In the most recent quarter, the company paid $615 million to shareholders in dividends. Moreover, it has been rewarding shareholders with growing dividends for the past 11 consecutive years. The company offers a quarterly dividend of $0.66 per share and has a dividend yield of 0.54%, as of September 15.

As of the close of Q2 2024, 142 hedge funds in Insider Monkey’s database held stakes in Mastercard Incorporated (NYSE:MA), up from 148 in the preceding quarter. The consolidated value of these stakes is over $15.3 billion.

Overall, Mastercard Incorporated (NYSE:MA) ranks first on our list. While we acknowledge the potential for MA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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Disclosure: None. This article is originally published at Insider Monkey.