Billionaire Cliff Asness’ Top 5 Dividend Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

AQR Capital Management’s Stake Value as of 9/30: $1,106,019,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 2.69%

Dividend Yield as of 11/17: 1.13%

Although its dividend yield is only 1.13% as of 11/17, Microsoft Corporation (NASDAQ:MSFT) is a dividend growth stock given the company has increased its annual dividend for 19 straight years. Given analysts expect Microsoft Corporation (NASDAQ:MSFT) to earn $9.27 per share for 2022, $9.51 per share for 2023, $11.18 per share for 2024, and $13.28 per share for 2025, the company’s dividend will likely continue to grow in the medium term if Microsoft Corporation (NASDAQ:MSFT) meets earnings estimates. As of 9/30, AQR Capital Management owned over $1.1 billion worth of Microsoft Corporation (NASDAQ:MSFT).

Diamond Hill commented on Microsoft Corporation (NASDAQ:MSFT) in a Q3 2022 investor letter,

Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.