In this article, we discuss billionaire Cliff Asness’ top 5 dividend stocks. If you want to see more of billionaire Cliff Asness’ dividend stocks, go directly to Billionaire Cliff Asness’ Top 10 Dividend Stocks.
5. Exxon Mobil Corporation (NYSE:XOM)
AQR Capital Management’s Stake Value as of 9/30: $379,998,000
Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 0.92%
Dividend Yield as of 11/17: 3.22%
AQR Capital Management owned almost $380 million worth of oil giant Exxon Mobil Corporation (NYSE:XOM) at the end of September, making it one of the fund’s largest positions. Although oil and gas prices can go up and down substantially based on supply and demand, Exxon Mobil Corporation (NYSE:XOM) has benefited from higher energy prices this year and shares of the company have outperformed the market with a 78% year to date rally. Exxon Mobil Corporation (NYSE:XOM) shares also have a dividend yield of 3.22% as of 11/17.
4. Pfizer Inc. (NYSE:PFE)
AQR Capital Management’s Stake Value as of 9/30: $467,588,000
Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 1.13%
Dividend Yield as of 11/17: 3.33%
Pharmaceutical and vaccine giant Pfizer Inc. (NYSE:PFE) is one of AQR Capital Management’s top positions given the fund’s stake of over $467 million at the end of Q3 in the stock. Although shares of Pfizer Inc. (NYSE:PFE) have fallen 14.7% year to date given that analysts expect the company’s earnings per share to decrease in 2023 and 2024, Pfizer Inc. (NYSE:PFE) expected earnings should more than cover its annual forward dividend of $1.6 per share. At its current price, Pfizer Inc. (NYSE:PFE) shares have a dividend yield of 3.33%.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
AQR Capital Management’s Stake Value as of 9/30: $492,567,000
Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 1.2%
Dividend Yield as of 11/17: 2.3%
With AQR Capital Management’s position of over $492 million at the end of September, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks #3 on our list of Billionaire Cliff Asness’ Top 10Dividend Stocks. While it faces geopolitical risk if tensions between China and the United States rise, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the leader in making crucial semiconductors that power many of today’s most advanced devices. As a result, Warren Buffett’s Berkshire Hathaway recently disclosed a $4.1 billion position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of Q3 too.
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.
1. Apple Inc. (NASDAQ:AAPL)
AQR Capital Management’s Stake Value as of 9/30: $1,377,056,000
Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 3.35%
Dividend Yield as of 11/17: 0.62%
With a holding of over $1.37 billion as of the end of Q3, Apple Inc. (NASDAQ:AAPL) is AQR Capital Management’s largest position as the tech giant accounts for 3.35% of the fund’s 13F equity portfolio. Given Apple Inc. (NASDAQ:AAPL)’s huge market capitalization of over $2.3 trillion, AQR Capital Management is actually underweight the stock versus the company’s weight in the S&P 500 index, for instance. As of 11/17, Apple Inc. (NASDAQ:AAPL) has a dividend yield of 0.62%.
Wedgewood Partners commented on Apple Inc. (NASDAQ:AAPL) in a Q3 2022 investor letter,
“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”
You can also take a look at 15 Biggest IT Companies in the World and 15 Biggest Insurance Companies in the World.
