8. Microchip Technology Incorporated (NASDAQ:MCHP)
The billionaire investor George Soros has initiated a position in Microchip Technology (NASDAQ:MCHP) during the September quarter. Soros fund has bought 267,956 shares of a chipmaker that is involved in manufacturing various embedded control applications. The investments account for 0.67% of Soros’ portfolio.
Microchip technology offers a dividend yield above 1%, with a history of 17 straight years of a dividend increase. Its low payout ratio based on the income of 23% as well as strong cash generation potential offers room for big dividend increases in the years ahead.
The chipmaker has generated $1.3 billion in the September quarter revenue while earnings per share came in at $0.56. The company forecasts December quarter revenue in the range of $1.3 billion, with expectations for $1.51 in earnings per share. Shares of Microchip Technology soared 40% so far this year on the back of improving sales and earnings growth trend.
7. NortonLifeLock Inc. (NASDAQ: NLOK)
The cybersecurity software provider NortonLifeLock (NASDAQ: NLOK) is among the dividend stocks Soros fund likes to hold in the portfolio. The hedge fund first initiated a position in the cybersecurity software company during the first quarter this year and it had sold almost half its position during the September quarter. It is currently the 19the biggest stock holding of Soros funds, accounting for 1.18% of the portfolio.
NortonLifeLock is founded in 2018 after Broadcom (NASDAQ: AVGO) bought Symantec’s enterprise security assets for $10.7 billion. The company currently offers a quarterly dividend of $0.125 per share, yielding above 2.50%.
Shares of the cybersecurity firm remained under pressure throughout this year amid pandemic related challenges. However, the company plans to expand its revenue base through acquisition. It recently announced the acquisition of German-based cybersecurity software company Avira in a cash deal.
Its dividends appear safe considering the sustainable growth in revenue and earnings. Its dividend payout ratio also offers room for more dividend increases. The company expects December quarter earnings in the range of $0.38 per share, which is significantly higher than the quarterly dividend per share of $0.125.
6. Otis Worldwide Corporation (NYSE: OTIS)
George Soros has also been showing confidence in the manufacturer of elevators and escalators Otis Worldwide Corporation (NYSE: OTIS). The hedge fund first initiated a position in Otis during the second quarter, but it sold half of the stake during the third quarter to capitalize on share price gains. The firm currently holds 802,547 shares of elevators and escalators manufacturer that was founded in 1853 and is headquartered in Farmington, Connecticut.
Otis Worldwide is among the top dividend stocks due to its strong cash generation potential. Its free cash flow conversion ratio is likely to stand at 135% of net income in the December quarter. The company currently offers a quarterly dividend of $0.20 per share, yielding above 1%.
Otis is a perfect pick for value investors because it offers robust share price growth along with hefty dividends. Its stock price soared almost 40% since the beginning of fiscal 2020, thanks to the substantial improvement in profits. The adjusted diluted earnings per share of elevators and escalators manufacturers rose 25.5% year over year to $0.69 in the latest quarter.
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Disclosure: No positions. Billionaire George Soros’ Top 10 Dividend Stocks To Buy Now is originally published at Insider Monkey.
