Billionaire Ken Fisher’s Top 5 Dividend Stock Picks

In this article, we discuss billionaire Ken Fisher’s top 5 dividend stock picks. If you want to read our detailed analysis of Fisher’s hedge fund and his investment philosophy, go directly to read Billionaire Ken Fisher’s Top 15 Dividend Stock Picks. 

5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Fisher Asset Management’s Stake Value: $2,346,771,000
Dividend Yield as of May 16: 2.62%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based semiconductor manufacturing and design company. The company currently offers a quarterly dividend of $0.4294 per share and has a dividend yield of 2.62%, as of May 15.

During Q1 2023, Fisher Asset Management boosted its position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) by 4% and the firm’s total TSM stake amounted to over $2.3 billion. The company is among the top dividend stock picks of billionaire Ken Fisher as it represented 1.42% of his 13F portfolio.

As of the end of December 2022, 86 hedge funds in Insider Monkey’s database reported having stakes in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared with 87 in the previous quarter. These stakes have a consolidated value of over $10.2 billion.

Wedgewood Partners mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2023 investor letter. Here is what the firm has to say:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed to performance as revenues grew +27% (in USD) from the year ago quarter. Despite this strength, the Company’s customers have seen near-term weakness in demand due to Covid-19 normalization as well as the launch timing of new products. However, the Company is well-positioned to continue a long-term growth trajectory because its leading-edge capacity is being absorbed by high-performance computing applications, particularly at nontraditional integrated circuit (IC) design houses, such as Apple, Alphabet and Amazon, which have become IC-design powerhouses over the past decade. Importantly, the Company’s aggressive investment in leading-edge equipment, tight development with fabless IC designers, and embrace of open development libraries, should continue to foster a superior competitive position and attractive long-term growth.”

4. The Home Depot, Inc. (NYSE:HD)

Fisher Asset Management’s Stake Value: $2,478,511,000
Dividend Yield as of May 16: 3.00%

The Home Depot, Inc. (NYSE:HD) is among the top dividend stock picks of billionaire Ken Fisher. The home improvement company has been a part of Fisher Asset Management’s 13F portfolio since the first quarter of 2012. At the end of Q1 2023, the hedge fund owned HD stakes worth over $2.4 billion which made up 1.5% of its 13F portfolio.

The Home Depot, Inc. (NYSE:HD) offers a quarterly dividend of $2.09 per share for a dividend yield of 3%, as of May 16. The company is one of the best dividend stocks on our list as it has raised its dividends consistently for the past 13 years.

At the end of Q4 2022, 62 hedge funds tracked by Insider Monkey reported having stakes in The Home Depot, Inc. (NYSE:HD), worth over $4.8 billion collectively.

Madison Investments mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2023 investor letter. Here is what the firm has to say:

“The Home Depot, Inc. (NYSE:HD) provided an update on reducing the environmental impact of its stores. Since 2010, the company has reduced U.S. store electricity use by 50% by implementing LED lighting across all of its stores, buying electricity from large-scale commercial solar farms, and installing rooftop solar farms. The company is now applying its experience to other parts of its operations, including reducing electricity use in its supply chain and water use in store irrigation. Home Depot was also recognized by the U.S. Environmental Protection Agency for being one of the nation’s largest green power users.”

3. NVIDIA Corporation (NASDAQ:NVDA)

Fisher Asset Management’s Stake Value: $2,798,969,000
Dividend Yield as of May 16: 0.06%

NVIDIA Corporation (NASDAQ:NVDA) is an American multinational tech company. At the end of Q1 2023, Fisher Asset Management owned over 10 million shares in the company, worth nearly $2.8 billion. The company represented 1.69% of the firm’s 13F portfolio.

On March 6, NVIDIA Corporation (NASDAQ:NVDA) declared a quarterly dividend of $0.04 per share, which was in line with its previous dividend. The stock’s dividend yield on May 16 came in at 0.06%.

NVIDIA Corporation (NASDAQ:NVDA) experienced a positive hedge fund sentiment in Q4 2022, as 106 funds in Insider Monkey’s database owned stakes in the company, up from 89 in the previous quarter. These stakes have a collective worth of over $6 billion.

Baron Funds mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter. Here is what the firm has to say:

“NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor mega-cap company and global leader in gaming cards and accelerated computing hardware and software. Shares of NVIDIA rose over 90% during the first quarter because of material developments in generative AI evidenced by the release of ChatGPT and other competitive models. On its fourth quarter fiscal 2023 earnings call on February 22, Colette Kress, NVIDIA’s CFO said, “AI adoption is at an inflection point.… The opportunity is significant and driving strong growth in data center that will accelerate through the year.” On the same call, Jensen Huang, NVIDIA’s CEO emphasized: “The accumulation of technology breakthroughs has brought AI to an inflection point. Generative AI’s versatility and capability has triggered a sense of urgency at enterprises around the world to develop and deploy AI strategies.… NVIDIA AI is essentially the operating system of AI systems today.… The activity around AI infrastructures…has just gone through the roof in the last 60 days. And so there’s no question that whatever our views [were] of this year as we enter[ed] this year has fairly dramatically changed as a result over the last 60, 90 days.” Indeed, our research indicates that shortages of NVIDIA GPUs3 are the biggest gating factor for AI adoption and that about 90% of AI-model training runs are performed on their GPUs. During its annual GTC conference4 in March, NVIDIA announced new products and services that expand its addressable market and together form a full AI computing platform. These included: (1) new AI training systems (where it is dominant) and inferencing systems (where the field is more wide open), such as specialized chips in the areas of large language models and recommender systems, simulation and graphics rendering, and video use cases; (2) new fully managed AI services in partnership with the major cloud service providers, called NVIDIA DGX Cloud and NVDIA Omniverse Cloud; (3) new domain-specific generative AI foundational models, branded NVIDIA AI Foundations, which NVIDIA customers can harness to build and train custom language models with their own proprietary data to develop differentiated offerings; and (4) industry-specific accelerator libraries, spanning such diverse verticals as genomics analysis and computational lithography. We continue to believe NVIDIA’s end-to-end AI platform and leading market share in gaming, data centers, and robotics (including automotive), along with the size of these markets, will enable the company to drive durable growth for years to come.”

2. Microsoft Corporation (NASDAQ:MSFT)

Fisher Asset Management’s Stake Value: $7,051,906
Dividend Yield as of May 16: 0.87%

An American multinational tech company, Microsoft Corporation (NASDAQ:MSFT) is among the top dividend stock picks of billionaire Ken Fisher. At the end of Q1 2023, his hedge fund owned MSFT stakes worth over $7 billion, which made up 4.27% of its 13F portfolio.

Microsoft Corporation (NASDAQ:MSFT) has been rewarding shareholders with growing dividends for the past 16 years. It currently pays a quarterly dividend of $0.68 per share and has a dividend yield of 0.87%, as of May 16.

Microsoft Corporation (NASDAQ:MSFT) was the most popular company among elite funds in Q4 2022, as per Insider Monkey’s database. 259 hedge funds owned stakes in the company, with a total value of over $58.6 billion.

Diamond Hill Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter. Here is what the firm has to say:

“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet, Microsoft Corporation (NASDAQ:MSFT) and Booking Holdings, all of which posted double-digit gains.

Shares of software and IT services provider Microsoft rallied as investors became less cautious about the potential for growth deceleration in Azure, its public cloud business, and more focused on opportunities in search after the company announced an investment in and long-term partnership with OpenAI, the company that developed ChatGPT. Microsoft’s net cash balance sheet also seemed to gain appreciation from investors who became more cautious about the economic cycle.”

1. Apple Inc. (NASDAQ:AAPL)

Fisher Asset Management’s Stake Value: $8,632,520,000
Dividend Yield as of May 16: 0.56%

Apple Inc. (NASDAQ:AAPL) was the largest holding of Fisher Asset Management at the end of Q1 2023. The hedge fund owned over 52 million shares in the company, worth over $8.6 billion. The company constituted 5.22% of the firm’s 13F portfolio.

On May 4, Apple Inc. (NASDAQ:AAPL) declared a 4.3% hike in its quarterly dividend. This marked the company’s tenth consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 0.56%, as of May 16.

At the end of Q4 2022, Apple Inc. (NASDAQ:AAPL) was a part of 135 hedge funds, as per Insider Monkey’s database. The stakes owned by these funds have a total value of over $136 billion.

RiverPark Advisors mentioned Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter. Here is what the firm has to say:

“Apple Inc. (NASDAQ:AAPL): Apple shares were our final top contributor for the quarter. While the company reported a rare quarterly earnings miss, investors had expected slower sales due to macro headwinds. Services continue to be a bright spot for the company with an all-time high of $21 billion in quarterly revenue, a 6% year-over-year increase, and management expects iPhone revenue growth to re-accelerate in 2Q. Operating Cash Flow was $34 billion for the quarter, and the company returned $23 billion to shareholders in the last three months, including $4 billion in dividends and $19 billion in share repurchases.

With an installed base of 2 billion active devices and significant growth of the company’s recurring revenue Services segment (now 18% of revenue), we believe that Apple remains one of the most innovative, best-positioned and most profitable companies in the mobile technology industry.”

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