Robert Pitts’ Steadfast Capital Portfolio: 5 Dividend Stock Picks

2. Microsoft Corporation (NASDAQ:MSFT)

Steadfast Capital’s Stake Value: $340,745,000
Dividend Yield as of June 16: 1.01%
Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is a leading technology company working to expand its cloud-based solutions to provide consulting and solution support services to consumers. The company gained 0.06% on June 14 when it announced the acquisition of cyber threat analysis and research company, Miburo. However, the stock is down 26.8% for 2022 so far.

On June 14, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.62 per share, with a dividend yield of 1.01%, recorded on June 16. Though the stock offers a relatively low yield, it maintains a 15-year track record of consistent dividend growth. Appreciating the company’s Intelligent Data Platform, Jefferies set a $320 price target on Microsoft Corporation (NASDAQ:MSFT) with a Buy rating on the shares. The firm further viewed the company as a diversified business that should sustain double revenue growth for ‘the foreseeable future’.

Microsoft Corporation (NASDAQ:MSFT) has been a part of Steadfast Capital’s portfolio since the fourth quarter of 2010. At the end of Q1 2022, the hedge fund reduced its stake in the company by 1%, owning over 1.1 million shares worth $340.7 million. The company accounted for 5.84% of Robert Pitts’ portfolio.

As per Insider Monkey’s database for the first quarter, 259 hedge funds owned stakes in Microsoft Corporation (NASDAQ:MSFT), down from 262 in the previous quarter. These stakes hold a consolidated value of over $65.6 billion. With stakes worth roughly $8.6 billion, Fisher Asset Management held the largest position in the company in Q1.

Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) pulled back with the broader software sector. The company posted another solid quarter, highlighted by total revenues increasing 20% and Microsoft Cloud revenues, now 45% of total revenues, growing 32%. These results were driven, in large part, by strong demand for large Azure contracts. We believe Microsoft can compound revenue in the low double digits for the next three years, underpinned by its expansion in its total addressable market and market share gains.”