Top 5 Dividend Stocks To Buy According To Hedge Funds

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 138

Mastercard Incorporated (NYSE:MA) is also among the best dividend stocks on our list. Mastercard is one of the world’s largest payment-processing companies. It also provides a wide range of other financial services to its consumers. Recently, Tigress Financial has lifted its price target on the stock to $476 and kept a Strong Buy rating on the shares, noting the company’s strong consumer spending and global travel trends. During the first quarter of 2023, Mastercard Incorporated (NYSE:MA) paid $545 million to shareholders in dividends. The company currently pays a quarterly dividend of $0.57 per share and its stock has a dividend yield of 0.62%.  It maintains a 10-year streak of dividend growth.

Mastercard Incorporated (NYSE:MA) was a part of 138 hedge fund portfolios at the end of the first quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $14.2 billion.

Oakmark Funds highlighted the reasons for selling Mastercard Incorporated (NYSE:MA) in its Q1 2023 investor letter.

“A brief discussion of Mastercard Incorporated (NYSE:MA) is also appropriate given we have held this company for nearly 13 years. It’s the 13th-largest contributor to performance for the Fund in our nearly 24-year history, but the largest in total dollars and percentage terms at nearly 1760%. While a terrific company, there were better priced alternatives in the quarter, so we sold our position. Our history with Mastercard fits the adage that all good things must come to an end.”