Value Investor Joel Greenblatt’s Top 5 Dividend Picks

1. Microsoft Corporation (NASDAQ:MSFT)

Gotham Asset Management’s Stake Value: $50 million
Dividend Yield as of February 15: 1.01%

Microsoft Corporation (NASDAQ:MSFT) was the fifth-largest holding of Gotham Asset Management in the fourth quarter of 2022. The hedge fund increased its position in the company by 4%, which took its total MSFT stake to over $50 million. The company represented 1.4% of value investor Joel Greenblatt’s portfolio.

Microsoft Corporation (NASDAQ:MSFT) pays a quarterly dividend of $0.68 per share for a dividend yield of 1.01%, as of February 15. The company holds a 16-year track record of consistent dividend growth.

Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among hedge funds in Q3 2022, as 269 funds in Insider Monkey’s database owned stakes in the company, compared with 258 in the previous quarter. The consolidated value of these stakes is over $61 billion.

Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter. Here is what the firm has to say:

“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”

You can also take a look at 12 Best S&P 500 Dividend Stocks To Buy and 12 Cheap Biotech Stocks To Buy

Follow Insider Monkey on Twitter