4 Dividend Stock Picks of David Einhorn’s Greenlight Capital

2. Global Payments Inc. (NYSE:GPN)

Greenlight Capital’s Stake Value: $68.4 million

Greenlight Capital’s 13F Portfolio: 3.91%

Number of Hedge Fund Holders: 67

Dividend Yield (as of April 28): 0.69%

Global Payments Inc. (NYSE:GPN) deals in the provision of digital payment technology and solutions around the world. On April 5, analyst Charles Nabhan at research firm Stephens initiated coverage of Global Payments Inc. (NYSE:GPN) with an ‘Overweight’ rating and a $170 price target. He views the stock as a pure-play payment provider boasting a premium growth profile, and expects it to continue outperforming its competitors.

According to regulatory data for the fourth quarter, Greenlight Capital owned 506,000 shares of Global Payments Inc. (NYSE:GPN) at a price tag of $68.4 million. This was a new addition to the fund’s portfolio, and represented 3.91% of overall holdings. In total, 67 hedge funds were bullish on the company shares in the fourth quarter, down from 68 a quarter ago.

In Q4 2021, Global Payments Inc. (NYSE:GPN) reported earnings per share of $2.13, which outperformed estimates by $0.01. The company raked in $1.98 billion in revenue for the quarter ending December, surpassing analysts’ forecasts by $10.50 million and growing 13.27% year-on-year.

Here is what Artisan Partners, an investment firm, had to say about Global Payments Inc. (NYSE:GPN) in its Q4 2021 investor letter:

“Global Payments was another notable drag on Q4 performance. We wouldn’t say the company’s profit cycle has faltered of late—they appear likely to deliver 14%-15% top-line and 27%-28% profit growth this year (vs. -5% and 4% in 2020). Investors may have expected even more growth in early 2021, but stubborn pandemic pressures remain in certain geographies and categories of consumer spending. However, we think most of the stock’s decline has been due to fears about emerging competitive pressures from new payments technology upstarts (discussed in prior letters). Given our belief the company can continue to sustain solid growth in the coming years despite competitive entrants—management is projecting 17%-20% EPS growth in 2022—we view the stock’s deeply discounted multiple as attractive, and we have maintained our position.”