In this article we discuss the 5 best dividend stocks to buy according to Stan Druckenmiller. If you want to read our detailed analysis of Druckenmillers’ history and hedge fund performance, go directly to 10 Best Dividend Stocks to Buy According to Billionaire Stan Druckenmiller.
5. Analog Devices Inc. (NASDAQ: ADI)
Number of Hedge Fund Holders: 58
Dividend Yield: 1.72%
Analog Devices Inc. (NASDAQ:ADI) specializes in designing, manufacturing, and distributing Analog, mixed-signal, and digital signal processing integrated circuits (ICs). These circuits are used in all types of electronic equipment. The equipment is used to translate real-world phenomena like sound, temperature, speed, light, and motion into electrical signals.
Analog Device’s products are used in several electronic equipment like medical imaging equipment, including industrial process controls, portable electronic devices, factory automation systems, cellular base stations, instrumentation, wireless communications equipment, energy management systems, digital televisions, automobiles, and digital cameras.
Analog Devices partnered with Woods Hole Oceanographic Institution (WHOI) to launch the Ocean and Climate Innovation Accelerator (OCIA) consortium. Analog is committing $3 million towards the consortium that the money will advance knowledge of the ocean’s critical role in combatting climate change.
50 hedge funds held the Analog Devices’ stock at the end of Q4 2020 compared to 60 in Q3 2020.
The company’s board recently declared a quarterly dividend of $0.69 per share up from the $0.62 declared around the same time last year. This represents a 11% increase, which is 18th increase of the company. The company has paid 69 quarterly dividends consecutively. These 69 quarterly dividend totals to $7 billion.
Analog Devices Inc. (NASDAQ:ADI) has plans to acquire Maxim Integrated, and Chinese authorities are working with third parties to collect inputs on the proposed deal. No issues have been reported against the planned purchase, and China’s State Administration for Market Regulation (SAMR) has since received and accepted the deal’s filings. The purchase was approved by Korean Fair Trade Commission and South Korea’s antitrust authority. The deal is likely to be finalized in the coming weeks.
Here is what Weitz Investment Management has to say about Analog Devices, Inc. in their Q4 2020 investor letter:
“Analog Devices benefited from several global, long-wave trends such as automation, electric vehicles and the 5G network build-out. The company’s quarterly sales into the auto, industrial and communications sectors exceeded expectations, giving the stock a lift.”
Analog is certainly one of the top dividend stock picks of the billionaire considering its strategic position to leverage growth from emerging areas such as autonomous driving, the EV industry and 5G technology.