5 Best Dividend Stocks to Buy According to Stanley Druckenmiller

3. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM)

Number of Hedge Fund Holders: 76   

Ranking 3rd in our list of 10 best dividend stocks to buy according to Stanley Druckenmiller is Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM). The Taiwanese multinational semiconductor manufacturing and design company was founded in 1987.

Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) has a market cap of $552.5 billion and currently offers a dividend yield of 1.52%. The company’s sales rose 16.7% from a year earlier in the first quarter of 2021 to $12.76 billion. Shares of TSM rose 133% over the past twelve months.

There were 76 hedge funds that reported owning stakes in Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) at the end of the first quarter, up from 72 funds a quarter earlier. The total value of these stakes at the end of Q4 is $10.8 billion.

Bonsai Partners mentioned Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) in its Q4 2020 investor letter:

“Taiwan Semiconductor is the world’s largest outsourced foundry of logic semiconductor chips. TSMC’s shares appreciated 34.5% during the quarter. Taiwan Semiconductor continues to see unprecedented demand, albeit at a slightly less rapid growth rate than earlier in 2020. At the time of writing, TSMC announced strong fourth-quarter results and staggering growth in their expected capital expenditures for 2021 – growing from $17B in 2020 to $25B to $28B in 2021. Forward-looking capital expenditures are the key leading indicator of their medium-term growth rate expectations, and I expect TSMC management will continue to earn excellent returns on these colossal investments.

TSMC’s capital expenditure growth is likely due to investment in their new U.S. manufacturing footprint, rapid investment in their cutting edge process technology, as well as generally high levels of customer demand. Lately, we’ve seen semiconductor shortages in some of their less advanced process technologies, emphasizing the current state of the semiconductor supply-demand imbalance.”