5 Dividend Stocks Billionaire D. E. Shaw is Buying

In this article, we discuss the 5 dividend stocks billionaire D. E. Shaw is buying. If you want to read our detailed analysis of billionaire’s hedge fund and its performance, go directly to read 10 Dividend Stocks Billionaire D. E. Shaw is Buying. 

5. QUALCOMM Incorporated (NASDAQ:QCOM)

Dividend Yield as of January 11: 1.49%
Number of Hedge Fund Holders: 70

QUALCOMM Incorporated (NASDAQ:QCOM) is an American semiconductor company that also develops software and provides related wireless services to consumers. As of Q3, D E Shaw holds shares worth $438.5 million in the company. It represented 0.39% of D. E. Shaw’s portfolio.

In fiscal 2021, QUALCOMM Incorporated (NASDAQ:QCOM)’s free cash flow stood at $8.6 billion, $2.9 billion of which was paid in dividends. The company has been increasing its dividend since 2003 and currently pays a quarterly dividend of $0.68 per share. The stock’s dividend yield stands at 1.49%. This December, JPMorgan added QUALCOMM Incorporated (NASDAQ:QCOM) to its Analyst Focus List, expecting positive performance from the company in 2022. The firm lifted its price target on the stock to $225, with an Overweight rating on the shares.

As of Q3 2021, 70 hedge funds tracked by Insider Monkey reported owning stakes in QUALCOMM Incorporated (NASDAQ:QCOM), compared with 72 in the previous quarter. The total value of these stakes is over $3.5 billion.

ClearBridge Investments mentioned QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2021 investor letter. Here is what the firm has to say:

“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurt wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”