In this article, we discuss 9 dividend stocks to buy according to Hari Hariharan’s NWI Management.
Hari Hariharan is an Indian investment banker who came to New York to establish his investment career. Before laying the foundation of his hedge fund, he worked with Citibank N.A. from 1976 to 1993. During this period, he set up several successful businesses for the bank globally. In 1993, Hariharan founded his hedge fund, Santander New World Investment Group, which was spun off as NWI Management LP in 1999.
NWI Management is a global macro hedge fund that specializes in fixed income, currencies, and rates, with a focus on emerging markets. Along with this, the fund also conducts a top-down analysis of macroeconomics data, fiscal policies, and political trends for countries in order to reach potential investment opportunities. By placing bets on emerging markets, in 2011, his hedge fund generated net returns in the 20% range, as reported by Forbes. Hariharan ranked 21st on the Forbes list of the 40 Highest-Earning Hedge Fund Managers in 2012 when he earned over $100 million.
As of Q1 2022, NWI Management holds a 13F portfolio value of over $873.2 million, down from $1.5 billion in the previous quarter. Technology sectors dominated the fund’s portfolio, and basic materials, services, healthcare, and finance also represent a considerable portion of Hariharan’s portfolio. Some of the notable holdings of the hedge fund in Q1 2022 include Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB).
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Our Methodology:
In this article, we discuss the best dividend stocks in Hari Hariharan’s portfolio. For this list, we collected data from NWI Management’s 13F portfolio, as of Q1 2022.
9 Dividend Stocks to Buy According to Hari Hariharan’s NWI Management
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
Dividend Yield as of May 25: 0.10%
NWI Management’s Stake Value: $15,718,000
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational software company, which is mainly known for developing integrated circuits and high-end GPUs. According to BofA, the company is well-positioned to benefit from the strong cloud results. Companies like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB) also saw strength in their cloud businesses in the recent quarter.
NVIDIA Corporation (NASDAQ:NVDA) currently pays a quarterly dividend of $0.04 per share, with a dividend yield of 0.10%, as of the close of May 25. Appreciating the company’s data center strength and gaming sector, in May, UBS set a $280 price target on the stock, with a Buy rating on the shares.
NWI Management started building its position in NVIDIA Corporation (NASDAQ:NVDA) during the fourth quarter of 2021. At the end of Q1 2022, the hedge fund held shares worth over $15.7 million in the company, after increasing its investment significantly by 723%. NVIDIA Corporation (NASDAQ:NVDA) represented 1.79% of Hari Hariharan’s portfolio.
As per Insider Monkey’s Q1 2022 database, 102 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA), down from 110 in the previous quarter. These stakes hold a consolidated value of over $6.35 billion. Among these hedge funds, Fisher Asset Management was one of the leading shareholders of this California-based company, with shares worth roughly $2 billion.
RiverPark Funds mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter. Here is what the firm has to say:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
8. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Dividend Yield as of May 25: 0.96%
NWI Management’s Stake Value: $64,745,000
Microsoft Corporation (NASDAQ:MSFT) reported a 26% year-over-year growth in its Intelligent Cloud segment at $19.1 billion in Q1 2022. The company also reported $14.5 billion in Personal Computing revenue, reflecting an 11% growth from the same period last year.
The number of hedge funds tracked by Insider Monkey owning stakes in Microsoft Corporation (NASDAQ:MSFT) slightly declined to 259 in Q1 2022, from 262 in the previous quarter. These stakes hold a collective value of over $65.6 billion.
In September 2021, Microsoft Corporation (NASDAQ:MSFT) announced an 11% hike in its quarterly dividend to $0.62 per share. The company maintains a 15-year track record of consistent dividend growth. As of May 25, the stock’s dividend yield stood at 0.96%. In its Q1 2022 investors’ note, Tigress Financial appreciated the strong cloud business of Microsoft Corporation (NASDAQ:MSFT) and its acquisition of Activision Blizzard in order to expand into the metaverse. The firm lifted its price target on the stock to $411, with a Buy rating on the shares.
In Q1 2022, Microsoft Corporation (NASDAQ:MSFT) was the fourth-largest holding of NWI Management. The hedge fund held shares worth roughly $64.8 million in the company, which made up 7.41% of Hari Hariharan’s portfolio.
Motiwala Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter. Here is what the firm has to say:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
7. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 60
Dividend Yield as of May 25: 1.80%
NWI Management’s Stake Value: $5,957,000
Walmart Inc. (NYSE:WMT) is an American multinational retail company that operates a chain of grocery stores and departmental stores. In May, BMO Capital called the company a highly ‘attractive’ global retailer and acknowledged its strong pricing position. The firm set a $165 price target on Walmart Inc. (NYSE:WMT), with an Outperform rating on the shares. Along with this, Jefferies also maintained a Buy rating on the stock in the same month.
NWI Management started investing in Walmart Inc. (NYSE:WMT) during the third quarter of 2020, purchasing shares worth over $5.5 million. At the end of Q1 2022, the hedge fund held stakes worth roughly $6 million in the company, which represented 0.68% of Hari Hariharan’s portfolio.
In February 2022, Walmart Inc. (NYSE:WMT) announced a 2% hike in its annual dividend to $2.24 per share, taking its quarterly dividend to $0.56 per share. The company holds a 49-year track record of consistent dividend growth. The stock’s dividend yield, as of May 25, was recorded at 1.80%.
Among the hedge funds tracked by Insider Monkey in Q1 2022, GQG Partners was the largest shareholder of Walmart Inc. (NYSE:WMT), holding shares worth roughly $2.3 billion. Overall, 60 hedge funds in Insider Monkey’s Q1 2022 database held stakes in the company, down from 63 in the previous quarter. These stakes are valued at over $6.56 billion.
6. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
Dividend Yield as of May 25: 3.17%
NWI Management’s Stake Value: $8,179,000
JPMorgan Chase & Co. (NYSE:JPM), an American multinational investment bank, reported a 1.24% growth in its credit card net charge-off rate in April, from a 1.09% growth recorded in March. The company’s lending activity also grew to $10.3 billion in April, from $10.1 billion In March.
NWI Management initiated its position in JPMorgan Chase & Co. (NYSE:JPM) during the second quarter of 2020, purchasing shares worth over $5.6 million, at an average share price of $94.88. In Q1 2022, the hedge fund did not change its position in the company and held shares worth over $8 million. JPMorgan Chase & Co. (NYSE:JPM) accounted for 0.93% of Hari Hariharan’s portfolio. Along with JPM, Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB) are other major holdings of NWI Management in Q1 2022.
JPMorgan Chase & Co. (NYSE:JPM) currently pays a quarterly dividend of $1.00 per share, having raised it by 11.1% in 2021. The company has been increasing its dividends consecutively for the past 12 years. As of May 25, the stock’s dividend yield was recorded at 3.17%. Following the company’s constructive guidance on net interest income and credit quality in its recent investors’ day, Societe Generale upgraded JPMorgan Chase & Co. (NYSE:JPM) to Buy from Hold, with a $150 price target, up from $145.
According to Insider Monkey’s Q1 2022 database, 110 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), up from 107 in the previous quarter. These stakes hold a consolidated value of over $5.05 billion.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Dividend Yield as of May 25: 3.29%
NWI Management’s Stake Value: $16,283,000
Chevron Corporation (NYSE:CVX) is an American energy company that has operations in over 180 countries worldwide.
At the end of March 2022, 53 hedge funds in Insider Monkey’s database held stakes in Chevron Corporation (NYSE:CVX), the same as in the previous quarter. The total value of these stakes is roughly $28 billion. With shares worth $26 billion, Warren Buffett’s Berkshire Hathaway held the largest position in the company in Q1 2022.
In January, Chevron Corporation (NYSE:CVX) announced a 6% increase in its quarterly dividend to $1.42 per share. This marked the company’s 35th consecutive year of dividend growth. The stock’s dividend yield was recorded at 3.29%, as of the close of May 25. Appreciating the company’s strong revenue, in May, Credit Suisse lifted its price target on Chevron Corporation (NYSE:CVX) to $190, with an Outperform rating on the shares.
Chevron Corporation (NYSE:CVX) was the latest addition to NWI Management’s portfolio. The hedge fund purchased 100,000 shares in the company, valued at over $16.2 million. The company constituted 1.86% of Hari Hariharan’s portfolio.
ClearBridge Investments mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm has to say:
“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”
4. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 45
Dividend Yield as of May 25: 3.58%
NWI Management’s Stake Value: $6,634,000
AstraZeneca PLC (NASDAQ:AZN) is a British-Swedish multinational pharmaceutical and biotech company that specializes in the discovery and development of prescription medicines. In Q1 2022, the company’s biopharmaceutical segment generated revenue of $5.6 billion, presenting a 49% growth from the prior-year quarter and is driven by strong sales of Covid-19 medicines.
AstraZeneca PLC (NASDAQ:AZN) pays dividends to shareholders twice a year. In February, the company announced to increase its annual dividend by $0.10 to $2.90 per share, with an interim dividend of $1.97 per share. The stock’s dividend yield, as of May 25, stood at 3.58%. In its May research note, Danske Bank highlighted the potential of AstraZeneca PLC (NASDAQ:AZN) in its oncology and rare disease medicines, which can be growth drivers for the company through 2023. In view of this, the firm lifted its price target on the stock to 13,100 GBP, with a Buy rating on the shares.
At the end of Q1 2022, 45 hedge funds tracked by Insider Monkey reported owning stakes in AstraZeneca PLC (NASDAQ:AZN), up from 42 in the previous quarter. These stakes hold a consolidated value of over $4.57 billion.
NWI Management held shares worth over $6.6 million in AstraZeneca PLC (NASDAQ:AZN) at the end of the first quarter of 2022, which accounted for 0.75% of Hari Hariharan’s portfolio.
3. Telephone and Data Systems, Inc. (NYSE:TDS)
Number of Hedge Fund Holders: 12
Dividend Yield as of May 25: 4.00%
NWI Management’s Stake Value: $5,494,000
Telephone and Data Systems, Inc. (NYSE:TDS) is an American telecommunications services company that provides wireless products, cables, and broadband to consumers. In February, the company announced a 3% growth in its quarterly dividend to $0.18 per share. This marked the company’s 47th consecutive year of dividend growth. The stock’s dividend yield came to be recorded at 4.00% on May 25.
NWI Management first invested in Telephone and Data Systems, Inc. (NYSE:TDS) during the fourth quarter of 2014, buying shares worth over $20.4 million. At the end of Q1 2022, the fund held shares worth over $5.4 million in the company, slashing its position by 2%. The company made up 0.62% of Hari Hariharan’s portfolio. In April, Morgan Stanley set a $22 price target on Telephone and Data Systems, Inc. (NYSE:TDS), with an Equal Weight rating on the shares.
As per Insider Monkey’s Q1 2022 database, the number of hedge funds holding stakes in Telephone and Data Systems, Inc. (NYSE:TDS) declined to 12, from 20 in the previous quarter. These stakes hold a consolidated value of over $53.3 million. Among these hedge funds, GAMCO Investors held the largest position in the company, with stakes valued at over $32.7 million.
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 74
Dividend Yield as of May 25: 5.25%
NWI Management’s Stake Value: $25,993,000
AT&T Inc. (NYSE:T), an American multinational telecommunications company, reported a 4.8% year-over-year growth in its services revenue in Q1 2022. Moreover, the company also announced a 6.8% growth in its broadband revenue during the quarter.
In March 2022, AT&T Inc. (NYSE:T) announced a quarterly dividend of $0.28 per share, with an annual dividend of $1.11 per share, in line with the company’s previously declared dividend. The stock’s dividend yield, as of May 25, stood at 5.25%. Appreciating the company’s strong subscriber base and solid wireless revenues in Q1, in April, Barclays set a $22 price target on AT&T Inc. (NYSE:T), with an Overweight rating on the shares.
Insider Monkey’s Q1 2022 database shows that AT&T Inc. (NYSE:T) experienced a positive hedge fund sentiment as 74 hedge funds held positions in the company, up from 70 in the previous quarter. These stakes hold a collective value of over $4 billion.
During Q1 2022, NWI Management increased its position in AT&T Inc. (NYSE:T) by 120%. The hedge fund held 1.1 million shares in the company, valued at roughly $26 million. The company represented 2.97% of Hari Hariharan’s portfolio.
Weitz Investment Management mentioned AT&T Inc. (NYSE:T) in its Q4 2021 investor letter. Here is what the firm has to say:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
1. Intercorp Financial Services Inc. (NYSE:IFS)
Number of Hedge Fund Holders: 3
Dividend Yield as of May 25: 6.77%
NWI Management’s Stake Value: $34,704,000
Intercorp Financial Services Inc. (NYSE:IFS) is a Peru-based insurance company that provides banking, insurance, and wealth management services to its consumers. At the end of Q1 2022, NWI Management held shares worth over $34.7 million in the company, which accounted for 3.97% of Hari Hariharan’s portfolio.
In April, Intercorp Financial Services Inc. (NYSE:IFS) announced a quarterly dividend of $1.75 per share, in line with the previous dividend. The stock’s dividend yield was recorded at 6.77%, as of the close of May 25.
By the end of Q1 2022, 3 hedge funds in Insider Monkey’s database held stakes in Intercorp Financial Services Inc. (NYSE:IFS), down from 5 in the previous quarter. The consolidated value of these stakes is over $40.6 million, up from $32.7 million worth of stakes held by hedge funds in Q4 2021. AQR Capital Management was one of the leading shareholders of the company in Q1 2022, holding stakes worth over $1.1 million.
You can also take a look at Top 10 Stock Picks of Rajiv Jain’s GQG Partners and 15 Best Stocks to Buy for 2022 According to Analysts
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Disclosure. None. 9 Dividend Stocks to Buy According to Hari Hariharan’s NWI Management is originally published on Insider Monkey.
