5 Dividend Stocks to Buy Now According to Kerr Neilson’s Hedge Fund

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In this article, we will look at 5 dividend stocks to buy now according to Kerr Neilson’s hedge fund. If you want to read about Kerr Neilson’s investment philosophy, his hedge fund’s performance, and some other dividend stocks to buy according to Mr. Neilson, you can go to 10 Dividend Stocks to Buy Now According to Kerr Neilson’s Hedge Fund.

5. International Business Machines Corporation (NYSE:IBM)

Stake Value of Platinum Asset Management: $191,000

Percentage of Platinum Asset Management’s 13F Portfolio: 0%

Divided Yield as of April 12: 5.19%

Number of Hedge Fund Holders: 44

This February, International Business Machines Corporation (NYSE:IBM) announced that its board of directors declared a quarterly cash dividend of $1.64 per share payable on March 10, 2022, to investors of record on February 11, 2022. The company has been consistent with its quarterly dividends since 1916. As of April 12, 2022, International Business Machines Corporation (NYSE:IBM) has a forward yield of 5.19%, boats a 5-year dividend growth rate of 3.70%, and has gained 0.54% over the past twelve months.

This March, International Business Machines Corporation (NYSE:IBM) announced a strategic collaboration with Discover Financial Services (NYSE:DFS) to help the digital financial services company move its operations to a hybrid cloud architecture.

This January, International Business Machines Corporation (NYSE:IBM) announced that its revenues for the fiscal fourth quarter of 2021 came to $16.70 billion, outperforming market consensus by $730.50 million. Moreover, the company reported earnings per share of $3.35, beating estimates by $0.06. On January 26, 2022, BMO Capital analyst Keith Bachman raised his price target on International Business Machines Corporation (NYSE:IBM) to $155 from $153 and maintained a Market Perform rating on the shares in light of the company’s performance for Q4 2021.

Insider Monkey’s data shows that 44 hedge funds held long positions in International Business Machines Corporation (NYSE:IBM) at the end of the fourth quarter of 2021. The funds’ collective stakes in the company were a whopping $1.29 billion. The analyst and investor sentiment for the stock is positive.

St. James Investment Company, an investment management firm, published its fourth-quarter 2021 investor letter in which it mentioned International Business Machines Corporation (NYSE:IBM). Here is what the firm had to say:

IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.

One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of
time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (Click here to see the full text)

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