5 Favorite Dividend Stocks of Hedge Funds

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 159

Visa Inc. (NYSE:V) is another global payment network operator on the list of 10 favorite dividend stocks of hedge funds. It is, in fact, the largest payment network company in the world, followed by Mastercard and like Mastercard.

On May 17, Goldman Sachs analyst Will Nance initiated coverage of Visa Inc. (NYSE:V) with a ‘Buy’ rating on the shares and a price target of $282 which implies an upside of 43%.

As of the first quarter of 2022, 159 hedge funds hold equity in Visa, totaling $28 billion in value. The largest shareholder in the company is TCI Fund Management which owns shares worth $4 billion. 

Baron Funds discussed Visa in their investor letter of Q1, 2022 and here is what they had to say:

“Shares of global payment network Visa, Inc. (NYSE:V) were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”