5 Top Performing Dividend Stocks in January 2023

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In this article, we discuss 5 top performing dividend stocks in January 2023. If you want to see more top performing dividend stocks in January 2023, the risk/reward, and methodology of this list, go directly to 12 Top Performing Dividend Stocks in January 2023.

5. ASML Holding N.V. (NASDAQ:ASML)

Year to Date Performance as of 1/30: 19.02%

Dividend Yield as of 1/30: 1.25%

Number of Hedge Fund Holders: 51

Leading semiconductor equipment maker ASML Holding N.V. (NASDAQ:ASML) ranks #5 on our list of 12 Top Performing Dividend Stocks in January 2023 as its shares have soared over 19% in January as of 1/30 as capital has rotated back into many big tech names. If interest rates don’t rise that much further, leading big tech names could be more attractive as a sector as higher interest rates won’t weigh on the current value of big tech’s future profits as much. How far interest rates will rise will depend on the Federal Reserve and economic data rather than what the market currently expects, however.

Baron Opportunity Fund commented on ASML Holding N.V. (NASDAQ:ASML) in a Q2 2022 investor letter,

ASML Holding N.V. designs and manufactures semiconductor production equipment. It specializes in photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that become printed circuits. ASML is the dominant leader across all types of lithography but, most importantly, is the only company selling equipment for extreme ultra-violet (EUV) lithography, the latest generation technology.

Indeed, because of the stalling out of Moore’s Law, advanced lithography of larger and multi-patterned silicon chips has been critical for leading-edge chip manufacturing and continued improvement in semiconductor chip performance over time. The company is well positioned to continue growing above industry rates as it rapidly adds capacity across its entire business to meet rising industry demand, especially from leading-edge customers continuing to invest to stay ahead of their competitors and drive chip performance forward.

Additionally, the introduction of high-NA EUV technology in the middle of the decade will add another leg to the growth opportunity.

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