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.
4. QUALCOMM Incorporated (NASDAQ:QCOM)
Year to Date Performance as of 1/30: 19.73%
Dividend Yield as of 1/30: 2.28%
Number of Hedge Fund Holders: 80
QUALCOMM Incorporated (NASDAQ:QCOM) is another leading semiconductor company that has done well in January with shares rising almost 20% as of 1/30. In addition to the strong performance, QUALCOMM Incorporated (NASDAQ:QCOM) also has a dividend yield of 2.28%. Despite the rally, shares of QUALCOMM Incorporated (NASDAQ:QCOM) are still down around 20% in the last year given the sector and company headwinds. 80 hedge funds in our database owned shares of QUALCOMM Incorporated (NASDAQ:QCOM) at the end of Q3.
3. InterContinental Hotels Group PLC (NYSE:IHG)
Year to Date Performance as of 1/30: 20.98%
Dividend Yield as of 1/30: 1.84%
Number of Hedge Fund Holders: 9
InterContinental Hotels Group PLC (NYSE:IHG) is a leading hotel operator with a dividend yield of around 1.84% whose stock is up nearly 21% in January as of 1/30. If global growth is stronger than expected, travel demand could be stronger than expected. If there is more travel, demand for InterContinental Hotels Group PLC (NYSE:IHG)’s rooms could also be strong. How strong global growth eventually is will depend on economic factors however and not current market estimates of the future.
2. Capital One Financial Corporation (NYSE:COF)
Year to Date Performance as of 1/30: 23.71%
Dividend Yield as of 1/30: 2.09%
Number of Hedge Fund Holders: 52
Capital One Financial Corporation (NYSE:COF) is a leading financial services firm whose stock has rallied 23.71% in January as of 1/30 as capital has rotated back into many leading financial stocks. While its fourth quarter earnings per share for 2022 were weaker year over year than Q4 2021, the change in market sentiment to more bullish has really helped the stock, which also has a dividend yield of 2.09% as of 1/30. 52 hedge funds in our database owned shares of Capital One Financial Corporation (NYSE:COF) at the end of the third quarter.
1. Blackstone Inc. (NYSE:BX)
Year to Date Performance as of 1/30: 27.91%
Dividend Yield as of 1/30: 5.21%
Number of Hedge Fund Holders: 61
Blackstone Inc. (NYSE:BX) ranks #1 on our list of 12 Top Performing Dividend Stocks in January 2023 given its surge of nearly 27.91% in January as of 1/30. If interest rates don’t rise too much further and the economy doesn’t weaken as much as expected, Blackstone Inc. (NYSE:BX)’s real estate business could be stronger than expected and the company’s AUM growth could exceed estimates. As of 1/30, Blackstone Inc. (NYSE:BX) also has a dividend yield of 5.21% which is pretty attractive in the long term if the company grows earnings in the long term.
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