Below you can find our list of billionaire George Soros’ top 5 dividend stock picks. For a more comprehensive list, please see Billionaire George Soros’ Top 10 Dividend Stocks To Buy Now.
5. Aramark (NYSE: ARMK)
Soros Fund Management had used the dip in Aramark’s share price as a buying opportunity. The fund has first bought Aramark shares during the first quarter and added to its position during the third quarter. The dividend-paying stock currently accounts for 1.30% of the overall portfolio valued at $52.9 million.
The consumer discretionary company currently offers a quarterly dividend of $0.11 per share, yielding above 1.10%. In addition to dividends, investors can benefit from its share price gains. Aramark stock soared almost 25% in the last month alone amid improving future fundamentals. Social distancing policies and locks downs have impacted its financial numbers, but shares regained momentum on coronavirus vaccine discovery.
Moreover, its dividends are safe as cash flows are offering a complete cover to dividend payments. It has generated $146 million in free cash flows in the third quarter compared to dividend payments of $110 million.
4. Activision Blizzard, Inc. (NASDAQ: ATVI)
The video game publisher Activision Blizzard (NASDAQ: ATVI) continues gaining legendary investor George Soros attention as the hedge fund has added 31,066 shares to its existing position during the September quarter, expanding the stake to 2.18% of the overall portfolio. Activision Blizzard was the 11th largest stock holding of Soros Fund Management at the end of the last quarter.
The video game publisher has been rewarding heavily to investors both in the form of dividends and share price gains. It has raised dividends in the past ten straight years and its dividend growth average stood around 13% in the past five years. The shares of video game publishers cruised 51% in the past twelve months alone, thanks to robust growth in video gaming sales and content.
The company’s product releases have substantially enhanced audiences in its Call of Duty and World of Warcraft franchises. Moreover, staying at home policies throughout this year put a new premium on all forms of at-home entertainment.
3. Darden Restaurants, Inc (NYSE: DRI)
Casual dining eatery Darden Restaurants (NYSE: DRI) is among the dividend stocks George Soros likes the most. The firm first created a position in Darden during the second quarter and increased its stake by 15% in the third quarter. Casual dining eatery currently occupies 2.51% of the overall Soros portfolio. The firm currently holds 1 million shares valued above $102 million.
Darden Restaurants is one of the most favorite stocks among dividend investors because of its extensive dividend growth history.
Although the casual dining company has suspended its dividend during the first half of this year due to lockdowns, it has recently reinstated a quarterly dividend on outstanding common stock. Investors have been appreciating Darden’s strategies in challenging times. Its shares are up 31% in the last six months.
Looking ahead, the company plans to open 35-40 net new restaurants in the December quarter despite pandemic related challenges. It now expects December quarter earnings per share in the range of $0.65-$0.75 compared to analysts’ consensus for $0.35 per share.
2. VICI Properties (NYSE: VICI)
The dividend-paying stocks VICI Properties (NYSE: VICI) have been in Soros’ portfolio since the first quarter of 2018. The fund currently holds 5.4 million shares of a real estate firm, accounting for 3.14% of the overall portfolio. It is the eighth largest stock holding of Soros Fund Management valued at $128 million at the end of the latest quarter.
VICI Properties offers a dividend yield of 5.5% and its quarterly dividend stands at $0.33 per share. Its dividends are safe because of robust financial numbers and aggressive growth strategies. The real estate firm reported third-quarter revenue growth of 52% from the past year period while earnings per share of $0.43 grew from $0.35 year over year.
1. D.R. Horton (NYSE: DHI)
The homebuilder D.R. Horton is the most favorite dividend stock of George Soros as the firm has been holding homebuilding stock since the first quarter of 2019. Indeed, the Soros fund has added significantly to its existing position during the third quarter. D.R. Horton is the third-largest stock holding of George Soros, accounting for 5.66% of the portfolio.
D.R. Horton offers a dividend yield just above 1% and it has raised dividends in the past six straight years. The homebuilder currently offers a quarterly dividend of $0.20 per share, representing a 14% increase from the past year. The company has generated $20 billion in fiscal 2020, with expectations that revenue will jump to $25.0 billion in 2021. The high double-digit revenue and earnings growth will allow the homebuilder to make significant dividend increases in the next year.
Please also see Top 10 Stocks George Soros Just Bought and 10 Best High Dividend Stocks To Buy Now.
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