Billionaires Like These Five Dividend Stocks

On the second spot on our list is Pfizer Inc. (NYSE:PFE), in which 19 billionaires’ funds reported long positions as of December 31, higher than 15 funds a quarter earlier. Pfizer’s stock has slid by more than 12% over the last year and it currently sports a dividend yield of 3.73%, which is one of the highest among major drug manufacturers. For the last several years, Pfizer Inc. (NYSE:PFE) has been consistently increasing its quarterly dividend by $0.02 per share and last reported a dividend of $0.30 per share.

Pfizer has been in the spotlight lately as it is currently in the process of acquiring Allergan plc (NYSE:AGN) and, following the transaction, it plans to relocate its headquarters to Dublin, which would allow it to reduce its tax bill. The inversion move sparked some discussions in the investment community as well as in Washington and following the upcoming elections, the lawmakers are expected to address the issue of companies relocating abroad to cut their tax expenses. Nevertheless, as a standalone company Pfizer has a well established business and even though it has been struggling lately and reported earnings and revenue lower in year-on-year terms, its mainly due to a stronger dollar. The acquisition of Allergan will allow Pfizer Inc. (NYSE:PFE) to benefit from a larger portfolio of fast-growing products and the merger would allow Allergan to use some of Pfizer’s cash flow to reduce its debt. Meanwhile, among the billionaire-founded funds bullish on Pfizer are Ken Fisher’s Fisher Asset Management, D. E. Shaw and Jim Simons’ Renaissance Technologies.

Finally, the most popular dividend stock among the billionaires we track is Microsoft Corporation (NASDAQ:MSFT), in which 20 funds reported stakes in the latest round of 13F filings, compared to 18 funds a quarter earlier. The largest shareholder of Microsoft among the investors we follow is billionaire Jeff Ubben‘s ValueAct Capital, which reported 56.62 million shares as of the end of December. Microsoft pays a dividend of $0.36 per share, which gives its stock a yield of 2.81%.

Microsoft Corporation (NASDAQ:MSFT)’s stock has jumped by over 16% over the last year as the company is adjusting well to the current environment marked by a decline in the PC market and registers strong growth in the cloud space. In addition, the company’s Surface Book laptop released last year was well received by customers and the Windows 10 operating system was also a hit with more than 200 million downloads. Overall, Microsoft Corporation (NASDAQ:MSFT) represents a good dividend stock to invest in and its spot as the second most popular tech stock among billionaires in our database (trailing only Facebook) is well-deserved.

Disclosure: none