Dividend Stock Portfolio: Top 5 Stock Picks By Hedge Funds

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Dividend Yield as of November 2: 0.62%

Apple Inc. (NASDAQ:AAPL) is one of the top picks of elite hedge funds for a dividend stock portfolio. On October 27, Apple Inc. (NASDAQ:AAPL) declared a $0.23 per share quarterly dividend, in line with previous. The dividend is payable on November 10, to shareholders of the company as of November 7. 

BofA analyst Wamsi Mohan estimated on November 1 that Apple Inc. (NASDAQ:AAPL)’s global App Store revenue has dropped 4% year-over-year to $2.4 billion in fiscal Q1-to-date through October 30, citing data from SensorTower. Latest app store price increases in some regions will partially offset the stronger dollar, but he still worries about an overall drop in consumer demand. The analyst maintained a Neutral rating and a $160 price target on Apple Inc. (NASDAQ:AAPL) shares.

According to Insider Monkey’s Q2 data, 128 hedge funds were long Apple Inc. (NASDAQ:AAPL), compared to 131 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with nearly 895 million shares worth $122.3 billion. 

Here is what Wedgewood Partners specifically said about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”