Many small retail and larger-scale investors invest in dividend-paying stocks to take advantage of dividend checks, as well as the opportunity to reinvest those dividends to purchase additional securities. While the share price of a dividend-paying stock follows the ups and downs of broader economic cycles, investors continue to receive dividend payments from holding income-paying stocks. That said, Insider Monkey decided to compile a list of dividend stocks owned by Tiger Global Management LLC, a hedge fund firm founded by billionaire Charles “Chase” Coleman. The ever-secretive hedge fund firm, whose founder has never given a media interview, incurred a paper loss of more than $1.0 billion in the first quarter, as its three largest equity investments performed relatively poorly during the quarter. Amazon.com Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX) and JD.Com Inc. (ADR) (NASDAQ:JD) were behind the New York-based asset manager’s 22% loss in the first quarter. The performance of Tiger Global, which also invests in various private firms such as Indian e-commerce firm Flipkart and transportation service Uber Technologies, has surely rebounded along the rally in U.S. equities. Leaving this discussion aside, let’s have a look at Mr. Coleman’s five dividend stocks.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).
#5. Mastercard Inc. (NYSE:MA)
– Number of shares owned by Tiger Global Management as of March 31: 1.92 Million
– Value of Tiger Global Management’s holding as of March 31: $181.32 Million
– Dividend yield: 0.79%
Tiger Global Management LLC reduced its stake in Mastercard Inc. (NYSE:MA) by 447,630 shares during the January-March period, ending the first quarter with 1.92 million shares valued at $181.32 million. The second-largest U.S. payments company pays out a quarterly cash dividend of $0.19 per share, which equates to a current dividend yield of 0.79%. Just recently, the payments network revealed it would start testing the first commerce application for Pepper, a human-shaped robot developed by technology and telecoms group SoftBank. Thus, the humanoid robots working at Pizza Hut restaurants will be adapted to use Mastercard’s application to make digital payments, which shows that Mastercard is already thinking about the future of the payments industry. Mastercard shares have advanced by 9% in the past three months, but are down 1% thus far in 2016. Stephen Mandel’s Lone Pine Capital has 5.08 million shares of Mastercard Inc. (NYSE:MA) in its equity portfolio as of the end of March.