Five Dividend Stocks from Billionaire Chase Coleman’s Tiger Global Portfolio

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.

#4. Restaurant Brands International Inc. (NYSE:QSR)

– Number of shares owned by Tiger Global Management as of March 31: 2.46 Million

– Value of Tiger Global Management’s holding as of March 31: $95.52 Million

– Dividend yield: 1.45%

The secretive New York-based asset manager trimmed its position in Restaurant Brands International Inc. (NYSE:QSR) by a whopping 3.94 million shares during the first three months of 2016, remaining with 2.46 million shares worth $95.52 million. The reshuffled position accounted for 1.4% of the fund’s entire portfolio at the end of the first quarter. The quick service restaurant company that operates the Tim Hortons and Burger King chains has seen its market value increase by 10% since the start of the year. Burger King is among the most popular stores in the United States, as roughly 19% American consumers go to Burger King at least once per month. The owner of Tim Hortons and Burger King restaurants currently distributes a cash dividend of $0.15 per common share, representing a current dividend yield of 1.45%. Bill Ackman’s Pershing Square Capital Management reported owning 39.15 million shares of Restaurant Brands International Inc. (NYSE:QSR) through its 13F for the March quarter.

#3. Apple Inc. (NASDAQ:AAPL)

– Number of shares owned by Tiger Global Management as of March 31: 5.66 Million

– Value of Tiger Global Management’s holding as of March 31: $616.58 Million

– Dividend yield: 2.33%

The hedge fund founded by Chase Coleman also reduced exposure to Apple Inc. (NASDAQ:AAPL) during the January-to-March quarter, as the fund trimmed its Apple stake by 4.94 million shares to 5.66 million shares. The reduced stake was valued at $616.58 million at the end of March and made up 8.9% of the fund’s entire portfolio. The market capitalization of the iPhone market has declined by 6% since the beginning of the year, after the company posted its first year-over-year quarter sales decline since 2003. The Cupertino-based company pays a quarterly dividend of $0.57 per share, which translates to an annual dividend of $2.28 per share and an annual dividend yield of 2.33%. While Apple officials refuse to accept or rebuff rumors about the company working on developing a car, many are saying that Apple is keen on entering the highly-competitive but promising car market. Warren Buffett’s Berkshire Hathaway acquired a new stake of 9.81 million shares of Apple Inc. (NASDAQ:AAPL) during the first quarter.

#2. GameStop Corp. (NYSE:GME)

– Number of shares owned by Tiger Global Management as of March 31: 1.75 Million

– Value of Tiger Global Management’s holding as of March 31: $55.53 Million

– Dividend yield: 5.17%

Tiger Global Management LLC held unchanged its position in GameStop Corp. (NYSE:GME) in the first quarter of 2016 at 1.75 million shares, which were valued at $55.53 million at the end of the quarter. The shares of the largest video-game specialty retailer are up nearly 1% so far in 2016 despite having dropped 6% in the past month. The weak stock performance in the past month or so was mainly attributable to the company’s disappointing guidance for its second quarter of fiscal 2016, which reflects fewer blockbuster game releases. GameStop’s Board of Directors recently declared a quarterly cash dividend of $0.37 per share, which equates to a current annual dividend of 5.17%. The video-game retailer anticipates comparable store sales to decline in the range of 4.0%-to-7.0% for the second quarter of fiscal 2016, while full-year comparable store sales growth is expected to be in the range of negative 3% to flat. Cliff Asness’ AQR Capital Management is the owner of 2.10 million shares of GameStop Corp. (NYSE:GME) at the end of March.

#1. Cal-Maine Foods Inc. (NASDAQ:CALM)     

– Number of shares owned by Tiger Global Management as of March 31: 70,394

– Value of Tiger Global Management’s holding as of March 31: $3.65 Million

– Dividend yield: 5.61%

The New York-based asset manager did not change its equity position in Cal-Maine Foods Inc. (NASDAQ:CALM) during the first three months of 2016. Tiger Global owned 70,394 shares of Cal-Maine Foods at the end of the quarter, which were worth $3.65 million. The largest producer and distributor of fresh eggs in the U.S. has seen its market capitalization fall by 6% since the start of 2016. In fact, Cal-Maine Foods shares recently posted a new 52-week low of $43.95, so the company is not doing necessarily great in terms of stock performance at the moment. The company’s net sales for the 13 weeks that ended February 27 were $449.76 million, up from $437.56 million posted in the same period of the prior year. Cal-Maine Foods shares are changing hands at around 19.1-times-expected earnings, versus the forward PE multiple of 16.8 for the S&P 500 benchmark. The company pays out one-third of its net income in the form of dividends each quarter, with its last quarterly dividend being $0.441 per share. The stock boasts a dividend yield of 5.61%. Philippe Laffont’s Coatue Management added a 377,268-share stake in Cal-Maine Foods Inc. (NASDAQ:CALM) to its pool of holdings during the March quarter.

Disclosure: None