Legendary Value Investor Joel Greenblatt’s 5 Dividend Stock Picks

4. Intel Corporation (NASDAQ:INTC)

Gotham Asset Management’s Stake Value: $20,744,000

Dividend Yield as of March 25: 2.82%

Number of Hedge Fund Holders: 72

Intel Corporation (NASDAQ:INTC) is a California-based provider of computer hardware, internet technologies, and cloud services. Joel Greenblatt increased his Intel Corporation (NASDAQ:INTC) stake by 57% to ​​402,800 shares, worth $20.7 million. The stock accounts for 0.66% of the total 13F investments. 

Intel Corporation (NASDAQ:INTC) on January 26 declared a $0.365 per share quarterly dividend, a 5% increase from its earlier dividend of $0.347. The dividend was distributed on March 1. The stock yields 2.82% as of March 25. 

On March 14, Citi analyst Christopher Danely told investors that Intel Corporation (NASDAQ:INTC) has faced several supply chain challenges. He believes PC sales “could cool off” in the second half of 2022 due to a reversion to the mean following two consecutive years of double digit growth. He reiterated a Neutral rating on Intel Corporation (NASDAQ:INTC).

The fourth quarter database of Insider Monkey reported that 72 hedge funds placed long bets on Intel Corporation (NASDAQ:INTC), up from 66 funds in the earlier quarter. Seth Klarman’s Baupost Group is the biggest shareholder of the company, owning more than 18 million shares worth approximately $929 million. 

Here is what Davis Opportunity Fund has to say about Intel Corporation (NASDAQ:INTC) in its Q4 2021 investor letter:

“Within technology and communication services, we own a number of online businesses and semiconductor related companies, including Alphabet, Amazon, Intel, Applied Materials and Texas Instruments. Within the realm of high technology, we believe that leadership positions reflect enduring and widening competitive advantages over smaller competitors, with few exceptions. This is because online businesses, as well as semiconductor companies, benefit from economies of scale. An online search and advertising engine will, in general, be more profitable per unit of cost as it grows larger in terms of users and advertising dollars. It is a hub-and-spoke model, in other words, where it is generally not necessary to grow expenses at the same rate that revenues grow beyond a certain threshold. Therefore, returns on capital tend to be higher, the larger and more dominant the online search company is.”