Robert Pitts’ Steadfast Capital Portfolio: 5 Dividend Stock Picks

4. Global Payments Inc. (NYSE:GPN)

Steadfast Capital’s Stake Value: $244,656,000
Dividend Yield as of June 16: 0.93%
Number of Hedge Fund Holders: 64

Global Payments Inc. (NYSE:GPN) is an American fintech company that provides payment technology and software solutions and also processes payments made through credit cards and other digital channels. In Q1 2022, the company posted an EPS of $2.07, which beat estimates by $0.03. The company’s revenue for the quarter fell in line with the consensus at $1.95 billion.

Steadfast Capital started investing in Global Payments Inc. (NYSE:GPN) during the second quarter of 2019, with shares worth roughly $42 million. At the end of Q1 2022, the hedge fund owned nearly 1.8 million GPN shares, worth over $244.6 million. The company represented 4.19% of Robert Pitts’ portfolio. Global Payments Inc. (NYSE:GPN) currently offers a dividend of $0.25 per share every quarter. The stock’s dividend yield was recorded at 0.93%, as of June 16.

In May, Goldman Sachs initiated its coverage of Global Payments Inc. (NYSE:GPN) with a Neutral rating and a $151 price target, highlighting the company’s greater Server Message Block (SMB) exposure and its software-based approach.

According to Insider Monkey’s Q1 database, 64 hedge funds held stakes in Global Payments Inc. (NYSE:GPN), falling slightly from 67 in the previous quarter. The collective value of these stakes is over $3.23 billion.

Oakmark Funds mentioned Global Payments Inc. (NYSE:GPN) in its Q1 2022 investor letter. Here is what the firm has to say:

“Global Payments (NYSE:GPN) is a leading provider of merchant acquiring services. The company is also one of the largest providers of payment processing and related technology solutions to credit card issuers. We believe Global Payments’ merchant acquiring business is well positioned given its strength in software-driven payments. This is one of the fastest growing parts of the industry as small business customers are increasingly recognizing the efficiency benefits of having payments seamlessly integrated into the software they use to run their businesses. In addition, Global Payments benefits from the broader secular shift away from cash and toward electronic payment methods. Together, these tailwinds have the potential to drive low-double-digit revenue growth and even faster earnings growth. With this strong outlook and with management returning a significant portion of free cash flow to shareholders via repurchase, we think the stock looks attractive at its current valuation of just 12.5x next year’s expected EPS.