During the third quarter, Soros Fund Management inched up its stake in TiVo Corp (NASDAQ:TIVO) by 4% to 5.14 million shares worth $102 million. The stake, which represents slightly over 6% of the company, is 11th largest in terms of value in the fund’s equity portfolio. TiVo Corp (NASDAQ:TIVO)’s shares have lost over 23% since the beginning of the year and currently have a dividend yield of 4.50%. TiVo has recently won a rulling by the International Trade Commission that said Comcast Corporation (NASDAQ:CMCSA) had violated two of TiVo Corp (NASDAQ:TIVO)’s patents. The ITC also issued an exclusion order banning Comcast from importing and selling set-top boxes that infringed on the patents of Rovi (Rovi acquired TiVo in 2016 and changed its name).
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Following the ruling, analysts at B. Riley issued a note saying that despite the victory, there is still short-term uncertainty regarding the patent case, as the case is still on trial at the US District Court, but Comcast Corporation (NASDAQ:CMCSA) should be more inclined to settle the case and sign a license deal. B. Riley has cut its price target on TiVo Corp (NASDAQ:TIVO) to $24 from $31, but maintained a ‘Buy’ rating.
Among the funds in our database, the number of investors bullish on TiVo Corp (NASDAQ:TIVO) remained unchanged at 17 between July and September.
Then there’s Mondelez International Inc (NASDAQ:MDLZ), whose stock carries a dividend yield of 2.06%. Soros Fund Management disclosed a $71.16 million position in the company containing 1.75 million shares, up by 30% over the quarter. At the same time, the number of investors tracked by us that hold shares of Mondelez International Inc (NASDAQ:MDLZ) declined by eight to 57.
The maker of some of the most popular snack brands in the world, like Oreo, Toblerone, and Trident, has seen its stock decline by 3.80% since the beginning of the year. The company operates in a mature market and faces a lot of competition from the likes of PepsiCo, Inc. (NYSE:PEP) and Hershey Co (NYSE:HSY). However, while the snack food market is large and cannot be disrupted it is still changing as consumers’ tastes transform and are moving towards healthier products. Mondelez International Inc (NASDAQ:MDLZ) committed itself to focus more on healthy snacks back in 2015.
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In addition, Mondelez International Inc (NASDAQ:MDLZ) has been improving its financial position by expanding its operating margins, which reached 16.9% in the third quarter, up from 12% in 2012. One of the largest shareholders of Mondelez, billionaire Bill Ackman’s Pershing Square Capital Management, also pointed out improved margins in its third-quarter letter to investors. In addition, Pershing Square believes that Mondelez International Inc (NASDAQ:MDLZ) is undervalued “given its high business quality, long-term secular growth potential – especially in emerging markets – and substantial opportunity to improve profit margins.” Pershing estimates that Mondelez’s stock is trading at 17 times its 2018 earnings estimate, “a discount to the S&P 500 market multiple, for a business whose attributes are substantially better than the average company in the S&P 500.”
On the next page, we will take a look at other three dividend stocks from Soros Fund Management’s 13F portfolio.
