In this article, we will take a look at the Top 5 Dividend Stocks to Buy According to Billionaire Cliff Asness. For deeper discussion and analysis, read Top 12 Dividend Stocks to Buy According to Billionaire Cliff Asness.
Cliff Asness of AQR Capital Management
5. Vertiv Holdings Co (NYSE:VRT)
AQR Capital Management’s Stake Value: $655,147,055
Dividend Yield as of June 19: 0.075%
On June 18, GLJ Research analyst Austin Wang upgraded Vertiv Holdings Co (NYSE:VRT) to Hold from Sell. The analyst pointed to a recent breakthrough by CoolIt, which introduced a 15kW cold plate. According to Wang, the development extends the viability of Vertiv’s single-phase data center cooling solutions well into the 2030s.
Earlier, on June 10, Bernstein initiated coverage of Vertiv with an Outperform rating and a $416 price target. The firm noted that Vertiv manufactures power and cooling equipment for data centers and is “arguably the only pure-play with scale” in the sector. In a research note, the analyst said Bernstein’s fiscal 2028 estimates are materially above broader Wall Street expectations. The firm also cited Vertiv’s “robust earnings power” as a key reason for its Outperform rating.
Vertiv Holdings Co (NYSE:VRT) provides mission-critical digital infrastructure technologies and lifecycle services, primarily serving data centers, communication networks, and commercial and industrial customers.
4. The Travelers Companies, Inc. (NYSE:TRV)
AQR Capital Management’s Stake Value: $717,093,080
Dividend Yield as of June 19: 1.62%
On June 12, Barclays analyst Alex Scott downgraded The Travelers Companies, Inc. (NYSE:TRV) to Underweight from Equal Weight. He also lowered the price target to $295 from $331. The analyst said that earnings upside in the property and casualty insurance sector is “becoming harder to find” as pricing softens, growth slows, and margin pressure increases. In a research note, Scott said Travelers’ earnings are likely to flatten and that downside risks are growing. Barclays believes the company’s slower rate and exposure growth, along with pressure on personal insurance margins, will lead to a gradual decline in underwriting margins.
Earlier, on May 26, Piper Sandler raised its price recommendation on Travelers to $340 from $329. It reiterated an Overweight rating on the shares. The firm cited recent stock performance and the passage of time as reasons for the target increase. Piper noted that it raised price targets for most insurance carriers while lowering targets for some insurance brokers. Following first-quarter results, the firm said it favors insurance carriers over brokers. According to Piper, underwriting performance provided more support than expected for carriers, while brokers delivered weaker organic growth results.
The Travelers Companies, Inc. (NYSE:TRV) provides property and casualty insurance products for automobiles, homes, and businesses. Its operating segments include Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
3. PepsiCo, Inc. (NASDAQ:PEP)
AQR Capital Management’s Stake Value: $909,344,328
Dividend Yield as of June 19: 4.17%
On July 18, Deutsche Bank lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $168 from $173. It reiterated a Buy rating on the shares. The move came ahead of the company’s fiscal second-quarter earnings report. The firm said it is “more cautious” heading into the results, noting that the recovery thesis for PepsiCo Foods North America following the first quarter “appears to be stagnating.” According to the analyst, early-quarter trends pointed to “encouraging momentum” after the business returned to positive volume growth in the first quarter. Still, consumption trends slowed through late April and May, the analyst said in a research note.
Earlier, on June 12, TD Cowen lowered its price goal on PepsiCo to $150 from $165. It maintained a Hold rating on the stock. The firm reduced its second-quarter organic growth forecast to below consensus expectations, citing weak retail trends in the U.S. TD Cowen also lowered its fiscal 2027 earnings-per-share growth estimate to 5%, pointing to the timing of commodity cost inflation as a factor.
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells a wide range of beverages and convenience foods worldwide.
2. Micron Technology, Inc. (NASDAQ:MU)
AQR Capital Management’s Stake Value: $1,473,231,285
Dividend Yield as of June 19: 0.053%
On June 18, Rosenblatt raised its price recommendation on Micron Technology, Inc. (NASDAQ:MU) to $1,200 from $600. It reiterated a Buy rating on the shares ahead of the company’s fiscal third-quarter earnings report scheduled for June 24. The firm said it is increasing its estimates as average selling prices continue to rise. According to the analyst, higher prices have not weakened demand in the data center and server markets. Demand for DRAM and NAND Flash remains strong, while additional wafer supply is still about 12 months away.
The same day, Wedbush raised its price goal on Micron to $1,300 from $550. It maintained an Outperform rating on the stock. The firm significantly increased its revenue and earnings-per-share estimates for both the third quarter and future periods. Wedbush said pricing for NAND and DRAM rose by high double-digit to even triple-digit percentages during the second quarter, prompting the firm to raise its third-quarter forecasts. According to its channel checks, DRAM and NAND pricing are likely to increase by about 20% in the third quarter. Wedbush expects a similar trend to continue into Micron’s fourth quarter and has updated its financial model accordingly.
Micron Technology, Inc. (NASDAQ:MU) develops memory and storage solutions. The company offers a range of high-performance DRAM, NAND, and NOR memory and storage products under its Micron and Crucial brands.
1. Apple Inc. (NASDAQ:AAPL)
AQR Capital Management’s Stake Value: $3,631,268,306
Dividend Yield as of June 19: 0.36%
On June 17, Bloomberg reported that Apple Inc. (NASDAQ:AAPL) is preparing a second-generation iPhone Air for release in spring 2027 as it looks to strengthen the appeal of its slim smartphone lineup, according to people familiar with the matter.
Current prototypes of the new model, code-named V62, include a second rear camera designed for ultrawide-angle photography. The sources, who requested anonymity because the product has not been announced, said the device is now in advanced testing within Apple.
The iPhone Air, first introduced in September 2025, is part of Apple’s effort to expand its $210 billion iPhone business through new designs. The company is also planning to launch its first foldable smartphone later this year. Bloomberg News previously reported that Apple is developing a special 20th anniversary iPhone for 2027, featuring a curved display that wraps around the edges of the device.
If the new Air model launches in spring 2027, about a year and a half will have passed between the first and second generations. Even so, the product timeline and specifications could still change. A spokesperson for Apple, based in Cupertino, California, declined to comment.
Apple is also adjusting its product release strategy. The company has traditionally unveiled its main iPhone lineup each September. This year, though, the fall release is expected to focus only on higher-end devices, including the iPhone 18 Pro, iPhone 18 Pro Max, and a new foldable model.
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The company also offers a range of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home, and Accessories.
While we acknowledge the potential of AAPL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAPL and that has 100x upside potential, check out our report about the cheapest AI stock.
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