Top 5 Dividend Stocks To Buy According To Hedge Funds

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Mastercard Incorporated (NYSE:MA) is a multinational financial services company that provides a wide range of credit cards and other financial services to its consumers. In Q3 2022, the company had $7.6 billion in cash and cash equivalents, compared with $7.4 billion nine months ago. It paid $474 million to shareholders in dividends during the quarter, which makes it one of the best dividend stocks to buy.

Mastercard Incorporated’s (NYSE:MA) strong quarterly results were noticed by Street analysts. Mizuho maintained a Buy rating on the stock in November with a $380 price target. The firm also raised its estimates for the company for FY22.

Mastercard Incorporated (NYSE:MA) currently pays a quarterly dividend of $0.49 per share. The company has been raising its dividends consistently for the past nine years. As of November 29, the stock has a dividend yield of 0.57%.

Mastercard Incorporated (NYSE:MA) saw significant growth in hedge fund positions in Q3 2022, as 146 funds tracked by Insider Monkey had stakes in the company, up from 137 in the previous quarter. These stakes have a total value of over $13.8 billion. Akre Capital Management was the company’s leading stakeholder in Q3.

Baron Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q3 2022 investor letter. Here is what the firm has to say:

“Shares of global payment network Mastercard Incorporated (NYSE:MA) fell despite reporting financial results that exceeded Street estimates. Revenue grew 21% and EPS grew 32% in the most recent reported quarter, and strong payment activity has persisted despite high inflation. Share price weakness represented a reversal of outperformance earlier this year and was likely driven by adverse foreign exchange movements and concerns about a potential weakening of consumer spending. We retain conviction due to Mastercard’s long runway for growth and significant competitive advantages.”