In this article, we discuss 10 technology dividend stocks billionaires are loading up on. You can skip our detailed analysis of the tech sector and dividend stocks, and go directly to read 5 Technology Dividend Stocks Billionaires Are Loading Up On.
The tech sector is on a winning spree this year after recording one of its worst periods in 2022. The Nasdaq Composite is up 27.4% since the start of the year, compared with an 11.9% gain of the S&P 500. The AI rally this year has contributed to the market value of tech companies listed on the Nasdaq Composite. This year through May 26, the combined value of tech companies reached $22 trillion, up from $18 trillion at the end of 2022, according to Refinitiv. To learn more about AI stocks, readers can have a look at 15 Best Artificial Intelligence (AI) Stocks To Buy.
Considering this surge in AI investments both from private companies and public institutions, some of the world’s leading investors believe that it is time to make the most of this ongoing wave. Steve Cohen, founder of Point72 Asset Management, spoke at a Conference in May and presented his bullish stance on the markets, as reported by Fortune. The billionaire also elaborated how AI will be able to create new jobs and drive profits for corporations, which would eventually lift stock prices. In our article titled 11 Best Tech Stocks to Buy On the Dip, we reported that Tiger Global Management’s founder Chase Coleman is also bullish on tech stocks this year after his firm suffered huge losses in the tech selloff in 2022. The billionaire highlighted the benefits of ChatGPT’s collaborations with Amazon to facilitate shopping.
In addition to tech stocks, dividend stocks are also on investors’ radars this year due to their ability to generate regular income for them. Due to fluctuating market conditions, analysts recommend dividend-paying stocks to stay afloat. Ford Donohue, a financial advisor at Homrich Berg, spoke with Fortune in May to emphasize the importance of dividend-growing companies. Here are some comments from the analyst:
“A diversified portfolio of dividend-growing stocks provides income in the form of dividends that should grow over time to offset the impact of inflation. We also believe that consistent dividend growth is a sign of a sound business model, balance sheet strength, and strong corporate governance, all of which should lead to the growth of the underlying business over time and increase the chances of capital appreciation of the stock.”
Some of the best tech stocks like NVIDIA Corporation (NASDAQ:NVDA), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG) are generating positive returns this year, exhibiting positive investor sentiment. Considering the rebound in the market this year, tech dividend stocks also seem like reliable investment options for investors. In this article, we will discuss technology dividend stocks billionaires are loading up on.
Technology Dividend Stocks Billionaires Are Loading Up On
Our Methodology:
For this article, we considered the list of billionaire-owned stocks in Insider Monkey's database as of Q1 2023 and picked tech dividend stocks that attracted the highest number of billionaires. We also mentioned hedge fund sentiment around each stock from our database of 943 hedge funds at the end of Q1. The stocks are ranked in ascending order of the number of billionaire investors having stakes in them.
Broadcom Inc. (NASDAQ:AVGO) is a California-based multinational company that specializes in the manufacturing of semiconductors and other software products. In the second quarter of 2023, the company posted revenue of $8.73 billion, which showed a 7.8% growth from the same period last year. During the quarter, it paid roughly $2 billion to shareholders in dividends.
AVGO is among the top technology dividend stocks that billionaires are investing in. Other tech stocks that are grabbing billionaires' attention include NVIDIA Corporation (NASDAQ:NVDA), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG).
Broadcom Inc. (NASDAQ:AVGO)'s strong quarterly earnings also attracted positive ratings from the Street analysts. In June, both Truist and Piper Sandler lifted their price targets on the stock to $890 and $830, respectively.
Broadcom Inc. (NASDAQ:AVGO) has been raising its dividends consistently for the past 12 years. It pays a quarterly dividend of $4.60 per share and has a dividend yield of 2.27%, as of June 3.
At the end of Q1 2023, 72 hedge funds tracked by Insider Monkey reported having stakes in Broadcom Inc. (NASDAQ:AVGO), the same as in the previous quarter. These stakes are collectively valued at over $3.5 billion. Billionaire Ken Griffin owned the largest stake in the company, worth over $701.3 million.
“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the quarter following the company’s solid fourth quarter 2022 results. This was driven by better-than-expected results in both its semiconductor solutions, networking and storage segments. The company also provided first quarter guidance that was ahead of consensus as well as 2023 commentary that expects earnings momentum to continue due to a strong product cycle.”
Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational tech company that offers cloud and security solutions to a wide range of businesses. On May 18, the company declared a quarterly dividend of $0.39 per share, which was in line with its previous dividend. In 2023, it stretched its dividend growth streak to 12 years. The stock's dividend yield on June 3 came in at 3.12%.
Cisco Systems, Inc. (NASDAQ:CSCO) was one of the most popular technology dividend stocks that attracted the attention of 13 billionaires in our database during Q1, including Cliff Asness and D. E. Shaw. In the fiscal third quarter of 2023, the company paid over $1.6 billion to shareholders in dividends. Its operating cash flow came in at $5.2 billion, up 43% from the same period last year.
In May, Raymond James raised its price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $64 with an Outperform rating on the shares, highlighting the company's fourth consecutive year of growth.
As of the close of Q1 2023, 61 hedge funds in Insider Monkey's database held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), worth collectively roughly $2.5 billion. With roughly 10 million shares, AQR Capital Management was the company's leading stakeholder in Q1.
Automatic Data Processing, Inc. (NASDAQ:ADP) is a global provider of cloud-based business outsourcing solutions, headquartered in New Jersey. Following the company's strong quarterly earnings, Mizuho kept its Buy rating on the stock in May with a $255 price target.
In fiscal Q3 2023, Automatic Data Processing, Inc. (NASDAQ:ADP) reported revenue of $4.9 billion, up 8.9% from the prior-year period. At the end of the quarter, the company's operating cash flow came in at $3.02 billion, compared with $2.1 billion during the same period last year.
Automatic Data Processing, Inc. (NASDAQ:ADP) pays a quarterly dividend of $1.25 per share and has a dividend yield of 2.31%, as of June 3. With a dividend growth streak of 48 years, ADP is among the top technology dividend stocks popular among billionaires.
The number of hedge funds tracked by Insider Monkey owning stakes in Automatic Data Processing, Inc. (NASDAQ:ADP) grew to 53 in Q1 2023, from 49 in the preceding quarter. These stakes are collectively valued at over $3.7 billion. Billionaire Terry Smith's Fundsmith LLP was the company's leading stakeholder in Q1.
Madison Investments mentioned Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q1 2023 investor letter. Here is what the firm has to say:
“We eliminated Automatic Data Processing, Inc. (NASDAQ:ADP) from the portfolio due to concerns that the economy is close to a peak job market and interest income on the company’s float has also peaked along with interest rates. The company’s valuation does not reflect the potential downside in the job market from a weakening economy.”
QUALCOMM Incorporated (NASDAQ:QCOM) manufactures semiconductors and software and also provides services related to wireless technology. In fiscal Q2 2023, the company posted an operating cash flow of over $1.4 billion. It also returned $834 million to shareholders in dividends during the quarter.
In May, Canaccord maintained a Buy rating on QUALCOMM Incorporated (NASDAQ:QCOM) with a $152 price target. The firm appreciated the company's execution of its diversification growth strategy.
QUALCOMM Incorporated (NASDAQ:QCOM) offers a quarterly dividend of $0.80 per share and has a dividend yield of 2.77%, as of June 3. The company holds a 20-year track record of dividend growth. This technology dividend stock was popular among billionaire investors, such as Ray Dalio and Ken Griffin.
As per Insider Monkey's database for Q1 2023, 69 hedge funds tracked by Insider Monkey held stakes in QUALCOMM Incorporated (NASDAQ:QCOM), worth collectively over $1.74 billion.
Lockheed Martin Corporation (NYSE:LMT) specializes in defense information security and related technology. On April 27, the company declared a quarterly dividend of $3 per share, which was consistent with its previous dividend. It has been rewarding shareholders with growing dividends for the past 20 years. As of June 3, the stock has a dividend yield of 2.64%.
In addition to Lockheed Martin Corporation (NYSE:LMT), NVIDIA Corporation (NASDAQ:NVDA), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG) are some other tech stocks that are popular among billionaires.
At the end of Q1 2023, 58 hedge funds in Insider Monkey's database owned stakes in Lockheed Martin Corporation (NYSE:LMT), up from 53 in the previous quarter. These stakes are worth over $1.44 billion collectively. Billionaire Donald Yacktman's Yacktman Asset Management was one of the company's leading stakeholders in Q1.
