Hedge funds like these dividend stocks

techtrader (47)in #news • 6 years ago

Dividend shares must be the core of a well-balanced equity portfolio. They not only provide more stability, they also provide a flow of income. You can then use that income to buy new shares. Hedge funds know that too. They like to use it. Some companies are even very popular.
Many investors intend to buy additional shares when the prices fall. However, when the time comes, they are often without cash. That is very easy to solve: with dividend shares.
These companies often pay a dividend in both good and bad days, with rising and falling share prices. It gives you the perfect cash flow to keep buying shares when the prices fall.

1. McDonald's

At the end of the fourth quarter there were no less than 62 hedge funds that held McDonald's shares in their portfolio. That was 2 more than the quarter before and 7 more than a year earlier. McDonald's pays a dividend of around 2.5% and has increased this dividend every year since 1976.

At the end of 2014 there were 66 hedge funds with shares in Bristol-Myers Squibb. That was 2 fewer than the quarter before, but still 8 more than a year earlier. Bristol-Myers Squibb pays a dividend for almost 30 years and even increased it during the years of the financial crisis. The current dividend yield is about 2.3%.

GE lost no less than 45% of its value last year. But hedge funds are starting to believe in it again. In the last quarter of 2017 the number increased by 18 to 68. It was one of the most popular new shares among the hedge funds. Last year, the dividend was halved, but due to the fall in the share price, it is still more than 3%.

Both companies were particularly popular due to the intention of the merger, which was announced in November as a sample deal. President Trump recently put a stop to this.
At the end of 2017, Qualcomm had 70 hedge funds among the shareholders, an increase of 29 a year earlier. The dividend yield is 3.80%.
Broadcom counted 83 hedge funds, 10 more than the quarter before and pays a dividend yield of 2.70%.