In this article, we discuss 9 dividend stocks to buy according to Hari Hariharan’s NWI Management. You can skip our detailed analysis of Hariharan’s investment strategy and his hedge fund’s past performance, and go directly to read 5 Dividend Stocks to Buy According to Hari Hariharan’s NWI Management.
Hari Hariharan is an Indian investment banker who came to New York to establish his investment career. Before laying the foundation of his hedge fund, he worked with Citibank N.A. from 1976 to 1993. During this period, he set up several successful businesses for the bank globally. In 1993, Hariharan founded his hedge fund, Santander New World Investment Group, which was spun off as NWI Management LP in 1999.
NWI Management is a global macro hedge fund that specializes in fixed income, currencies, and rates, with a focus on emerging markets. Along with this, the fund also conducts a top-down analysis of macroeconomics data, fiscal policies, and political trends for countries in order to reach potential investment opportunities. By placing bets on emerging markets, in 2011, his hedge fund generated net returns in the 20% range, as reported by Forbes. Hariharan ranked 21st on the Forbes list of the 40 Highest-Earning Hedge Fund Managers in 2012 when he earned over $100 million.
As of Q1 2022, NWI Management holds a 13F portfolio value of over $873.2 million, down from $1.5 billion in the previous quarter. Technology sectors dominated the fund’s portfolio, and basic materials, services, healthcare, and finance also represent a considerable portion of Hariharan’s portfolio. Some of the notable holdings of the hedge fund in Q1 2022 include Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB).
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Our Methodology:
In this article, we discuss the best dividend stocks in Hari Hariharan’s portfolio. For this list, we collected data from NWI Management’s 13F portfolio, as of Q1 2022.
9 Dividend Stocks to Buy According to Hari Hariharan’s NWI Management
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
Dividend Yield as of May 25: 0.10%
NWI Management’s Stake Value: $15,718,000
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational software company, which is mainly known for developing integrated circuits and high-end GPUs. According to BofA, the company is well-positioned to benefit from the strong cloud results. Companies like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB) also saw strength in their cloud businesses in the recent quarter.
NVIDIA Corporation (NASDAQ:NVDA) currently pays a quarterly dividend of $0.04 per share, with a dividend yield of 0.10%, as of the close of May 25. Appreciating the company’s data center strength and gaming sector, in May, UBS set a $280 price target on the stock, with a Buy rating on the shares.
NWI Management started building its position in NVIDIA Corporation (NASDAQ:NVDA) during the fourth quarter of 2021. At the end of Q1 2022, the hedge fund held shares worth over $15.7 million in the company, after increasing its investment significantly by 723%. NVIDIA Corporation (NASDAQ:NVDA) represented 1.79% of Hari Hariharan’s portfolio.
As per Insider Monkey’s Q1 2022 database, 102 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA), down from 110 in the previous quarter. These stakes hold a consolidated value of over $6.35 billion. Among these hedge funds, Fisher Asset Management was one of the leading shareholders of this California-based company, with shares worth roughly $2 billion.
RiverPark Funds mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter. Here is what the firm has to say:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
8. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Dividend Yield as of May 25: 0.96%
NWI Management’s Stake Value: $64,745,000
Microsoft Corporation (NASDAQ:MSFT) reported a 26% year-over-year growth in its Intelligent Cloud segment at $19.1 billion in Q1 2022. The company also reported $14.5 billion in Personal Computing revenue, reflecting an 11% growth from the same period last year.
The number of hedge funds tracked by Insider Monkey owning stakes in Microsoft Corporation (NASDAQ:MSFT) slightly declined to 259 in Q1 2022, from 262 in the previous quarter. These stakes hold a collective value of over $65.6 billion.
In September 2021, Microsoft Corporation (NASDAQ:MSFT) announced an 11% hike in its quarterly dividend to $0.62 per share. The company maintains a 15-year track record of consistent dividend growth. As of May 25, the stock’s dividend yield stood at 0.96%. In its Q1 2022 investors’ note, Tigress Financial appreciated the strong cloud business of Microsoft Corporation (NASDAQ:MSFT) and its acquisition of Activision Blizzard in order to expand into the metaverse. The firm lifted its price target on the stock to $411, with a Buy rating on the shares.
In Q1 2022, Microsoft Corporation (NASDAQ:MSFT) was the fourth-largest holding of NWI Management. The hedge fund held shares worth roughly $64.8 million in the company, which made up 7.41% of Hari Hariharan’s portfolio.
Motiwala Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter. Here is what the firm has to say:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
7. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 60
Dividend Yield as of May 25: 1.80%
NWI Management’s Stake Value: $5,957,000
Walmart Inc. (NYSE:WMT) is an American multinational retail company that operates a chain of grocery stores and departmental stores. In May, BMO Capital called the company a highly ‘attractive’ global retailer and acknowledged its strong pricing position. The firm set a $165 price target on Walmart Inc. (NYSE:WMT), with an Outperform rating on the shares. Along with this, Jefferies also maintained a Buy rating on the stock in the same month.
NWI Management started investing in Walmart Inc. (NYSE:WMT) during the third quarter of 2020, purchasing shares worth over $5.5 million. At the end of Q1 2022, the hedge fund held stakes worth roughly $6 million in the company, which represented 0.68% of Hari Hariharan’s portfolio.
In February 2022, Walmart Inc. (NYSE:WMT) announced a 2% hike in its annual dividend to $2.24 per share, taking its quarterly dividend to $0.56 per share. The company holds a 49-year track record of consistent dividend growth. The stock’s dividend yield, as of May 25, was recorded at 1.80%.
Among the hedge funds tracked by Insider Monkey in Q1 2022, GQG Partners was the largest shareholder of Walmart Inc. (NYSE:WMT), holding shares worth roughly $2.3 billion. Overall, 60 hedge funds in Insider Monkey’s Q1 2022 database held stakes in the company, down from 63 in the previous quarter. These stakes are valued at over $6.56 billion.
6. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
Dividend Yield as of May 25: 3.17%
NWI Management’s Stake Value: $8,179,000
JPMorgan Chase & Co. (NYSE:JPM), an American multinational investment bank, reported a 1.24% growth in its credit card net charge-off rate in April, from a 1.09% growth recorded in March. The company’s lending activity also grew to $10.3 billion in April, from $10.1 billion In March.
NWI Management initiated its position in JPMorgan Chase & Co. (NYSE:JPM) during the second quarter of 2020, purchasing shares worth over $5.6 million, at an average share price of $94.88. In Q1 2022, the hedge fund did not change its position in the company and held shares worth over $8 million. JPMorgan Chase & Co. (NYSE:JPM) accounted for 0.93% of Hari Hariharan’s portfolio. Along with JPM, Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB) are other major holdings of NWI Management in Q1 2022.
JPMorgan Chase & Co. (NYSE:JPM) currently pays a quarterly dividend of $1.00 per share, having raised it by 11.1% in 2021. The company has been increasing its dividends consecutively for the past 12 years. As of May 25, the stock’s dividend yield was recorded at 3.17%. Following the company’s constructive guidance on net interest income and credit quality in its recent investors’ day, Societe Generale upgraded JPMorgan Chase & Co. (NYSE:JPM) to Buy from Hold, with a $150 price target, up from $145.
According to Insider Monkey’s Q1 2022 database, 110 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), up from 107 in the previous quarter. These stakes hold a consolidated value of over $5.05 billion.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
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Disclosure. None. 9 Dividend Stocks to Buy According to Hari Hariharan’s NWI Management is originally published on Insider Monkey.
