In this article, we reviewed the 10 best dividend stocks according to George Soros. If you want to skip our detailed analysis of Soros' history and the complete list of his top dividend picks, go directly to 5 Best Dividend Stocks According to George Soros.
Born in Hungary and studied at the London School of Economics, George Soros is one of the most notable investing legends. Soros Fund Management was among the top performers last year as its returns soared to 23.2%, lifting the fund's three-year return to 10.6%. Bloomberg reported that Soros' fund invested $4 billion into markets last year when prices collapsed and investors were selling on fear of the pandemic and lockdowns. The firm bought assets including residential mortgages and several equity positions during the selloff in the first half of 2020. George Soros always believes in investing in the unexpected because he says markets are constantly in a state of uncertainty and flux.
George Soros, who managed outside money from 1969 to 2011, generated a whopping 20% average annual rate of return. He is also famous for "breaking the Bank of England" in 1992 and making $1 billion in profits that year. Soros Fund management remained very busy during the pandemic year in adjusting their investments to capitalize on profit-making opportunities.
The firm had spread investments across dividend, value, and growth stocks. It initiated positions in 54 stocks and added to 22 existing positions. Soros Fund Management also sold out positions in 41 stocks and reduced its stake in 31 stocks. The market value of Soros' family office 13F portfolio jumped to $5.29 billion at the end of 2020 from $3 billion in the previous year. Liberty Broadband Corp (NYSE: LBRDK) and Palantir Technologies (NASDAQ: PLTR) were his two largest stock holdings at the end of December, accounting for almost 24% of the overall 13F portfolio.
The investing tycoon George Soros always likes to buy during times of volatility. Investing in stocks that offer reliable returns has always been a key strategy of the living legend. He held numerous high dividend stocks in his portfolio to enhance returns both through dividends and share price. Dividends accounted for 2.14% of the broader market returns last year, with expectations that dividend payments will grow significantly this year amid economic reopening.
While George Soros' reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Dividend Stocks According to George Soros
Let’s start reviewing the 10 best dividend stocks according to George Soros:
Soros Fund Management initiated a brand new position in Qualcomm Incorporated (NASDAQ: QCOM) during the fourth quarter of 2020. While shares of QCOM fell more than 7% this year, the company’s dividend yield of almost 2% would help investors in offsetting the impact of share price loss. The company paid dividends every year since 2011. It currently offers a quarterly dividend of $0.68 per share.
Alger, an investment management firm, stated in the fourth quarter investor letter that Qualcomm is a good stock to hold for the long-term. Here’s what Alger said:
“Qualcomm is a leading semiconductor company with strong positions in telecommunications end markets that position the company as a primary beneficiary of the innovative 5G network standard rollout. Qualcomm is commonly acknowledged as having the best technology specs for 5Gchipsets as evidenced by signing up all 75 major original equipment manufacturers of telephone handsets including Apple. Additionally, beyond handsets, Qualcomm is positioned to generate growth from automobile manufacturers, the Internet of Things, gaming and other markets.
Billionaire George Soros has been holding a position in Equitable Holdings, Inc. (NYSE: EQH) since the fourth quarter of 2019. Soros' stock pick worked in the case of Equitable Holdings because its shares rallied almost 100% in the last twelve-month and extended the upside momentum into 2021. Moreover, the company has also been enhancing investors' returns through dividends. It currently offers a dividend yield of just over 2%. Equitable Holdings is also among the 10 best dividend stocks according to George Soros.
Equitable Holdings, Inc. was in 46 hedge funds’ portfolios at the end of the fourth quarter of 2020.
Consumer financial services company Synchrony Financial (NYSE: SYF) is on the list of 10 best dividend stocks according to George Soros. Soros Fund Management initiated a brand new position in the dividend-paying company during the fourth quarter of 2020. The company offers a quarterly dividend of $0.22 per share, yielding around 2.06%. It raised dividends in the last four straight years. On the other hand, Synchrony Financials' share price has soared 23% so far in 2021.
The number of bullish hedge fund positions in SYF advanced by 4 in recent months. Synchrony Financial was in 50 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all-time high for this statistic is 82. There were 46 hedge funds in our database with SYF holdings at the end of September.
The legendary investor initiated a new position in Texas Instruments Incorporated (NASDAQ: TXN) during the fourth quarter. Soros Fund Management has been enjoying both dividends and shares price gains through its Texas Instruments position. The shares of TXN are up 19% since the beginning of this year and it currently offers a dividend yield of 2.09%.
A total of 56 hedge funds in Insider Monkey's database held stakes in TXN at the end of the fourth quarter, compared to 55 funds a quarter earlier.
Cyber-safety solutions provider NortonLifeLock Inc. (NASDAQ: NLOK) is also on the list of 10 best dividend stocks according to George Soros. The company offers a dividend yield of 2.28% and has paid dividends every year since 2013. Soros Fund Management first initiated a position in NortonLifeLock during the second quarter of 2019 and raised its stake by 46% in the fourth quarter last year.
NortonLifeLock was in 29 hedge funds’ portfolios at the end of the fourth quarter of 2020.
