Which Dividend Payer Did Hedge Funds Flock To In The Second Quarter?

Zinger Key Points
  • Institutional investors control 72.46% of Microsoft, reaping major dividend rewards.
  • Of the 20 funds analyzed, 10 of them held Microsoft in the second quarter, collectively reaping nearly $22 million in dividends.

Microsoft Corp MSFT emerged as a darling for hedge funds in the second quarter, with 10 out of the 20 hedge funds Benzinga analyzed having MSFT in their top-5 holdings for the quarter.

Microsoft's widespread adoption among major institutional players isn’t surprising, particularly when you consider the tech giant’s performance year-to-date.

Shares skyrocketed by more than nearly 60%, touching highs of $366.78 before paring some of its gains. The surge can be attributed to the company's substantial investments in artificial intelligence (AI) and a significant stake in OpenAI.

Outside of the AI fervor, those 10 hedge funds that owned the stock over the quarter were collectively paid nearly $22 million by the company. But it wasn't from share appreciation, it was from dividends.

Here’s how the top hedge funds stack up based on their MSFT shares and the dividends they earned:

RankHedge Fund/Investment FundShares OwnedDividend Payout
1Fundsmith9,012,591$6.12 million
2Tiger Global5,668,918$3.8 million
3Eagle Capital5,504,265$3.74 million
4Coatue Management5,291,784$3.59 million
5Lone Pine Capital2,502,085$1.7 million
6Altimeter Capital1,533,135$1.042 million
7Whale Rock Capital1,287,489$875,492
8Appaloosa Management1,240,000$843,200
9Night Owl Capital118,261$80,417
10Center Lake85,000$57,800

Institutional investors control 72.46% of Microsoft’s outstanding shares — that control not only gives them a say in corporate decisions but also makes them primary beneficiaries of dividends.

Warren Buffett’s investment in Apple Inc AAPL is a great example in this regard. In just this year, Apple poured $645,350,303.61 into Berkshire Hathaway's coffers, solely in dividends.

Retail traders — notably the newer generation — seem caught up in the volatility of today's markets, and that frenzied pace often overshadows a foundational investment strategy: buy and hold.

Read Next: EXCLUSIVE: Why Does Cathie Wood Think Bitcoin Is Going To $1 Million — What Does She Know That We Don’t?

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