In this article, we discuss 12 high-dividend stocks picked by billionaire Ray Dalio. You can skip our detailed analysis of Bridgewater Associates' performance and recent developments, and go directly to read 5 High Dividend Stocks Picked By Billionaire Ray Dalio.
Bridgewater Associates is a renowned investment management firm founded by Ray Dalio in 1975. It is recognized for its distinctive investment philosophy and use of systematic and quantitative methods to manage client funds. Dalio's principles, both in investing and in life, center around radical transparency, embracing honesty and open feedback within the organization. Bridgewater gained prominence for its success in navigating economic downturns and its focus on risk management. The firm manages a substantial amount of assets for a variety of institutional clients, including pension funds, endowments, and sovereign wealth funds. Dalio's strategies helped grow his company into one of the biggest and most prosperous hedge funds globally. As of November, the billionaire’s real-time net worth is over $15.4 billion, according to Forbes.
In 2017, Dalio left his role as CEO and later retired as co-CIO in 2022. He passed control of Bridgewater to a new group of investors and gave most of his ownership to the board. This team of experts now handles picking stocks and deciding where to invest. While he stepped back from day-to-day operations, his influence and the principles he instilled continue to shape Bridgewater's approach to investment and management.
Since starting Bridgewater in his Manhattan apartment in 1975, Mr. Dalio has been recognized for his exceptional ability to identify and profit from significant global economic or political shifts. The firm gained global attention during the 2008 financial crisis as its main fund increased by 9 percent while stocks plummeted by 37 percent. This success made Dalio a sought-after advisor for the White House and Federal Reserve, attracting new wealthy clients to his fund, according to a report by The New York Times.
In the midst of the current market landscape, numerous hedge fund managers have stepped into the spotlight to share their perspectives on the prevailing conditions. Dalio’s recent statements reflect a sense of pessimism concerning the global economy in the upcoming year. His sentiments are noteworthy because of his history of astute economic predictions and his successful navigation through various market cycles. Here are some of his comments:
“If you take the time horizon, the monetary policies that we are going to see will have greater effects on the world, it’s difficult to be optimistic about that.”
Earlier in June, Dalio mentioned that the US is dealing with high inflation and higher real interest rates. He also warned that the country might be starting a major debt crisis due to too much debt being made and not enough people willing to buy it. He shared these thoughts at the Bloomberg Invest conference in New York.
As of the end of Q3 2023, Bridgewater Associates’ 13F portfolio had a value of $16.5 billion, up from $16.1 billion in the last quarter. The hedge fund had widely invested in dividend stocks such as Target Corporation (NYSE:TGT), Becton, Dickinson and Company (NYSE:BDX), and Merck & Co., Inc. (NYSE:MRK). In this article, we will further discuss the top dividend stock picks of billionaire Ray Dalio.
12 High Dividend Stocks Picked By Billionaire Ray Dalio
Ray Dalio of Bridgewater Associates
Our Methodology:
We chose prominent dividend stocks from Bridgewater Associates' portfolio, as of Q3 2023. We specifically selected stocks with dividends over 3% as of November 22. These companies not only offer high dividends but also have consistent track records of paying dividends. The stocks are ranked according to the value of Bridgewater Associates' stake in them.
AT&T Inc. (NYSE:T) is an American multinational conglomerate holding company. Primarily, it's known for its involvement in telecommunications and media. The company currently offers a quarterly dividend of $.2775 per share and has a dividend yield of 6.83%, as of November 22. It is one of the best dividend stocks on our list as the company has been making regular dividend payments to shareholders since 1995.
At the end of Q3 2023, Bridgewater Associates owned over 1.6 million shares in AT&T Inc. (NYSE:T), worth over $24 million. The company represented 0.14% of the firm's 13F portfolio.
As of the close of Q3 2023, 52 hedge funds in Insider Monkey's database reported owning stakes in AT&T Inc. (NYSE:T), compared with 56 in the previous quarter. The consolidated value of these stakes is more than $1.7 billion.
Baxter International Inc. (NYSE:BAX) is a multinational healthcare company that specializes in various medical devices, pharmaceuticals, and biotechnology. On November 14, the company announced a quarterly dividend of $0.29 per share, which was in line with its previous dividend. The company has raised its dividends for five consecutive years, which makes BAX one of the best dividend stocks on our list. As of November 22, the stock has a dividend yield of 3.23%.
During the third quarter of 2023, Bridgewater Associates increased its position in Baxter International Inc. (NYSE:BAX) by 15%. The hedge fund ended the quarter with BAX stakes worth over $26.3 million. The company represented 0.15% of the firm's 13F portfolio.
At the end of Q3 2023, 41 hedge funds tracked by Insider Monkey reported having stakes in Baxter International Inc. (NYSE:BAX), worth collectively over $1.57 billion.
An American multinational food and beverage company, The J. M. Smucker Company (NYSE:SJM) is next on our list of the best dividend stocks. During the third quarter of 2023, Bridgewater Associates boosted its stake in the company by 18%. The hedge fund owned SJM stakes worth $27.4 million at the end of the quarter. The company made up 0.16% of the firm's 13F portfolio.
The J. M. Smucker Company (NYSE:SJM) currently pays a quarterly dividend of $1.06 per share and has a dividend yield of 3.77%, as of November 22. The company holds a 22-year streak of consistent dividend growth.
The number of hedge funds tracked by Insider Monkey owning stakes in The J. M. Smucker Company (NYSE:SJM) grew to 33 in Q3 2023, from 29 in the previous quarter. The consolidated value of these stakes is roughly $460 million. Among these hedge funds, AQR Capital Management was the company's leading stakeholder in Q3.
Citigroup Inc. (NYSE:C) is a global financial services company with a broad range of offerings across various sectors within finance. The company currently offers a quarterly dividend of $0.53 per share and has a dividend yield of 4.70%, as of November 22. C is among the best dividend stocks on our list because of its high dividend yield.
At the end of the third quarter of 2023, Ray Dalio's hedge fund owned over 1 million shares in Citigroup Inc. (NYSE:C), worth over $44.8 million. The hedge fund increased its stake in the company by 41% during the quarter. The company accounted for 0.27% of the billionaire's portfolio.
Citigroup Inc. (NYSE:C) was a part of 79 hedge fund portfolios at the end of Q3 2023, up from 75 in the preceding quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a collective value of roughly $7 billion.
The Kraft Heinz Company (NASDAQ:KHC), formed by the merger of Kraft Foods Group and H.J. Heinz Company, is a major multinational food and beverage company. On November 1, the company announced a quarterly dividend of $0.40 per share, which fell in line with its previous dividend. As of November 22, the stock has a dividend yield of 4.74%.
Bridgewater Associates held over 1.5 million shares of The Kraft Heinz Company (NASDAQ:KHC) at the end of Q3 2023. The hedge fund's total stake in the company amounted to roughly $52 million. The company represented 0.31% of the firm's 13F portfolio.
As of the end of September 2023, 40 hedge funds tracked by Insider Monkey reported having stakes in The Kraft Heinz Company (NASDAQ:KHC), up from 39 in the previous quarter. The overall value of these stakes is nearly $12 billion. Warren Buffett's Berkshire Hathaway was the company's leading stakeholder in Q3.
Altria Group, Inc. (NYSE:MO) is a major American corporation primarily operating within the tobacco and related industries. Bridgewater Associates boosted its position in the company by 11% during the third quarter of 2023 and ended the quarter with stakes worth over $59 million. The company constituted 0.35% of the firm's 13F portfolio.
Altria Group, Inc. (NYSE:MO), one of the best dividend stocks on our list, has been rewarding shareholders with growing dividends for the past 54 years. The company offers a quarterly dividend of $0.98 per share and has a dividend yield of 9.59%, as of November 22.
At the end of Q3 2023, 40 hedge funds tracked by Insider Monkey owned stakes in Altria Group, Inc. (NYSE:MO), down from 43 in the preceding quarter. The consolidated value of these stakes is over $565 million.
An American pharmaceutical company, Bristol-Myers Squibb Company (NYSE:BMY) ranks sixth on our list of the best dividend stocks in billionaire Ray Dalio's portfolio. The company offers a quarterly dividend of $0.57 per share and maintains a 17-year streak of consistent dividend growth. As of November 22, the stock has a dividend yield of 4.67%.
At the end of Q3 2023, Bridgewater Associates owned over 1.3 million shares in Bristol-Myers Squibb Company (NYSE:BMY), valued at over $80.2 million. The company made up 0.48% of the firm's 13F portfolio.
Of the 910 hedge funds tracked by Insider Monkey at the end of Q3 2023, 65 funds owned stakes in Bristol-Myers Squibb Company (NYSE:BMY), compared with 66 in the previous quarter. The overall value of these stakes is over $1.8 billion.
