In this article, we discuss the 5 best dividend stocks to buy according to billionaire Ray Dalio. If you want to read our detailed analysis of Dalio’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy According to Billionaire Ray Dalio.
5. Kinder Morgan, Inc. (NYSE: KMI)
Dalio’s Stake Value: $1,160,000
Percentage of Ray Dalio’s 13F Portfolio: 0.01%
Dividend Yield: 5.73%
Number of Hedge Fund Holders: 38
Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company in North America. The company works through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. Kinder Morgan was founded in 1936 and is placed fifth on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. The company stock has offered investors more than 12% in returns over the last year.
On May 17, Kinder Morgan declared a quarterly dividend of $0.27 per share, representing a 3% increase over the Q4 2020. The company reported its Q1 2021 net income of $1,409 million, compared to a net loss of $306 million in Q1 2020. On June 1, Kinder Morgan agreed to buy Stagecoach Gas Services natural gas pipeline and storage joint venture from Consolidated Edison and Crestwood Equity Partners for $1.225 billion.
Bridgewater Associates holds more than 69,000 shares in the company, worth over $1.1 million. At the end of the first quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth $1.19 billion in Kinder Morgan, Inc. (NYSE: KMI), down from 42 the preceding quarter worth $1.03 billion.
4. Omega Healthcare Investors, Inc. (NYSE: OHI)
Dalio’s Stake Value: $397,000
Percentage of Ray Dalio’s 13F Portfolio: 0.001%
Dividend Yield: 7.03%
Number of Hedge Fund Holders: 25
Omega Healthcare Investors, Inc. (NYSE: OHI) is a real estate investment trust that invests in the long-term healthcare industry, mainly in skilled nursing and assisted living residence. The company was founded in 2003 and is ranked fourth on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. Omega Healthcare stock has returned more than 14% to investors over the past year.
On April 22, Omega Healthcare declared a quarterly dividend of $0.67 per share, in line with the previous. Omega reported Q1 2021 net income of $164.4 million up from $92.3 million in Q1 2020. While revenue during the quarter totaled $273.8 million, up 8.2% YoY, beating estimates by $50.92 million.
The hedge fund chaired by Ray Dalio holds 10,846 shares in the company worth $397,000. At the end of the first quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $190 million in Omega Healthcare Investors, Inc. (NYSE: OHI), up from 15 the preceding quarter worth $101 million. Out of the hedge funds being tracked by Insider Monkey, D E Shaw is a leading shareholder in Omega Healthcare with 1.78 million shares worth more than $65 million.
3. Ares Capital Corporation (NASDAQ: ARCC)
Dalio’s Stake Value: $126,478
Percentage of Ray Dalio’s 13F Portfolio: 0.02%
Dividend Yield: 8.12%
Number of Hedge Fund Holders: 15
Ares Capital Corporation (NASDAQ: ARCC) is a business development company, which specializes in recapitalization, acquisition, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle-market companies. It was founded in 1997 and is placed third on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. Ares stock has offered 27% in returns to investors over the course of the past twelve months.
On April 28, Ares declared a quarterly dividend of $0.40 per share, in line with the previous. Ares also reported Q1 2021 EPS of $0.87, beating its estimates by $0.41. Revenue during this period was $390 million, up 5.7% YoY, and higher than its estimated revenue by $4.15 million.
The hedge fund run by Ray Dalio owns 126,478 shares in the company worth over $2.3 million, representing 0.02% of their portfolio. The fund upped its stake by 112% in the last quarter. Out of the hedge funds being tracked by Insider Monkey, Two Sigma Advisors is a leading shareholder in Ares Capital Corporation (NASDAQ: ARCC) with 1.4 million shares worth more than $26 million.
2. Chimera Investment Corporation (NYSE: CIM)
Dalio’s Stake Value: $131,000
Percentage of Ray Dalio’s 13F Portfolio: 0.001%
Dividend Yield: 9.13%
Number of Hedge Fund Holders: 15
Chimera Investment Corporation (NYSE: CIM) is a real estate investment trust in the United States. It was incorporated in 2007 and is placed second on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. CIM stock has offered investors returns exceeding 36% in the past year.
On May 5, Chimera posted a quarterly dividend of $0.33 per share, which was 10% higher than its previous dividend of $0.30. Chimera also reported Q1 2021 EPS of $0.36 compared to $0.29 in Q4 2020. Revenue during the period was $135.06 million, higher than its estimated revenue by $16 million.
Bridgewater Associates holds 10,286 shares in the company, worth $131,000. At the end of the first quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $78 million in Chimera Investment Corporation (NYSE: CIM), down from 16 the preceding quarter worth $79 million.
1. Two Harbors Investment Corp. (NYSE: TWO)
Dalio’s Stake Value: $89,000
Percentage of Ray Dalio’s 13F Portfolio: 0.001%
Dividend Yield: 9.29%
Number of Hedge Fund Holders: 32
Two Harbors Investment Corp. (NYSE: TWO) is a real estate investment trust that invests, manages residential mortgage-backed securities, finance non-agency securities and mortgage servicing rights. It was founded in 2009 and is placed first on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. TWO stock has returned more than 34% to investors over the course of the past twelve months.
Two harbors declared a quarterly dividend of $0.17 per share in line with the previous as of March 18. Since the past 2 years, the company has beaten EPS estimates 38% of the time and has surpassed revenue estimates 25% of the time. For Q1 2021, Two Harbors posted an EPS of $0.74 compared to a negative EPS of $6.91 in Q1 2020.
Bridgewater Associates holds 12,140 shares in the company worth $89,000. Bridgewater has initiated stakes in the firm in the past few months. Out of the hedge funds being tracked by Insider Monkey, Two Sigma Advisors is a leading shareholder in Two Harbors Investment Corp. (NYSE: TWO) with 3.9 million shares worth more than $29 million.
You can also take a peek at 14 Best European Dividend Stocks To Buy and 10 Best Long-Term Dividend Stocks to Buy and Hold.
