Below is our list of the best stocks to buy according to billionaire Ray Dalio. For a comprehensive list of Dalio’s history, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Billionaire Ray Dalio.
5. Johnson & Johnson (NYSE: JNJ)
Dalio’s Stake Value: $281,021,000
Percentage of Ray Dalio’s 13F Portfolio: 2.47%
Number of Hedge Fund Holders: 81
The pharmaceutical giant Johnson & Johnson (NASDAQ: JNJ) also gained Ray Dalio’s confidence in the first quarter. His hedge fund increased its stake in JNJ by 16% to 2.48% of the overall portfolio. The firm held 1.70 million shares of Johnson & Johnson at the end of the first quarter. JNJ is considered a dividend king amid its extensive dividend growth history.
Johnson & Johnson was in 81 hedge funds’ portfolios at the end of March, flat compared to the December quarter. The all-time high for this statistic is 94.
4. The Coca-Cola Company (NYSE: KO)
Dalio’s Stake Value: $298,699,000
Percentage of Ray Dalio’s 13F Portfolio: 2.63%
Number of Hedge Fund Holders: 61
The consumer staple giant The Coca-Cola Company (NASDAQ: KO) is one of the best stocks to hold in dividend portfolio because of its 58 straight years of dividend growth history. The company currently offers a quarterly dividend of $0.42 per share, yielding around 3%. Ray Dalio held 5.66 million shares of The Coca-Cola Company at the end of the first quarter after lifting his position by 25% from the previous quarter.
The number of long hedge fund bets decreased by 1 lately. The Coca-Cola Company was in 61 hedge funds’ portfolios at the end of the first quarter of 2020 compared to 62 positions in the previous quarter.
3. Alibaba Group Holding Limited (NYSE: BABA)
Dalio’s Stake Value: $318,039,000
Percentage of Ray Dalio’s 13F Portfolio: 2.8%
Number of Hedge Fund Holders: 135
The Chinese e-commerce giant Alibaba Group Holding Limited (NYSE: BABA) is a member of Bridgewater Associates portfolio since 2018. The firm slashed its stake in the Chinese online platform by 12% to 2.80% of the portfolio in the first quarter of 2020. Shares of Alibaba have been under pressure over the past two quarters due to regulatory headwinds.
In the first quarter investor letter, Polen Capital highlighted a few stocks including Alibaba. Here is what Polen Capital stated:
“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second-largest position in the Portfolio.”
2. The Procter & Gamble Company (NYSE: PG)
Dalio’s Stake Value: $435,899,000
Percentage of Ray Dalio’s 13F Portfolio: 3.84%
Number of Hedge Fund Holders: 70
The Procter & Gamble Company (NASDAQ: PG) is also considered as a dividend king amid its 64 successive years of dividend growth history. Bridgewater Associates appears bullish over the future fundamentals of PG. This is reflecting from a huge stake increase in the first quarter. The firm raised its existing position by 19% in PG to 3.84% of the portfolio. The company currently offers a dividend yield of 2.55%.
The Procter & Gamble Company has experienced a decrease in hedge fund interest in recent months. It was in 70 hedge funds’ portfolios at the end of the first quarter of 2020 compared to 83 positions in the previous quarter.
1. Walmart Inc. (NYSE: WMT)
Dalio’s Stake Value: $487,757,000
Percentage of Ray Dalio’s 13F Portfolio: 4.3%
Number of Hedge Fund Holders: 58
Bridgewater Associates appears bullish about Walmart Inc. (NYSE: WMT) as the firm raised its existing position by 16% to 3.59 million shares, making it the largest stock holding of their 13F portfolio. WMT has an extensive history of returning cash to investors in the form of dividends. Its quarterly dividend is currently standing around $0.55 per share, yielding around 1.57%. The company increased its dividends in the past 47 consecutive years.
Walmart experienced a decrease in hedge fund activity lately. It was in 58 hedge funds’ portfolios at the end of the first quarter compared to 70 positions in the previous quarter.
You can also take a peek at 10 Best Stocks to Buy Now According to Bill Gates and 10 Best Stocks to Buy According to Warren Buffett.
