Billionaire Ken Fisher is Bullish About These Dividend Stocks

Fisher Investments was founded in 1979 by billionaire Ken Fisher. The fee-only investment adviser managed more than $100 billion in assets as of July 1, including over $38 billion for more than 175 large institutions and more than $60 billion for over 50,000 private investors. A bestselling author of several books and a former longtime Forbes financial columnist, Ken Fisher currently serves in the roles of Executive Chairman and Co-Chief Investment Officer at the firm he founded.

Fisher Investments has already filed its 13F for the September quarter, giving us insight into the billionaire’s latest moves. Fisher Investments’ 13F portfolio was valued at $82.37 billion on September 30, with Billionaire Ken Fisher’s Top Stock Picks Heading Into 2019 including numerous billion-dollar positions.

Ken Fisher is clearly a big fan of good dividend stocks. Out of his top 100 or so stock picks, a high percentage of them carry dividend yields of at least 2.8%, including the 25 stocks on this list, which all rank among Fisher Investments’ top 105 holdings. Out of more than 800 holdings in Fisher Investments’ 13F portfolio, nearly 30% of the stocks were from the finance sector, which has one of the highest rates of companies paying dividends at 88.9% (among S&P 1500 companies). The investment adviser opened 79 new positions during the third quarter, adding several new dividend stocks to its portfolio like Xcel Energy Inc. (NASDAQ:XEL) and Kinder Morgan, Inc. (NYSE:KMI).

Fisher Investments believes that having an information edge, or an edge in how one interprets that information, is the key to being successful on the market, and results indicate that its strategy is working. We looked at Fisher Asset Management’s estimated returns a year ago and they showed that investors would have beaten the S&P 500 Index by 3 percentage points per year on average if they had invested in the same stocks (with at least a $1 billion market cap) as Fisher Investments.

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On the following pages are 25 of Ken Fisher’s favorite dividend stocks, all of which have a current yield of at least 2.8%. The stocks are sorted by their current dividend yield, lowest to highest. From the next page, you can click ‘See All’ to have the article converted into a single-page format.

25. Barclays PLC (NYSE:BCS)

– Forward Dividend & Yield: 0.26 (2.87%)

– Ex-Dividend Date: 2018-08-09

– Shares Owned by Fisher Asset Management (as of September 30): 16.17 million
– Value of Fisher Asset Management’s Holding (as of September 30): $144.76 million

Kicking off our list of Ken Fisher’s favorite dividend stocks is Barclays PLC (NYSE:BCS), which Fisher Investments has owned since the middle of 2014. The investment adviser sold off 10.65 million shares of the U.K bank in Q3, which announced in February that it would double its 2018 dividend after profits rose by 10% in 2017.

24. Novo Nordisk A/S (NYSE:NVO)

– Forward Dividend & Yield: 1.27 (2.90%)

– Ex-Dividend Date: 2018-08-17

– Shares Owned by Fisher Asset Management (as of September 30): 13.79 million
– Value of Fisher Asset Management’s Holding (as of September 30): $650 million

Fisher Investments has owned shares of Novo Nordisk A/S (NYSE:NVO) since 2011, buying another 227,733 of them in Q3. 18 of the money managers tracked by our database were long NVO on June 30, owning 1.6% of its shares. While Novo Nordisk’s dividend payout ratio has nearly doubled this decade, it’s still very reasonable at just under 60%.

23. Merck & Co., Inc. (NYSE:MRK)

– Forward Dividend & Yield: 2.20 (3.04%)

– Ex-Dividend Date: 2018-12-14

– Shares Owned by Fisher Asset Management (as of September 30): 8.04 million
– Value of Fisher Asset Management’s Holding (as of September 30): $571 million

Merck & Co., Inc. (NYSE:MRK) is one of Fisher Investments’ oldest holdings, dating back to at least 1999. The investment adviser added 117,937 MRK shares to its 13F portfolio in Q3. After pulling in net income of $1.95 billion in Q3, Merck announced that it would hike its dividend by 15% and launch a $5 billion accelerated share buyback program.

22. Banco Santander, S.A. (NYSE:SAN)

– Forward Dividend & Yield: 0.16 (3.27%)

– Ex-Dividend Date: 2018-10-16

– Shares Owned by Fisher Asset Management (as of September 30): 94.93 million
– Value of Fisher Asset Management’s Holding (as of September 30): $475 million

Fisher Investments bought 1.83 million shares of Brazilian banking giant Banco Santander, S.A. (NYSE:SAN) during Q3, which was just a 1% addition to its huge position. The company announced a 4.5% raise to its dividend earlier this year and declared that all dividends would be paid in cash in 2019.

21. Vale S.A. (NYSE:VALE)

– Forward Dividend & Yield: 0.51 (3.29%)

– Ex-Dividend Date: 2018-08-03

– Shares Owned by Fisher Asset Management (as of September 30): 34.12 million
– Value of Fisher Asset Management’s Holding (as of September 30): $506 million

Fisher Investments more than doubled the size of its stake in Vale S.A. (NYSE:VALE) during Q3, buying 17.77 million shares. Vale is one of several miners that Ken Fisher has been bullish on this year, as Fisher Investments opened several new positions in miners in Q2. In the case of Vale, the fund has owned it since the third quarter of last year.

20. Unilever N.V. (NYSE:UN)

– Forward Dividend & Yield: 1.79 (3.33%)

– Ex-Dividend Date: 2018-11-01

– Shares Owned by Fisher Asset Management (as of September 30): 4.21 million
– Value of Fisher Asset Management’s Holding (as of September 30): $234 million

Fisher Investments raised the size of its Unilever N.V. (NYSE:UN) stake by 3% during the third quarter. Unilever raised its dividend by 8% earlier this year, which was no surprise given its status as a dividend aristocrat, having raised its dividend every year for more than 25 straight years. The company also announced its intent to buy back $7 billion worth of shares.

19. Novartis AG (NYSE:NVS)

– Forward Dividend & Yield: 2.98 (3.41%)

– Ex-Dividend Date: 2018-03-06

– Shares Owned by Fisher Asset Management (as of September 30): 7.42 million
– Value of Fisher Asset Management’s Holding (as of September 30): $640 million

Fisher Investments has owned shares of Novartis since 2012 and owned more shares than the other 24 hedge fund shareholders of the stock combined. All told, they owned less than 1% of the company’s shares. Novartis recently cut 90 drugs from its portfolio of drug programs as it narrows its focus to cutting-edge, transformative treatments.

18. Infosys Limited (NYSE:INFY)

– Forward Dividend & Yield: 0.33 (3.55%)

– Ex-Dividend Date: 2018-10-25

– Shares Owned by Fisher Asset Management (as of September 30): 41.23 million
– Value of Fisher Asset Management’s Holding (as of September 30): $419 million

Fisher Investments sold off just over 2 million shares of Infosys Limited (NYSE:INFY) in Q3, though that represented only 4% of its large position, which it first opened in 2012. The hedge funds tracked in our database weren’t overly bullish on Infosys, owning just 2.6% of its shares on June 30.

17. AstraZeneca PLC (NYSE:AZN)

– Forward Dividend & Yield: 1.40 (3.70%)

– Ex-Dividend Date: 2018-08-09

– Shares Owned by Fisher Asset Management (as of September 30): 13.51 million
– Value of Fisher Asset Management’s Holding (as of September 30): $535 million

Fisher Investments has been an AstraZeneca PLC (NYSE:AZN) shareholder since the third quarter of 2015. The investment firm was one of 23 tracked by Insider Monkey that were AZN shareholders on June 30. Those investors owned just 1.3% of the company’s shares, of which Fisher Investments owned nearly half.

16. Schlumberger Limited (NYSE:SLB)

– Forward Dividend & Yield: 2.00 (3.87%)

– Ex-Dividend Date: 2018-12-04

– Shares Owned by Fisher Asset Management (as of September 30): 6.57 million
– Value of Fisher Asset Management’s Holding (as of September 30): $401 million

Schlumberger Limited (NYSE:SLB)’s dividend yield is pushing 4% now that shares have fallen by 33% in 2018. Fisher Investments has been a shareholder of the oilfield services company since the first half of 2003. CEO Paal Kibsgaard recently cast a pall over the shale industry by stating that all future production projections for the industry may need to be revised down. Schlumberger’s leader said that production has been falling in mature shale areas as more “child” wells are drilled.

15. ABB Ltd (NYSE:ABB)

– Forward Dividend & Yield: 0.83 (4.05%)

– Ex-Dividend Date: 2018-04-04

– Shares Owned by Fisher Asset Management (as of September 30): 10.71 million
– Value of Fisher Asset Management’s Holding (as of September 30): $253 million

ABB Ltd (NYSE:ABB) have fallen by 29% in 2018, which has pushed the company’s dividend yield past 4%. Fisher Investments has owned the stock since late 2014 and bought another 449,437 shares in Q3.

14. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)

– Forward Dividend & Yield: 0.32 (4.15%)

– Ex-Dividend Date: 2018-03-28

– Shares Owned by Fisher Asset Management (as of September 30): 59.43 million
– Value of Fisher Asset Management’s Holding (as of September 30): $477 million

Fisher Investments has been long Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) since the second quarter of 2017 and bought another 1.65 million shares of the Japanese banking firm in Q3.

13. Sanofi (NYSE:SNY)

– Forward Dividend & Yield: 1.86 (4.21%)

– Ex-Dividend Date: 2018-05-09

– Shares Owned by Fisher Asset Management (as of September 30): 15.63 million
– Value of Fisher Asset Management’s Holding (as of September 30): $698 million

Fisher Investments wasn’t up to much with its Sanofi (NYSE:SNY) holding during Q3, adding just 4,121 shares to it. The money management firm has owned the stock since 2011. Sanofi’s eczema treatment Dupixent beat estimates with Q3 sales of $255 million.

12. Southern Copper Corp (NYSE:SCCO)

– Forward Dividend & Yield: 1.60 (4.22%)

– Ex-Dividend Date: 2018-11-06

– Shares Owned by Fisher Asset Management (as of September 30): 4.60 million
– Value of Fisher Asset Management’s Holding (as of September 30): $198 million

Fisher Investments started a new Southern Copper Corp (NYSE:SCCO) position in Q2 and added 3.5 million shares to it in Q3. Shares of the miner have declined by 25% in 2018 as commodity prices have sagged.

11. HSBC Holdings PLC (NYSE:HSBC)

– Forward Dividend & Yield: 2.00 (4.77%)

– Ex-Dividend Date: 2018-10-11

– Shares Owned by Fisher Asset Management (as of September 30): 15.72 million
– Value of Fisher Asset Management’s Holding (as of September 30): $692 million

Shares of Asia-focused British banking firm HSBC Holdings PLC (NYSE:HSBC) have been owned by Fisher Investments since the middle of 2012. The firm bought 463,230 HSBC shares in Q3. HSBC delivered revenue growth of 9% during the third quarter, to $13.8 billion, while EPS came in at $0.95.

10. Ambev S.A. (NYSE:ABEV)

– Forward Dividend & Yield: 0.21 (4.89%)

– Ex-Dividend Date: 2018-06-18

– Shares Owned by Fisher Asset Management (as of September 30): 30.51 million

– Value of Fisher Asset Management’s Holding (as of September 30): $139 million

Ambev S.A. (NYSE:ABEV) ranks 10th with a dividend yield of 4.89%. Fisher Investments has held the stock since the final quarter of 2013 and bought another 22,752 shares in Q3. A stronger economic recovery in Brazil would help the brewer, which has also seen its growth slow due to intense competition.

9. Rio Tinto PLC (NYSE:RIO)

– Forward Dividend & Yield: 2.54 (4.99%)

– Ex-Dividend Date: 2018-08-09

– Shares Owned by Fisher Asset Management (as of September 30): 9.27 million
– Value of Fisher Asset Management’s Holding (as of September 30): $473 million

Rio Tinto PLC (NYSE:RIO) is another miner that Fisher Investments grew bullish on in Q2 and Q3, buying 4.11 million shares in the June quarter and another 5.17 million in Q3. RIO not only pays out a nice dividend, but it’s one that appears to be very safe, thanks to the company doing a great job of cutting its debt in recent years.

8. GlaxoSmithKline PLC (NYSE:GSK)

– Forward Dividend & Yield: 1.98 (5.10%)

– Ex-Dividend Date: 2018-11-15

– Shares Owned by Fisher Asset Management (as of September 30): 14.01 million
– Value of Fisher Asset Management’s Holding (as of September 30): $563 million

Fisher Investments added 187,205 shares to its 13F portfolio in Q3, adding to the position it has held dating back beyond 2001. GlaxoSmithKline PLC (NYSE:GSK) announced earlier this year that it was remaining committed to its dividend policy, which some feared would be cut to fund acquisitions.

7. Lloyds Banking Group PLC (NYSE:LYG)

– Forward Dividend & Yield: 0.16 (5.39%)

– Ex-Dividend Date: 2018-08-16

– Shares Owned by Fisher Asset Management (as of September 30): 89 million
– Value of Fisher Asset Management’s Holding (as of September 30): $271 million

Ken Fisher’s investment adviser sold off 24% of its stake in Lloyds Banking Group PLC (NYSE:LYG) during Q3. Lloyd’s shares have lost 22% in 2018.

6. BP P.L.C. (NYSE:BP)

– Forward Dividend & Yield: 2.46 (5.96%)

– Ex-Dividend Date: 2018-11-08

– Shares Owned by Fisher Asset Management (as of September 30): 7.35 million
– Value of Fisher Asset Management’s Holding (as of September 30): $339 million

Fisher Investments has owned BP P.L.C. (NYSE:BP) dating back to at least 1999, so it says a lot that it became seriously bullish on the stock during Q3, buying 6.53 million shares. BP raised its dividend for the first time in 4 years after its strong Q2 results, which included $2.8 billion in Underlying replacement cost profit, quadruple the amount from the second quarter of 2017.

5. BHP Billiton PLC (NYSE:BBL)

– Forward Dividend & Yield: 2.52 (6.01%)

– Ex-Dividend Date: 2018-09-06

– Shares Owned by Fisher Asset Management (as of September 30): 4.51 million
– Value of Fisher Asset Management’s Holding (as of September 30): $199 million

Fisher Investments opened a $186 million position in BHP Billiton PLC (NYSE:BBL) during the second quarter and added another 375,570 shares to it in Q3. BHP announced at the beginning of November that it will reward shareholders with a special $5.2 billion dividend following the sale of its shale business for $10.8 billion. The miner is likewise set to buy back $5.2 billion of its stock.

4. Royal Dutch Shell PLC (NYSE:RDS-A)

– Forward Dividend & Yield: 3.76 (6.04%)

– Ex-Dividend Date: 2018-11-15

– Shares Owned by Fisher Asset Management (as of September 30): 7.47 million
– Value of Fisher Asset Management’s Holding (as of September 30): $510 million

Fisher Investments was bullish on Royal Dutch Shell PLC (NYSE:RDS-A) in Q3, adding another 1.93 million shares to its holding. The firm has owned shares of the company since its 2005 unification; surprisingly, they are nearly flat during that time, although Fisher has still profited from the dividend payments. With the company set to buy back $25 billion in shares over the next two years and possibly raise its dividend soon, some share price appreciation could finally be on the horizon as well.

3. Anheuser-Busch InBev SA/NV (NYSE:BUD)

– Forward Dividend & Yield: 4.78 (6.25%)

– Ex-Dividend Date: 2018-05-01

– Shares Owned by Fisher Asset Management (as of September 30): 6.44 million
– Value of Fisher Asset Management’s Holding (as of September 30): $565 million

Fisher Investments added just over 100,000 Anheuser-Busch InBev SA/NV (NYSE:BUD) shares to its portfolio in Q3 and has owned the stock since the second quarter of 2012. Anheuser-Busch recently announced that it will cut its dividend in half while it tries to manage its debt load. Anheuser-Busch InBev SA/NV (NYSE:BUD)’s debt ballooned to over $100 billion after it bought SAB Miller in a $108 billion mega-deal back in 2016.

2. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)

– Forward Dividend & Yield: 0.46 (7.81%)

– Ex-Dividend Date: 2018-10-05

– Shares Owned by Fisher Asset Management (as of September 30): 44.13 million
– Value of Fisher Asset Management’s Holding (as of September 30): $278 million

Fisher Investments has owned shares of the Spanish banking group since the final quarter of 2016. The money manager added 592,236 shares to the position in Q3.

1. Vodafone Group PLC (NASDAQ:VOD)

– Forward Dividend & Yield: 1.79 (9.19%)

– Ex-Dividend Date: 2018-06-07

– Shares Owned by Fisher Asset Management (as of September 30): 21.22 million
– Value of Fisher Asset Management’s Holding (as of September 30): $461 million

Topping the list of billionaire Ken Fisher’s top dividend stock picks is Vodafone Group PLC (NASDAQ:VOD), which carries a 9.19% dividend yield.  Fisher sold off 7.07 million Vodafone shares in Q3, but still held a $461 million position in the company at the end of September. Vodafone’s debt is escalating, which has some investors worried and even calling for the dividend to be cut, but Chief Executive Nick Read appears intent on maintaining the company’s existing policy, which calls for the dividend to increase even more over time.

Disclosure: None