In this article, we discuss billionaire Ken Fisher’s top 15 dividend growth stock picks. You can skip our detailed analysis of Ken Fisher’s investment strategy and his hedge fund’s performance over the years, and go directly to read Billionaire Ken Fisher’s Top 5 Dividend Growth Stock Picks.
In an interview with Fox Business, Ken Fisher said that Wall Street will see a ‘roaring bull market’ this year, similar to the one in 1967. He further mentioned that the fourth quarter rally marks a strong start for 2023.
In 1979, Ken Fisher founded one of the world’s most successful hedge funds, Fisher Asset Management. The hedge fund follows a personalized approach and provides customized and tailored portfolios to clients according to their specifications. Moreover, the fund also explores global investment opportunities to comprehend information from different markets around the world.
In one of his videos, Fisher mentioned that technology and other growth-oriented sectors are more likely to gain this year after experiencing huge losses in 2022. He advises investors to load up on these sectors to benefit during a market recovery. Fisher is following his own advice as his hedge fund has made massive investments in the tech sector in the most recent quarter.
At the end of the fourth quarter of 2022, Fisher Asset Management’s portfolio was valued at nearly $148 billion, up from $133.4 billion in the previous quarter. Along with technology, services, healthcare, finance, and basic material are some other sectors that dominated the hedge fund’s portfolio. Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) were some of the firm’s most prominent holdings. However, we will discuss the top dividend growth stock picks of Ken Fisher.
Our Methodology:
For this list, we picked dividend stocks from Fisher Asset Management’s 13F portfolio, as of the fourth quarter of 2022. Since we are focusing on dividend growth stocks, we shortlisted companies that have raised their payouts for at least 10 years. The list is ranked in ascending order of the total value of Ken Fisher’s stakes.
Billionaire Ken Fisher’s Top 15 Dividend Growth Stock Picks
15. 3M Company (NYSE:MMM)
Fisher Asset Management’s Stake Value: $771,768,000
Dividend Yield as of February 16: 5.23%
Consecutive Years of Dividend Growth: 65
3M Company (NYSE:MMM) is a Minnesota-based multinational company that offers services in a wide range of industries. On February 7, the company declared a 0.7% hike in its quarterly dividend to $1.50 per share. This marked the company’s 65th consecutive year of dividend growth, which makes it one of the top dividend growth stock picks of Ken Fisher. The stock’s dividend yield on February 16 came in at 5.23%.
In Q4 2022, Fisher Asset Management owned over 6.4 million shares in 3M Company (NYSE:MMM), worth over $771.7 million. The company made up 0.52% of the firm’s 13F portfolio. Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) are some other prominent holdings of Ken Fisher.
In January, Mizuho maintained a Neutral rating on 3M Company (NYSE:MMM) with a $120 price target, highlighting the company’s performance in its recent quarterly earnings.
At the end of Q3 2022, 49 hedge funds tracked by Insider Monkey reported owning stakes in 3M Company (NYSE:MMM), down from 54 in the previous quarter. The consolidated value of these stakes is over $1.45 billion. Balyasny Asset Management was one of the company’s largest stakeholders in Q3.
Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:
“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.
14. NextEra Energy, Inc. (NYSE:NEE)
Fisher Asset Management’s Stake Value: $791,857,000
Dividend Yield as of February 16: 2.21%
Consecutive Years of Dividend Growth: 26
NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company that invests in energy infrastructure throughout the US. In January, Wells Fargo raised its price target on the stock to $110 with an Overweight rating on the shares, appreciating the company’s decarbonization-related efforts.
Fisher Asset Management has been investing in NextEra Energy, Inc. (NYSE:NEE) since the third quarter of 2015. In Q4 2022, the hedge fund raised its position in the company by 1%, which took its total NEE stake to over $791.8 million. The company represented 0.53% of the firm’s portfolio.
NextEra Energy, Inc. (NYSE:NEE) currently pays a quarterly dividend of $0.425 per share and has a dividend yield of 2.21%, as of February 16. The company is one of the top dividend growth stock picks of Ken Fisher as it has been raising its payouts consistently for the past 26 years.
NextEra Energy, Inc. (NYSE:NEE) was popular among elite funds in Q3 2022, as 73 funds in Insider Monkey’s database owned stakes in the company, up from 59 in the previous quarter. The collective value of these stakes is over $2.1 billion.
ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its Q3 2022 investor letter. Here is what the firm has to say:
“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”
13. Raytheon Technologies Corporation (NYSE:RTX)
Fisher Asset Management’s Stake Value: $889,327,000
Dividend Yield as of February 16: 2.17%
Consecutive Years of Dividend Growth: 29
Raytheon Technologies Corporation (NYSE:RTX) is an American multinational company that manufactures defense and aerospace products. In Q4 2022, Fisher Asset Management owned over 8.8 million shares in the company with a total value of nearly $890 million. The hedge fund boosted its RTX stake by 3% during the quarter, which now represents 0.6% of its 13F portfolio.
Raytheon Technologies Corporation (NYSE:RTX), one of the top dividend growth stock picks of Ken Fisher, has been rewarding shareholders with increased dividends for the past 29 years. The company offers a quarterly dividend of $0.55 per share and has a dividend yield of 2.17%, as of February 16.
Following the company’s solid earnings beat in Q4 2022, both Citigroup and RBC Capital raised their price targets on Raytheon Technologies Corporation (NYSE:RTX) in January to $106 and $110, respectively.
Raytheon Technologies Corporation (NYSE:RTX) remained a popular buy among hedge funds in Q3 2022, as 55 funds in Insider Monkey’s database owned stakes in the company, up from 45 in the previous quarter. The collective value of these stakes is over $1.6 billion.
Carillon Tower Advisers mentioned Raytheon Technologies Corporation (NYSE:RTX) in its Q3 2022 investor letter. Here is what the firm has to say:
“Raytheon Technologies Corporation (NYSE:RTX) announced strong results led by strength in its commercial segment, but weakness in its defense business led to investor consternation. Management guided to a recovery in this segment, citing both transitory supply chain issues and continued strong demand.”
12. Starbucks Corporation (NASDAQ:SBUX)
Fisher Asset Management’s Stake Value: $1,009,722,000
Dividend Yield as of February 16: 1.94%
Consecutive Years of Dividend Growth: 12
Another top dividend growth stock of Ken Fisher is Starbucks Corporation (NASDAQ:SBUX), which is an American multinational coffeehouse chain. The company currently pays a quarterly dividend of $0.53 per share for a dividend yield of 1.94%, as recorded on February 16. It maintains a 12-year streak of consistent dividend growth.
Fisher Asset Management opened its position in Starbucks Corporation (NASDAQ:SBUX) in Q4 of 2010 with stakes worth over $14 million. In the most recent quarter, the hedge fund owned SBUX stakes worth over $1 billion, after raising its position in the company by 6%. The company made up 0.68% of the firm’s 13F portfolio.
In February, BMO Capital raised its price target on Starbucks Corporation (NASDAQ:SBUX) to $125 with an Outperform rating on the shares. The firm expects the company to show strong US store growth this year.
At the end of September 2022, 54 hedge funds tracked by Insider Monkey owned stakes in Starbucks Corporation (NASDAQ:SBUX), compared with 55 in the previous quarter. These stakes are worth $2.26 billion collectively. Along with Ken Fisher, Ken Griffin, and Ray Dalio were also the company’s leading stakeholders in Q3.
Polen Capital mentioned Starbucks Corporation (NASDAQ:SBUX) in its Q4 2022 investor letter. Here is what the firm has to say:
“We also liquidated our remaining position in Starbucks Corporation (NASDAQ:SBUX). While the company remains a unique and resilient franchise, China is a very important growth market for the company, and zero-COVID policies have made it challenging for the company to operate in this important market. While we expect China to return to more “normal” operation at some point, any COVID flare-ups, in China or other markets, present a very real headwind to Starbucks’ profitability. L’Oreal, Estée Lauder, and other holdings continue to have meaningful exposure to China, but in each of these cases, our research indicates they’re able to better adapt to these operating challenges and realize the growth opportunity in China through their online businesses. In short, we think there are better risk-reward opportunities.”
11. Abbott Laboratories (NYSE:ABT)
Fisher Asset Management’s Stake Value: $1,021,337,000
Dividend Yield as of February 16: 1.90%
Consecutive Years of Dividend Growth: 51
Abbott Laboratories (NYSE:ABT) is an American multinational medical device company that also provides healthcare services to its consumers. Barclays raises its price target on the stock to $125 with an Overweight rating on the shares in January, highlighting the company’s strong growth momentum.
Abbott Laboratories (NYSE:ABT) currently pays a quarterly dividend of $0.51 per share for a dividend yield of 1.90%, as of February 16. In 2022, the company extended its dividend growth streak to 51 years, which places it as one of the top dividend growth stocks in Ken Fisher’s portfolio.
In the fourth quarter of 2022, Fisher Asset Management boosted its position in Abbott Laboratories (NYSE:ABT) by 2%. The firm’s total stake in the company amounted to over $1.02 billion, which represented 0.69% of its 13F portfolio.
At the end of September, 62 hedge funds tracked by Insider Monkey reported having stakes in Abbott Laboratories (NYSE:ABT), up from 61 in the previous quarter. The collective value of these stakes is over $3 billion.
Vulcan Value Partners mentioned Abbott Laboratories (NYSE:ABT) in its Q4 2022 investor letter. Here is what the firm has to say:
“Abbott Laboratories (NYSE:ABT) is one of the largest and most diversified health care companies in the world. It operates in four segments: diagnostics, medical devices, nutritional products and established pharmaceuticals. The company quickly established itself as a global leader in the development and deployment of COVID-19 rapid diagnostic tests. Consequently, its revenue and profit growth accelerated during the pandemic. As demand for testing slowed to a more sustainable level, the company is facing difficult earnings comparisons. In addition, Abbott voluntarily recalled certain infant formula products and shut down a plant in Michigan where the products were manufactured, which put more pressure on its earnings comparisons. The plant has resumed production, and Abbott is regaining lost market share. We believe that these events, one positive and one negative, have distorted Abbott’s sustainable earning power and has given us an opportunity to purchase it with a margin of safety.”
10. NIKE, Inc. (NYSE:NKE)
Fisher Asset Management’s Stake Value: $1,059,924,000
Dividend Yield as of February 16: 1.07%
Consecutive Years of Dividend Growth: 21
NIKE, Inc. (NYSE:NKE) is an Oregon-based manufacturing company that specializes in the production of footwear, apparel, and other accessories. In Q4 2022, Fisher Asset Management owned over 9 million shares in the company, with a total value of over $1.05 billion. The company represented 0.71% of the hedge fund’s 13F portfolio.
In January, Wells Fargo raised its price target on NIKE, Inc. (NYSE:NKE) with an Overweight rating on the shares, following the company’s global sports apparel & footwear market share.
On February 9, NIKE, Inc. (NYSE:NKE) declared a quarterly dividend of $0.34 per share, which fell in line with its previous dividend. The company has been raising its dividends consistently for the past 21 years, coming through as one of the top dividend growth stock picks Ken Fisher.
NIKE, Inc. (NYSE:NKE) was a part of 70 hedge fund portfolios in Q3 2022, down from 72 in the previous quarter, as shown by Insider Monkey’s data. The stakes owned by these hedge funds have a total value of over $3.3 billion.
RiverPark Advisors mentioned NIKE, Inc. (NYSE:NKE) in its Q4 2022 investor letter. Here is what the firm has to say:
“NIKE, Inc. (NYSE:NKE) shares were a top contributor for 4Q as the company reported solid 2Q23 results and raised its annual guidance. Nike reported 17% revenue growth (27% on a currency neutral basis) and $0.85 EPS, both significantly greater than expectations. Management raised its F23 outlook to low teens currency-neutral revenue growth.
Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $46 billion in revenue, $6 billion in 2021 annual free cash flow, and over $4 billion of excess cash. We believe that the continued global secular growth trend towards active wear will continue to aid Nike’s top-line growth, while we expect gross and operating margin improvements as it shifts its product mix to more premium products and adopts a more direct to consumer approach, driving long-term mid-teens or higher annual EPS growth for the foreseeable future.”
9. Johnson & Johnson (NYSE:JNJ)
Fisher Asset Management’s Stake Value: $1,076,537,000
Dividend Yield as of February 16: 2.84%
Consecutive Years of Dividend Growth: 61
Johnson & Johnson (NYSE:JNJ) is next on our list of the top dividend growth stock picks of Ken Fisher. The company has been raising its payouts for the past 61 years consistently and currently pays a quarterly dividend of $1.13 per share. The stock’s dividend yield on February 16 came in at 2.84%.
Johnson & Johnson (NYSE:JNJ) has been a part of Fisher Asset Management’s portfolio since the fourth quarter of 2010. In Q4 2022, the hedge fund raised its stake in the company by 3% to over 6 million shares. The firm’s JNJ stake in the quarter amounted to $1.07 billion, which made up 0.72% of its 13F portfolio.
At the end of Q3 2022, 85 hedge funds in Insider Monkey’s database owned stakes in Johnson & Johnson (NYSE:JNJ), up from 83 in the previous quarter. The collective value of these stakes is over $5.4 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q3.
Here’s what Distillate Capital Partners LLC said about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:
“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
8. Union Pacific Corporation (NYSE:UNP)
Fisher Asset Management’s Stake Value: $1,134,626,000
Dividend Yield as of February 16: 2.56%
Consecutive Years of Dividend Growth: 15
Union Pacific Corporation (NYSE:UNP) is an American transport company, based in Nebraska. In January, BMO Capital maintained an Outperform rating on the stock with a $245 price target. The firm expects the company to generate strong earnings this year, despite normal performance in the past year.
On February 9, Union Pacific Corporation (NYSE:UNP) declared a quarterly dividend of $1.30 per share, consistent with its previous dividend. The company has been raising its dividends for the past 15 years and its dividend yield came in at 2.56%, as of February 16. It is among the top dividend growth stock picks of Ken Fisher.
Fisher Asset Management started investing in Union Pacific Corporation (NYSE:UNP) in Q4 2010 with shares worth over $3135 million. In the most recent quarter, the hedge fund increased its position in the company by 2%, which takes its total UNP stake to over $1.1 billion. The company made up 0.76% of the hedge fund’s portfolio.
The number of hedge funds in Insider Monkey’s database owning stakes in Union Pacific Corporation (NYSE:UNP) grew to 74 in Q3 2022, from 65 in the previous quarter. The collective value of these stakes is over $6.4 billion.
Diamond Hill Capital Management mentioned Union Pacific Corporation (NYSE:UNP) in its Q2 2022 investor letter. Here is what the firm has to say:
“Union Pacific Corporation (NYSE:UNP) is a large railroad company that carries freight across the western US and between Canada and Mexico. It transports a variety of industrial goods, raw materials and containerized freight between major US ports, industrial hubs and international gateways. The goods that Union Pacific and other railroads transport are fundamental inputs in the economy and are resilient to long-term trends in the business cycle. We believe Union Pacific offers a compelling investment opportunity as its substantial infrastructure investments, relative cost advantages, limited leverage and the essential nature of the products it delivers provides the company with what we believe is one of the widest moats in the transportation sector. We also like that Union Pacific has a shareholder-oriented management team that is focused on growing earnings while returning capital to shareholders.”
7. Costco Wholesale Corporation (NASDAQ:COST)
Fisher Asset Management’s Stake Value: $1,173,549,000
Dividend Yield as of February 16: 0.70%
Consecutive Years of Dividend Growth: 18
Costco Wholesale Corporation (NASDAQ:COST) is a Washington-based company that operates big-box retail stores. In February, Barclays initiated its coverage on the stock with an Equal Weight rating with a $510 price target. The firm presented a positive stance on the retail sector.
Costco Wholesale Corporation (NASDAQ:COST), one of the top dividend growth stock picks of Ken Fisher, has raised its dividends for 18 years in a row. The company offers a quarterly dividend of $0.90 per share and has a dividend yield of 0.70%, as of February 16.
In Q4 2022, Fisher Asset Management owned over 2.5 million shares in Costco Wholesale Corporation (NASDAQ:COST), worth over $1.17 billion. The company represented 0.79% of the hedge fund’s 13F portfolio.
At the end of Q3 2022, 69 hedge funds tracked by Insider Monkey reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST), up from 64 in the previous quarter. The collective value of these stakes is over $4.4 billion.
Madison Funds mentioned Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2022 investor letter. Here is what the firm has to say:
“Costco Wholesale Corporation (NASDAQ:COST) stock fell after November sales results showed a slowing consumer. The slower November sales were followed by a slight first quarter miss with lower-than-expected margins. Costco commented that they are not seeing trade-down but private label penetration has increased modestly. Traffic continues to be positive, and Costco remains well-positioned in a more challenging macro environment due to its strong value proposition.”
6. Walmart Inc. (NYSE:WMT)
Fisher Asset Management’s Stake Value: $1,192,576,000
Dividend Yield as of February 16: 1.53%
Consecutive Years of Dividend Growth: 49
Walmart Inc. (NYSE:WMT) is an American multinational retail corporation, based in Arkansas. In Q4 2022, Fisher Asset Management lifted its position in the company by 4%, which now amounted to nearly $1.2 billion. The company made up 0.8% of the firm’s 13F portfolio. WMT is one of the important holdings of Ken Fisher alongside Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
Cowen raised its price target on Walmart Inc. (NYSE:WMT) to $180 in February and maintained an Outperform rating on the shares. The firm raised its estimates on prospects of ‘better sales trends’ this year.
Walmart Inc. (NYSE:WMT) currently pays a quarterly dividend of $0.56 per share for a dividend yield of 1.53%. The company is one of the top dividend growth stock picks of Ken Fisher as it maintains a 49-year streak of consistent dividend growth.
As of the end of Q3 2022, 68 hedge funds tracked by Insider Monkey were bullish on Walmart Inc. (NYSE:WMT), compared with 67 in the previous quarter. The collective value of stakes owned by these hedge funds is over $4.08 billion.
Leaven Partners mentioned Walmart Inc. (NYSE:WMT) in its Q3 2022 investor letter. Here is what the firm has to say:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
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Disclosure. None. Billionaire Ken Fisher’s Top 15 Dividend Growth Stock Picks is originally published on Insider Monkey.
