Billionaire Ken Fisher’s Top 5 Dividend Growth Stock Picks

In this article, we discuss billionaire Ken Fisher’s top 5 dividend growth stock picks. If you want to read our detailed analysis of Ken Fisher’s investment strategy and his hedge fund’s performance over the years, go directly to read Billionaire Ken Fisher’s Top 15 Dividend Growth Stock Picks. 

5. Chevron Corporation (NYSE:CVX)

Fisher Asset Management’s Stake Value: $1,222,868,000
Dividend Yield as of February 16: 3.57%
Consecutive Years of Dividend Growth: 36

Chevron Corporation (NYSE:CVX) is a California-based energy company that specializes in the exploration of oil and natural gas. In Q4 2022, Fisher Asset Management owned over 6.8 million shares in the company, worth over $1.2 billion. The hedge fund boosted its CVX stake by 1%, which represented 0.82% of its 13F portfolio.

Chevron Corporation (NYSE:CVX) currently offers a quarterly dividend of $1.51 per share and has a dividend yield of 3.57%, as of February 16. The company has been raising its dividends consistently for the past 36 years, which makes it one of the top dividend growth stock picks of Ken Fisher.

The number of hedge funds tracked by Insider Monkey owning stakes in Chevron Corporation (NYSE:CVX) grew to 66 in Q3 2022, from 59 in the previous quarter. These stakes have a total value of over $27 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

4. BlackRock, Inc. (NYSE:BLK)

Fisher Asset Management’s Stake Value: $1,264,595,000
Dividend Yield as of February 16: 2.76%
Consecutive Years of Dividend Growth: 14

BlackRock, Inc. (NYSE:BLK) is an American multinational investment management company. In January, BofA maintained a Buy rating on the stock with an $813 price target, highlighting its performance last year.

Recently, BlackRock, Inc. (NYSE:BLK), one of the top dividend growth stock picks of Ken Fisher, declared a quarterly dividend of $5 per share, having raised it by 2.4% from its previous dividend. Through this increase, the company extended its dividend growth streak to 14 years.

In the fourth quarter of 2022, Fisher Asset Management lifted its position in BlackRock, Inc. (NYSE:BLK) by 4% and now owns over 1.7 million shares in the company. The total worth of these stakes is over $1.26 billion. The company made up 0.85% of the firm’s 13F portfolio.

At the end of Q3 2022, BlackRock, Inc. (NYSE:BLK) was a part of 46 hedge fund portfolios, as per Insider Monkey’s database. The collective value of stakes owned by these funds is over $1.76 billion.

Madison Funds mentioned BlackRock, Inc. (NYSE:BLK) in its Q4 2022 investor letter. Here is what the firm has to say:

“BlackRock, Inc. (NYSE:BLK) stock benefited from the strong stock market during the fourth quarter. Although markets have been challenging for BlackRock, with headwinds from both the equity and fixed income markets, the company remains well positioned for improving fixed income demand in 2023 and has also gained traction in the alternatives space.”

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

Fisher Asset Management’s Stake Value: $1,351,347,000
Dividend Yield as of February 16: 2.71%
Consecutive Years of Dividend Growth: 12

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company that provides innovative health solutions to its consumers. Credit Suisse raised its price target on the stock to $125 and gave an Outperform rating on the shares, appreciating the company’s research and development.

Merck & Co., Inc. (NYSE:MRK) has been raising its dividends consistently for the past 12 years. The company pays a quarterly dividend of $0.73 per share and has a dividend yield of 2.71%, as of February 16.

Fisher Asset Management started investing in Merck & Co., Inc. (NYSE:MRK) during the fourth quarter of 2010, with shares worth nearly $10 million. In the most recent quarter, the hedge fund owned MRK stakes worth over $1.3 billion, after raising its position by 2%. The company made up 0.91% of the fund’s 13F portfolio.

At the end of Q3 2022, 82 hedge funds tracked by Insider Monkey presented a bullish stance on Merck & Co., Inc. (NYSE:MRK), up from 79 in the previous quarter. The stakes owned by these hedge funds have a total value of over $4.7 billion.

Baron Funds mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter. Here is what the firm has to say:

“Merck & Co., Inc. (NYSE:MRK) is a large-cap pharmaceutical company with a deep heritage in drug discovery. Share gains were led by the continued growth of key asset Keytruda, the leading immune oncology agent used to treat a variety of cancers. Shares also benefited from increased investor interest as Merck proves its ability to scale its Gardasil vaccine that had previously been constrained by supply issues. We retain long-term conviction, as we expect Keytruda to solidify its position as the best-selling biopharmaceutical drug of all time.”

2. Caterpillar Inc. (NYSE:CAT)

Fisher Asset Management’s Stake Value: $1,770,496,000
Dividend Yield as of February 16: 1.93%
Consecutive Years of Dividend Growth: 28

Caterpillar Inc. (NYSE:CAT) is a Texas-based company that specializes in the production of construction equipment. At the end of Q4 2022, Fisher Asset Management owned over 7 million shares, worth over $1.7 billion. The company represented 1.19% of the firm’s 13F portfolio.

Caterpillar Inc. (NYSE:CAT) is one of the top dividend growth stock picks of Ken Fisher as the company has been raising its payouts continuously for the past 28 years. It offers a quarterly dividend of $1.20 per share and has a dividend yield of 1.93%, as of February 16.

At the end of Q3 2022, 43 hedge funds tracked by Insider Monkey owned stakes in Caterpillar Inc. (NYSE:CAT), compared with 45 in the previous quarter. These stakes are valued at over $2.8 billion collectively. Among these hedge funds, Bill & Melinda Gates Foundation Trust was the company’s leading stakeholder in Q3.

Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter. Here is what the firm has to say:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

1. The Home Depot, Inc. (NYSE:HD)

Fisher Asset Management’s Stake Value: $2,617,777,000
Dividend Yield as of February 16: 2.37%
Consecutive Years of Dividend Growth: 12

The Home Depot, Inc. (NYSE:HD) is a Georgia-based home improvement company. The company pays a quarterly dividend of $1.90 per share and has a dividend yield of 2.37%, as of February 16. It has been raising its dividends consistently for the past 12 years, which makes it one of the top dividend growth stock picks of Ken Fisher.

At the end of Q4 2022, Fisher Asset Management lifted its position in The Home Depot, Inc. (NYSE:HD) by 2%, which takes its total stake in the company to over $2.6 billion. The company represented 1.76% of the firm’s 13F portfolio.

At the end of September, 89 hedge funds in Insider Monkey’s database owned stakes in The Home Depot, Inc. (NYSE:HD), growing from 80 in the previous quarter. These stakes are collectively valued at over $5.6 billion. With over 8 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.

Matrix Asset Advisors mentioned The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter. Here is what the firm has to say:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

You can also take a look at Early Retirement Portfolio: 15 Stocks to Live Off Dividends and Value Investor Joel Greenblatt’s Dividend Stocks

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