Billionaire Ray Dalio’s Top 5 Dividend Stock Picks

4. The Coca-Cola Company (NYSE:KO)

Bridgewater Associates’ Stake Value: $505,248,183
Dividend Yield as of May 17: 2.91%

The Coca-Cola Company (NYSE:KO) has been a part of Bridgewater Associates’ portfolio since the fourth quarter of 2010. At the end of the most recent quarter, the hedge fund owned KO stakes worth over $505.2 million. The company accounted for 3.08% of the fund’s 13F portfolio. It is among the top dividend stock picks of billionaire Ray Dalio.

In 2023, The Coca-Cola Company (NYSE:KO) stretched its dividend growth streak to 61 years, which makes it a reliable option for investors. The company pays a quarterly dividend of $0.46 per share for a dividend yield of 2.91%, as of May 17.

At the end of December, 58 hedge funds in Insider Monkey’s database reported having stakes in The Coca-Cola Company (NYSE:KO). These stakes have a consolidated value of $28.8 billion.

Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”