Billionaire Ray Dalio’s Top 5 Dividend Stock Picks

1. The Procter & Gamble Company (NYSE:PG)

Bridgewater Associates’ Stake Value: $735,257,924
Dividend Yield as of May 17: 2.40%

The Procter & Gamble Company (NYSE:PG) was the third-largest holding of Bridgewater Associates at the end of Q1 2023. The hedge fund owned PG stakes worth over $735.2 million, which made up 4.48% of its 13F portfolio. It is one of the top dividend stock picks of billionaire Ray Dalio.

On April 11, The Procter & Gamble Company (NYSE:PG) increased its dividend by 3% to $0.9407 per share. This was the company’s 67th consecutive year of dividend growth. The stock’s dividend yield on May 17 came in at 2.40%.

As of the close of Q4 2022, 74 elite funds tracked by Insider Monkey reported owning stakes in the company in Q4 2022, up from 69 in the previous quarter. These stakes are collectively valued at over $4.7 billion.

Rowan Street Capital mentioned The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”

You can also take a look at 10 Best Fast Food Stocks to Invest In and 10 Best Diversified Bank Stocks to Buy Now

Follow Insider Monkey on Twitter