In this article, we discuss 10 dividend stocks in Ray Dalio’s portfolio. You can skip our detailed analysis of Bridgewater Associates’ returns and performance, and go directly to read Ray Dalio’s Bridgewater Associates Portfolio: Top 5 Dividend Stocks.
Ray Dalio founded Bridgewater Associates in 1975. The premier asset management firm delivers unique insight and partnerships for institutional investors around the globe. The firm follows a diversified macro investment strategy and uses advanced technological techniques to systemize the portfolio construction process. As of July, the firm had over $150 billion in assets under management. In 2017, Dalio resigned as the co-CEO of the firm and is currently serving as the co-chief investment officer.
Ray Dalio is widely known for his ‘All Weather’ strategy, a multi-investment approach that was designed to perform well in all market environments. Over the years, his hedge fund delivered solid returns to shareholders, posting gains in 65% of the markets it operated in. According to Bloomberg, the firm’s Pure Alpha II fund delivered an annual average return of 11.4% since its inception in 1991. The report further mentioned that its flagship fund gained 32% in the first half of 2022. The fund’s Pure Alpha Strategy delivered an 8% return in 2021, after declining 12.6% in 2020.
As of the end of Q2 2022, Bridgewater Associates’ 13F portfolio had a value of nearly $23.6 billion, down from $24.8 billion in the previous quarter. The hedge fund invested in several sectors, with services, healthcare, and consumer goods making up the major portions of the portfolio. Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V), and Meta Platforms, Inc. (NASDAQ:META) were some of the firm’s major holdings in Q2. In this article, we will discuss top dividend stocks in Ray Dalio’s portfolio.
Ray Dalio of Bridgewater Associates
Our Methodology:
We selected dividend stocks from Bridgewater Associates’ Q2 2022 13F portfolio. The stocks are ranked according to their stake value.
10. Colgate-Palmolive Company (NYSE:CL)
Bridgewater Associates’ Stake Value: $183,536,000
Colgate-Palmolive Company (NYSE:CL) is a New York-based consumer products company that mainly specializes in the production and marketing of household products. Bridgewater Associates resumed its position in the company during the third quarter of 2020, after selling stakes worth over $2 million in Q1 2022. Currently, the hedge fund owned roughly 2.3 million CL shares, valued at over $183.5 million. The company represented 0.77% of Ray Dalio’s portfolio in Q2.
On June 9, Colgate-Palmolive Company (NYSE:CL) declared a quarterly dividend of $0.47 per share, raising it by 4.4% in March. This marked the company’s 59th consecutive year of dividend growth, maintaining one of the longest growth streaks in the sector. As of August 29, the stock’s dividend yield stood at 2.37%.
in August, Wells Fargo upgraded Colgate-Palmolive Company (NYSE:CL) to Equal Weight with an $80 price target, highlighting the growth in the company’s organic sales.
As of the end of June 2022, 55 hedge funds tracked by Insider Monkey owned stakes in Colgate-Palmolive Company (NYSE:CL), up from 50 in the previous quarter. The collective value of these stakes is roughly $3 billion. With over 11 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q2.
In addition to CL, Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V), and Meta Platforms, Inc. (NASDAQ:META) were some of the major holdings of Ray Dalio in Q2.
9. Target Corporation (NYSE:TGT)
Bridgewater Associates’ Stake Value: $220,347,000
Target Corporation (NYSE:TGT) is a Minnesota-based general merchandise retailer that owns stores across all 50 US states. The company sells a wide variety of food, household products, clothing, and electronics. In August, DA Davidson lifted its price target on the stock to $203 with a Buy rating on the shares. The firm expects the company to bring its margins back in line with the previous year by Q4 2022.
In Q2 2022, Bridgewater Associates increased its position in Target Corporation (NYSE:TGT) by 18%, which takes its total stake to over $220.3 million. The company accounted for 0.93% of Ray Dalio’s portfolio.
Target Corporation (NYSE:TGT) has been offering dividends since it went public in 1967 and has raised its payouts for the past 51 consecutive years. In June, the company raised its quarterly dividend by 20% to $1.08 per share. The stock’s dividend yield was recorded at 2.69% on August 29.
At the end of Q2 2022, 46 hedge funds in Insider Monkey’s database owned stakes in Target Corporation (NYSE:TGT), down from 50 a quarter earlier. The collective value of these stakes is over $1.2 billion.
Smead Capital Management mentioned Target Corporation (NYSE:TGT) in its Q2 2022 investor letter. Here is what the firm has to say:
“Target Corporation (NYSE:TGT) got blistered by excess inventories as the consumers woke up from their COVID-19 hibernation and associated purchasing patterns. When we tell you that we hold winners to a fault, Target proves the downside of that practice. We view it as a very strong long-term hold.”
8. Starbucks Corporation (NASDAQ:SBUX)
Bridgewater Associates’ Stake Value: $247,711,000
Starbucks Corporation (NASDAQ:SBUX) is an American multinational coffeehouse company. The company was a part of 55 hedge fund portfolios in Q2 2022, compared with 58 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds have a total value of over $1.43 billion. D. E. Shaw and Ken Griffin were the company’s most prominent stakeholders in Q2.
Bridgewater Associates opened its position in Starbucks Corporation (NASDAQ:SBUX) during Q4 of 2010, purchasing shares worth $690,000. In Q2 2022, the hedge fund owned over 3.2 million shares in the company, worth $247.7 million. The company accounted for 1.04% of Ray Dalio’s portfolio.
On June 29, Starbucks Corporation (NASDAQ:SBUX) declared a quarterly dividend of $0.49 per share, in line with its previous dividend. The company has been raising its payouts consistently for the past 11 years. As of August 29, the stock’s dividend yield came in at 2.33%.
In August, Cowen raised its price target for Starbucks Corporation (NASDAQ:SBUX) to $104 with an Outperform rating on the shares, appreciating the company’s operating profit.
Wedgewood Partners mentioned Starbucks Corporation (NASDAQ:SBUX) in its Q2 2022 investor letter. Here is what the firm has to say:
“We exited our position in Starbucks during the second quarter. We do not mind admitting that there was a heated internal debate over this position, as there were several conflicting issues to weigh in our decision. Before the pandemic, we had been quite happy with the Company’s execution and the stock’s performance, and we were likewise happy with strategic decisions made during and immediately after the initial pandemic-related lockdowns in 2020, as we have written previously. (Click here to see full text)
7. McDonald’s Corporation (NYSE:MCD)
Bridgewater Associates’ Stake Value: $511,433,000
An American multinational fast food chain, McDonald’s Corporation (NYSE:MCD) has been raising its dividends since it paid its first dividend in 1976. The company currently offers a quarterly payout of $1.38 per share and has a yield of 2.16%, as of August 29.
In Q2 2022, Bridgewater Associates reduced its position in McDonald’s Corporation (NYSE:MCD) by 11%. It owned over 2 million MCD shares, worth $511.4 million. The company made up 2.16% of Ray Dalio’s portfolio.
Highlighting the company’s accelerated growth and share gains after the pandemic, BMO Capital raised its price target on McDonald’s Corporation (NYSE:MCD) in August to $300 with an Outperform rating on the shares.
As of the close of Q2 2022, 50 hedge funds tracked by Insider Monkey reported owning stakes in McDonald’s Corporation (NYSE:MCD), down from 58 in the previous quarter. These stakes hold a combined value of over $2.3 billion. Renaissance Technologies was one of the company’s most prominent stakeholders in Q2.
6. Walmart Inc. (NYSE:WMT)
Bridgewater Associates’ Stake Value: $571,146,000
Walmart Inc. (NYSE:WMT) is an American multinational retail company that owns grocery stores in the country. In Q2 2022, Bridgewater Associates owned roughly 4.7 million shares in the company, boosting its stake by 17%. The hedge fund’s total stake in the company amounted to over $571 million. The company represented 2.42% of Ray Dalio’s portfolio. Other major holdings of the firm include Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V), and Meta Platforms, Inc. (NASDAQ:META).
Walmart Inc. (NYSE:WMT) currently pays a quarterly dividend of $0.56 per share. The company maintains a 49-year track record of consistent dividend growth. As of August 29, the stock’s dividend yield stood at 1.71%.
In August, Morgan Stanley mentioned that Walmart Inc. (NYSE:WMT) has a growing ability to balance longer-term investments despite current challenges. In view of this, the firm raised its price target on the stock to $150 with an Overweight rating on the shares.
The number of hedge funds tracked by Insider Monkey owning stakes in Walmart Inc. (NYSE:WMT) grew to 67 in Q2 2022, from 60 in the previous quarter. These stakes have a total value of over $3.7 billion.
Click to continue reading and see Ray Dalio’s Bridgewater Associates Portfolio: Top 5 Dividend Stocks.
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Disclosure. None. Ray Dalio’s Bridgewater Associates Portfolio: Top 10 Dividend Stocks is originally published on Insider Monkey.
