Ray Dalio’s Bridgewater Associates Portfolio: Top 5 Dividend Stocks

2. Johnson & Johnson (NYSE:JNJ)

Bridgewater Associates’ Stake Value: $769,086,000

Bridgewater Associates has been investing in Johnson & Johnson (NYSE:JNJ) since 2011, initiating its position in the company with shares worth over $1.3 million. In Q2 2022, the hedge fund owned over 4.3 million JNJ shares, valued at nearly $770 million. The pharmaceutical company accounted for 3.25% of Ray Dalio’s portfolio.

Johnson & Johnson (NYSE:JNJ) has been raising its dividends for the past 60 years. In the past five years, the company has grown its payout at a CAGR of 6%. It currently pays a quarterly dividend of $1.13 per share, with a dividend yield of 2.78%, as of August 29.

At the end of June 2022, 83 hedge funds tracked by Insider Monkey owned investments in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter. These investments are collectively valued at over $6.7 billion. With stakes worth over 1.1 billion, GQG Partners was the company’s largest stakeholder in Q2.

Mayar Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:

“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.

To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…” (Click here to see the full text)