In this article, we discuss 5 dividend stocks in Ray Dalio’s portfolio. if you want to read our detailed analysis of Bridgewater Associates’ returns and performance, go directly to read Ray Dalio’s Bridgewater Associates Portfolio: Top 10 Dividend Stocks.
5. Costco Wholesale Corporation (NASDAQ:COST)
Bridgewater Associates’ Stake Value: $580,455,000
Costco Wholesale Corporation (NASDAQ:COST) is an American multinational big-box store company that operates a chain of related retail stores. The company remained popular among elite funds in Q2 2022, as 64 hedge funds in Insider Monkey’s database owned stakes in it, compared with 61 in the previous quarter. These stakes hold a total value of over $4.7 billion.
Costco Wholesale Corporation (NASDAQ:COST) holds a strong dividend history, raising its dividends consistently for the past 18 years. The company pays a quarterly dividend of $0.90 per share, with a dividend yield of 0.68%, as of August 29.
Bridgewater Associates started investing in Costco Wholesale Corporation (NASDAQ:COST) during the first quarter of 2011, purchasing shares worth over $15.5 million. In Q2 2022, the hedge fund owned over 1.2 million COST shares, increasing its position by 2%. The fund’s total stake in the company stood at over $580.4 million, which represented 2.45% of Ray Dalio’s portfolio.
In August, Erste Group upgraded Costco Wholesale Corporation (NASDAQ:COST) to Buy from Hold, as the company showed strong sales growth in recent quarters.
ClearBridge Investments mentioned Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter. Here is what the firm has to say:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
4. PepsiCo, Inc. (NASDAQ:PEP)
Bridgewater Associates’ Stake Value: $634,801,000
PepsiCo, Inc. (NASDAQ:PEP) is a New York-based food, snack, and beverage company that also markets and distributes its products. In August, Morgan Stanley gave an Overweight rating to the stock, expecting the company’s outperformance in the upcoming quarters. The firm further appreciated the company’s distribution agreement with Celsius.
Ray Dalio initiated his position in PepsiCo, Inc. (NASDAQ:PEP) with stakes worth over $16.4 million during Q4 of 2010. In Q2 2022, his hedge fund slashed its position in the company by 9%, which takes its total PEP stake to over $634.8 million. The company represented 2.69% of Dalio’s portfolio.
On July 21, PepsiCo, Inc. (NASDAQ:PEP) declared a quarterly dividend of $1.15 per share, consistent with its previous dividend. The company has been making uninterrupted dividend payments since 1965 while maintaining a 50-year streak of dividend growth. As of August 29, the stock’s dividend yield came in at 2.69%.
At the end of Q2 2022, Fundsmith LLP owned stakes worth over $1.1 billion in PepsiCo, Inc. (NASDAQ:PEP), becoming its largest stakeholder. In addition to this, 65 hedge funds in Insider Monkey’s database reported owning stakes in the beverage company in Q2, up from 62 in the previous quarter. These stakes are collectively valued at over $5.28 billion.
ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q2 2022 investor letter. Here is what the firm has to say:
“Also in the stable and predictable cash flow camp, though with a very different business model, global food and beverage company PepsiCo (NYSE:PEP) reported very strong organic growth in the first quarter, driven by healthy price/mix, and raised revenue guidance, while holding EPS guidance. Notably, its beverage business showed expanding margins.”
3. The Coca-Cola Company (NYSE:KO)
Bridgewater Associates’ Stake Value: $680,734,000
A Georgia-based multinational beverage company, The Coca-Cola Company (NYSE:KO) maintains one of the longest dividend growth track records, growing its dividends consistently for the past 60 years. It currently pays a quarterly dividend of $0.44 per share, with a dividend yield of 2.81%, as of August 29.
In Q2 2022, Bridgewater Associates owned over 10.8 million shares in The Coca-Cola Company (NYSE:KO), reducing its position by 10%. The hedge fund owned total stakes worth over $680.7 million, which accounted for 2.88% of its portfolio.
As of the close of Q2 2022, 60 hedge funds tracked by Insider Monkey owned stakes in The Coca-Cola Company (NYSE:KO), compared with 64 in the previous quarter. These stakes hold a total value of over $28.3 billion.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm had to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
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)
1. The Procter & Gamble Company (NYSE:PG)
Bridgewater Associates’ Stake Value: $970,175,000
The Procter & Gamble Company (NYSE:PG) is an Ohio-based consumer goods company that manufactures household and personal care products. The company was a part of 71 hedge fund portfolios in Q2 2022, down from 72 in the previous quarter, as shown by Insider Monkey’s data. The stakes owned by hedge funds have a total value of $5.5 billion.
The Procter & Gamble Company (NYSE:PG) was the largest holding of Bridgewater Associates in Q2 2022. The hedge fund owned over 6.7 million shares in the company, worth $970.1 million. The company made up 4.11% of Ray Dalio’s portfolio.
In July, The Procter & Gamble Company (NYSE:PG) declared a quarterly dividend of $0.9133 per share, in line with its previous dividend. The company has been making consistent dividend payments for the past 132 years and has raised its payouts for 66 years in a row. As of August 29, the stock’s dividend yield stood at 2.58%.
Highlighting the company’s business model in the current economic cycle, Barclays set a $154 price target on The Procter & Gamble Company (NYSE:PG) in August, while maintaining an Overweight rating on the shares.
You can also take a look at10 Best Dogs of the Dow to Invest In and 10 Under-The-Radar Dividend Stocks to Buy Now
