Below you can find the list of the 5 best large-cap stocks to buy according to Ray Dalio. For a comprehensive list see the 10 best large-cap stocks to buy according to Ray Dalio.
5. Coca-Cola Company (NYSE: KO)
The food and beverage company Coca-Cola (NYSE: KO) is a newcomer in Ray Dalio’s portfolio. The hedge fund has bought more than 2 million shares of Coca-Cola during the September quarter valued at $100 million. The investment represents 1.21% of the portfolio.
Like Johnson & Johnson and PepsiCo, Coca-Cola Company is one of the best stocks to buy for the long-term. This is because of extensive dividend growth history spanning around 58 years. Its strong brand reputation along with extensive global foot-prints are helping in generating sustainable growth in financial numbers.
The market pundits are applauding the growth prospects of the oldest food and beverage company. Wells Fargo stated: “We see $1.3bn upsides to FY22 Street sales and if KO can track prior margin targets (pro forma for M&A), ~10% potential upside to WFSe/Street FY22E EPS. We view the dividend as manageable with additional capital deployment potential ahead.”
4. JD.com, Inc. (NASDAQ: JD)
Along with investments in safe stocks, the billionaire investor Ray Dalio has also been diversifying investments towards high growth stocks. JD.com has been the permanent member of Ray Dalio’s portfolio since the second quarter of 2018. However, Bridgewater Associates have increased its stake in the Chinese e-commerce platform by 20% in the latest quarter.
JD.com currently accounts for 1.56% of the portfolio valued at over $129 billion. It appears that Ray Dalio’s hedge fund has benefited significantly from its JD stake. This is because the share price of the Chinese e-commerce platform grew 148% in the last year alone. The social distancing policies along with consumer’s shift towards online platforms enhanced the future fundamentals of internet stocks. JD.com has generated 29% year over year revenue growth in the latest quarter.
3. The Procter & Gamble Company (NYSE: PG)
Dalio’s hedge fund Bridgewater has initiated a huge position in The Procter & Gamble Company (NYSE: PG) during the September quarter. The fund invested $170 billion to buy 1.2 million shares of PG. It now represents the ninth largest stock investment, according to the latest filing. Procter & Gamble accounts for 2.05% of overall Dalio’s portfolio.
The large-cap Procter & Gamble is a good stock to hold in a dividend portfolio. The dividend aristocrat has raised dividends in the past 64 straight years. Although its shares grew only 9% this year due to pandemic related challenges, the future fundamentals look strong amid its vast global exposure and extensive product line.
2. Walmart Inc. (NYSE: WMT)
The billionaire investor Ray Dalio has bought $1.3 billion shares of Walmart Inc. (NYSE: WMT) during the third quarter, making it the seven largest stock investment valued at 195 million. The investment represents 2.35% of the overall portfolio.
Shares of US retailer and wholesale operator Walmart soared close to 23% in the last twelve months, extending the five-year gains to 150%. In addition to share price, the company strategy of rewarding investors with massive cash returns makes it a good large-cap stock to buy for the long term. Its strong cash generation potential permits it to make hefty dividend raises. Its operating cash flow year to date came in at $23 billion, up more than 8 billion from the year-ago period.
1. Alibaba Group Holding Limited (NYSE: BABA)
The Chinese e-commerce platform Alibaba Group Holding (NYSE: BAB) is the largest sock investment of Dalio’s portfolio, accounting for 4.72% of the overall portfolio. The hedge fund first bought BABA stock in the second quarter of 2018 and it has raised the stake in the Chinese online e-commerce platform by 40% in the September quarter. The investment is valued at $392 million.
Alibaba is a pure growth stock. The shares of Chinese company soared 30% this year despite concerns over Donald Trump’s strict stance against Chinese firms trading on US stock markets. Like other online platforms, Alibaba benefited greatly from the pandemic and staying at home policies.
The Chinese e-commerce platform has generated 38% year over year revenue growth in the latest quarter. Its mobile active users on its China retail marketplaces hit 881 million in September 2020, up 7 million over June 2020. The company says, “We remain focused on our three long-term growth engines – domestic consumption, cloud computing, and data intelligence, and globalization – to effectively capture opportunities from the ongoing changes in consumer demand and acceleration of digitalization of businesses across our digital economy.”
Please also see 10 Best Dividend Paying Stocks To Buy Under $50 and 5 Dividend Stocks To Boost Cash Flow in 2021
Disclosure: None.
