Billionaire Ray Dalio’s 3% and Higher Yield Picks Include Intel Corporation (INTC)

The fund initiated a position of about 610,000 shares in General Electric Company (NYSE:GE) during the first quarter of 2013. The company grew its earnings by 16% in its most recent quarter compared to the same period in the previous year, but revenue was actually down slightly; net income growth is not sustainable over the long term if it’s coming entirely from higher margins. The trailing and forward P/E multiples of 18 and 13, respectively, suggest that the financial community does see future earnings growth here however. General Electric Company (NYSE:GE)’s dividend yield is 3.3% at current prices.

According to the 13F, Dalio cut his stake in CA, Inc. (NASDAQ:CA) in half but still had about 540,000 shares of the $13 billion market cap enterprise software company at the beginning of April. CA, Inc. (NASDAQ:CA) trades at 13 times trailing earnings, so in addition to the generous dividend yield (3.7% going by recent dividend payments) it could be considered a value play as well. The company’s fiscal year ended in March; its fiscal Q4 showed a 15% increase in net income versus a year earlier though its revenue fell by 3%.

Still, we like CA, Inc. (NASDAQ:CA)’s low multiple and think it doesn’t need much if any future earnings growth to justify the current valuation. Lockheed Martin also seems like a good target for income investors, even if short-term numbers fall a bit on spending cuts. While Intel Corporation (NASDAQ:INTC)’s yield is high, we would be somewhat concerned about its recent results and so that stock might be a bit too risky at this time.

Disclosure: I own no shares of any stocks mentioned in this article.