Billionaire Ken Fisher’s Fisher Asset Management has filed its quarterly 13F disclosure with the SEC, presenting its portfolio of equity holdings as of the end of the March quarter. The portfolio’s top positions continue to include large-cap, dividend-paying stocks, such as Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), Cisco Systems, Inc. (NASDAQ:CSCO), General Electric Company (NYSE:GE), and Wells Fargo & Co (NYSE:WFC). During the quarter, Fisher also significantly boosted his stake in Apple Inc. (NASDAQ:AAPL) and several other positions that pay attractive dividend yields; discover the secrets of piggybacking great investors.
With this in mind, here is a closer look at four stocks/ADRs paying yields above 2% that Fisher was bullish about last quarter
McDonald’s Corporation (NYSE:MCD) position in Fisher’s hedge fund saw a 27% boost, to more than 2.3 million shares. The company reported a 1% rise in its first-quarter revenues and a 2% increase in EPS, as comparable sales dipped 1% partly because of “comparisons against strong prior year results that included an additional day in 2012 due to leap year.” Despite its expectations that “challenging global environment and bottom-line pressures” will persist, McDonald’s Corporation (NYSE:MCD)is targeting 2013 sales growth in the range of 3%–5% and operating income growth in the range of 6%–7%.
The company’s CEO recently suggested McDonald’s Corporation (NYSE:MCD) start offering all-day breakfast menus and delivery in some countries and U.S. locations, which could help bolster its sales in the future. The company also continues to expand globally, planning to open up 1,600 new restaurants worldwide this year. McDonald’s Corporation (NYSE:MCD) operates in 119 countries around the world, including China, which the company sees as a major opportunity despite food safety issues. McDonald’s Corporation (NYSE:MCD) has raised dividends for 36 years in a row. Its current yield is 3.0% and its payout ratio is 54%.
Rio Tinto plc (ADR) (NYSE:RIO), the world’s second-largest mining company, was another position in Fisher’s portfolio that saw a notable increase last quarter. Fisher increased his share ownership in Rio Tinto plc (ADR) (NYSE:RIO) by 29% to some 10 million shares. This dividend payer has a yield of 3.5%, payout ratio of 27% of its current-year EPS estimate, and five-year annualized dividend growth of 4.0%. The company’s shares look inexpensive, valued at 7.7x its 2013 earnings and 6.9x its 2014 earnings. With the weakness in the commodities markets, the stock has lost 8.6% over the past 12 months.