12 Dividend Stocks to Buy According to Billionaire Ken Fisher

Published on February 7, 2023 at 10:29 am by Omer Farooq in Dividend Stocks, Hedge Funds, News

In this article, we will discuss the 12 dividend stocks to buy according to billionaire Ken Fisher. If you want to explore some of Ken Fisher’s top dividend stock picks, you can go to 5 Dividend Stocks to Buy According to Billionaire Ken Fisher.

Ken Fisher is an American billionaire investor, author, and philanthropist. He is the founder of Fisher Asset Management, a Washington-based money management firm. Fisher is the author of eleven books, six of which are best-sellers. Fisher has received wide coverage for his analysis and investment philosophy and is also a noted philanthropist. As of February 6, 2023, Ken Fisher has an estimated net-worth of of $7.2 billion.

Ken Fisher’s Market Outlook For 2023: “The Midterm Miracle”, Recession, and Inflation

Ken Fisher also runs a YouTube channel where he debunks investing myths and also offers his analysis of capital markets. On January 20, Ken Fisher shared his market outlook for 2023 and why he thinks the year may be good for stocks. Ken Fisher said that “everything about 2022, makes 2023 look like it’s going to be a pretty good year” for stocks and he believes this because “third years of U.S. presidents’ terms, which is what 2023 is, tend to be overwhelmingly positive”. Ken Fisher said that in the history of the stock market, we have only had two instances of when the third years of U.S. presidents’ terms were down years for the markets. Ken Fisher has a strong belief about “the midterm miracle” which he defines as the fourth quarter of the prior year, and the first two quarters of the next year. According to Ken Fisher’s estimates, “those nine months collectively are the most consistently profitable nine-month span in U.S. stock market history, positive 92% of history with an overall 20% positivity”. Ken Fisher backed his views by explaining that historically whenever the second year of the president’s term was negative, the third year was surprisingly positive with “big returns”. Here are some comments from billionaire Ken Fisher:

“When you look at the first year of presidents’ terms, they’re positive about half the time and negative about half the time, in history. And when they’ve been positive, they’ve been pretty big most of the time. The second year, similarly so, not quite as much. (Positive) about half the time, often pretty big when they’re positive, half the time not. But when that second year is negative, the third year is like a spring board and the returns have been even higher, the average third year of presidents’ term has returns that have averaged about 20%. The third-year returns when the second year is negative are over 30%, on average. These are big numbers and I don’t want you to underestimate the power of that.”

Ken Fisher also noted that “there is this endless fear of recession”. Fisher said “we’re either in one, or we’re not” and explained why he thinks we are currently not in a recession. He said that the stock market is a prominent indicator of recession and noted that after the market bottomed at the close of Q3 2022, it “has been rising through the fourth quarter”. Fisher said that “if we’re in recession now, it’s got to be a mild one since sales, corporate revenue, and GDP are moving along just fine”. Moreover, “lending remains robustly strong” on a domestic and global basis, noted the billionaire. Ken Fisher believes that we cannot be in recession with “robust lending”. Here are some comments from Ken Fisher about why he believes we are not in recession:

“When businesses and people borrow short to intermediate term funds, they tend to spend them pretty quickly, they tend not to sit on them. And that robust lending does not speak to a weak economy immediately ahead, it speaks to sentiment being dour now. And sentiment being dour now is because the stock market was weak in 2022, and dour sentiment is a bullish feature looking forward.”

Finally, Ken Fisher spoke his thoughts about inflation and why he believes it will continue to decelerate. According to Fisher, inflation is “output pricing”. Fisher said that inflation is “the final price you are paying to buy something in a store or wherever you buy it”. Ken Fisher made a distinction that inflation is the “output price” and not the price of raw materials or “input prices”. Here are some comments from Ken Fisher about inflation:

“The inflation war, no thanks to the Federal Reserve or other central banks, has largely already been won. Grain prices are down, crude oil prices are down, most metals are down, lumber prices are down, the prices of most of the inputs of things that we later buy as finished goods, those inputs have been falling. It only takes time for that to translate into a positive inflation effect. When I say positive inflation, winning the inflation war is not going back to the price of the final input prices that used to exist, it’s returning to the kind of low-levels of inflation that we lived with for a very long time that nobody complained about. And that is not terribly far ahead in 2023, and is a terribly positive surprise for most everyone”.

Ken Fisher believes that 2023 should be a positive year for capital markets and that “the surprises should end up on the positive side”.

This article will look at some of the best dividend stocks to buy according to billionaire Ken Fisher, some of which include Merck & Co., Inc. (NYSE:MRK), The Home Depot, Inc. (NYSE:HD), and Morgan Stanley (NYSE:MS).

Our Methodology

To determine the 12 best dividend stocks to buy according to billionaire Ken Fisher, we went through Fisher Asset Management’s 13F filings for Q4 2022. We narrowed down our selection to dividend stocks that were offering a forward yield of at least 2% and were among the top holdings of Fisher Asset Management. Along with each stock, we have mentioned Fisher Asset Management’s stake value in the stock, the weight it holds in the portfolio, and its dividend yield as of February 6. These stocks are ranked in ascending order of Fisher Asset Management’s stake in them.

Dividend Stocks to Buy According to Billionaire Ken Fisher

12. Johnson & Johnson (NYSE:JNJ)

Fisher Asset Management’s Stake Value: $1,076,537,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.72%

Dividend Yield as of February 6: 2.74%

Johnson & Johnson (NYSE:JNJ) has been paying out dividends for over 50 years. The stock has a 5-year dividend CAGR of 6.03%. As of February 6, Johnson & Johnson (NYSE:JNJ) is offering a forward dividend yield of 2.74%.

On January 3, Johnson & Johnson (NYSE:JNJ) declared a quarterly cash dividend of $1.13 per common share. The dividend is payable on March 7 to stockholders of record on February 21. As of December 12, 2022, Citi analyst Joanne Wuensch has a $205 price target and a Buy rating on the stock.

At the close of Q4 2022, Fisher Asset Management’s stake in Johnson & Johnson (NYSE:JNJ) was estimated at $1.07 billion. The investment covers 0.72% of Ken Fisher’s 13F portfolio and the stock is one of the top dividend stocks to buy according to Ken Fisher.

Some of Ken Fisher’s top holdings include Merck & Co., Inc. (NYSE:MRK), The Home Depot, Inc. (NYSE:HD), and Morgan Stanley (NYSE:MS).

11. JPMorgan Chase & Co. (NYSE:JPM)

Fisher Asset Management’s Stake Value: $1,088,792,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.73%

Dividend Yield as of February 6: 2.84%

On January 17, Citi analyst Keith Horowitz raised his price target on JPMorgan Chase & Co. (NYSE:JPM) to $165 from $150 and maintained a Buy rating on the shares. Trading at about a TTM PE ratio of 11x and offering a forward dividend yield of 2.84%, as of February 6, JPMorgan Chase & Co. (NYSE:JPM) is one of the best cheap dividend stocks in Ken Fisher’s 13F portfolio.

On January 13, JPMorgan Chase & Co. (NYSE:JPM) announced strong earnings for the fiscal fourth quarter of 2022. The company’s revenue for the quarter amounted to $34.55 billion, up 18.08% year over year and ahead of consensus by $320.96 million. JPMorgan Chase & Co. (NYSE:JPM) reported an EPS of $3.57 and outperformed EPS expectations by $0.47.

At the close of Q4, 2022, Ken Fisher’s hedge fund disclosed a position worth $1.08 billion in JPMorgan Chase & Co. (NYSE:JPM). The investment makes up for 0.73% of Fisher Asset Management’s 13F portfolio.

Here is what Vltava Fund had to say about JPMorgan Chase & Co. (NYSE:JPM) in its third-quarter 2022 investor letter:

“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.

JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.

A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”

10. BHP Group (NYSE:BHP)

Fisher Asset Management’s Stake Value: $1,106,749,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.74%

Dividend Yield as of February 6: 9.27%

BHP Group (NYSE:BHP) is an Australian metals and mining company. As of December 31, 2022, Fisher Asset Management owns over 17.8 million shares of BHP Group (NYSE:BHP) which amounts to a stake of $1.1 billion. The investment covers 0.74% of Ken Fisher’s 13F portfolio.

On January 18, BHP Group (NYSE:BHP) reported that its copper production for the second quarter of fiscal 2023 increased by 16% year over year to 424.3 kilotons. The company also reported increased coal production of 7 million metric tons, up 4% year over year. BHP Group (NYSE:BHP) has free cash flow of $26.3 billion and is offering a forward dividend yield of 9.27%, as of February 6. The stock is one of Ken Fisher’s top dividend stocks to buy.

On January 12, Berenberg analyst Richard Hatch upgraded BHP Group (NYSE:BHP) to Buy from Hold and raised his price target on the shares to 3,100 GBP from 2,300 GBP.

9. Union Pacific Corporation (NYSE:UNP)

Fisher Asset Management’s Stake Value: $1,134,626,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.76%

Dividend Yield as of February 6: 2.50%

On January 24, Union Pacific Corporation (NYSE:UNP) posted earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $2.67 and generated a revenue of $6.18 billion, up 7.80% year over year. As of February 6, Union Pacific Corporation (NYSE:UNP) is offering a forward dividend yield of 2.50%. The company has been consistently growing its dividends for over 15 years and is ranked among the best dividend stocks to buy according to billionaire Ken Fisher.

This January, BMO Capital analyst Fadi Chamoun revised his price target on Union Pacific Corporation (NYSE:UNP) to $245 from $250 and maintained an Outperform rating on the shares. The analyst sees Union Pacific Corporation (NYSE:UNP) returning to double-digit growth in fiscal 2023 as demand recovers.

At the end of the fourth quarter of 2022, Fisher Asset Management disclosed that it owns more than 5.4 million shares of Union Pacific Corporation (NYSE:UNP). The estimated value of these shares is $1.13 billion and the investment covers 0.76% of Ken Fisher’s 13F portfolio.

8. Shell plc (NYSE:SHEL)

Fisher Asset Management’s Stake Value: $1,200,672,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.81%

Dividend Yield as of February 6: 3.43%

Shell plc (NYSE:SHEL) has returned 11.3% to investors over the past six months, as of February 6, and is also offering a forward dividend yield of 3.43%. Shell plc (NYSE:SHEL) is one of Ken Fisher’s top dividend stocks to buy.

On February 2, Shell plc (NYSE:SHEL) declared a quarterly cash dividend of $0.575 per American Depository Share (ADS), up 15% increase from its prior dividend of $0.500. The dividend is payable on March 27 to investors of record at the close of business on February 17. Moreover, the oil giant also announced a share buyback plan worth $4 billion, which the company expects to complete by the end of fiscal Q1 of 2023.

As of December 19, Piper Sandler analyst Ryan Todd has a $70 price target and Overweight rating on Shell plc (NYSE:SHEL).

At the end of Q4 2022, Ken Fisher’s hedge fund disclosed a position worth $1.20 billion in Shell plc (NYSE:SHEL). The investment covers 0.81% of Ken Fisher’s 13F portfolio.

7. Chevron Corporation (NYSE:CVX)

Fisher Asset Management’s Stake Value: $1,222,868,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.82%

Dividend Yield as of February 6: 3.52%

As of the end of Q4 2022, Fisher Asset Management owns over 6.8 million shares of Chevron Corporation (NYSE:CVX) which amount to a stake of $1.22 billion. The investment covers 0.82% of the fund’s 13F portfolio.

On January 25, Chevron (NYSE:CVX) declared a quarterly dividend of $1.51 per share, up 6.3% from its prior dividend of $1.42. The dividend is payable on March 10 to shareholders of record on February 16. As of February 6, the stock is offering a forward dividend yield of 3.52% and is among Ken Fisher’s best dividend stocks to buy.

On January 27, Chevron Corporation (NYSE:CVX) posted earnings for the fourth quarter of fiscal 2022. The company’s revenue for the quarter amounted to $56.47 billion, up 17.34% year over year, and beat Wall Street estimates by $2.42 billion. The company reported earnings per share of $4.09.

On January 31, Truist analyst Neal Dingmann raised his price target on Chevron Corporation (NYSE:CVX) to $179 from $169 and maintained a Hold rating on the shares.

Here is what Madison Funds had to say about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:

“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.

Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)

6. BlackRock, Inc. (NYSE:BLK)

Fisher Asset Management’s Stake Value: $1,264,595,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.85%

Dividend Yield as of February 6: 2.62%

On January 25, BlackRock, Inc. (NYSE:BLK) declared a quarterly cash dividend of $5.00 per share, up 2.4% from its prior dividend of $4.88. The dividend is payable on March 23 to investors of record on March 7. The company also added an additional 7 million shares to its previous share repurchase authorization, bringing the total to 7.9 million shares. As of February 6, BlackRock, Inc. (NYSE:BLK) is offering a forward dividend yield of 2.62%.

This January, BofA analyst Craig Siegenthaler updated his price target on BlackRock, Inc. (NYSE:BLK) to $813 from $821 and maintained a Buy rating on the shares.

As of Q4 2022, Fisher Asset Management holds a position worth $1.26 billion in BlackRock, Inc. (NYSE:BLK). The stock makes up for 0.85% of Ken Fisher’s 13F portfolio.

Here is what Madison Funds had to say about BlackRock, Inc. (NYSE:BLK) in its fourth-quarter 2022 investor letter:

“BlackRock, Inc. (NYSE:BLK) stock benefited from the strong stock market during the fourth quarter. Although markets have been challenging for BlackRock, with headwinds from both the equity and fixed income markets, the company remains well positioned for improving fixed income demand in 2023 and has also gained traction in the alternatives space.”

In addition to BlackRock, Inc. (NYSE:BLK), some notable top dividend stocks to buy according to billionaire Ken Fisher include Merck & Co., Inc. (NYSE:MRK), The Home Depot, Inc. (NYSE:HD), and Morgan Stanley (NYSE:MS).

Click to continue reading and see 5 Dividend Stocks to Buy According to Billionaire Ken Fisher.

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