In this article we discuss the 5 best dividend stocks according to billionaire Ray Dalio. If you want to read our detailed analysis of Dalio’s history and hedge fund performance, go directly to the 10 Best Dividend Stocks According to Billionaire Ray Dalio.
5. AbbVie Inc. (NYSE: ABBV)
Value: $2,710,000
Percent of Ray Dalio’s 13F Portfolio: 0.02%
No. of Hedge Fund Holders: 83
AbbVie Inc. (NYSE:ABBV) is a U.S-based pharmaceutical company that has been around since 2013. AbbVie’s drug Humira (adalimumab) received Health Canada’s greenlight for treating ulcerative colitis in children over 5 years old.
In Europe, the EMA has a positive opinion about using a drug combination of Venclyxto (venetoclax) and hypomethylating agents to treat adult patients who have acute myeloid leukemia (AML). The EMA is expected to make the final decision before the end of H1 2020. AbbVie Inc. (NYSE:ABBV) also announced more recently that it filed applications for SKYRIZI’s approval by the EMA and the FDA. The submissions were accompanied by favorable findings from Phase 3 studies.
The FDA accepted an NDA for a calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) called atogepant as a potential preventative drug for migraines. The FDA is expected to reveal its decision in Q3.
4. Canadian Natural Resources Limited (NYSE: CNQ)
Value: $210,000
Percent of Ray Dalio’s 13F Portfolio: 0.001%
No. of Hedge Fund Holders: 29
Canadian Natural Resources Limited (NYSE: CNQ) is a Canadian company that deals with fossil fuel exploration. It has operations in different parts of the world, including Western Canada, the UK, Gabon, and Côte d’Ivoire. Canadian Natural Resources is one of the largest oil producers in Canada.
The Canadian oil manufacturer revealed that it performed better than expected in Q4 2020, and it anticipates a better cash flow performance in 2021. The company reported C$749 million in net earnings in Q4 2020, representing a 25% YoY gain. CNR’s Non-GAAP EPS in Q4 was C$0.15, which outperformed the consensus estimate by C$0.06. Its GAAP EPS was C$0.63, which was higher than the consensus estimate by C$0.52. The company lost C$143 million from the cancelation of the Keystone XL pipeline project.
Canadian Natural Resources Limited (NYSE: CNQ) Q4 production was 1.2 million barrels per day, representing a 3% YoY growth. The company expects its free cash flow in 2021 to be between C$4.9 billion and C$5.4 billion. It also announced plans to raise its quarterly dividend to C$0.47 per share, which also means it will retain its position in the list of best dividend stocks, according to Ray Dalio.
3. TELUS Corporation (NYSE: TU)
Value: $257,000
Percent of Ray Dalio’s 13F Portfolio: 0.001%
No. of Hedge Fund Holders: 14
TELUS Corporation (NYSE: TU) is a telecommunications company that offers various services, including internet, data, voice, and wireless services, to consumers and business clients in Canada. The company recently announced plans to launch an equity offering through which it plans to raise C$1.3 billion. It also revealed that sale proceeds will be invested into the expansion of broadband connectivity, including 5G and fiber connections.
TELUS Corporation (NYSE: TU) expects the investment to boost its competitive position in the fast-paced internet services industry. It plans to pump between C$500 million and C$750 million of the funds raised in the offering into planned investments in 2021. The company hopes that the investment will boost efficiencies and facilitate rapid revenue growth from its broadband program. The public offering and broadband expansion plans will allow Telus to maintain its performance as one of the best dividend stocks.
Telus released its Q4 2020 financials earlier this year, revealing that it earned C$4.06 billion, a 5.2% YOY gain. Its Non-GAAP EPS was C$0.22 per share, while its GAAP EPS was C$0.20.
2. New York Community Bancorp, Inc. (NYSE: NYCB)
Value: $752,000
Percent of Ray Dalio’s 13F Portfolio: 0.001%
No. of Hedge Fund Holders: 25
New York Community Bancorp, Inc. (NYSE: NYCB) is one of the major banks in the U.S. It ranks 2nd in the list of best dividend stocks to buy according to billionaire Ray Dalio.
Pauline Bell, a CFRA analyst, recently upgraded New York Community Bancorp, Inc. (NYSE: NYCB) from a Hold to a Buy. She believes that the bank’s recent deal to acquire Flagstar Bancorp will allow NYCB to boost its funding profile and provide more revenue diversification. Bell believes that the move will also provide potential upside.
The merger should provide an opportunity for New York Community to strengthen its position to overcome loan growth headwinds. Flagstar Bancorp shareholders will receive 4.0151 NYCB shares for every FCB share they own as part of the merger deal.
New York Community reported a $332.07 million revenue in Q1, which represents a 27.0% gain YoY. Its GAAP EPS for the same period was $0.29, which was higher than the $0.27 analysts estimate.
1. TFS Financial Corporation (NASDAQ: TFSL)
Value: $315,000
Percent of Ray Dalio’s 13F Portfolio: 0.001%
No. of Hedge Fund Holders: 10
TFS Financial Corporation (NASDAQ: TFSL) is the holding company that runs Cleveland’s Third Federal Savings and Loan Association. It offers various financial services, including taking deposits, mortgage lending, retail consumer banking, and others. TFS’s interest rate for clients is indexed to the long-term yields of the Federal Reserve.
The company’s latest financials revealed that its Q1 2021 revenue was $80.2 million, representing a 5.4% YoY gain. The revenue figure outperformed the consensus target by $24.05M. Its GAAP EPS for the same quarter was $0.09, outshining the consensus estimate by $0.02. TFS Financial Corporation (NASDAQ: TFSL) net income in Q4 2020 was $25.0 million, a slight underperformance compared to the $25.6 million net income reported in Q4 2019.
You can also take a peek at Billionaire Daniel Sundheim’s Top 10 Picks and Billionaire Andreas Halvorsen’s Top Stock Picks.
