Below we present the list of 5 Best Dividend Stocks To Buy According To Billionaire Ken Fisher. For more background and the full list, please see 10 Best Dividend Stocks To Buy According To Billionaire Ken Fisher.
- BHP Group Ltd (NYSE:BHP)
In addition to BHL, Fisher Asset also owns a large stake in BHP Group Ltd (NYSE:BHP) consisting of 7.66 million shares on September 30. BHP is one of several mining companies that the firm bought during the second quarter of 2018 and has held on to it since, even as other hedge funds have been bailing on BHP in 2020, BHP ownership being down 33% among the funds tracked by Insider Monkey.
BHP’s semi-annual dividends have been greatly increased since 2016, when the company was forced to slash its dividend for the first time in 15 years following a huge decline in profit. BHP shares currently have a dividend yield of just over 4%, but with the company’s profit sliding over the past few years and its dividend payout ratio pushing above 0.9, it may not be able to sustain its current dividend for much longer.
- Vale SA (NYSE:VALE)
Over 40.14 million shares of Vale SA (NYSE:VALE) were held in the 13F portfolio of Fisher Asset Management on September 30, valued at over $424 million. Fisher has owned shares of the Brazilian mining company since late 2017, holding on to the stock even after Vale suspended its dividend payments in January 2019 following the Brumadinho dam disaster.
Vale announced in July that it would resume its semiannual dividend payments following a surge in iron ore prices that lead to nearly $1 billion of net income in Q2, a greater than four-fold increase compared to Q1. Vale’s most recent dividend payment of $0.427 on October 7 topped expectations and implies an annual yield of over 8%. The company has stated that it will make its next dividend payment in March 2021.
- TOTAL S.A. (NYSE:TOT)
Fisher Asset Management slashed its TOTAL S.A. (NYSE:TOT) holding by 21% during Q3, selling off over 4.45 million shares. It nonetheless maintained a large position of over 16.16 million shares of the energy company, which pays out a quarterly dividend that currently yields 7.85% annually. Hedge funds jumped back into TOT during Q2, with a 58% surge in ownership of the stock among the funds tracked by Insider Monkey.
While energy companies’ profitability has been dinged during the pandemic, Total CEO Patrick Pouyanne stated in July that TOT’s dividend is sustainable even with Brent trading as low as $40 per barrel; it’s currently close to $43. That said, don’t expect much dividend growth over the long term.
- GlaxoSmithKline plc (NYSE:GSK)
Fisher Asset Management owned 16.22 million shares of GlaxoSmithKline plc (NYSE:GSK) at the end of Q3, valued at over $610 million on September 30. The firm has been a longtime shareholder of the stock, dating all the way back to the first quarter of 2000.
GSK pays out one of the best dividends in the healthcare industry, allowing high-dividend investors to add some diversity to their portfolios. The stock currently yields 5.27% and looks very sustainable going forward. GSK’s dividend payments have not experienced much growth over the past five years though, so investors shouldn’t expect ongoing hikes.
While GSK has a strong dividend, Sio Capital’s Michael Castor said the company’s drug pipeline is far less impressive during an April interview with Insider Monkey’s research director Inan Dogan, particularly in light of its massive R&D budget.
- Rio Tinto Group (NYSE:RIO)
Billionaire Ken Fisher’s largest position in a high-yield dividend stock goes to Rio Tinto Group (NYSE:RIO), a mining company still looking for a new leader after former CEO Jean-Sebastien Jacques was ousted earlier this year following a shareholder revolt. Fisher Asset Management owns 11.79 million shares of RIO as of September 30 valued at over $712 million.
Rio Tinto’s semi-annual dividend will be paid out next in April 2021 and currently provides a yield of 6.18%. Rio Tinto has one of the strongest balance sheets in its industry, which has allowed it to raise its dividend payments by an average of 29% annually over the past three years.
If you want to check out the latest and greatest stock picks from billionaire investor Ken Fisher, don’t miss out on the Top 10 New Stocks Billionaire Ken Fisher Just Bought.
Disclosure: None.
