In this article, we will take a look at the 10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio.
With a net worth estimated at $19.1 billion, Ray Dalio is the founder and co-chief investment officer of Bridgewater Associates LP, the world’s largest hedge fund. Apart from a very successful investment career, Ray Dalio is also the #1 New York Times bestselling author of Principles: Life and Work, Principles for Dealing with the Changing World Order, and Principles for Navigating Big Debt Crises.
Ray Dalio graduated with a BS in Finance from C.W. Post College in 1971 and earned an MBA degree from Harvard Business School in 1973. After short stints at Dominick & Dominick LLC and Shearson Hayden Stone, Ray founded Bridgewater Associates LP in 1975. Bridgewater Associates has since grown significantly to become the largest hedge fund in the world with $151 billion in assets under management, as of December 31, 2021.
Bridgewater Associates focuses on three main investment strategies for its funds: Pure Alpha strategy, All Weather strategy, and the Optimal Portfolio strategy. It structures portfolios in a manner designed to produce consistent and uncorrelated returns based on risk allocations. Bridgewater Associates’ flagship fund, Pure Alpha has returned an average of 11.4% annually since its inception in 1991.
As of Q2 2022, the 13F portfolio of Ray Dalio’s Bridgewater Associates was valued at $23.6 billion and comprised of 1081 total positions. During the second quarter, the hedge fund added 116 new positions, increased exposure to 728 positions, reduced exposure to 352 positions and exited out of 97 positions.
The list of 10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio accounted for 22.72% of the portfolio weight, with the highest concentration in The Procter & Gamble Company (NYSE:PG), accounting for 4.11% of the portfolio weight.
Blue chip stocks are generally well known stocks that are leaders in their sectors. Given their earnings power, scale, and strong fundamentals, many blue chips tend to do well over the long term.
Recently, the market has declined due to the Federal Reserve increasing interest rates and the increasing potential for an economic slowdown. If economic data continues to miss expectations, stocks could continue to fall further. Nevertheless, there could be opportunity for long term investors who buy quality blue chip companies given the low valuations.
Ray Dalio of Bridgewater Associates
Methodology
For our list, we took 10 stocks from Ray Dalio’s Bridgewater Associates’13F portfolio at the end of Q2 2022 that we think have the right mixture of industry leadership, strong fundamentals, and growth potential. We then ranked them from #10 to #1 based on the stake value of Bridgewater Associates portfolio in those stocks in the second quarter. We also provided the number of hedge funds in our database that held shares in the stock at the end of Q2 2022.
10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio
10. Colgate-Palmolive Company (NYSE:CL)
Bridgewater Associates’ Stake Value: $183,536,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.77%
Number of Hedge Fund Holders: 55
Colgate-Palmolive Company (NYSE:CL) is a leading global consumer products company focused on Oral Care, Personal Care, Home Care and Pet Nutrition products sold across more than 200 countries and territories.
Bridgewater Associates holds 2,290,197 shares of Colgate-Palmolive Company (NYSE:CL), making up 0.77% of the hedge fund’s 13F portfolio. Bridgewater Associates’ stake decreased by 13% in Q2 2022, compared to the previous quarter. The company ranks #10 on our list of 10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio.
Colgate-Palmolive Company (NYSE:CL) announced in August that it has entered into an agreement for the acquisition of three dry pet food manufacturing plants in the U.S. from Red Collar Pet Foods for $700 million to support its Hill’s Pet Nutrition business. In September, the board of directors of Colgate-Palmolive Company (NYSE:CL) declared a quarterly cash dividend of $0.47 per share. The company has paid uninterrupted dividends on its common stock since 1895.
As of Q2 2022, 55 hedge funds out of the 895 hedge funds tracked by Insider Monkey were bullish on Colgate-Palmolive Company (NYSE:CL) and held its shares valued at $2.9 billion. First Eagle Investment Management was the largest shareholder holding 11.2 million shares valued at $900 million.
Here is what First Eagle Investments Global Fund said about Colgate-Palmolive Company (NYSE:CL) in its Q2 2022 investor letter:
“Shares of consumer staples giant Colgate-Palmolive have performed well as investors rotated into more recessionary-resilient defensive stocks amid the broader selloff during the second quarter. The company raised revenue guidance for 2022 but lowered its margin outlook because of higher costs for raw materials, packaging and logistics; we believe that the company’s size and market share provide it with options to mitigate the inflation challenges it faces. We continue to like Colgate- Palmolive’s dividend and previously announced $5 billion stock buyback program.”
Alongside The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL) is a blue chip holding in billionaire Ray Dalio’s Bridgewater Associates’ portfolio at the end of Q2 2022.
9. Medtronic plc (NYSE:MDT)
Bridgewater Associates’ Stake Value: $224,847,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.95%
Number of Hedge Fund Holders: 54
Based in Dublin, Ireland, Medtronic plc (NYSE:MDT) is a leading healthcare technology company with a focus on providing technologies and therapies including cardiac devices, surgical robotics, insulin pumps, surgical tools, and patient monitoring systems, among others. Medtronic plc (NYSE:MDT) employs a global team of over 95,000 people across more than 150 countries.
Ray Dalio’s Bridgewater Associates owns 2,505,256 shares in Medtronic plc (NYSE:MDT), accounting for 0.95% of the hedge fund’s 13F portfolio. The hedge fund doubled down on its investment in Medtronic plc (NYSE:MDT) in Q2 2022 and increased its stake by 34%, as compared to the previous quarter.
Earlier in September, RBC Capital analyst Shagun Singh lowered the price target on Medtronic plc (NYSE:MDT) shares to $110 from $122 but retained an ‘Outperform’ rating on the shares. The analyst remains positive on the long-term prospects of the stock.
According to the Insider Monkey data tracking 895 hedge funds, 54 hedge funds were long Medtronic plc (NYSE:MDT) as of Q2 2022, holding shares with total value of $2.5 billion. Its largest shareholder was Arrowstreet Capital with ownership of 3.8 million shares valued at $338 million.
8. Starbucks Corporation (NASDAQ:SBUX)
Bridgewater Associates’ Stake Value: $247,711,000
Percentage of Bridgewater Associates’ 13F Portfolio: 1.04%
Number of Hedge Fund Holders: 55
Seattle, Washington-based Starbucks Corporation (NASDAQ:SBUX) is a multinational chain of coffeehouses and roastery reserves with more than 34,000 stores in 84 markets across the world. With a history dating back to 1971, Starbucks Corporation (NASDAQ:SBUX) caters to millions of customers every day.
Ray Dalio’s Bridgewater Associates owns 3,242,719 shares of Starbucks Corporation (NASDAQ:SBUX), accounting for 1.04% of its 13F portfolio. The hedge fund has increased its stake by 27% in the coffeemaker during the first half of 2022.
In September, Starbucks Corporation (NASDAQ:SBUX) announced a 3-year ‘Reinvention Plan’ to deliver 10-12% annual revenue growth and 15-20% EPS growth. Recently, Piper Sandler analyst Nicole Regan raised the price target on Starbucks Corporation (NASDAQ:SBUX) shares to $92 from $84 and kept a ‘Neutral’ rating on the shares.
As of Q2 2022, 55 of the 895 hedge funds tracked by Insider Monkey owned shares of Starbucks Corporation (NASDAQ:SBUX), valued at $1.4 billion. Its largest shareholder was Ken Griffin’s Citadel Investment Group.
7. McDonald’s Corporation (NYSE:MCD)
Bridgewater Associates’ Stake Value: $511,433,000
Percentage of Bridgewater Associates’ 13F Portfolio: 2.16%
Number of Hedge Fund Holders: 50
Based in Chicago, Illinois, McDonald’s Corporation (NYSE:MCD) is a leading global foodservice retailer with nearly 40,000 locations in over 100 countries. With a history dating back to 1955, McDonald’s Corporation (NYSE:MCD) is famous for its food items such as Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.
Ray Dalio’ Bridgewater Associates owns 2,071,584 shares of McDonald’s Corporation (NYSE:MCD), accounting for 2.16% of its 13F portfolio. The hedge fund decreased its stake by 11% in Q2 2022, as compared to the previous quarter.
In September, Piper Sandler analyst Nicole Miller Regan reaffirmed an ‘Overweight’ rating and increased the price target to $270 from $263 for shares of McDonald’s Corporation (NYSE:MCD).
As of Q2 2022, McDonald’s Corporation (NYSE:MCD) shares were held by 50 of the 895 hedge funds tracked by Insider Monkey, for a total value of $2.3 billion. Arrowstreet Capital was the second largest hedge fund shareholder after Bridgewater Associates, with ownership of 1.7 million shares valued at $410 million.
6. Walmart Inc. (NYSE:WMT)
Bridgewater Associates’ Stake Value: $571,146,000
Percentage of Bridgewater Associates’ 13F Portfolio: 2.42%
Number of Hedge Fund Holders: 67
Bentonville, Arkansas-based Walmart Inc. (NYSE:WMT) is a leading global discount retailer operating more than 10,500 stores and clubs under 46 banners in 24 countries and eCommerce websites.
Ray Dalio’s Bridgewater Associates owns 4,697,701 shares of Walmart Inc. (NYSE:WMT), accounting for 2.42% of its 13F portfolio. The hedge fund increased its stake by 17% in Q2 2022, as compared to the previous quarter.
Earlier this year in August, Walmart Inc. (NYSE:WMT) released its financial results for the quarter ended July 31, 2022. Its total revenue increased by 8% y-o-y to $153 billion, while its net income surged by 20% y-o-y to $5.1 billion, for the three months. The normalized EPS was recorded at $1.77 for the quarter, beating the consensus by $0.17.
As of Q2 2022, 67 of the 895 hedge funds tracked by Insider Monkey were long Walmart Inc. (NYSE:WMT), holding shares worth $3.8 billion. Its largest hedge fund shareholder is GQG Partners with ownership of 9.8 million shares valued at $1.2 billion.
Like Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG) are among billionaire Ray Dalio’s Bridgewater Associates’ blue chip holdings at the end of Q2 2022.
5. Costco Wholesale Corporation (NASDAQ:COST)
Bridgewater Associates’ Stake Value: $580,455,000
Percentage of Bridgewater Associates’ 13F Portfolio: 2.45%
Number of Hedge Fund Holders: 64
Costco Wholesale Corporation (NASDAQ:COST), based in Washington, is a leading global retailer with 838 warehouses in 11 countries catering to small- to medium-sized businesses as well as individual customers. It serves only members and boasts more than 116 million cardholders and 64 million households.
As of Q2 2022, Ray Dalio’s Bridgewater Associates holds 1,211,098 shares of Costco Wholesale Corporation (NASDAQ:COST), accounting for 2.45% of the 13F portfolio of the hedge fund. The hedge fund increased its stake by 2% in Q2 2022, as compared to the previous quarter.
Costco Wholesale Corporation (NASDAQ:COST) released the sales results for the quarter ended August 28, 2022, whereby its revenue increased by 15% y-o-y to $70.8 billion. Earlier in July, the company had declared a quarterly cash dividend of $0.90 per share.
In September, Loop Capital analyst Laura Champine lowered the price target on Costco Wholesale Corporation (NASDAQ:COST) shares to $585 from $610 but maintained a ‘Buy’ rating on the shares.
As of Q2 2022, 64 of the 895 hedge funds tracked by Insider Monkey owned shares of Costco Wholesale Corporation (NASDAQ:COST), valued at $4.8 billion. Ken Fisher’s Fisher Asset Management is its largest shareholder with ownership of 4.3 million shares valued at $2.1 billion.
4. PepsiCo, Inc. (NYSE:PEP)
Bridgewater Associates’ Stake Value: $634,801,000
Percentage of Bridgewater Associates’ 13F Portfolio: 2.69%
Number of Hedge Fund Holders: 65
PepsiCo, Inc. (NYSE:PEP) is a leading convenient foods and beverages company with products sold in more than 200 countries and territories worldwide. Its product portfolio includes well-known names such as Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream, among others.
Bridgewater Associates owns 3,808,959 shares of PepsiCo, Inc. (NYSE:PEP), accounting for 2.69% of its 13F portfolio. The hedge fund dumped 9% of its stake in Q2 2022, as compared to the previous quarter.
Earlier this year in July, PepsiCo, Inc. (NYSE:PEP) released the financial results for the quarter ended June 11, 2022. Its revenue increased by 5% y-o-y to $20.2 billion, while its net income shrunk by 39% y-o-y to $1.4 billion, for the three months. It reported a normalized EPS of $1.86, beating the consensus by $0.12.
Also in July, PepsiCo, Inc. (NYSE:PEP) declared a quarterly dividend of $1.15 per share, representing a 7% y-o-y increase in the dividend amount. The company has regularly paid quarterly dividends since 1965 and the latest increase marks its 50th consecutive annual dividend increase.
As of Q2 2022, 65 of the 895 hedge funds tracked by Insider Monkey owned shares of PepsiCo, Inc. (NYSE:PEP), valued at $5.3 billion. Its largest shareholder was Terry Smith’s Fundsmith LLP with ownership of 7.1 million shares valued at $1.2 billion.
3. The Coca-Cola Company (NYSE:KO)
Bridgewater Associates’ Stake Value: $680,734,000
Percentage of Bridgewater Associates’ 13F Portfolio: 2.88%
Number of Hedge Fund Holders: 60
The Coca-Cola Company (NYSE:KO) is a leading global beverage company with a history dating back to 1886. Its portfolio of brands, sold in more than 200 countries and territories, includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks, hydration, sports, coffee and tea brands, and other beverages.
As of Q2 2022, Ray Dalio’s Bridgewater Associates holds 10,820,759 shares of The Coca-Cola Company (NYSE:KO), accounting for 2.88% of the hedge fund’s 13F portfolio. The hedge fund increased its stake by 7% in Q2 2022, as compared to the previous quarter.
In July, The Coca-Cola Company (NYSE:KO) released the financial results for the quarter ended July 1, 2022. Its net revenue increased by 12% y-o-y to $11.3 billion, while its net income shrunk by 28% y-o-y to $1.9 billion, for the three months. It reported a normalized EPS of $0.70 for the quarter, narrowly beating the consensus by $0.03, and declared a regular quarterly dividend of $0.44 per share.
In September, HSBC analyst Carlos Laboy raised the price target on The Coca-Cola Company (NYSE:KO) shares to $76 from $72 and maintained a ‘Buy’ rating on the shares.
As of Q2 2022, 60 of the 895 hedge funds tracked by Insider Monkey held The Coca-Cola Company (NYSE:KO) shares, valued at a combined total of $28.4 billion. Warren Buffet’s Berkshire Hathaway is its largest shareholder with ownership of 400 million shares valued at $25.2 billion.
2. Johnson & Johnson (NYSE:JNJ)
Bridgewater Associates’ Stake Value: $769,086,000
Percentage of Bridgewater Associates’ 13F Portfolio: 3.25%
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) is one of the largest healthcare companies in the world with a history dating back to more than 135 years. It focuses on the research and development, manufacture, and sale of a broad range of products in the healthcare field across three main segments: consumer health, pharmaceutical, and medical devices. Some of its iconic brands include Neutrogena, Aveeno, Tylenol, Listerine, Johnson’s, and Band-Aid.
Johnson & Johnson (NYSE:JNJ) is ranked #2 among the holdings of Bridgewater Associates based on its portfolio weight of 3.25% as of Q2 2022. The hedge fund holds 4,332,633 shares of Johnson & Johnson (NYSE:JNJ), 1% less than the number of shares held at the end of the previous quarter.
Johnson & Johnson (NYSE:JNJ) released the financial results for Q2 2022 earlier this year in July. Its revenue increased by 3% y-o-y to $24 billion, while its net income decreased by 23% y-o-y to $4.8 billion, for three months ended July 3, 2022. It reported a normalized EPS of $2.59 for the quarter, beating the consensus by $0.04. It also declared a quarterly cash dividend of $1.13 per share.
Johnson & Johnson (NYSE:JNJ) is one of the most commonly owned stock among the 895 hedge funds tracked by Insider Monkey. As of Q2 2022, 83 hedge funds owned shares of Johnson & Johnson (NYSE:JNJ), valued at $6.8 billion. GQG Partners is its largest shareholder with ownership of 6.6 million shares valued at $1.2 billion.
Here is what ClearBridge Investments said about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:
“We reinforced our defensive capabilities during the quarter with the addition of Johnson & Johnson (JNJ), a diversified health care company with a strong balance sheet, attractive profitability and return metrics and the ability to generate steady moderate growth. It has one of the more diversified and attractive pharmaceutical portfolios and an improving medical technology business, and it will soon be exiting the lower-growth consumer business. We believe new management has sharpened the strategy to improve execution in the medical device business and look for more meaningful capital allocation opportunities, which the balance sheet can easily support.”
1. The Procter & Gamble Company (NYSE:PG)
Bridgewater Associates’ Stake Value: $970,175,000
Percentage of Bridgewater Associates’ 13F Portfolio: 4.11%
Number of Hedge Fund Holders:
Cincinnati, Ohio-based The Procter & Gamble Company (NYSE:PG) is the world’s largest consumer goods company with products across beauty, grooming, health care, fabric & home care, and baby, feminine & family care segments. It is home to iconic brands such as Always, Febreze, Gillette, Head & Shoulders, Oral B, Pantene, Pampers, Tide, and Vicks.
Ray Dalio’s Bridgewater Associates holds 6,747,168 shares of The Procter & Gamble Company (NYSE:PG), accounting for 4.11% of its 13F portfolio, as of Q2 2022. The hedge fund has increased its stake by a blistering 150% during the last one and a half year. As a result, The Procter & Gamble Company (NYSE:PG) ranks #1 on our list of 5 and 10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio.
In July, The Procter & Gamble Company (NYSE:PG) released its financial results for the quarter ended June 30, 2022. Its revenue increased by 3% y-o-y to $19.5 billion, while its net earnings increased by 5% y-o-y to $3.1 billion, for the three months. The normalized EPS was recorded at $1.21 for the quarter, missing the consensus by $0.02.
The Procter & Gamble Company (NYSE:PG) declared a quarterly cash dividend of $0.9133 per share in July. The company has been paying dividends for 132 consecutive years since incorporation in 1890, with 66 consecutive years of dividend increases.
As of Q2 2022, The Procter & Gamble Company (NYSE:PG) shares are held by 71 out of the 895 hedge funds tracked by Insider Monkey, with a total value of $5.5 billion. GQG Partners was the second largest hedge fund shareholder after Bridgewater Associates, with ownership of 5.7 million shares valued at $818 million.
You may also read 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen and 10 EV Materials Stocks to Invest In.
Follow Insider Monkey on Twitter
Suggested Articles:
10 Best Dividend Stocks to Buy According to Billionaire Howard Marks
10 Best Stocks Under $10 to Buy Right Now
15 Best Energy Stocks to Buy Now
Disclosure: None. 10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio is originally published on Insider Monkey.
