In this article, we will take a look at the 5 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio. To read our analysis of Ray Dalio’s profile, and investment strategy, as well as the risk/reward and methodology of this list, you can go to the 10 Blue Chip Stocks to Buy Now According to Billionaire Ray Dalio.
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.
