In this article, we discuss 5 high-dividend stocks picked by billionaire Ray Dalio. If you want to read our detailed analysis of Ray Dalio’s hedge fund, go directly to read 11 High-Dividend Stocks Picked By Billionaire Ray Dalio.
5. Philip Morris International Inc. (NYSE:PM)
Dividend Yield as of April 10: 5.13%
Bridgewater Associates’ Stake Value: $27,687,817
Philip Morris International Inc. (NYSE:PM) is an American multinational manufacturing company that specializes in tobacco and related products. Bridgewater Associates initiated its position in the company during the second quarter of 2013 with shares worth $530,000. At the end of Q4 2022, the hedge fund owned PM stakes worth over $27.6 million, which made up 0.15% of its 13F portfolio.
Philip Morris International Inc. (NYSE:PM), one of the best dividend stocks in billionaire Ray Dalio’s hedge fund portfolio, currently pays a quarterly dividend of $1.27 per share. The stock has a dividend yield of 5.13%, as of April 10. The company has been raising its dividends consistently for the past 14 years.
At the end of December 2022, 47 hedge funds tracked by Insider Monkey reported owning stakes in Philip Morris International Inc. (NYSE:PM), with a total value of over $6.2 billion.
Artisan Partners mentioned Philip Morris International Inc. (NYSE:PM) in its Q4 2022 investor letter. Here is what the firm has to say:
“Our top individual contributors were Philip Morris International Inc. (NYSE:PM), EOG Resources and Merck. Despite being US-based, tobacco company PM derives all its sales from outside the US. As a result, foreign exchange impacts can be an important driver of near-term returns, and the recent weakening in the US dollar should provide a strong tailwind for earnings due to translation effects. However, our investment case is not tied to currency movements. By virtue of its globally known brands, PM is the best-in-class operator with a well-diversified business, particularly by geography. We believe its next generation heat-not-burn product IQOS should gain share as consumers continue migrating to safer tobacco delivery systems. The company is progressing toward its acquisition of Swedish Match, a Swedish tobacco and nicotine products maker, which was previously held in the portfolio. The deal is a good fit for PM as it reduces PM’s dependence on cigarettes—a category in steady decline—and accelerates the company’s transition to smokeless “reduced-risk” products (RRPs)—a category that has experienced rapid growth over the past five years. PM can also leverage its global scale to generate significant revenue synergies from these complementary product sets, as well as quickly gain access to the US market—the world’s largest market for RRPs and one where regulators have embraced RRPs and other less harmful nicotine products. Looking at PM through our margin-of-safety criteria, the business trades for an undemanding valuation and has extraordinary business economics and a strong credit profile.”
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