5 High-Dividend Stocks Picked By Billionaire Ray Dalio

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.”

4. U.S. Bancorp (NYSE:USB)

Dividend Yield as of April 10: 5.37%
Bridgewater Associates’ Stake Value: $30,779,720

U.S. Bancorp (NYSE:USB) is an American financial services company, based in Minnesota. On March 29, the company declared a quarterly dividend of $0.48 per share, which was in line with its previous dividend. The company’s shares boast a yield of 5.37%, as of April 10. It is one of the best dividend stocks on our list as it has raised its dividends for 12 years straight.

During Q4 2022, Bridgewater Associates increased its position in U.S. Bancorp (NYSE:USB) by 89%, which took its total stake in the company to over $30.7 million. The company constituted 0.16% of billionaire Ray Dalio’s hedge fund portfolio.

The number of hedge funds tracked by Insider Monkey owning stakes in U.S. Bancorp (NYSE:USB) grew to 58 in Q4 2022, from 52 in the previous quarter. The collective value of these stakes is over $2.6 billion. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q4.

3. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Dividend Yield as of April 10: 5.38%
Bridgewater Associates’ Stake Value: $16,651,090

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is next on our list of the best dividend stocks. At the end of Q4 2022, Bridgewater Associates owned stakes worth over $16.6 million in the company, which represented 0.09% of its 13F portfolio. During the quarter, the hedge fund slashed its position in the company by 22%.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) currently offers a per-share dividend of $0.48 every quarter. The company has raised its dividends for 47 years in a row. The stock’s dividend yield on April 10 came in at 5.38%.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) was a popular buy among hedge funds in Q4 2022, as 42 funds tracked by Insider Monkey owned stakes in the company, up from 39 in the previous quarter. The collective value of these stakes is over $1.08 billion.

2. Altria Group, Inc. (NYSE:MO)

Dividend Yield as of April 10: 8.46%
Bridgewater Associates’ Stake Value: $48,883,691

Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco company that also manufactures related products. On March 1, the company declared a quarterly dividend of $0.94 per share for a dividend yield of 8.46%, as recorded on April 10. It is one of the best dividend stocks on our list as the company’s dividend growth streak stands at 53 years.

At the end of Q4 2022, Bridgewater Associates owned over 1 million shares in Altria Group, Inc. (NYSE:MO) with a total value of over $48.8 million. The company made up 0.26% of the hedge fund’s portfolio.

As of the close of Q4 2022, 45 hedge funds tracked by Insider Monkey reported owning stakes in Altria Group, Inc. (NYSE:MO), compared with 47 in the previous quarter. These stakes have a total value of over $1.8 billion.

Broyhill Asset Management mentioned Altria Group, Inc. (NYSE:MO) in its Q4 2022 investor letter. Here is what the firm has to say:

“We rebalanced our tobacco exposure during the year, reducing our investment in Altria Group, Inc. (NYSE:MO) as the future of the company’s combustible cigarette business became increasingly questionable given pending US legislation and a lackluster portfolio of reduced risk products. We reinvested the proceeds in Philip Morris so that relative position sizing is more consistent with our increased conviction.”

1. Devon Energy Corporation (NYSE:DVN)

Dividend Yield as of April 10: 9.56%
Bridgewater Associates’ Stake Value: $11,101,325

Devon Energy Corporation (NYSE:DVN) tops our list of the best dividend stocks in billionaire Ray Dalio’s hedge fund portfolio. At the end of Q4 2022, the hedge fund owned stakes worth over $11 million in the company, which accounted for 0.06% of its 13F portfolio.

Devon Energy Corporation (NYSE:DVN) currently offers a quarterly dividend of $0.20 per share and has a dividend yield of 9.56%, as of April 10.

At the end of December 2022, 55 hedge funds owned stakes in Devon Energy Corporation (NYSE:DVN), up from 51 in the previous quarter, according to Insider Monkey’s data. The stakes are valued at $823.5 million collectively.

GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”

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