Billionaire Ken Fisher’s Top 10 Dividend Stock Picks

In this article, we discuss top dividend stocks to buy according to billionaire Ken Fisher.

Ken Fisher founded Fisher Investments in 1979 and is currently serving as the chairman and co-chief investment officer of the firm. As of November, the billionaire has a real-time net worth of $6.9 billion. His decades-long experience in the investment field has inspired other investors to follow his investment strategies. Fisher Asset Management follows a personalized approach, providing tailored portfolios to clients according to their needs. In addition to this, the firm also meticulously analyzes global investment opportunities to interpret information from different markets around the world. The fund currently manages over $197 billion for investors globally.

As fears of inflation continue to rise this year, Fisher presented an encouraging picture of the stock market for the coming months. In one of his recent interviews with Fox Business, he asserted that loan growth in the US is robust this year despite inflation. He further mentioned that year-over-year loan growth has reached 11.5%, which indicates that the US economy is unlikely to fall into recession as of now. In another column he wrote for Reuters, Fisher highlighted the importance of compound growth of stocks in the bear markets. He also mentioned that long-term holdings in investors’ portfolios can help generate strong returns during the economic downturn.

As of the close of Q3 2022, Fisher Asset Management’s 13F portfolio was valued at over $133.4 billion, compared with $144.3 billion in the previous quarter. Healthcare and tech sectors dominated the firm’s portfolio during the quarter. Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) were the fund’s top three holdings. Moreover, the firm also had significant investments in dividend stocks. In this article, we will analyze the top dividend stocks in billionaire Ken Fisher’s portfolio.

Our Methodology:

For this list, we shortlisted dividend stocks from Fisher Asset Management’s 13F portfolio, as of the third quarter of 2022. We analyze these stocks through their balance sheets, analysts’ ratings, and dividend policies. The stocks are ranked according to their stake value in the firm’s portfolio.

Billionaire Ken Fisher’s Top 10 Dividend Stock Picks

10. The Charles Schwab Corporation (NYSE:SCHW)

Fisher Asset Management’s Stake Value: $1,109,194,000

Dividend Yield as of November 16: 1.13%

The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services company that offers banking and other related services. The company is one of the latest holdings of Fisher Asset Management. The hedge fund opened its position in the company with over 15.4 million shares, worth over $1.1 billion. The company represented 0.83% of billionaire Ken Fisher’s portfolio. In addition to Apple Inc., Microsoft Corporation, and Amazon.com, Inc., The Charles Schwab Corporation is another prominent holding of Ken Fisher in Q3.

On October 26, The Charles Schwab Corporation declared a quarterly dividend of $0.22 per share, in line with its previous dividend. The company raised its dividends twice this year, after ceasing dividend growth during the pandemic. As of November 16, the stock has a dividend yield of 1.13%.

In November, Deutsche Bank lifted its price target on The Charles Schwab Corporation to $101 with a Buy rating on the shares. The firm presented a positive stance on asset managers and exchanges in the current market.

At the end of Q2 2022, 68 hedge funds tracked by Insider Monkey owned stakes in The Charles Schwab Corporation, compared with 78 in the previous quarter. These stakes have a total value of over $4.5 billion.

LVS Advisory mentioned The Charles Schwab Corporation in its Q3 2022 investor letter. Here is what the firm has to say:

“We purchased shares of The Charles Schwab Corporation (NYSE:SCHW) around the same time as Interactive Brokers. The investment thesis is similar. Schwab benefits from higher interest rates as it collects income earned from client cash. While IBKR mostly serves retail investors, Schwab has a greater emphasis on wealth advisors and corporate retirement plans. B2B channels are sticker than retail traders and give Schwab pricing power to collect a greater portion of the interest earned than IBKR. Schwab is a more mature business and has fewer reinvestment opportunities than IBKR (which is why I prefer IBKR on the margin); however, Schwab has authorized a massive $15 billion share buyback program (!) representing over 10% of the company’s market cap at the time of announcement. Given that Schwab trades for a mid-teens price-to-earnings multiple and has a low cost of capital, the share buyback should be highly accretive. The combined tailwind from higher interest rates and the buyback program will lead to attractive earnings per share growth over the coming years.”

9. Thermo Fisher Scientific Inc. (NYSE:TMO)

Fisher Asset Management’s Stake Value: $1,169,105,000

Dividend Yield as of November 16: 0.23%

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American corporation that supplies scientific instrumentation and offers software services to its consumers. In November, Baird maintained an Outperform rating on the stock with a $665 price target, highlighting the company’s Specialty Diagnostics segments and its overall growth and margins.

Fisher Asset Management started investing in Thermo Fisher Scientific Inc. during the fourth quarter of 2015 with shares worth over $265,000. The hedge fund increased its position in the company over the years. At the end of Q3 2022, the fund owned over 2.3 million TMO shares, valued at roughly $1.17 billion. The company made up 0.87% of billionaire Ken Fisher’s portfolio.

On November 10, Thermo Fisher Scientific Inc. announced a quarterly dividend of $0.30 per share. The company is one of the top dividend stocks as it has raised its dividends for five years in a row. The stock has a dividend yield of 0.23%, as of November 16.

As of the close of Q2 2022, 93 hedge funds tracked by Insider Monkey owned stakes in Thermo Fisher Scientific Inc., compared with 101 in the previous quarter. These stakes have a collective value of over $7.8 billion.

Baron Funds mentioned Thermo Fisher Scientific Inc. in its Q3 2022 investor letter. Here is what the firm has to say:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is the world’s largest life sciences tools company. Shares fell due to the rotation out of life sciences tools stocks, driven by concerns about a possible global recession, foreign currency exposure, COVID-related lockdowns in China, and reduced levels of biotechnology funding. We continue to believe Thermo Fisher has a strong long-term growth outlook given a large and growing addressable market coupled with its industry-leading scale, commercial infrastructure, e-commerce platform, supply-chain capabilities, and R&D investment.”

8. Caterpillar Inc. (NYSE:CAT)

Fisher Asset Management’s Stake Value: $1,196,217,000

Dividend Yield as of November 16: 2.07%

An Illinois-based construction equipment manufacturer, Caterpillar Inc. (NYSE:CAT) has been a part of Fisher Asset Management’s portfolio since the fourth quarter of 2010. During Q3 2022, the hedge fund reduced its position in the company by 3%, which takes its total CAT stake to nearly $1.2 billion. The company represented 0.89% of billionaire Ken Fisher’s portfolio.

In October, Citigroup raised its price target on Caterpillar Inc. to $235 with a Neutral rating on the shares, following the company’s Q3 earnings. The firm expects the company to show earnings growth in the upcoming quarters.

Caterpillar Inc. currently pays a quarterly dividend of $1.20 per share for a dividend yield of 2.07%, as of November 16. The company has been raising its dividends consistently for the past 28 years.

As of the end of the June quarter of 2022, 45 hedge funds tracked by Insider Monkey owned stakes in Caterpillar Inc., compared with 54 in the previous quarter. These stakes are collectively valued at over $3.25 billion.

Diamond Hill Capital mentioned Caterpillar Inc. in its Q1 2022 investor letter. Here is what the firm had to say:

“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”

7. Costco Wholesale Corporation (NASDAQ:COST)

Fisher Asset Management’s Stake Value: $1,203,823,000

Dividend Yield as of November 16: 0.68%

Costco Wholesale Corporation (NASDAQ:COST) is an American company that operates an international chain of membership warehouses. Morgan Stanley raised its price target on the stock to $525 in October with an Overweight rating on the shares, highlighting the company’s improving fundamentals and unit growth over the past few quarters.

Fisher Asset Management opened its position in Costco Wholesale Corporation with shares worth $211,000 during the fourth quarter of 2013. At the end of Q3 2022, the hedge fund had over 2.5 million shares in the company worth over $1.2 billion. The company made up 0.9% of billionaire Ken Fisher’s portfolio.

Costco Wholesale Corporation has been raising its dividends consistently for the past 18 years. It currently offers a quarterly dividend of $0.90 per share and has a dividend yield of 0.68%, as of November 16.

Costco Wholesale Corporation was a part of 64 hedge fund portfolios in Q2 2022, compared with 61 in the previous quarter. The stakes owned by these hedge funds have a total value of over $4.76 billion.

Cooper Investors mentioned Costco Wholesale Corporation in its Q3 2022 investor letter. Here is what the firm has to say:

“The US economy continues to run hot – the labour market is extremely tight and a number of executives we spoke to described their challenges in retaining staff and preventing competitors from poaching talent. Industrial companies in particular continue to see record backlogs, with the easing of logistics and supply chain constraints only just starting to have an impact on deliveries and lead times.

In terms of inflationary pressures, the vast majority of our holdings have been able to leverage strong market positions and stakeholder relationships to push pricing through in 2022 such that minimal impact to earnings has occurred. Clearly this is not a lever than can be pulled indefinitely but the more experienced management teams have kept some of their powder dry. Our meeting with management at Costco in Seattle was memorable for several reasons but one was their latent ability to increase member pricing which they have not done in over 5 years (and thus likely to do in 2023)…

…To conclude we’ll return to our meeting with Costco mentioned earlier. The business quality is no secret after decades of incredible execution, but the meeting gave us renewed conviction around Value Latencies in terms of the runway for growth, the focus on enhancing customer value, Costco’s vast buying power (it purchases 30% of the world’s jumbo cashews as one example) and management’s feral focus on the business model and cost discipline.”

6. Eli Lilly and Company (NYSE:LLY)

Fisher Asset Management’s Stake Value: $1,262,177,000

Dividend Yield as of November 16: 1.11%

Eli Lilly and Company (NYSE:LLY) is an Indiana-based pharmaceutical company with operations in over 18 countries. The company has been making dividend payments to shareholders since 1885 and has raised its payouts for eight years in a row. It currently offers $0.98 per share in quarterly dividends with a dividend yield of 1.11%, as of November 16.

Eli Lilly and Company represented 0.94% of billionaire Ken Fisher’s portfolio in Q3 2022. Fisher Asset Management owned roughly 4 million shares in the company at the end of the quarter, worth over $1.2 billion. It is one of the firm’s most prominent holdings alongside Apple Inc., Microsoft Corporation, and Amazon.com, Inc..

Truist raised its price target on Eli Lilly and Company to $421 in November with a Buy rating on the shares. The firm also lifted the company’s adjusted sales estimates to $10 billion, from $8 billion.

At the end of q2 2022, the number of hedge funds tracked by Insider Monkey owning stakes in Eli Lilly and Company jumped to 70, from 53 in the previous quarter. These stakes have a consolidated value of over $6.7 billion.

ClearBridge Investments mentioned Eli Lilly and Company in its Q3 2022 investor letter. Here is what the firm has to say:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Fisher Asset Management’s Stake Value: $1,390,120,000
Dividend Yield as of November 16: 2.61%

The Goldman Sachs Group, Inc. (NYSE:GS) is a New York-based investment banking company that specializes in a wide range of financial services. During the third quarter of 2022, Fisher Asset Management increased its position in the company by 45%, which takes its total stake in the company to roughly $1.4 billion. The company made up 1.04% of billionaire Ken Fisher’s portfolio.

On October 18, The Goldman Sachs Group, Inc. declared a quarterly dividend of $2.50 per share, which fell in line with its previous dividend. The company has been raising its dividends consistently for the past 10 years. The stock’s dividend yield on November 16 came in at 2.61%.

JMP Securities raised its price target on The Goldman Sachs Group, Inc. in October to $470 with an Outperform rating on the shares, presenting a strong long-term outlook for the company.

At the end of Q2 2022, 69 hedge funds tracked by Insider Monkey owned stakes in The Goldman Sachs Group, Inc., down from 71 in the previous quarter. These stakes have a collective value of over $4.6 billion.

ClearBridge Investments mentioned The Goldman Sachs Group, Inc. in its recently-published Q3 2022 investor letter. Here is what the firm has to say:

“We also initiated a new position in The Goldman Sachs Group, Inc. (NYSE:GS), which is trading far below what we would expect of a well-capitalized financials stock capable of generating an attractive return on equity over a market cycle. The company’s prospects are further enhanced by strong market share gains and further buildout of its fintech consumer finance initiatives.

Additionally, its earnings appear to have stabilized from the peak deal activity and inflated asset valuations of the last market cycle. While we acknowledge that a full-blown recession would put pressure on these earnings, Goldman Sachs has a history of capitalizing on downcycles to solidify its leading investment and trading businesses.”

4. Morgan Stanley (NYSE:MS)

Fisher Asset Management’s Stake Value: $1,455,083,000
Dividend Yield as of November 16: 3.45%

Morgan Stanley (NYSE:MS) is an American multinational investment management and financial services company. The company’s meaningful excess capital and limited credit exposure make it well-positioned in the current market environment, according to BMO Capital analyst James Fotheringham. The analyst maintained an Outperform rating on the stock in October with a $95 price target.

Fisher Asset Management has been investing in Morgan Stanley since the first quarter of 2012, opening its position with shares worth over $244.2 million. During Q3 2022, the hedge fund increased its position in the company by 69% and now owns MS stakes worth over $1.45 billion. The company represented 1.09% of billionaire Ken Fisher’s portfolio.

On October 27, Morgan Stanley declared a quarterly dividend of $0.775 per share, consistent with its previous dividend. The company is one of the top dividend stocks on our list as it maintains a 9-year streak of dividend growth. The stock’s dividend yield came in at 3.45% on November 16.

As per Insider Monkey’s database for Q2 2022, 58 hedge funds owned investments in Morgan Stanley, with a total value of nearly $3 billion.

Madison Funds mentioned Morgan Stanley in its Q3 2022 investor letter. Here is what the firm has to say:

“This quarter we are highlighting Morgan Stanley (NYSE:MS) as a relative yield example in the Financial sector. MS is a leading investment bank and wealth management firm with approximately $5 trillion of client assets under management. It merged Citigroup’s Smith Barney business into its own wealth management business after the 2008 recession/financial crisis, which resulted in a more stable business model. Recent acquisitions of asset manager Eaton Vance and E-Trade provide additional stability and higher returns on capital. We believe MS has a sustainable competitive advantage due to its size and scale, global reach, strong reputation, and financial distribution capabilities. Importantly for a financial institution, it is in good financial health as key leverage ratios including common equity Tier 1 ratio, Tier 1 capital ratio, Tier 1 leverage ratio, and supplementary leverage ratio were all well above required minimums at the end of 2021.

Our thesis on MS is that its wealth management business will continue to become a larger part of the overall company, which will increase overall margins and return on equity (ROE). Wealth management and asset management are less cyclical than investment banking, and often generate higher margins and provide better stability of financial results. For example, the addition of Smith Barney added significant scale and boosted wealth management operating margins from below 10% into the mid-20%s over the past several years while also increasing returns on equity. Looking ahead, we believe the company will benefit from rising asset prices and higher interest rates, should they happen over time…” (Click here to see the full text)

3. NVIDIA Corporation (NASDAQ:NVDA)

Fisher Asset Management’s Stake Value: $1,469,685,000
Dividend Yield as of November 16: 0.10%

NVIDIA Corporation (NASDAQ:NVDA) is a California-based multinational software company that specializes in vehicles, robotics, and other tools. The company currently pays a quarterly dividend of $0.04 per share and has a dividend yield of 0.10%, as of November 16.

During the third quarter of 2022, Fisher Asset Management purchased over additional 4.5 million NVDA shares, boosting its position in the company by 60%. The fund’s total stake in the company amounted to over $1.46 billion, which accounted for 1.1% of billionaire Ken Fisher’s portfolio.

In November, Credit Suisse initiated its coverage of NVIDIA Corporation with an Outperform rating and also raised its price target on the stock to $210. The firm highlighted the company’s growth in its AI segment throughout data center markets.

As of the close of Q2 2022, NVIDIA Corporation was a part of 84 hedge fund portfolios, as per Insider Monkey’s data. The stakes owned by these hedge funds are collectively worth over $3.3 billion.

ClearBridge Investments mentioned NVIDIA Corporation in its Q3 2022 investor letter. Here is what the firm has to say:

“Likewise, graphics chip maker NVIDIA Corporation (NASDAQ:NVDA) (-19.9%) has struggled through the post-COVID-19 recovery but maintains dominant positions in key secular growth markets of AI and gaming. The company has significantly underperformed the index and semiconductor peers recently due to a gaming inventory correction, a decline in aggregate cryptocurrency demand and reduction in crypto mining intensity as well as concerns around the sustainability of data center sales.

We tactically trimmed our position early in 2022 due to concerns around these cycle dynamics but remain confident in the company’s long-term prospects.”

2. American Express Company (NYSE:AXP)

Fisher Asset Management’s Stake Value: $2,028,883,000
Dividend Yield as of November 16: 1.36%

American Express Company (NYSE:AXP) is an American multinational credit card service company that also offers other financial services to its consumers. At the end of Q3 2022, Fisher Asset Management had over 15 million shares in the company, worth over $2 billion. The company represented 1.52% of billionaire Ken Fisher’s portfolio.

American Express Company currently pays a quarterly dividend of $0.52 per share. The company is one of the top dividend stocks on our list as it has been making consistent dividend payments to shareholders for the past 30 years. Moreover, it also paid $14 million in dividends during Q3 2022. As of November 16, the stock has a dividend yield of 1.36%.

In October, BMO Capital raised its price target on American Express Company to $166 with a Market Perform rating on the shares, highlighting the company’s Q3 earnings beat, higher net interest income, and growing customer base.

As of the close of Q2 2022, 67 hedge funds tracked by Insider Monkey owned stakes in American Express Company, compared with 69 a quarter earlier. These stakes have a consolidated value of over $25.2 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q2.

1. The Home Depot, Inc. (NYSE:HD)

Fisher Asset Management’s Stake Value: $2,253,772,000
Dividend Yield as of November 16: 2.41%

The Home Depot, Inc. (NYSE:HD) is a Georgia-based multinational home improvement retail company that sells various related tools and products. Piper Sandler called the company’s recent quarterly earnings ‘solid’, highlighting the company’s sale trends and double-digit growth across its various sectors. In view of this, the firm maintained a Neutral rating on the stock in November with a $323 price target.

The Home Depot, Inc. has been raising its dividends consistently for the past 12 years, which places it as one of the best dividend stocks on our list. The company currently pays $1.90 per share in quarterly dividends and has a yield of 2.41%, as of November 16.

Fisher Asset Management has been investing in The Home Depot, Inc. since the first quarter of 2012. At the end of Q3 2022, the hedge fund owned over 8.1 million HD shares, worth over $2.25 billion. The company constituted 1.68% of billionaire Ken Fisher’s portfolio.

The number of hedge funds tracked by Insider Monkey owning stakes in The Home Depot, Inc. grew to 80 in Q2 2022, from 75 in the preceding quarter. The collective value of these stakes is over $5.3 billion.

Diamond Hill Capital mentioned The Home Depot, Inc. in its Q3 2022 investor letter. Here is what the firm has to say:

“The Home Depot, Inc. (NYSE:HD) shares were more resilient in Q3 as the company continues to perform well and reiterated guidance despite increasing market concerns regarding general inflationary pressures and the impact rising mortgage rates may have on the housing market. We view the longterm prospects and multi-year fundamental outlook as unchanged. Home improvement through repair and remodel is likely to be one of more resilient housing-related industries given the relative attractiveness for consumers to renovate existing homes rather than reset their current low fixed mortgage rate to higher rates that we’re seeing today.”

You can also take a look at Ken Fisher Stock Portfolio: Top 10 Stock Picks and 10 Stocks Ray Dalio and Insiders Are Piling Into

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This article is originally published at Insider Monkey.