Billionaire Ken Fisher’s Top 5 Dividend Stock Picks

In this article, we discuss top dividend stocks to buy according to billionaire Ken Fisher. If you want to read our detailed discussion on Fisher’s investment strategy and his hedge fund’s performance, go directly to read Billionaire Ken Fisher’s Top 10 Dividend Stock Picks. 

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. (NYSE:GS) 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. (NYSE:GS) 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. (NYSE:GS), 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. (NYSE:GS) 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 (NYSE:MS) 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 (NYSE:MS) 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 (NYSE:MS), with a total value of nearly $3 billion.

Madison Funds mentioned Morgan Stanley (NYSE:MS) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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 (NYSE:AXP) 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 (NYSE:AXP) 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 (NYSE:AXP), 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. (NYSE:HD) 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. (NYSE:HD) 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. (NYSE:HD) 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. (NYSE:HD) 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

Follow Insider Monkey on Twitter