Billionaire Ken Fisher’s Top 10 Dividend Stock Picks

Published October 18, 2021 at 1:10 pm EDT Updated September 7, 2026 at 1:04 pm EDT

In this article, we discuss the top 10 dividend stock picks of billionaire Ken Fisher.

Ken Fisher is one of the most well-known hedge fund managers on Wall Street. The portfolio of his hedge fund, Fisher Asset Management, was more than $159 billion at the end of June 2021 with the top holdings concentrated in the technology, healthcare, and financial sectors. The top ten holdings comprise over 31% of the entire portfolio. According to the latest filings, the portfolio value of the fund jumped over 18% billion between March and June this year. Fisher has a personal net worth of more than $6 billion.

During the second quarter, the billionaire, through his hedge fund, made new purchases in 86 stocks, bought additional stakes in 376, sold out of 76, and reduced holdings in 417 stocks. Over the years, Fisher has championed an investment strategy that compares the share price against expectations of growth, making handsome returns in the process. His dividend stocks picks have especially outshone the market, making him a legend in the value investing universe even though his portfolio is growth heavy.

Some of the top dividend stock picks in the Fisher Asset Management portfolio at the end of the second quarter of 2021 included The Home Depot, Inc. (NYSE:HD), Caterpillar Inc. (NYSE:CAT), and Walmart Inc. (NYSE:WMT), among others discussed in detail below. The returns of the hedge fund led by Fisher have consistently beat market benchmarks like the S&P 500 over the past few years, earning Fisher cult-like status on Wall Street and indeed around the world.

Billionaire Ken Fisher’s Top 10 High Dividend Stock Picks

Our Methodology

With this context in mind, here is our list of the top 10 dividend stock picks of billionaire Ken Fisher. These were picked from the investment portfolio of Fisher Asset Management at the end of the second quarter of 2021.

The list is compiled according to the value of each holding in the portfolio of Fisher Asset Management. The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Billionaire Ken Fisher’s Top Dividend Stock Picks

10. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 42

Forward Dividend Yield: 3.25%

Analysts have been bullish on 3M Company (NYSE:MMM) stock since the company posted strong earnings for the second quarter in late July. Advisory Langenberg recently upgraded the stock to Buy from Hold with a price target of $210. Wells Fargo had initiated the stock at Equal Weight with a $179 target on October 7. The company smashed market expectations on earnings per share and revenue in the second quarter by $0.31 and $360 million respectively.

According to 13F filings, Fisher Asset Management owned 5.3 million shares in 3M Company worth over $1 billion at the end of the second quarter of 2021, representing 0.67% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in 3M Company with 1.1 million shares worth more than $235 million.

Just like The Home Depot, Inc., Caterpillar Inc., and Walmart Inc., 3M Company is one of the dividend stocks attracting the attention of elite investors.

9. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 108

Forward Dividend Yield: 2.40%

JPMorgan Chase & Co. is one of the most trusted names in the banking sector and many elite investors have bullish views on the stock. The company has strong fundamentals and recently had stock price targets raised at advisors like BMO Capital, Credit Suisse, Jefferies and Barclays. The company beat market expectations on revenue in the third quarter by $0.74.

According to the latest data, Fisher Asset Management owned 6.9 million shares in JPMorgan Chase & Co. at the end of June 2021 worth more than $1 billion, representing 0.67% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in JPMorgan Chase & Co. with 6.9 million shares worth more than $1 billion.

In addition to The Home Depot, Inc., Caterpillar Inc., and Walmart Inc., JPMorgan Chase & Co. is one of the dividend stocks that hedge funds are buying.

In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:

“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”

8. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 21

Forward Dividend Yield: 9.73%

Mining stocks have soared as iron ore prices skyrocket amid a crackdown against the mining industry in China and increased demand for the metal in the post-pandemic economy. Rio Tinto Group (NYSE:RIO), a mining firm based in the United Kingdom, has benefited from this environment. Exane BNP Paribas analyst Sylvain Brunet recently upgraded the stock to Outperform from Neutral with a price target of GBP5,630.

Securities filings reveal that Fisher Asset Management owned 12.9 million shares in Rio Tinto Group at the end of the second quarter of 2021 worth over $1 billion, representing 0.68% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Rio Tinto Group with 1.8 million shares worth more than $156 million.

Along with The Home Depot, Inc., Caterpillar Inc., and Walmart Inc., Rio Tinto Group is one of the dividend stocks on the radar of institutional investors.

7. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 105

Forward Dividend Yield: 1.35%

Although most biotech stocks operate in the high-growth domain, UnitedHealth Group Incorporated (NYSE:UNH) is one healthcare firm that has made a name for itself in the value investing universe. The company recently smashed market predictions on earning per share and revenue in the third quarter, raising guidance numbers and prompting price target raises from Evercore ISI and Credit Suisse.

Regulatory filings show that Fisher Asset Management owned more than 2.8 million in UnitedHealth Group Incorporated at the end of June 2021 worth $1.1 billion, representing 0.71% of the portfolio of the fund.

At the end of the second quarter of 2021, 105 hedge funds in the database of Insider Monkey held stakes worth $13 billion in UnitedHealth Group Incorporated, up from 89 in the preceding quarter worth $12 billion.

The Home Depot, Inc., Caterpillar Inc., and Walmart Inc. are some of the top dividend stocks to buy now, just like UnitedHealth Group Incorporated.

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated (NYSE:UNH) was one of them. Here is what the fund said:

“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.

UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”

6. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 55

Forward Dividend Yield: 1.34%

Oracle Corporation (NYSE:ORCL) is another stock in the growth stock domain that features high on the dividend stock list of Ken Fisher, primarily because of the solid user base of the firm and the reputation of steady earnings growth it has developed over the years. Earlier this month, the company announced that it would be opening 14 cloud regions across the world to support demand for the Oracle Cloud in regions like the Middle East and Latin America.

Fisher Asset Management owned more than 14.8 million shares in Oracle Corporation at the end of the second quarter of 2021 worth over $1.1 billion, representing 0.72% of the portfolio of the fund.

At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Oracle Corporation, up from 52 in the preceding quarter worth $2.8 billion.

The Home Depot, Inc., Caterpillar Inc., and Walmart Inc. are some of the elite dividend stocks to buy now, just like Oracle Corporation.

Here is what Ariel Investments has to say about Oracle Corporation (NYSE:ORCL) in its Q1 2021 investor letter:

“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”

5. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 64

Forward Dividend Yield: 1.43%

Investment advisory Berenberg recently upgraded Eli Lilly and Company (NYSE:LLY) stock to Buy from Hold and raised the price target to $270 from $240, noting that the long-term sales growth of the firm stood at 10% annual till 2030, comparing favorably against peers who averaged around 4% during the period. The firm recently won FDA approval for Verzenio, a drug for patients with breast cancer.

According to 13F filings, Fisher Asset Management owned over 6 million shares in Eli Lilly and Company at the end of June 2021 worth $1.3 billion, representing 0.86% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company with 1.7 million shares worth more than $391 million.

In its Q1 2020 investor letter, Amana Mutual Funds Trust highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:

“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”

4. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 62

Forward Dividend Yield: 2.23%

Caterpillar Inc. makes and sells construction and mining equipment. Cowen analyst Matt Elkott recently initiated coverage of the stock with an Outperform rating and a price target of $241, underlining that there was an opportunity for the firm to make $35 billion in revenue over the next decade through autonomy in the sector. The stock has pulled back in recent weeks amid pressure from China, a key machinery import hub for the firm.

According to the latest data, Fisher Asset Management owned more than 6.6 million shares in Caterpillar Inc. at the end of the second quarter of 2021 worth $1.4 billion, representing 0.9% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Bill & Melinda Gates Foundation Trust is a leading shareholder in Caterpillar Inc. with 10 million shares worth more than $2.2 billion.

In its Q2 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Caterpillar Inc. (NYSE:CAT) was one of them. Here is what the fund said:

“Having followed the company closely for north of a decade, Caterpillar is a name we know well. For much of its history, the operating efficiency of the company left much to be desired, but its underlying competitive position was rarely in doubt. A series of actions over the past decade (e.g., LEAN implementation, improved service mix, optimized manufacturing footprint) helped to narrow the gap between Caterpillar’s potential and its realized results, driving material margin expansion and strong share price performance. In our view, the company remains among the highest quality industrials in the market, but its underlying business is cyclical, which can translate to large swings in both performance and investor sentiment over short time periods. Our ability to focus on the long-term, sustainable earnings power of a business (rather than getting distracted by near-term fluctuations) is our most significant edge when investing in cyclical businesses. Due to the inherent volatility in Caterpillar’s end markets and operating performance, we suspect we’ll have a future opportunity to own this high-quality business at a more attractive price once the cycle turns and today’s enthusiasm wears off.”

3. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 54

Forward Dividend Yield: 0.70%

Costco Wholesale Corporation (NASDAQ:COST) is one of the retailers that have benefited from the increase in demand for goods as the economy reopens after the 2020 lows. Earlier this month, the company reported net sales of $19.5 billion for the month of September, an increase of close to 16% year-on-year. Ecommerce sales grew by more than 10% over the period, the company revealed.

Securities filings show that Fisher Asset Management owned over 3.7 million shares in Costco Wholesale Corporation at the end of June 2021 worth $1.4 billion, representing 0.93% of the portfolio of the fund.

At the end of the second quarter of 2021, 54 hedge funds in the database of Insider Monkey held stakes worth $4.3 billion in Costco Wholesale Corporation, down from 56 in the preceding quarter worth $4 billion.

In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and Costco Wholesale Corporation (NASDAQ:COST) was one of them. Here is what the fund said:

“We saw these dynamics at play in the Fund. Some of the worst-performing stocks this quarter were among our best performers in Q1 2020. Another example was the market’s reaction to Costco Wholesale (1.5% weight in the Fund) during the quarter. From December 31, 2020 to March 8th, Costco shares declined 17% and dropped below their pre-pandemic high. The common rationale offered by sell-side analysts was that Costco would face difficult one-year “comps” (i.e. same-store sales, which compare sales from stores open for at least a year). Because so many consumers rushed to Costco ahead of shelter-in-place and subsequent quarantines, it will be harder for Costco to meaningfully beat those results when compared year-over-year. That may indeed be true, but we struggle to understand how Costco could be “less valuable” than it was a year earlier when it concurrently increased its membership base by over 7%, or 3.9 million members. With membership renewal rates around 90%, the vast majority of the new customers Costco brought in last year will be around for years to come.

Analysts also complained about Costco raising its already industry-leading minimum wage to $16/hour, with an average “effective” pay of $23-$24/hour when you include overtime and bonuses. Costco paying its employees “too much” has been a common gripe of Wall Street analysts for at least two decades. While the extra pay does indeed impact short-term profit margins, it also serves to make Costco more durable, as its flywheel (i.e. a virtuous value cycle) starts with happy employees. A 20-year chart of Costco stock price is evidence that this strategy works and we’re confident that it will continue to work.”

2. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 71

Forward Dividend Yield: 1.57%

Walmart Inc. was recently named among one of the top ecommerce stocks for the holiday season by Bank of America alongside competitors like Amazon and JD.com. With ecommerce stocks set to register a 15% year-on-year growth this year, the Arkansas-based retailer is slated to be one of the top beneficiaries of this growth. The company recently raised hourly pay by $1 for 560,000 staff members.

Regulatory filings reveal that Fisher Asset Management owned over 12.6 million shares in Walmart Inc. worth more than $1.7 billion at the end of the second quarter of 2021, representing 1.11% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Bill & Melinda Gates Foundation Trust is a leading shareholder in Walmart Inc. with 7.6 million shares worth more than $1 billion.

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

Number of Hedge Fund Holders: 64

Forward Dividend Yield: 1.88%

The Home Depot, Inc. is placed first on our list of top 10 dividend stock picks of billionaire Ken Fisher. The company operates as a home improvement retailer. It recently teamed up with retail giant Walmart to enhance local delivery capabilities. Last month, Wells Fargo analyst Zachary Fadem raised the price target on the stock to $365 from $360 and kept an Overweight rating.

Fisher Asset Management owned more than 7.2 million shares in The Home Depot, Inc. worth $2.3 billion at the end of June 2021, representing 1.46% of the portfolio of the fund.

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in The Home Depot, Inc. with 1.1 million shares worth more than $360 million.

In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:

“Notable contributors to the Fund’s returns this quarter (included) Home Depot. Home Depot (8.9% weight in the Fund) continued to benefit from a red-hot housing and home improvement market, delivering record financial performance in 2020. As a high return on invested capital business, any step-up in growth results in considerable shareholder value creation. While 2021 comparable sales may not yield impressive headline results, we believe there are several secular tailwinds supporting continued housing investment, including millennials entering prime household formation/peak earnings years, relatively low interest rates, and government policies.

Home Depot (8.9% weight in the Fund): The big orange sign of Home Depot is a familiar sight for homeowners across the country. Despite the rise of Amazon, Home Depot has generated outstanding results for shareholders during the rise of eCommerce, even as Home Depot’s end market in housing suffered the worst collapse in a century. Over the last fifteen years, a period which began at the peak of the housing bubble, Home Depot’s stock has generated annual returns of 17% a year, outperforming the S&P 500 by approximately 7% a year.

But while homeowners can attest to their continued shopping at Home Depot, they may not be aware that only about half the company is dedicated to serving Do It Yourself homeowners, with the other half acting as a key supplier to small contractors – which the company calls Pros – who depend on Home Depot as a mission critical business partner.

While the company does not report on their contractor business separately from their homeowner business, they have regularly offered comments indicating that contractors make up just 4% of their customer base, but about 45% of revenue. Basic math implies…”[read the entire letter here]

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