Below are billionaire Ken Fisher’s top 5 high dividend stock picks. For a comprehensive list and portfolio management strategy of Ken Fisher please see Billionaire Ken Fisher’s Top 10 High Dividend Stock Picks.
5. BHP Group (NYSE: BHP)
BHP Group (NYSE: BHP) currently offers a dividend yield of 5.8% to shareholders. In addition, the shareholders have also been benefiting from the sustainable growth in share price. Shares of BHP surged 6% this year, extending twelve-month gains to 90%. Fisher Asset Management first initiated a position in BHP in 2018 and raised its stake by 1% to 7.8 million shares in Q4 of 2020.
Money managers were taking an optimistic view on BHP. The number of long hedge fund positions advanced by 2 lately. BHP Group (NYSE: BHP) was in 20 hedge funds’ portfolios at the end of December.
4. GlaxoSmithKline plc (NYSE: GSK)
Fisher Asset Management has been holding a position in pharmaceutical giant GlaxoSmithKline plc (NYSE: GSK) since 2001. The company’s potential to offer steady share price growth along with sustainable growth in dividends make it a good stock to hold in a dividend portfolio. The company offers a dividend yield of 5.9%.
Hedge funds were less bullish on GSK during Q4. The number of bullish hedge fund positions declined by 1 recently. GlaxoSmithKline was in 30 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all-time high for this statistic is 35.
3. Vale S.A. (NYSE: VALE)
Rio de Janeiro-based company Vale S.A. (NYSE: VALE) is famous for its hefty dividends. After experiencing pressure on its cash generation in the past couple of years, the iron ore miner now appears in a position to offer big dividends to investors – thanks to improvement in commodity prices. Chief Executive Officer Eduardo Bartolomeo recently stated that Vale is planning to return excess cash to investors in the form of dividends and buybacks.
Vale’s announced a March dividend of 3.427 reais a share compared to expectations for 2.697 and increased substantially from 1.41 reais for the September quarter. Moreover, shares of Vale rose 109% in the last twelve months. Vale SA was in 35 hedge funds’ portfolios at the end of December.
2. Total SA (NYSE: TOT)
Billionaire Ken Fisher raised his position by 41% in Total SA (NYSE: TOT) during the fourth quarter to 21.45 million shares. Fisher’s hedge fund first initiated a position in the oil company in 2018. Total has a history of offering strong returns to investors both in the form of share price gains and dividends. It currently offers a quarterly dividend yield of 6.64%. Moreover, Total’s share price grew 11% year to date. Its returns are backed by stronger-than-expected financial numbers. Total has topped revenue and earnings estimates for the December quarter and the company expects significant growth in financial numbers for 2021 amid improving oil prices.
1. Rio Tinto (NYSE: RIO)
The diversified metal and mining company Rio Tinto (NYSE: RIO) continues gaining billionaire Ken Fisher’s confidence. His firm first initiated a position in Rio in 2018 and added to its existing stake during the December quarter of 2020. Rio has a history of offering significant dividends. The company currently offers a dividend yield of almost 8% and it has raised dividends in the past 4 consecutive years. Fisher Asset Management held 12.16 million shares of Rio Tinto at the end of the latest quarter.
Hedge fund interest in Rio Tinto increased at the end of last quarter. This is usually a positive indicator. The number of bullish hedge fund positions increased by 3 recently. It was in 26 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all-time high for this statistic is 35. Our calculations also showed that RIO isn’t among the 30 most popular stocks among hedge funds.
You can also take a peek at George Soros’ Top 10 Stock Picks and Billionaire Jim Simons’ Top 10 Stock Picks.
