In this article, we discuss the 10 best dividend stocks to buy according to billionaire Ray Dalio. If you want to skip our detailed analysis of Dalio’s history and hedge fund performance, go directly to the 5 Best Dividend Stocks to Buy According to Billionaire Ray Dalio.
Billionaire Ray Dalio is the founder of Bridgewater Associates, one of the largest and most successful hedge funds with a portfolio of around $11 billion. Before founding Bridgewater Associates, Dalio worked at Dominick & Dominick LLC and the New York Stock Exchange. He launched Bridgewater from his two-bedroom New York City apartment in 1975 after completing his MBA from Harvard Business School.
Bridgewater Associates mainly focuses on institutional clients like foreign governments, endowments, pension funds, foundations, and central banks. This strategy seems to be working well as the firm enjoyed returns of around 23% in 2011, a year when all hedge funds lost around 4% on average. In 2018, the hedge fund reported a 14.6% return on investment, and Dalio earned a $2 billion compensation for steering the firm to such success. Since its inception, the hedge fund has earned more than $46.5 billion.
Dalio likes to diversify his portfolio. He has stakes in several major tech companies as of the end of the first quarter, including Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Facebook, Inc. (NASDAQ: FB). However, it's important to note that the billionaire cut his position in Facebook by 90% in the period, entering 2021 with just 2,027 shares of the company. In Microsoft Corporation (NASDAQ: MSFT), Bridgewater slashed its hold by 98%, ending the first quarter with just 4,000 shares of the company. On the other hand, Apple Inc. (NASDAQ: AAPL) was a new addition in Bridgewater's portfolio in the first quarter.
Based on the latest 13F holdings for the first quarter of 2021, Dalio owns 2,803 shares in Apple Inc. (NASDAQ: AAPL). On April 29, Rod Hall, an analyst at Goldman Sachs, upgraded the stock to “Neutral” from "Sell." Goldman Sachs raised the price target of Apple Inc. (NASDAQ: AAPL) to $130 from $83.
Dalio owns 4,214 shares of Microsoft, worth $994,000. Microsoft Corporation (NASDAQ: MSFT) has announced a strategic partnership with Morgan Stanley (NYSE: MS) that will see the bank use Microsoft's cloud services to accelerate its digital transformation and shape innovation in the financial sector. Morgan Stanley intends to use Microsoft's cloud services to create an IT ecosystem that enhances client, employee, and developer experiences.
Another notable stock in Dalio’s portfolio is Facebook. The investor owns 2,027 shares worth $597,000. Recently, Facebook, Inc. (NASDAQ: FB) announced that it is working on innovative ways to allow businesses to interact with customers on WhatsApp and Instagram. The social media giant said it is rolling out new features and tools to allow developers to build ways for businesses to message customers on Facebook-owned Instagram.
best dividend stocks according to Ray Dalio
Ray Dalio of Bridgewater Associates
It remains to be seen how Dalio will perform this year compared to other hedge fund managers as an uncertain post-pandemic economy takes off. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. Investing in dividend stocks has become extremely important in the current age of financial volatility, which isn't sparing even the smart money. On the other hand, 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 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter's stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That's why we believe hedge fund sentiment is a handy indicate that investors should consider. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this background in mind, let’s start our list of 10 best dividend stocks to buy according to billionaire Ray Dalio.
Best Dividend Stocks to Buy According to Billionaire Ray Dalio
Dalio’s Stake Value: $2,372,000 Percentage of Ray Dalio’s 13F Portfolio: 0.02% Dividend Yield: 3.86% Number of Hedge Fund Holders: 31
Simon Property Group, Inc. (NYSE: SPG) is a real estate investor that is involved in the ownership of shopping malls, outlet centers, and community/lifestyle centers. It was founded in 1993 and is placed tenth on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. The company stock has offered investors returns exceeding 51% in the past year.
Just like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Facebook, Inc. (NASDAQ: FB), Simon Property Group, Inc. (NYSE: SPG) is one of the best stocks to buy based on Ray Dalio's Q1 portfolio.
On May 10, Simon Property declared a Q1 2021 net income of $445.9 million. On March 30, the company declared a quarterly dividend of $1.30 per share, in line with the previous. On April 16, Simon Property was upgraded to “Buy” from “Hold” at Jefferies.
The hedge fund run by Bridgewater Associates owns 20,849 shares in the company worth over $2.37 million. At the end of the first quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $506 million in Simon Property Group, Inc. (NYSE: SPG), down from 32 the preceding quarter worth $353 million.
Dalio’s Stake Value: $207,000 Percentage of Ray Dalio’s 13F Portfolio: 0.001% Dividend Yield: 4.43% Number of Hedge Fund Holders: 21
SL Green Realty Corp. (NYSE: SLG) is a fully integrated real estate investment trust that focuses mainly on obtaining, managing, and enhancing the value of Manhattan commercial properties. It was founded in 1997 and is placed ninth on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. The company stock has returned more than 42% to investors over the course of the past twelve months.
On May 21, SL Green Realty declared a monthly dividend of $0.3033 per share, in line with the previous. On May 18, SL Green Realty sold 635-641 Sixth Avenue for $325 million to accomplish its 2021 business plan.
Bridgewater Associates holds 2,951 shares in the company, worth over $207,000. Out of the hedge funds being tracked by Insider Monkey, Citadel Investment Group is a leading shareholder in SL Green Realty with 1.76 million shares worth more than $48 million. At the end of the first quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $162 million in SL Green Realty Corp. (NYSE: SLG), down from 22 the preceding quarter worth $214 million.
Dalio’s Stake Value: $285,000 Percentage of Ray Dalio’s 13F Portfolio: 0.001% Dividend Yield: 4.54% Number of Hedge Fund Holders: 17
Healthcare Trust of America, Inc. (NYSA: HTA) is the largest owner and operator of MOBs in the United States. HTA provides real estate infrastructure for the unified delivery of healthcare services. It was founded in 2006 and is placed eighth on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio.
On May 6, Healthcare Trust of America declared revenue of $191.49 million for Q1 2021 up 3.1% YoY, beating estimates by $1.78 million. On March 15, the company declared a quarterly dividend of $0.32 per share in line with the previous.
Bridgewater Associates holds 10,348 shares in the company worth over $285,000. At the end of the first quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $119 million in Healthcare Trust of America, Inc. (NYSA: HTA), up from 14 the preceding quarter worth $126 million.
Just like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Facebook, Inc. (NASDAQ: FB), Healthcare Trust of America, Inc. (NYSA: HTA) is one of the best stocks to buy based on Ray Dalio's Q1 portfolio.
Dalio’s Stake Value: $2,179,000 Percentage of Ray Dalio’s 13F Portfolio: 0.01% Dividend Yield: 5.05% Number of Hedge Fund Holders: 6
TFS Financial Corporation (NASDAQ: TFSL), along with its subsidiaries, imparts retail consumer banking services in the United States. The company was founded in 1938 and is placed seventh on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. The company has returned more than 34% to investors over the past year.
On May 27, TFS Financial declared a quarterly dividend of $0.28 per share, in line with the previous. The company reported a net income of $23.0 million for Q1 2021 compared to a net income of $17.3 million for Q1 2020.
Bridgewater Associates holds 106,969 shares in the firm worth over $2.18 million. Bridgewater Associates' activity on TFS Financial Corporation stock increased by 500% in the last quarter, the latest data reveals. At the end of the first quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $145 million in TFS Financial Corporation (NASDAQ: TFSL), down from 10 the preceding quarter worth $136 million.
Dalio’s Stake Value: $1,900,000 Percentage of Ray Dalio’s 13F Portfolio: 0.01% Dividend Yield: 5.6% Number of Hedge Fund Holders: 25
New York Community Bancorp, Inc. (NYSE: NYCB) works as a corporation for New York Community Bank that provides banking services and products in Metro New York, New Jersey, Ohio, Florida, and Arizona. The company was founded in 1859 and is ranked sixth on our list of 10 best dividend stocks to buy according to billionaire Ray Dalio. The company stock has offered investors more than 14% in returns year to date.
On April 26, New York Community Bancorp reported net income for Q1 2021 of $145.6 million, up 45% compared to $100.3 million reported in Q1 2020. The company declared an EPS of $0.29 for Q1 2021, up 45% compared to the $0.20 reported in Q1 2020. In April, New York Community Bancorp announced plans to acquire Flagstar Bancorp for $2.56 billion.
Bridgewater Associates holds 150,564 shares in New York Community Bancorp, Inc. (NYSE:NYCB) worth over $1.90 million.
Just like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Facebook, Inc. (NASDAQ: FB), New York Community Bancorp, Inc. (NYSE: NYCB) is one of the best stocks to buy based on Ray Dalio's Q1 portfolio.
