Billionaire Ken Fisher’s Top 15 Dividend Stock Picks
In this article, we discuss billionaire Ken Fisher's top 15 dividend stock picks. You can skip our detailed analysis of Fisher's hedge fund and his investment philosophy, and go directly to read Billionaire Ken Fisher's Top 5 Dividend Stock Picks.
Ken Fisher’s Fisher Asset Management is one of the most prominent hedge funds in America. The firm emphasizes the importance of analyzing market trends and using quantitative methods to identify potential investment opportunities. In addition to this, the hedge fund also provides personalized investment advice to individual clients. Over the years, the firm grew and expanded its client base, managing portfolios for high-net-worth individuals, institutions, and pension funds. As of May, Fisher’s real-time net worth stands at $6.7 billion.
High interest rates have been a cause of worry for investors this year as interest rates reached their 16-year high. The Fed’s efforts to fight inflation have had significant impacts on the investment strategies of investors in the US. According to Fisher, Fed decisions do not have a long-term impact on the stock market’s performance. He thinks investors should follow their long-term investment strategy by avoiding short-term volatility caused by continuous interest rate hikes.
Recently, Fisher Investments announced that it would relocate its corporate headquarters to Texas, following Washington’s supreme court ruling which upheld that the capital gains tax is constitutional on the state’s wealthiest residents, according to a report by Bloomberg. The firm will also increase employee transfers over time.
As of the close of the first quarter of 2023, Fisher Asset Management’s portfolio was valued at nearly $165.1 billion, up from $148 billion in the preceding quarter. The hedge fund had major investments in the tech sector, with the finance, healthcare, services, and basic materials sectors also making up significant portions of the portfolio. The firm also held investments in dividend stocks like Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Chevron Corporation (NYSE:CVX). In this article, we will discuss Fisher’s top 15 dividend stock picks as of Q1 2023.
Ken Fisher of Fisher Asset Management
Our Methodology:
For this list, we selected the top 15 dividend stocks in Fisher Asset Management's portfolio, as of the first quarter of 2023. The stocks are ranked in ascending order of their stake value in the firm's portfolio.
15. Merck & Co., Inc. (NYSE:MRK)
Fisher Asset Management’s Stake Value: $1,313,543,000
Dividend Yield as of May 16: 2.51%
Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company that specializes in a wide range of medicines, biological therapies, and vaccines. At the end of Q1 2023, Fisher Asset Management owned over 12.3 million shares in the company, worth over $1.3 billion. The hedge fund increased its position in the company by 2% during the quarter. The company represented 0.79% of billionaire Ken Fisher's portfolio.
In addition to Merck & Co., Inc. (NYSE:MRK), Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Chevron Corporation (NYSE:CVX) are some other dividend stock picks of billionaire Ken Fisher.
Merck & Co., Inc. (NYSE:MRK), one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.73 per share. The company has been raising its payouts consistently for the past 12 years. On May 16, the stock's dividend yield came in at 2.51%.
In May, Barclays raised its price target on Merck & Co., Inc. (NYSE:MRK) to $130 and maintained an Overweight rating on the shares, following the company's recent quarterly earnings.
As of the close of Q4 2022, Merck & Co., Inc. (NYSE:MRK) was a part of 77 hedge fund portfolios, according to Insider Monkey's database. The stakes owned by these hedge funds have a collective value of over $5.1 billion.
Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter. Here is what the firm has to say:
“Merck & Co., Inc. (NYSE:MRK) is a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. Shares have benefited from investors seeking safety in areas with less economic and interest rate sensitivity. With about one third of its sales generated by blockbuster oncology drug Keytruda, the key issue for investors is the success of its large R&D pipeline to replace those sales when Keytruda comes off patent in 2028. However, Merck seems to be getting little credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions, besides return of capital to shareholders via dividends and share repurchases.”
14. Thermo Fisher Scientific Inc. (NYSE:TMO)
Fisher Asset Management’s Stake Value: $1,380,891,000
Dividend Yield as of May 16: 0.27%
Thermo Fisher Scientific Inc. (NYSE:TMO) specializes in supplying scientific instrumentation and consumables. The company offers a quarterly dividend of $0.35 per share, growing it by 17% on February 22. Through this increase, the company stretched its dividend growth streak to six years, which makes it one of the best dividend stocks on our list. The stock's dividend yield on May 16 came in at 0.27%.
During the first quarter of 2023, Fisher Asset Management increased its position in Thermo Fisher Scientific Inc. (NYSE:TMO) by 2%. The hedge fund's total TMO stakes amounted to over $1.38 billion, which made up 0.83% of its 13 F portfolio at the end of the quarter. It is among billionaire Ken Fisher's top dividend stock picks.
In April, Citigroup maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) with a $650 price target, highlighting the company's performance in its most recent quarter.
According to Insider Monkey's Q4 2022 database, 92 hedge funds owned stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), the same as in the previous quarter. The consolidated value of these stakes is over $7 billion. With over 1 million shares, Farallon Capital was the company's leading stakeholder in Q4.
Polen Capital mentioned Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q4 2022 investor letter. Here is what the firm has to say:
“Thermo Fisher Scientific Inc. (NYSE:TMO) is a leader in attractive end markets with a skilled management team who has demonstrated the ability to consistently and wisely allocate capital. It is the world leader in serving science. It is a globally scaled supplier serving more than 400,000 customers working within pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, research institutions, and government agencies. Thermo provides many of the products and services that companies in these industries, particularly pharma and biotech, need to operate and drive science forward. The company manufactures and sells instruments, reagents, and consumables used for a wide range of applications in labs. (Click here to view the full text)
13. Eli Lilly and Company (NYSE:LLY)
Fisher Asset Management’s Stake Value: $1,409,033,000
Dividend Yield as of May 16: 1.04%
Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company that specializes in a wide range of drugs and also offers several treatments to its patients. BMO Capital lifted its price target on the stock to $505 in May with an Outperform rating on the shares on the success of the company's latest drug trials.
On May 1, Eli Lilly and Company (NYSE:LLY) declared a quarterly dividend of $1.13 per share, which was in line with its previous dividend. The company maintained a 9-year streak of consistent dividend growth. Moreover, it has a 138-run of paying regular dividends to shareholders, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.04%, as recorded on May 16.
At the end of Q1 2023, Fisher Asset Management owned over 4.1 million shares in Eli Lilly and Company (NYSE:LLY), worth over $1.4 billion. The company made up 0.85% and is one of billionaire Ken Fisher's top dividend stock picks.
Insider Monkey's database for Q4 2022 shows that 76 hedge funds owned stakes in Eli Lilly and Company (NYSE:LLY), up from 75 in the preceding quarter. These stakes are collectively valued at over $5 billion.
Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q4 2022 investor letter. Here is what the firm has to say:
“Eli Lilly and Company (NYSE:LLY) is a large-cap pharmaceutical company. Shares increased on investor optimism about Lilly’s new product pipeline, which includes Mounjaro for diabetes and obesity and Donanemab for Alzheimer’s disease. We continue to think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to strong revenue and earnings growth over at least the next five years.”
12. The Goldman Sachs Group, Inc. (NYSE:GS)
Fisher Asset Management’s Stake Value: $1,650,142,000
Dividend Yield as of May 16: 3.10%
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the world's leading investment banking companies. During the first quarter of 2023, Fisher Asset Management increased its position in the company by 3%. The firm's total stakes in the company amounted to over $1.65 billion at the end of the quarter. It represented 0.99% of the fund's 13F portfolio and is among the billionaire's top dividend stock picks.
On April 18, The Goldman Sachs Group, Inc. (NYSE:GS) declared a quarterly dividend of $2.50 per share, consistent with its previous dividend. The stock's dividend yield on May 16 came in at 3.10%.
Morgan Stanley raised its price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $337 with an Equal Weight rating on the shares, following the company's recent quarterly earnings. The firm also appreciated the company's performance past year.
The number of hedge funds in Insider Monkey's database owning stakes in The Goldman Sachs Group, Inc. (NYSE:GS) grew to 74 in Q4 2022, from 69 in the previous quarter. These stakes have a consolidated value of nearly $5 billion.
Here is what Manole Capital Management had to say about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q3 2022 investor letter:
“Back in 2019, The Goldman Sachs Group, Inc. (NYSE:GS) made a splash in the card industry by working with Apple and MasterCard on a credit card. The actual card is fairly sleek (as you can see below), as customers names are etched into an Apple titanium card. The no-fee card generated a lot of hype, as many early users were quick to post their latest card on various social media sites.
The initial goal of Marcus (back in 2016) was to leverage Goldman’s wonderful name brand and build a full-service digital bank. This card was a large piece of GS’s ambitions to grow its retail banking franchise called Marcus. After 5 years, Marcus now has 14 million customers and $16 billion in loan balances. Surprisingly, Marcus now represents nearly 20% of the firm’s total revenue.
We thought it would be interesting to look how the Apple Card is doing in terms of loans and exposures. With over $100 billion in assets, this has been a successful source of cheap deposits for GS. Despite having an institutional / “white shoe” brand in the investment banking and trading world, GS’s Apple Card has been a disappointment.” (Click here to read the full text)
11. Oracle Corporation (NYSE:ORCL)
Fisher Asset Management’s Stake Value: $1,665,342,000
Dividend Yield as of May 16: 1.65%
Oracle Corporation (NYSE:ORCL) is a Texas-based computer software company that specializes in database management systems. KeyBanc lifted its price target on the stock to $105 in April with an Overweight rating on the shares, appreciating the company's IT budget outlook growth for 2023.
On March 9, Oracle Corporation (NYSE:ORCL) declared a 25% hike in its quarterly dividend to $0.40 per share. The company has been raising its dividends for over a decade now and is among top dividend stock picks of billionaire Ken Fisher. As of May 16, the stock has a dividend yield of 1.65%.
At the end of Q1 2023, Fisher Asset Management owned nearly 18 million shares in Oracle Corporation (NYSE:ORCL), valued at over $1.65 billion. The hedge fund has been investing in the company since the fourth quarter of 2011. The company made up 1% of Ken Fisher's portfolio at the end of Q1 2023.
At the end of Q4 2022, 65 hedge funds tracked by Insider Monkey owned stakes in Oracle Corporation (NYSE:ORCL), compared with 67 in the previous quarter. These stakes are collectively worth over $4.3 billion.
Madison Investments mentioned Oracle Corporation (NYSE:ORCL) in its Q1 2023 investor letter. Here is what the firm has to say:
“During the quarter, we established a new position in Oracle Corporation (NYSE:ORCL) as the company’s growth profile has improved from a low single digit revenue growth company to high single digits. The key drivers of improved growth come from the company’s Software-as-a-Service applications and the Oracle Cloud Infrastructure (OCI). Oracle’s software applications power the Enterprise Resource Planning and Human Capital Management functions of large and small-to-medium sized businesses and are growing in the mid-teens. OCI is a differentiated cloud infrastructure provider that is gaining share due to its strong value proposition in speed, performance, and security. In addition, we believe that the company’s operating margins will improve from scale benefits in OCI and cost efficiencies from its recent acquisition of Cerner.”
10. Morgan Stanley (NYSE:MS)
Fisher Asset Management’s Stake Value: $1,695,930,000
Dividend Yield as of May 16: 3.74%
An American multinational investment banking company, Morgan Stanley (NYSE:MS) is one of the top dividend stock picks of billionaire Ken Fisher. During Q1 2023, his hedge fund boosted its position in the company by 2%, and its total MS stakes amounted to nearly $1.7 billion at the end of the quarter. The company represented 1.02% of the firm's 13F portfolio.
Morgan Stanley (NYSE:MS), one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.775 per share. The stock's dividend yield on May 16 came in at 3.74%.
BMO Capital maintained an Outperform rating on Morgan Stanley (NYSE:MS) in April, with a $104 price target, highlighting the company's recent quarterly earnings. The firm appreciated the company's revenue trends during the quarter.
At the end of December 2022, 55 hedge funds tracked by Insider Monkey reported having stakes in Morgan Stanley (NYSE:MS), up from 52 in the previous quarter. The collective value of these stakes is roughly $3 billion. Among these hedge funds, Eagle Capital Management was the company's leading stakeholder in Q4.
Here is what Madison Dividend Income Fund has to say about Morgan Stanley (NYSE:MS) in its Q3 2022 investor letter:
“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)
9. Caterpillar Inc. (NYSE:CAT)
Fisher Asset Management’s Stake Value: $1,721,533,000
Dividend Yield as of May 16: 2.27%
Caterpillar Inc. (NYSE:CAT) is a Texas-based company that specializes in construction and mining equipment. The company currently offers a per-share dividend of $1.20 every quarter for a dividend yield of 2.27%, as of May 16. It has been raising its payouts consistently for the past 28 years, which makes it one of the best dividend stocks on our list.
At the end of Q1 2023, Fisher Asset Management owned $1.7 billion worth of stakes in Caterpillar Inc. (NYSE:CAT). The hedge fund started building its position in the company during the fourth quarter of 2010. CAT made up 1.04% of the firm's 13F portfolio in Q1 of 2023.
As of the close of Q4 2022, 50 hedge funds in Insider Monkey's database owned stakes in Caterpillar Inc. (NYSE:CAT), up from 43 in the previous quarter. The collective value of these stakes is over $5 billion.
Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter. Here is what the firm has to say:
“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”
8. Visa Inc. (NYSE:V)
Fisher Asset Management’s Stake Value: $1,898,753,000
Dividend Yield as of May 16: 0.77%
Visa Inc. (NYSE:V) is a multinational financial services company that specializes in digital payment technology. Following the company's recent quarterly earnings, Barclays raised its price target on the stock to $272 in May and kept an Overweight rating on the shares.
On April 25, Visa Inc. (NYSE:V) declared a quarterly dividend of $0.45 per share, which was consistent with its previous dividend. The company has been growing its dividends consistently for the past 16 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 0.77%, as of May 16.
Visa Inc. (NYSE:V) is one of the top dividend stock picks of billionaire Ken Fisher as his hedge fund owned over 8.4 million shares in the company at the end of Q1 2023. The firm's total stake in the company amounted to roughly $1.9 billion, which represented 1.14% of its 13F portfolio.
At the end of Q4 2022, 177 hedge funds in Insider Monkey’s database owned stakes in Visa Inc. (NYSE:V), compared with 165 in the previous quarter. These stakes are worth over $26.4 billion collectively.
Polen Capital mentioned Visa Inc. (NYSE:V) in its Q1 2023 investor letter. Here is what the firm has to say:
“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.
We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”
7. American Express Company (NYSE:AXP)
Fisher Asset Management’s Stake Value: $2,113,966,000
Dividend Yield as of May 16: 1.60%
American Express Company (NYSE:AXP) is a New York-based financial services company that deals in payment cards. On May 3, the company declared a quarterly dividend of $0.60 per share, the same as in the previous quarter. The company has a 30-year run of paying regular dividends to shareholders. The stock's dividend yield on May 16 came in at 1.60%.
In April, BMO Capital lifted its price target on American Express Company (NYSE:AXP) to $185 and maintained a Market Perform rating on the shares. The firm highlighted the company's moderate growth in the most recent quarter.
At the end of Q1 2023, Fisher Asset Management owned over 12.8 million shares in American Express Company (NYSE:AXP), worth over $2.1 billion. The company is among the top dividend stock picks of billionaire Ken Fisher, representing 1.28% of its 13F portfolio.
At the end of December 2022, 71 hedge funds tracked by Insider Monkey reported having stakes in American Express Company (NYSE:AXP), up from 68 in the preceding quarter. These stakes are collectively valued at over $26.8 billion.
6. Freeport-McMoRan Inc. (NYSE:FCX)
Fisher Asset Management’s Stake Value: $2,206,962
Dividend Yield as of May 16: 0.83%
Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company, headquartered in Arizona. The company pays a quarterly dividend of $0.15 per share and has a dividend yield of 0.83%, as of May 16.
During the first quarter of 2023, Fisher Asset Management increased its position in Freeport-McMoRan Inc. (NYSE:FCX) by 2%. The firm owned total stakes in the company worth over $2.2 billion. It represented 1.33% of the firm's 13F portfolio. In addition to FCX, Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Chevron Corporation (NYSE:CVX) are some other dividend stock picks of billionaire Ken Fisher.
At the end of Q4 2022, 68 hedge funds tracked by Insider Monkey owned stakes in Freeport-McMoRan Inc. (NYSE:FCX), up from 57 in the previous quarter. These stakes have a collective value of over $3.3 billion.
Diamond Hill Capital mentioned Freeport-McMoRan Inc. (NYSE:FCX) in its Q4 2023 investor letter. Here is what the firm has to say:
“Other top contributors during the quarter were copper producer Freeport-McMoRan Inc. (NYSE:FCX) and health care facilities operator HCA Healthcare. With little fundamental news to report, Freeport-McMoRan’s share price advance in Q4 reflected a rebound in copper prices, driven by the recognition that copper inventories are low relative to historical norms. We believe the company continues to have meaningful price and volume leverage in a copper constrained world.”
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Disclosure. None. Billionaire Ken Fisher's Top 15 Dividend Stock Picks is originally published on Insider Monkey.