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Bridgewater Associates is one of the largest and best-performing hedge funds today. Back in 1975, when the fund was founded by Ray Dalio, its office was just a two-bedroom apartment. Now it manages more than $100 billion in global investments and has nearly 1200 employees researching the market and trading in various markets and geographies. Last year, Bridgewater returned 44.8%. It generated a return of 25.3% through the end of August this year despite the financial turmoil in the markets.

We like Ray Dalio and Bridgewater Associates. In this article, we are going to focus on the high dividend stocks in the 13F portfolio of Bridgewater at the end of September. Below we compiled a list of such stocks. All companies have at least $10 billion market cap and dividend yield of over 4%. The market data is sourced from Finviz.

Company Name

Ticker

Value

Activity

Dividend

ISHARES TRUST

LQD

34606

0%

4.44%

PFIZER INC

PFE

22675

85%

4.07%

MERCK & CO INC

MRK

15007

-7%

4.47%

LILLY ELI & CO

LLY

7433

-35%

4.73%

LOCKHEED MARTIN

LMT

6709

-27%

4.95%

ENTERGY CORP

ETR

6139

-20%

4.56%

ALTRIA GROUP

MO

2836

-43%

5.50%

VERIZON

VZ

265

-97%

5.09%

The largest high dividend position in the latest 13F portfolio of Bridgewater is iShares Trust. At the end of September, Bridgewater invested $34.6 million in this position. LQD has a dividend yield of 4.44% and returned 2.10% since the end of September. Ken Fisher’s Fisher Asset Management also invested nearly $700 million in LQD.

Bridgewater also invested $23 million in Pfizer Inc, a global biopharmaceutical company. Over the third quarter, Bridgewater boosted its stakes in PFE by 85%. The stock has a dividend yield of 4.07% and returned 23.60% so far in the fourth quarter, doubling the 11.41% for SPY in the same period. PFE has a market cap of $166B and a P/E ratio of 17.03. Ken Fisher is bullish about PFE as well. Fisher Asset Management reported to own $389 million in the stock at the end of the third quarter.

Another mega-cap high dividend stock in Bridgewater’s portfolio is Merck & Co Inc. At the end of September, Bridgewater had $15 million invested in MRK. The stock has a dividend yield of 4.47% and returned 16.25% since the end of the third quarter. It has a market cap of $114.48B and a P/E ratio of 25.73. Ric Dillon’s Diamond Hill Capital also invested $155 million in MRK at the end of September.

Other high dividend stock picks of Dalio include Lilly Eli & Co, Lockheed Martin Corp, Entergy Corp, Altria Group Inc, and Verizon Communications Inc. High dividend stocks historically provided better returns for investors than the index funds. We think high dividend stocks are the best alternatives to ultra-low yielding long-term Treasuries at the moment. It is very likely that high dividend stocks will outperform the 10-year Treasuries over the next 10 years. One of the best ways of picking high dividend stocks is focusing on the dividend stock picks of successful hedge funds. They generally invest in these stocks for their potential to appreciate significantly. We believe investors may benefit by focusing on Dalio’s dividend stock picks.

Source: 8 High Dividend Stock Picks From Billionaire Ray Dalio