Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Ray Dalio, the founder of Bridgewater Associates, grew the firm from a two-bedroom apartment in New York to the biggest hedge fund by assets under management. Despite a decline in AUM following Dalio’s retirement in 2022, Bridgewater Associates still maintains its position as the largest hedge fund globally, with $124 billion in assets as of May 2024.
Bridgewater Associates’ success is attributed to Ray Dalio’s investment strategy, which involves following macroeconomics rather than the performance of individual stocks. This strategy has enabled the firm to maintain stellar performance in all markets, including major recessions such as the one witnessed in 2008.
With the US economy under pressure from high inflation, savvy investors are turning to Bridgewater Associates for investment insights. We have analyzed its stock portfolio and identified two dividend kings worth considering in June 2024.
Procter and Gamble (NYSE:PG), the second-largest consumer goods company in the US with a market cap of $390.20 billion, is a top pick for Bridgewater Associates. The firm owns $4.1 million shares of P&G as of May 26th, 2024. This dividend king has paid increasing quarterly dividends for the last 68 years and currently offers an annual dividend yield of 2.44%, higher than the industry average yield of 2%.
Walmart Inc. (NYSE:WMT) is another dividend king favored by Bridgewater Associates, which owns around 6.9 million shares worth $414.3 million. Walmart is a behemoth retail corporation valued at $526.95 billion, with a strong balance sheet that allows it to maintain dividend payments in all economic cycles, including inflationary periods. The stock has gained more than 20% this year and offers a quarterly dividend of $0.21 per share at a payout ratio of 39.58%.
Consider This Alternative With a 7% to 9% Target Yield
While these dividend kings are attractive investment options, investors should also consider alternative investments that can provide high yields and diversification. One such opportunity is the Arrived Private Credit Fund.
The Private Credit Fund offers investors a unique opportunity to invest in short-term loans used to finance professional real estate projects. These projects can include property renovations, rehabs, or new home construction managed by experienced real estate professionals. All loans are secured by residential housing, with loan periods ranging from 6 to 36 months, providing investors with an added layer of security.
One of the key advantages of the Private Credit Fund is its focus on generating higher cash returns for investors. The fund aims to provide annualized dividends of 7-9%, factoring in all expenses and fees. This higher-yield, income-focused approach makes the Private Credit Fund an attractive option for investors seeking to complement their equity investments with a reliable income stream.
The fund also prioritizes capital preservation by investing in loans secured by residential property as collateral. In the event of a borrower’s default, the properties can be foreclosed and sold, providing more routes of recovery compared to investments without real estate collateral.
While dividend kings like Procter & Gamble and Walmart are attractive investment options favored by Ray Dalio’s Bridgewater Associates, investors should also consider alternative investments like the Arrived Private Credit Fund. By diversifying your portfolio with a mix of dividend stocks and high-yield real estate debt investments, you can create a more resilient and balanced approach to generating income in any market condition.
Photo courtesy: World Economic Forum On Flickr
This article 2 Ray Dalio Dividend Stocks To Add To Your Portfolio In June originally appeared on Benzinga.com
Source: finance.yahoo.com