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Ray Dalio, the founder of Bridgewater Associates, grew the company from a two-bedroom apartment in New York to the largest hedge fund by assets under management. Despite a decline in assets under management following Dalio’s retirement in 2022, Bridgewater Associates still maintains its position as the world’s largest hedge fund, with $124 billion in assets as of May 2024.
Bridgewater Associates’ success is attributed to Ray Dalio’s investment strategy of following the macroeconomy rather than the performance of individual stocks. This strategy has allowed the company to maintain exceptional performance in all markets, including during major recessions like that of 2008.
As the U.S. economy comes under pressure due to high inflation, savvy investors are turning to Bridgewater Associates for investment insights. We analyzed its stock portfolio and identified two dividend kings to consider in June 2024.
Procter and Gamble (NYSE:PG), the second-largest consumer goods company in the United States, with a market capitalization of $390.20 billion, is one of Bridgewater Associates’ top picks. The company owns $4.1 million worth of P&G stock as of May 26, 2024. This dividend king has paid growing quarterly dividends for the past 68 years and currently offers an annual dividend yield of 2.44%, top at the sector average yield of 2%.
Walmart Inc. (NYSE:WMT) is another dividend king favored by Bridgewater Associates, which owns about 6.9 million shares worth $414.3 million. Walmart is a giant retail company valued at $526.95 billion, with a strong balance sheet that allows it to maintain dividend payments through all economic cycles, including periods of inflation. The stock has gained more than 20% this year and offers a quarterly dividend of $0.21 per share with a payout ratio of 39.58%.
Consider this alternative with a target yield of 7% to 9%
While these dividend kings make attractive investment options, investors should also consider alternative investments that can offer high returns and diversification. One of these opportunities is the Private credit fund arrived.
The Private Credit Fund offers investors a unique opportunity to invest in short-term loans intended to finance professional real estate projects. These projects may include property renovations, rehabilitations or new home construction managed by experienced real estate professionals. All loans are secured by residential properties, with loan terms ranging from 6 to 36 months, providing investors with an added level of security.
One of the main advantages of the Private Credit Fund is its desire to generate higher cash returns for investors. The fund aims to provide annualized dividends of 7-9%, taking into account all fees and commissions. This higher-yielding, income-driven approach makes the Private Credit Fund an attractive option for investors looking to supplement their stock investments with a reliable income stream.
The fund also prioritizes capital preservation by investing as collateral in loans secured by residential real estate. If a borrower defaults, properties can be seized and sold, providing more avenues for recovery compared to investments without real estate collateral.
Although 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 Private credit fund arrived. By diversifying your portfolio with a mix of dividend-paying stocks and high-yielding real estate debt, you can create a more resilient and balanced approach to generating income in all market conditions.
Photo provided by: World Economic Forum on Flickr
This item 2 Ray Dalio Dividend Stocks to Add to Your Portfolio in June originally appeared on Benzinga.com
