Billionaire Ray Dalio Boosts Dividend Stocks in 2024

Investors eye Bridgewater Associates' latest purchases, including ExxonMobil, Medtronic, and Microsoft, as potential solid dividend shares amid varying market conditions.

Date: 09-09-2024

AI Rating: 6

Earnings Per Share (EPS): The text does not provide any EPS information directly related to the stocks mentioned.

Revenue Growth: Revenue growth is not discussed in the provided text.

Net Income: The analysis does not specifically mention net income figures for ExxonMobil, Medtronic, or Microsoft.

Profit Margins: While the text discusses cash margins for ExxonMobil and competition for Medtronic, detailed profit margin data is not provided.

Free Cash Flow (FCF): No information on free cash flow is mentioned in the text.

Return on Equity (ROE): The text lacks direct details about return on equity for these companies.

However, the content provides valuable insights into three dividend-paying stocks that Bridgewater Associates has recently added to its portfolio. ExxonMobil boasts a competitive dividend yield of 3.29% and a forward P/E ratio of 12.1, reflecting an attractive valuation. Despite a decent yield and a long history of dividend payments, the company is challenged by risks related to its long-term investments in hydrocarbons and the pace of the energy transition.

Medtronic, with a dividend yield of 3.15%, faces competitive pressures in the medical device sector, particularly within its insulin pump line, jeopardizing its market leadership. The company also experiences downside risks linked to Medicare reimbursement pressures, which could negatively impact profitability.

Microsoft presents a modest yield of 0.73% alongside a high growth rate of dividend payouts (7.6% annually). The company has delivered exceptional stock performance (810% excluding dividends over the last decade), driven by strong positions in cloud and software markets. However, Microsoft confronts challenges such as slowing subscription momentum and competition in its key growth areas.

The three stocks—ExxonMobil, Medtronic, and Microsoft—are highlighted as interesting options for income-focused investors, each contributing unique strengths while also facing respective industry-specific risks.

Stocks: XOM MDT MSFT