Long-Term Winners: Ray Dalio’s Top 3 Stock Recommendations for a Prosperous Future


  • From Bridgewater’s boardroom, Ray Dalio stock picks for challenging times.
  • Coca-Cola (KO): Coca-Cola showcases resilience with $12 billion in revenue, an EPS of 74 cents, and impressive volume growth from a diversified product portfolio, with an alluring 3.3% dividend yield.
  • Johnson & Johnson (JNJ): JNJ’s strategic divestment in Kenvue refocuses on lucrative sectors, boasting a $21.35 billion Q3 revenue and an EPS of $2.66, fortified by a 60-year dividend growth streak.
  • Procter & Gamble (PG): With an EPS that exceeded expectations by 11 cents, P&G’s strategy aims to convert 90% of net earnings into a robust $13.4 billion free cash flow, setting the stage for a promising sales revival in key markets such as China.
Ray Dalio - Long-Term Winners: Ray Dalio’s Top 3 Stock Recommendations for a Prosperous Future

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Amid the intricacies in the investment realm, Ray Dalio stock picks continue to resonate with both budding and seasoned investors. Since he stepped down from active leadership at Bridgewater Associates, Dalio, with his wealth of experience and visionary outlook, has continued to guide its strategy from the boardroom.

His recent warnings about an overbought U.S. stock market after its bull run in the first half of the year shouldn’t be ignored. Citing political and economic risks, he paints a picture of a challenging investment environment. Yet, Dalio’s diversification strategy remains clear, as he emphasized its importance at a recent summit in Singapore, predicting a rapidly evolving global landscape. With that said, let’s take a closer look at Ray Dalio’s stock picks, offering an excellent blend of stability and upside potential.

Ray Dalio Stocks: Coca-Cola (KO)

coca-cola bottles and cans. coke is a blue-chip stocks
Source: Fotazdymak / Shutterstock.com
  • Q2 Addition: 8,214,890 shares

Amid economic waves, Coca-Cola (NYSE:KO) stands as a true emblem of resilience. With its recent financial results blowing past analyst expectations, the beverage giant reported an impressive $12 billion in revenue and an EPS of 74 cents. While grappling with inflationary pressures like many contemporaries, Coca-Cola has effectively raised product prices by 9% compared to the previous year, leading to volume growth in its beverage division. Moreover, the vast array of offerings spanning soft drinks, juices, plant-based beverages, and even coffee and tea – underscores the firm’s adaptability.

Transitioning to a broader outlook, the management’s optimistic projections for the year are evident. It upped the EPS growth forecast to a range of 7% to 8% and lifted the organic revenue growth perspective to between 10% and 11%. Such growth expectations, along with a dazzling dividend yield of 3.3% and a 60-year streak, are reasons why investment titans like Ray Dalio and Warrant Buffet remain bullish. Adding KO stock might not promise instant fireworks, but it offers a slow, steady, and reliable climb.

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.
Source: Alexander Tolstykh / Shutterstock.com
  • Q2 Addition: 3,181,428 shares

As healthcare stalwarts go, Johnson & Johnson (NYSE:JNJ) effortlessly carve a niche, positioning it as a dominant player in the market. The recent unveiling of its third quarter results showcases the firm’s innate ability to defy Wall Street’s estimates. Earnings and revenues both eclipsed expectations, lending credence to the company’s growth strategy. A notable chapter in its growth story was the divestment of its consumer health unit, Kenvue, in August. This savvy maneuver steered JNJ towards amplifying its focus on the more lucrative pharmaceutical and medical devices sectors, leading to an uptick in revenues.

Furthermore, the third quarter painted a buoyant picture for JNJ. It recorded an EPS of $2.66 and garnered sales of $21.35 billion, marking a commendable 6% hike from the preceding year. Furthermore, tweaking its full-year guidance, the firm now anticipates sales fall in the $83.6 billion to $84 billion range, with its EPS nestled between $10.07 and $10.13.

Furthermore, its enduring commitment to shareholders with a remarkable 60-year streak of dividend growth, punctuated by a current yield of 3.14%, epitomizes reliability.

Procter & Gamble (PG)

Source: Jonathan Weiss / Shutterstock.com
  • Q2 Addition: 4,616,315 shares

In the tumultuous financial landscape, Procter & Gamble (NYSE:PG) emerges as a beacon of stability. Its latest first-quarter 2024 results illustrate this mettle with an EPS of $1.83, effortlessly surpassing analyst predictions by 11 cents, underscoring its robust operational muscle. Delving deeper, the CEO’s anticipation of declining commodity prices in fiscal 2024 offers a promising fiscal outlook, with an estimated windfall of $800 million in savings, augmenting profits by an impressive 34 cents.

Its strategic roadmap, aimed at converting a whopping 90% of net earnings into free cash flow, should result in a staggering $13.4 billion in liquidity. This potent cash reservoir effectively fortifies dividend distributions while fueling share repurchase endeavors. Gazing into the near future, P&G is on the cusp of a sales resurgence, catalyzed by relatively easy comps and improved marketing and retail initiatives. With China, its premier market beyond American shores, showcasing promising sales rejuvenation potential, the firm beams with tremendous optimism.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/long-term-winners-ray-dalios-top-3-stock-recommendations-for-a-prosperous-future/.

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