Billionaire Ken Fisher’s Top Dividend Stocks

Here's why these three high-dividend-paying stocks top Ken Fisher's fund.

Apr 24, 2014 at 4:44PM

Savvy investors like multibillion-dollar fund manager Ken Fisher know that dividends are a great way to obtain healthy doses of income. In today's low-interest-rate environment, these stocks are more important for income investors than ever. Here are three of his top dividend stocks.

HSBC Holdings (NYSE:HSBC) leverages its well-known brand in banking operations spanning more than 80 countries. Its global network enables the U.K.-based company to attract clients with cross-border banking needs. Many of HSBC's operations are in emerging markets, which offer the company growth potential as the trend toward globalization of the financial markets continues. HSBC has decided to focus its investment banking on a few select mature markets and emerging markets with growing populations and wealth, rather than trying to be a large player in all countries. HSBC's recent focus on the mass affluent market through its Premier brand should drive growth, as these customers generate significantly more revenue than the average account-holder. Unlike many of its banking peers, HSBC has paid a solid dividend during the past several years. Its stock currently yields 7.3%, and HSBC has raised its dividend by nearly 140% over the past five years.

General Electric (NYSE:GE) is in the process of revamping operations and getting back to its core business, most recently by trimming GE Capital, its financial-services business. Although GE's transformation to more of a focus on its industrial roots will take time, many benefits await. For example, when GE sells a new engine, it can also benefit by providing maintenance over the life of the equipment. Services and maintenance carry profit margins higher than those of new equipment, and GE's services now account for more than 30% of company revenue. During the most recent quarter, profit from the industrial businesses rose 12% on robust results in the aviation, oil and gas, and power and water divisions, which collectively bring in about 44% of company revenue. A key driver of growth and profit has been strength in emerging markets, such as China and India, which will likely continue as those countries build out infrastructure to handle an increasingly urbanized society. The conglomerate, which announced a 16% dividend increase last year, currently pays shareholders a 3.3% dividend yield.

McDonald's (NYSE:MCD) has undergone a refresh by placing renewed emphasis on brand imaging, launching premium products, offering healthier menu options, and remodeling restaurants. But none of those efforts helped the company side-step declining same-store sales. McDonald's posted negative same-store sales in late 2012, its first negative figure reported in nearly a decade. The fast-food king has since suffered even more sales declines. Slowing global economic growth has partly been to blame, as nearly 70% of company revenue is derived internationally. Yet McDonald's is a master of innovation and experimentation, and opportunities for long-term growth still exist internationally, especially in emerging markets like China. The Golden Arches will add roughly 300 new stores there this year, given the impressive growth potential in the market and the chain's improving brand position there. The company is also overhauling a number of its existing China-based locations, launching a new advertising campaign, and recruiting locals to operate its franchises in China. The typical Chinese consumer's increasing affluence, boosted by higher education and greater personal income, presents upside for the burger maker. McDonald's has raised its dividend every year since it paid its first one in 1976. The company raised its dividend by 5% last year and currently forks over a 3.2% dividend yield to shareholders.

More investing tips from billionaires
Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.

Nicole Seghetti owns shares of General Electric Company. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends McDonald's. The Motley Fool owns shares of General Electric Company and McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers