FL, PKG, SKM, CCJ, IP: Billionaire Jeffrey Vinik’s Big Dividend Bets

Page 1 of 2

VINIK ASSET MANAGEMENTDividends are a key part of returns, and we have found five dividend-paying stocks that billionaire Jeffrey Vinik loves. In the mid-nineties, Vinik ran Fidelity’s Magellan Fund, returning 17% annually. Vinik left Fidelity to start Vinik Asset Management shortly thereafter, and following a few years of stellar returns, Vinik returned capital to investors in 2000. He now primarily manages just the assets of close friends and family (check out Jeffrey Vinik’s newest stock picks).

International Paper Company (NYSE:IP) is a global paper company that pays a dividend yielding 3.3%. Although it trades near the high end of the paper industry at 19x earnings, its forward P/E of 11x makes the company very attractive from a valuation standpoint. After a 500% share ownership increase, International Paper is now the 12th largest 13F holding for Vinik. Compared to other top paper company Domtar, International trades well above its peer’s 13x P/E, but International Paper’s dividend yield is more than one full percentage point higher than Domtar’s. Steven Cohen, another hedge fund billionaire, was bullish on International Paper in 3Q, increasing his stake over 200% (see Steven Cohen’s newest picks here).

Cameco Corporation (NYSE:CCJ) is a new pick that now sits at Vinik’s 10th largest 13F holding. The company is a developer, producer and seller of uranium for use in nuclear reactors. Cameco trades at 15x trailing earnings and only 13x forward earnings, making it an interesting play in the mining industry. The uranium company also pays a 2.2% dividend yield. Cameco expects an improvement in the average realized uranium price due to the advantageous mix of its contracts, which should help counter an industry-wide slowing in nuclear reactor construction. Sell-side analysts expect Cameco to grow its earnings at a 10% CAGR over the next half-decade.

SK Telecom Co., Ltd. (NYSE:SKM) is a Korean wireless telecom provider that pays a robust dividend yield of 5.8%. SK was also a new pick for Vinik in 3Q, and is the 24th largest holding in Vinik’s 13F portfolio. SK trades the cheapest amongst its telecom peers at 13x trailing earnings and trades at only 8x forward earnings. After 2% revenue growth in 2011, SK is forecasted to increase revenues by 2.2% this year, and a whopping 4.9% in 2013. This top line expansion will be driven by continued growth of Long Term Evolution (LTE) subscribers, with SK having 6 million LTE customers at the end of October. The company expects to break the 7 million-mark by the end of this year. Beyond its Korean operations, SK has plans to diversify with investments in Greater Asia and North America.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!