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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!