In reviewing billionaire Steve Cohen and SAC Capital’s big shakeups last quarter, we at Insider Monkey found five dividend stocks that Cohen and his $14 billion hedge fund own. A couple of them are under-the-radar stocks and could be great additions to anyone looking to add an income and growth stock to their portfolio.
One of Cohen’s largest positions — 14th in his 4Q portfolio — is the dividend paying oil and gas company Occidental Petroleum Corporation (NYSE:OXY), which pays a 3.2% dividend yield.
Last quarter, Occidental Petroleum Corporation (NYSE:OXY) managed to beat estimates thanks to stronger sales and higher fuel prices. This marks the third quarter in a row that the company surpassed expectations. It also has a relatively strong balance sheet, with a debt-to-capital ratio of only 16%.
The oil and gas company also managed to generate $11.3 billion in cash flow from operations last quarter, while spending $10.2 billion on capital expenditures.
The other positive for the company is its greater exposure to the higher-margin upstream business after re-positioning itself by divesting its non-core assets. Now the company has a higher weighting toward low-risk and longer-reserve-life properties. Occidental Petroleum Corporation (NYSE:OXY) also happens to be one of billionaire T. Boone Pickens’ newest additions.
The other of Cohen’s major oil-and-gas dividend payers is Petroleo Brasileiro Petrobras SA (NYSE:PBR), paying the highest dividend of the five at a 5.9% yield. Petroleo Brasileiro Petrobras SA (NYSE:PBR) is a Brazil-based company and the largest publicly-traded Latin American oil company. It produces nearly all of Brazil’s crude oil and natural gas, making the company a semi-monopoly in Brazil.
Petroleo Brasileiro Petrobras SA (NYSE:PBR) managed to post a decent fourth quarter after missing expectations horribly in the 2Q and 3Q. Higher expected fuel prices and a development pipeline that includes various exploration successes are all tailwinds for the company.
EnCana Corporation (USA) (NYSE:ECA) also pays a sturdy dividend yield at 4.2%. EnCana Corporation (USA) (NYSE:ECA) is a North American energy producer, including the transportation and marketing of natural gas, oil and natural gas liquids (NGLs). The company also has one of the largest natural gas resource portfolios in North America.
It should perform nicely over the long-term as demand for natural gas rises, but the weakness in current natural gas prices appears to have provided a solid buying opportunity.
Meanwhile, the company has been focusing on increasing its liquids exposures, as well as taking an active stake in the up-and-coming areas, such as the Horn River Basin in northeastern British Columbia and the Haynesville shale across Texas and Louisiana.