In this article, we discuss the 10 high dividend stocks to buy according to billionaire Lee Cooperman.
Leon “Lee” Cooperman, the billionaire chief of Omega Advisors, is slowly reducing his positions in the stock market. In an interview to news platform CNBC, Cooperman revealed that he had gone from a “from a fully invested bear to a heavily invested bear”. The investor, whose personal net worth is around $2.5 billion, has made a name for himself in the finance world through long-term bets on value stocks, a strategy that has provided him with record returns. Omega Advisors shut down in 2018 and now operates as a family office.
In September, as the economy was on a downward trend due to inflation concerns, Cooperman had stressed that the conditions for a large-scale decline in the market were not present. The billionaire said that it would take a recession, an unprecedented hike in interest rates from the Federal Reserve, or a significant geopolitical event that led to a decline in the US dollar to bring the market down from recovery mode. It would appear that at least one of these conditions might soon come true, as analysts expect interest rates to rise in 2022.
The storied career of Cooperman is well-known on Wall Street. He rose from a working-class New York household to the manager of one of the most successful hedge funds in the world over three decades. The investor worked for many years at Goldman Sachs, one of the premier investment banks in the world, before retiring to open his hedge fund in 1991. The top holdings of the fund are presently concentrated in the services, healthcare, and basic materials sectors. The top ten stocks in value comprise over 56% of the total portfolio.
Those who want to replicate the incredible success of Cooperman at the market should check out the latest activity of his hedge fund. Some of the top stocks in the investment portfolio of Omega Advisors at the end of the third quarter of 2021 included Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), among others discussed in detail below. The fund had a portfolio value of over $1.8 billion at the end of the third quarter of 2021.
Our Methodology
These were picked from the investment portfolio of Omega Advisors at the end of the third quarter of 2021. Companies that have dividend yields of 3% or more were preferred for the list.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Leon Cooperman of Omega Advisors
High Dividend Stocks to Buy According to Billionaire Lee Cooperman
10. Ventas, Inc. (NYSE:VTR)
Number of Hedge Fund Holders: 23
Forward Dividend Yield: 3.64%
Ventas, Inc. (NYSE:VTR) is a real estate investment trust that focuses on the purchase and management of healthcare properties. Citi analyst Nicholas Joseph recently upgraded the stock to Buy from Neutral with a price target of $63.
The hedge fund of Lee Cooperman entered the fourth quarter of 2021 with 1,342 shares of Ventas, Inc. (NYSE:VTR) in the portfolio worth around $74,000.
At the end of the third quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $464 million in Ventas, Inc. (NYSE:VTR), compared to 25 the preceding quarter worth $562 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Zimmer Partners is a leading shareholder in Ventas, Inc. (NYSE:VTR) with 3.6 million shares worth more than $203 million.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), Ventas, Inc. (NYSE:VTR) is one of the stocks attracting the attention of value investors.
In its Q3 2020 investor letter, Nelson Roberts Investment Advisors, an asset management firm, highlighted a few stocks and Ventas, Inc. (NYSE:VTR) was one of them. Here is what the fund said:
“We trimmed our position in Ventas (NYSE: VTR), reversing a strategic tax loss purchase in taxable accounts. However, we retained a small holding, as Ventas is well-positioned over the long term to benefit from an aging baby boom population.”
9. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 29
Forward Dividend Yield: 7.31%
Energy Transfer LP (NYSE:ET) is an oil and gas storage and transportation company. Omega Advisors, as of the end of September, had over 7 million shares of the company worth $67 million in the portfolio.
In early December, Energy Transfer LP (NYSE:ET) announced that it had completed a previously announced merger with Enable Midstream Partners in a deal worth more than $7.2 billion. The combined firm is expected to generate $100 million annual cost efficiencies.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Appaloosa Management LP is a leading shareholder in Energy Transfer LP (NYSE:ET) with 10 million shares worth more than $96 million.
At the end of the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $727 million in Energy Transfer LP (NYSE:ET), the same as in the preceding quarter worth $835 million.
In its Q1 2021 investor letter, Miller/Howard Investments highlighted a few stocks and Energy Transfer LP (NYSE:ET) was one of them. Here is what the fund said:
“Another upweight was Energy Transfer (ET), which was selling at a discount on EV/ EBITDA compared with the portfolio and had an attractive +20% FCF yield. Further, ET’s ample FCF should exceed the current distribution even if the Dakota Access Pipeline were to be shut down.”
8. Barings BDC, Inc. (NYSE:BBDC)
Number of Hedge Fund Holders: 11
Forward Dividend Yield: 8.29%
In the filings for the third quarter, the fund detailed that it owned 733,439 shares of Barings BDC, Inc. (NYSE:BBDC) worth $8 million, representing 0.42% of the portfolio. Barings is an investment firm headquartered in North Carolina.
In October, investment advisory Oppenheimer initiated coverage of Barings BDC, Inc. (NYSE:BBDC) stock with an Outperform rating and a price target of $12. Analyst Mitchel Penn issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Boston-based firm Callodine Capital Management is a leading shareholder in Barings BDC, Inc. (NYSE:BBDC) with 650,000 shares worth more than $7.1 million.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $46 million in Barings BDC, Inc. (NYSE:BBDC), compared to 15 in the preceding quarter worth $62 million.
7. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 13
Forward Dividend Yield: 8.44%
Arbor Realty Trust, Inc. (NYSE:ABR) is a real estate investment trust with a diverse portfolio of assets. The firm has registered nine consecutive years of dividend increases and recently declared a quarterly dividend of $0.36 per share.
Latest filings show that Omega Advisors is long on more than 2.2 million shares in Arbor Realty Trust, Inc. (NYSE:ABR) worth $42 million, representing 2.22% of the portfolio.
At the end of the third quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $68 million in Arbor Realty Trust, Inc. (NYSE:ABR), compared to 18 in the previous quarter worth $109 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm DE Shaw is a leading shareholder in Arbor Realty Trust, Inc. (NYSE:ABR) with 427,703 shares worth more than $7.9 million.
6. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Forward Dividend Yield: 8.55%
Enterprise Products Partners L.P. (NYSE:EPD) provides energy services to producers and consumers of natural gas and oil. According to latest 13F data, the fund holds a stake in the firm worth more than $10.8 million, consisting of 500,000 shares.
In October, Mizuho analyst Gabriel Moreen raised the price target on Enterprise Products Partners L.P. (NYSE:EPD) stock to $29 from $28 and kept a Buy rating, noting the firm would benefit from the increase in global energy prices.
At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $233 million in Enterprise Products Partners L.P. (NYSE:EPD), compared to 28 in the previous quarter worth $246 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm First Eagle Investment Management is a leading shareholder in Enterprise Products Partners L.P. (NYSE:EPD) with 2.8 million shares worth more than $61 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), Enterprise Products Partners L.P. (NYSE:EPD) is one of the stocks that hedge funds are buying.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Enterprise Products Partners L.P. (NYSE:EPD) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
5. Owl Rock Capital Corporation (NYSE:ORCC)
Number of Hedge Fund Holders: 14
Forward Dividend Yield: 8.86%
Owl Rock Capital Corporation (NYSE:ORCC) is a business development firm based in New York. The firm recently bought a major stake in PCF Insurance Services in a deal that valued the firm at more than $2.2 billion.
The hedge fund of Lee Cooperman entered the fourth quarter of 2021 with more than 112,000 shares of Owl Rock Capital Corporation (NYSE:ORCC) in the portfolio worth more than $1.5 million.
At the end of the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $180 million in Owl Rock Capital Corporation (NYSE:ORCC), compared to 15 the preceding quarter worth $298 million.
4. Chimera Investment Corporation (NYSE:CIM)
Number of Hedge Fund Holders: 16
Forward Dividend Yield: 8.92%
Chimera Investment Corporation (NYSE:CIM) operates as a real estate investment trust. Omega Advisors, as of the end of September, had over 3.3 million shares of the company worth $50 million in the portfolio.
Chimera Investment Corporation (NYSE:CIM) posted earnings for the third quarter in early November, reporting earnings per share of $0.42, beating estimates by $0.05. The revenue over the period was $149 million, up 21% year-on-year.
At the end of the third quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $155 million in Chimera Investment Corporation (NYSE:CIM), the same as in the preceding quarter worth $105 million.
3. First Eagle Alternative Capital BDC, Inc. (NASDAQ:FCRD)
Number of Hedge Fund Holders: 5
Forward Dividend Yield: 8.93%
In the filings for the third quarter, Cooperman’s fund detailed that it owned 2.1 million shares of First Eagle Alternative Capital BDC, Inc. (NASDAQ:FCRD) worth $9.3 million, representing 0.49% of the portfolio. First Eagle is a business development firm.
First Eagle Alternative Capital BDC, Inc. (NASDAQ:FCRD) has a market cap of $134 million and posted over $29 million in revenue last year. The company is headquartered in Boston and was founded in 2009.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in First Eagle Alternative Capital BDC, Inc. (NASDAQ:FCRD) with 193,129 shares worth more than $852,000.
2. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Fund Holders: 10
Forward Dividend Yield: 10.94%
Ellington Financial Inc. (NYSE:EFC) purchases and manages mortgage-based financial assets. The firm has been paying dividends consistently for the last decade and recently declared a monthly dividend of $0.15 per share, in line with previous.
Latest filings show that Omega Advisors is long on more than 760,000 shares in Ellington Financial Inc. (NYSE:EFC) worth $13.9 million, representing 0.73% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Ellington Financial Inc. (NYSE:EFC) with 1.1 million shares worth more than $21 million.
1. Falcon Minerals Corporation (NASDAQ:FLMN)
Number of Hedge Fund Holders: 19
Forward Dividend Yield: 13.84%
Falcon Minerals Corporation (NASDAQ:FLMN) owns mineral, royalty, and overriding royalty interests in oil and natural gas properties. According to latest 13F data, the fund holds a stake in the firm worth more than $8.2 million, consisting of over 1.7 million shares.
In October, Piper Sandler analyst Pearce Hammond raised the price target on Falcon Minerals Corporation (NASDAQ:FLMN) stock to $6.5 from $5 and kept an Overweight rating, noting the mineral sector was an “attractive yield vehicle” amid high energy prices.
At the end of the third quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $43 million in Falcon Minerals Corporation (NASDAQ:FLMN), compared to 25 in the preceding quarter worth $42 million.
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Disclosure. None. 10 High Dividend Stocks to Buy According to Billionaire Lee Cooperman is originally published on Insider Monkey.
