Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Ameren Corp (AEE), Duke Energy Corp (DUK) Among Billionaire Israel Englander’s +3.5% Yielders

Michigan-based electric and gas utility CMS Energy Corporation (NYSE:CMS) was another high-yielding stock in Millennium’s portfolio (the dividend yield is 3.6%) although the fund was selling shares between October and December. The trailing earnings multiple of 20 is high, although CMS Energy Corporation (NYSE:CMS)’s net income did increase considerably in percentage terms in its last quarterly report compared to the fourth quarter of 2011 and we suppose it’s possible that trend will continue in the short term. Adage Capital Management, managed by Phil Gross and Robert Atchinson, increased its holdings by 24% to a total of over 2 million shares.

According to the 13F, Englander increased its stake in Duke Energy Corp (NYSE:DUK) to about 750,000 shares over the course of Q4 2012. At a market capitalization of $51 billion, Duke Energy Corp (NYSE:DUK) is one of the largest publicly traded U.S. utilities- potentially giving it more stability as a company- and like many other companies in the industry its beta is low and its yield is high (4.2% in this case). Duke Energy Corp (NYSE:DUK) operates in a number of geographies in the southeastern United States with an international segment as well. First Eagle Investment Management was another major shareholder in Duke Energy Corp (NYSE:DUK) at the end of 2012 (find First Eagle’s favorite stocks).

Millennium disclosed ownership of 1.1 million shares of American Electric Power Company, Inc. (NYSE:AEP) in its filing. American Electric Power pays a dividend yield of a little under 4%. Its earnings plunged in the fourth quarter of 2012 versus a year earlier, bringing the stock’s valuation to 19 times the company’s trailing earnings, but the sell-side expects business to recover and so the forward P/E is only 15. Cliff Asness’s AQR Capital Management increased the size of its position in American Electric Power Company, Inc. (NYSE:AEP) by 19% to 1.2 million shares (see more stocks Asness was buying).

Disclosure: I own no shares of any stocks mentioned in this article.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.