Best Buy Co., Inc. (BBY), Barrick Gold Corporation (USA) (ABX) & More: Billionaire Jeffrey Vinik’s 2.5% and Higher Yield Picks

The filing showed that Vinik nearly doubled the size of his position in Packaging Corp Of America (NYSE:PKG) to a total of 1.8 million shares. The $4.3 billion market cap packaging products company pays a dividend yield of 2.8% going by current prices and dividend payments. Revenue and earnings grew at double-digit rates in the fourth quarter of 2012 versus a year earlier, but substantial growth is already priced in given the trailing earnings multiple of 26. Iridian Asset Management, managed by David Cohen and Harold Levy, had 3.4 million shares in its own portfolio according to its 13F.

Vinik cut his stake in International Paper Company (NYSE:IP), the $20 billion market cap paper company with a dividend yield of 2.6%, by 9% but still owned 1.7 million shares of the stock. The paper industry has not been doing too well recently, causing a number of special charges at International Paper Company (NYSE:IP). Wall Street analysts are optimistic, with their earnings expectations implying a forward P/E of 10 and a five-year PEG ratio of 0.4, though this is highly dependent on future improvements on the bottom line. Billionaire Dan Loeb’s Third Point initiated a position between October and December (research more stocks Loeb was buying).

LyondellBasell Industries NV (NYSE:LYB), with a yield of 2.7%, rounds out our list of Vinik’s dividend picks. The $34 billion market cap specialty chemicals company carries trailing and forward P/Es of 12 and 8, respectively, which would put it in value territory if the business could in fact deliver growth over the next couple years. The stock does tend to move in line with broader market indices, with a beta of 2.5. Viking Global, managed by billionaire Andreas Halvorsen and his team, disclosed ownership of 7.5 million shares in its own filing (see more stocks Halvorsen liked).

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