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Billionaire Leon Cooperman’s Favorite Dividend Stocks

#3 Navient Corp (NASDAQ:NAVI)

Shares Owned by Omega Advisors (as of June 30): 7.73 million shares ($140.76 million)

Portion of Omega’s Assets (as of October 16): 1.8%

Current Dividend Yield: 4.83%

Navient Corp (NASDAQ:NAVI) lost a few positions in the list of Omega Advisors’ top holdings and accounts for 1.8% of the hedge fund’s assets as of October 16. The loan management, servicing and asset recovery company has recently announced the approval of a quarterly dividend of $0.16 per share for the fourth quarter. This provides a current dividend yield of 4.83%. The shares of the company are 38% in the red year-to-date, but it is hard to overlook that they are trading at a P/E ratio of 4.92, which makes the stock look attractive. Therefore, the mix of cheap valuation and high dividend makes this stock an attractive opportunity at the moment. D.E. Shaw & Co. L.P., founded by David E. Shaw, held a 8.93 million-share stake in Navient Corp (NASDAQ:NAVI) at the end of June.

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#2 Targa Resources Corp (NYSE:TRGP)

Shares Owned by Omega Advisors (as of June 30): 1.77 million ($157.76 million)

Portion of Omega’s Assets (as of October 16): 1.8%

Current Dividend Yield: 6.63%

Targa Resources Corp (NYSE:TRGP) was among the ten largest holdings in Leon Cooperman’s portfolio at the end of the second quarter, but currently represents the 16th-largest holding and accounts for 1.8% of Omega Advisors’ assets. Just recently, the general partner of one of the largest providers of natural gas and natural gas liquids in the U.S. announced a quarterly cash dividend of $0.91 per share, or an annualized dividend of $3.64 per share, which denotes an increase of 4% quarter-over-quarter and 24% year-over-year. The stock currently has a 6.63% dividend yield. However, the shares of the company have lost 46% year-to-date, mainly due to the challenging energy environment. This stock may represent a safe bet on the energy sector turnaround, considering its rich dividend payments. Clint Carlson’s Carlson Capital owned roughly 434,000 shares of Targa Resources Corp (NYSE:TRGP) at the end of June.

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#1 Chimera Investment Corporation (NYSE:CIM)

Shares Owned by Omega Advisors (as of June 30): 14.13 million shares ($193.68 million)

Portion of Omega’s Assets (as of October 16): 2.3%

Current Dividend Yield: 13.59%

Chimera Investment Corporation (NYSE:CIM) was the seventh-largest equity holding of Omega Advisors on October 16, accounting for 2.3% of its assets. Leon Cooperman’s hedge fund increased its position in the company by 2.09 million shares during the second quarter. A little more than a month ago, the company announced a quarterly cash dividend of $0.48 per share, which generates a whopping current dividend yield of 13.59%. It is also worth pointing out that the stock is trading at a very attractive level at the moment, considering its forward P/E ratio of only 7.10. In fact, the mortgage REIT is one of the cheapest stock picks of Leon Cooperman in terms of forward P/E as of October 16 (read more details). In the meantime, the stock has lost slightly over 11% since the beginning of the year. Israel Englander’s Millennium Management acquired a 4.0 million-share stake in Chimera Investment Corporation (NYSE:CIM) during the second quarter.

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Disclosure: None

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