Billionaire Richard Chilton’s 3% Yield And Higher Picks Include McDonald’s Corporation (MCD)

Potash Corp./Saskatchewan (USA) (NYSE:POT), a fertilizer manufacturer which recently increased its quarterly dividend payment, was another of Chilton’s dividend stock picks. The annualized yield is now 3.5%. Potash Corp./Saskatchewan (USA) (NYSE:POT) delivered double-digit growth rates on both top and bottom lines in its most recent quarter compared to the same period in the previous year, and with a trailing P/E of 16 we think that it is worth considering- future growth at similar rates would leave the stock undervalued. Our database shows Phil Gross and Robert Atchinson’s Adage Capital Management owning over 10 million shares at the end of the quarter.

Diversified consumer products company Unilever N.V. (ADR) (NYSE:UN) also makes our list, with the filing disclosing ownership of over 1 million shares. Unilever N.V. (ADR) (NYSE:UN) has also managed to increase both its revenue and earnings going by recent reports, and also carries a dividend yield of 3.5%. At a market cap of $110 billion, the trailing and forward P/E multiples clock in at 19 and 16 respectively. Gardner Russo & Gardner was the largest shareholder in Unilever out of the investors we track, with 8.9 million shares in its portfolio (research more stocks Gardner Russo & Gardner likes).

Chilton was a buyer of Wells Fargo & Co (NYSE:WFC) between January and March, increasing his stake to a total of 1.1 million shares. The bank is known as the largest holding in Berkshire Hathaway’s portfolio, as Warren Buffett and his team have liked the stock as well (see Buffett’s stock picks). Wells Fargo & Co (NYSE:WFC) is valued at a substantial premium to the book value of its equity, with a P/B ratio of 1.4, but management has been able to deliver enough earnings out of these assets that the earnings multiples are competitive with those of other large banks. At current prices and dividend levels, Wells Fargo’s dividend yield is 3%.

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