Billionaire Seth Klarman’s Top 5 Dividend Stock Picks

In this article, we discuss top 5 dividend stocks to buy according to billionaire Seth Klarman. If you want to read our detailed analysis of Klarman’s investment strategy and overall performance of Baupost Group, go directly to read Billionaire Seth Klarman’s Top 9 Dividend Stock Picks. 

5. Encompass Health Corporation (NYSE:EHC)

Baupost Group’s Stake Value: $133,429,000
Dividend Yield as of November 15: 1.05%

Encompass Health Corporation (NYSE:EHC) is one of America’s largest providers of post-acute healthcare services and also offers other healthcare services to its patients. In October, Raymond James raised its price target on the stock to $72 with a Strong Buy rating on the shares, highlighting the company’s Q3 earnings beat. The firm also appreciated the company’s announcement of bonuses and improving contract labor.

Baupost Group started investing in Encompass Health Corporation (NYSE:EHC) during the fourth quarter of 2021, purchasing shares worth over $46.7 million. At the end of Q3 2022, the hedge fund owned roughly 3 million EHC shares, worth over $133.4 million. The company represented 2.3% of billionaire Seth Klarman’s portfolio.

Encompass Health Corporation (NYSE:EHC) currently pays a quarterly dividend of $0.15 per share and has a dividend yield of 1.05%, as of November 15.

At the end of Q2 2022, 34 hedge funds in Insider Monkey’s database owned stakes in Encompass Health Corporation (NYSE:EHC), down from 48 in the preceding quarter. These stakes are valued at $645.5 million.