David Tepper Stock Portfolio: Top 5 Stock Picks

Below we analyze the David Tepper Stock Portfolio: Top 5 Stock Picks. For our methodology and a more comprehensive list of Tepper’s top stock picks, check out David Tepper Stock Portfolio: Top 10 Stock Picks.

5. Energy Transfer LP (NYSE:ET)

Value of Appaloosa Management‘s 13F Position: $113 Million

Number of Hedge Fund Shareholders: 33

Another energy company kicks off the second half of David Tepper’s top 10 stock picks, in this case Energy Transfer LP (NYSE:ET), which Tepper owns 10.2 million shares of after trimming the position by 1% during Q3. Energy Transfer hasn’t seen the same surge in hedge fund ownership as numerous other energy companies have over the past year, but does boast several prominent bulls, including Tepper and David Abrams’ Abrams Capital Management.

Energy Transfer LP (NYSE:ET)’s results continue to soar despite the company’s relative lack of exposure to higher commodity prices, as the vast majority of its contracts are fixed-price. Trailing twelve month (TTM) revenue has jumped to $88 billion from $39 billion in 2020, while gross profit has climbed by more than $3.2 billion during that timeframe to $13 billion.

The company’s strong income generation allows it to handily support its dividend payments, which currently yield an impressive 8.72%. And given its relative lack of reliance on commodity prices, Energy Transfer LP (NYSE:ET) is one of the safer dividend stocks in the energy industry. ET shares have gained 40% this year but that didn’t stop Chairman Kelcy Warren from buying 1.2 million shares between November 7 and 8 at an average price of $12.35.