Five Favorite Dividend Stocks of Billionaire Mario Gabelli

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On the other hand, GAMCO boosted its position in AT&T Inc. (NYSE:T) during the third quarter. The fund reported holding 4.34 million shares, which indicate an addition of 4.24 million shares, while the total value of the stake stood at $141.41 million at the end of September. However, the increase came on the back of AT&T’s acquisition of DirecTV, which was GAMCO’s top holding at the end of June, containing 3.43 million shares. Under the terms of the acquisition, shareholders of DirecTV received 1.892 shares of AT&T Inc. (NYSE:T) and $28.50 in cash for each share of the acquired company. Still, the fact that GAMCO decided to stick to most shares of AT&T Inc. (NYSE:T) received in exchange for DirecTV shows that the investor sees some more potential for the stock. Meanwhile, the company pays a dividend of $0.47, which gives the stock a yield of 5.61%. During the second quarter, billionaires Jim Simons and Steve Cohen initiated stakes in AT&T.

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Then there is GATX Corporation (NYSE:GMT), whose stock sports a dividend yield of 3.25%. As a railcar lessor, GATX’s stock has declined by 18% since the beginning of the year, as lower oil and other commodity prices reduced the demand for rail transportation. At a forward P/E of 9.3, the stock is cheap and will generate substantial profit when the commodity prices rebound. Meanwhile, GAMCO reduced its stake in GATX Corporation (NYSE:GMT) by 188,044 shares and reported ownership of 3.17 million shares worth $140.10 million. Charles Paquelet’s Skylands Capital is another shareholder of GATX Corporation (NYSE:GMT), holding 397,600 shares as of the end of September.

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Finally General Mills, Inc. (NYSE:GIS) represents the fifth and the last stock in our compilation as GAMCO reported holding 2.48 million shares of the company worth $139.15 million. General Mills pays a dividend of $0.44, which gives the stock a yield of 3.03%. In an interview on Fox Business Network at the beginning of October, Mario Gabelli named General Mills, Inc. (NYSE:GIS) as one of his favorite companies. At a forward P/E of nearly 20.0, the stock might seem a bit expensive, but as a consumer defensive stock it represents a good long-term bet. Billionaire Ken Griffin’s Citadel Investment Group held 1.41 million shares of General Mills, Inc. (NYSE:GIS) at the end of June.

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Disclosure: none

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