According to the 13F, Greenblatt trimmed his stake in Raytheon Company (NYSE:RTN) but still owned about 270,000 shares at the beginning of April. The financial community is expecting the aerospace and defense company to be hit hard by spending reductions, and both the trailing and forward P/E are 12. With a yield of 3.3% and a beta of 0.6, however, Raytheon Company (NYSE:RTN) may serve as a potential pick for defensive investors. Earnings seem to be holding up all right so far as well. Winton Capital Management, managed by billionaire David Harding, owned about 720,000 shares at the end of Q1 (research more stocks Winton owns).
The filing disclosed ownership of 2.1 million shares of PDL BioPharma Inc. (NASDAQ:PDLI) at the end of the first quarter of 2013. PDL BioPharma Inc. (NASDAQ:PDLI) is a $1.1 billion market cap owner of patents and other intellectual property in the biotechnology and healthcare space. Markets are not very excited about the company- its earnings multiples are low- and at current prices and dividend levels it pays an annual yield of over 7%. We’d have to consider the business’s future carefully before making a decision, however. Renaissance Technologies, whose founder Jim Simons is now a billionaire, reported a position of over 12 million shares (find Renaissance’s favorite stocks).
Lorillard Inc. (NYSE:LO) rounds out our list of Greenblatt’s dividend stock picks- the value investor increased his holdings by over 300%, to a total of more than 310,000 shares. The cigarette company carries trailing and forward P/Es of 14 and 13, respectively, a discount to many of its peers. Like many cigarette companies, Lorillard Inc. (NYSE:LO) pays a high yield (5%) and has little exposure to the overall economy (at a beta of 0.3). With the most recent quarterly report showing improvement in both revenue and earnings compared to the first quarter of 2012, we think that the company is worth considering.
Disclosure: I own no shares of any stocks mentioned in this article.