In this article, we discuss the 11 best high dividend stocks to buy according to billionaire Cooperman. If you want to skip our detailed analysis of Cooperman’s history, investment philosophy, and hedge fund performance, go directly to the 5 Best High Dividend Stocks To Buy According To Billionaire Cooperman.
Leon Cooperman is an American hedge fund manager and a self-made billionaire, who serves as the chairman and chief executive officer of Omega Advisors, an investment advisory firm in New York, that Cooperman founded in 1991.
Cooperman came from extremely humble beginnings, with his parents being Polish immigrants, and Cooperman being the first person in his family to pursue a college degree. He graduated from Hunter College with a Bachelor’s degree, after which Cooperman started his career as a quality control engineer in 1965 at Xerox Holdings Corporation (NASDAQ:XRX). Later, he enrolled in Columbia Business School for an MBA, graduating in 1967.
Cooperman started working at The Goldman Sachs Group, Inc. (NYSE:GS) right after completing his MBA, and stayed with the organization for 25 years. He served in multiple roles at The Goldman Sachs Group, Inc. (NYSE:GS), including partner-in-charge of the investment research department, co-chairman of the investment policy committee, and chairman of the stock selection committee.
In 1989, Cooperman was appointed as the chairman and CEO of Goldman Sachs Asset Management, where he was also the chief investment officer and managed the GS Capital Growth Fund.
Leon Cooperman is a notable philanthropist, in addition to being a legendary hedge fund manager. He joined The Giving Pledge, an organization created by wealthy families around the world, in 2010. He has announced that a major part of his wealth will be distributed amongst select charities posthumously.
Some of the most famous stocks in Cooperman’s portfolio include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Facebook, Inc. (NASDAQ:FB), among others.
Our Methodology
With this context in mind, let’s discuss 11 best high dividend stocks to buy according to billionaire Cooperman. The stocks are ranked according to their dividend yield. These stocks were picked from the Q2 portfolio of the billionaire.
Why pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best High Dividend Stocks To Buy According To Billionaire Cooperman
11. Devon Energy Corporation (NYSE:DVN)
Omega Advisors’ Stake Value: $91,075,000
Percentage of Omega Advisors’ 13F Portfolio: 5.11%
Dividend Yield: 3.08%
Number of Hedge Fund Holders: 50
Devon Energy Corporation (NYSE:DVN) is an American energy, oil, and natural gas corporation focused on hydrocarbon exploration. Devon Energy Corporation (NYSE:DVN)’s operational facilities are located in five areas: the Delaware Basin, Eagle Ford, Anadarko Basin, Powder River Basin and Williston Basin.
Cooperman’s Omega Advisors owns 3.12 million shares in Devon Energy Corporation (NYSE:DVN), valued at $91.07 million, representing 5.11% of Cooperman’s 13F portfolio.
Truist analyst Neal Dingmann kept a Buy rating on Devon Energy Corporation (NYSE:DVN), raising the price target to $52 from $42.
Jonathan Dawson’s Southport Management is the leading stakeholder in Devon Energy Corporation (NYSE:DVN), with stakes worth $1.2 billion. Overall, 50 hedge funds were bullish on Devon Energy Corporation (NYSE:DVN) at the end of June, down from 52 in Q1.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
10. NRG Energy, Inc. (NYSE:NRG)
Omega Advisors’ Stake Value: $27,404,000
Percentage of Omega Advisors’ 13F Portfolio: 1.43%
Dividend Yield: 3.20%
Number of Hedge Fund Holders: 33
NRG Energy, Inc. (NYSE:NRG) is a Texas-based company focused on energy generation and retail electricity. Their expertise extends to natural gas generation, coal generation, oil generation, nuclear generation, wind generation, utility scale generation, and distributed solar generation. With more than 40 power plants across the US, NRG Energy, Inc. (NYSE:NRG) serves customers in Texas, Connecticut, Delaware, Illinois, Maryland, and more.
Cooperman owns a stake of $27.4 million in NRG Energy, Inc. (NYSE:NRG), with the stock accounting for 1.43% of the billionaire’s 13F portfolio.
Pzena Capital Management owns the largest stake in NRG Energy, Inc. (NYSE:NRG), valued at roughly $573 million. Out of the hedge funds tracked by Insider Monkey at the end of June, 33 were long NRG Energy, Inc. (NYSE:NRG), down from 35 in the previous quarter.
NRG Energy, Inc. (NYSE:NRG) is one of the best stocks to purchase according to Cooperman’s Q2 portfolio, just like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Facebook, Inc. (NASDAQ:FB).
9. Falcon Minerals Corporation (NASDAQ:FLMN)
Omega Advisors’ Stake Value: $8,328,000
Percentage of Omega Advisors’ 13F Portfolio: 0.46%
Dividend Yield: 6.03%
Number of Hedge Fund Holders: 25
With a dividend yield of 6.03%, Falcon Minerals Corporation (NASDAQ:FLMN) is one of the best high dividend stocks to purchase according to Leon Cooperman. Falcon Minerals Corporation (NASDAQ:FLMN) is an oil, gas, and minerals company which has mineral rights claims in the “core-of-the-core” of the South Texas Eagle Ford Shale, which is one of the best and top quality US oil basins.
At the end of June, 25 hedge funds tracked by Insider Monkey reported owning stakes in Falcon Minerals Corporation (NASDAQ:FLMN), up from 21 in the previous quarter.
On October 13, Pearce Hammond, a Piper Sandler analyst, kept an Overweight rating on Falcon Minerals Corporation (NASDAQ:FLMN), with a price target of $6.5, up from $5.
Falcon Minerals Corporation (NASDAQ:FLMN) is a top stock choice by Leon Cooperman as of the end of Q2, much like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Facebook, Inc. (NASDAQ:FB).
8. Energy Transfer LP (NYSE:ET)
Omega Advisors’ Stake Value: $71,620,000
Percentage of Omega Advisors’ 13F Portfolio: 4.02%
Dividend Yield: 6.06%
Number of Hedge Fund Holders: 29
Energy Transfer LP (NYSE:ET) is a Texas-based company specializing in natural gas and propane pipeline support. Energy Transfer LP (NYSE:ET) owns major stakes in several pipelines across the US, including Dakota Access Pipeline, Bayou Bridge Pipeline, Florida Gas Transmission Pipeline, and Trunkline Pipeline, among others.
Cooperman owns a $71.6 million stake in Energy Transfer LP (NYSE:ET), which accounts for 4.02% of his 13F portfolio. Abrams Capital Management, headed by David Abrams, is the biggest stakeholder in Energy Transfer LP (NYSE:ET), owning stakes worth $235.1 million.
Energy Transfer LP (NYSE:ET) is one of the recommended stock picks by Cooperman at the end of Q2, like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Facebook, Inc. (NASDAQ:FB).
Miller Value Partners mentioned Energy Transfer LP (NYSE:ET) in its Q2 2021 investor letter. Here is what they said:
“Energy Transfer LP (ET)rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Core of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash f low to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”
7. Arbor Realty Trust, Inc. (NYSE:ABR)
Omega Advisors’ Stake Value: $42,177,000
Percentage of Omega Advisors’ 13F Portfolio: 2.36%
Dividend Yield: 6.82%
Number of Hedge Fund Holders: 18
Arbor Realty Trust, Inc. (NYSE:ABR) is a New York-based commercial and multifamily REIT that specializes in in-house loan servicing, and arranging real estate loans for clients with partners including Fannie Mae and Freddie Mac.
Leon Cooperman owns 2.36 million shares in Arbor Realty Trust, Inc. (NYSE:ABR), worth $42.1 million, which represents 2.36% of his 13F portfolio.
David Costen Haley’s HBK Investments holds a $57.3 million stake in Arbor Realty Trust, Inc. (NYSE:ABR), being the company’s leading stakeholder. Overall, 18 hedge funds were bullish on Arbor Realty Trust, Inc. (NYSE:ABR) at the end of Q2, down from 21 in the previous quarter.
Arbor Realty Trust, Inc. (NYSE:ABR) is a notable stock in Cooperman’s Q2 portfolio, like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Facebook, Inc. (NASDAQ:FB).
6. Barings BDC, Inc. (NYSE:BBDC)
Omega Advisors’ Stake Value: $11,947,000
Percentage of Omega Advisors’ 13F Portfolio: 0.67%
Dividend Yield: 6.97%
Number of Hedge Fund Holders: 15
Barings BDC, Inc. (NYSE:BBDC) is a business development company that targets middle market companies for debt investments. Barings BDC, Inc. (NYSE:BBDC) is managed by the premier hedge fund, Barings, LLC, which has more than $387 billion in assets under management. Barings BDC, Inc. (NYSE:BBDC) primarily invests in public equities, private credit, real estate, and private equity. Barings BDC, Inc. (NYSE:BBDC) has a dividend yield of 6.97%, making it one of the highest ranking dividend stocks in Cooperman’s investment portfolio.
Cooperman holds a stake worth $11.97 million in Barings BDC, Inc. (NYSE:BBDC), which accounts for 0.67% of his 13F portfolio. Arrow Street Capital is the largest stakeholder in Barings BDC, Inc. (NYSE:BBDC), with 1.33 million shares amounting to $14.07 million. Overall, 15 hedge funds reported owning stakes in Barings BDC, Inc. (NYSE:BBDC) at the end of June.
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Disclosure: None. 11 Best High Dividend Stocks To Buy According To Billionaire Cooperman is originally published on Insider Monkey.
