In this article we will take a look at the 5 best dividend stocks to buy according to billionaire David Tepper. If you want to read our detailed analysis of Tepper’s history and his hedge fund’s returns, go to 10 Best Dividend Stocks to Buy According to Billionaire David Tepper.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at David Tepper’s top dividend picks:
5. ViacomCBS Inc. (NASDAQ: VIAC)
Tepper’s Stake Value: $155,370,000
Percentage of David Tepper’s 13F Portfolio: 2.23%
Dividend Yield: 2.27%
No. of Hedge Fund Holders: 89
ViacombCBS Inc. (NASDAQ: VIAC) is an American mass media company that ranks 5th on our list of the 10 best dividend stocks to buy according to billionaire David Tepper. The company was formed from a merger of CBS Corporation and Viacom in 2019.
ViacombCBS Inc. (NASDAQ: VIAC) has a market cap of $27 billion and the stock gained 14.23% year to date. Its dividend yield is 2.27% so far, or $0.96 a share. Like Micron Technology, Inc. (NASDAQ: MU), Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), and Alphabet Inc (NASDAQ: GOOG), ViacombCBS Inc. (NASDAQ: VIAC) is a good stock pick from Appaloosa Management’s portfolio.
4. Sysco Corporation (NYSE: SYY)
Tepper’s Stake Value: $91,142,000
Percentage of David Tepper’s 13F Portfolio: 1.3%
Dividend Yield: 2.37%
No. of Hedge Fund Holders: 42
Sysco Corporation (NYSE: SYY) is an American wholesale company. It ranked 4th on our list of Tepper’s top 10 dividend stock picks, and works on marketing and distributing food products, small wares, kitchen equipment, and tabletop items. Sysco Corporation (NYSE: SYY) mostly works on selling the above products to restaurants, healthcare, and educational institutions.
The stock has gained 9.14% year to date and has a market cap of $40.4 billion. Despite this, Appaloosa Management reduced its stake in Sysco Corporation (NYSE: SYY) in Q121, making the stock 1.3% of the hedge fund’s portfolio.
3. Chesapeake Energy Corporation (NASDAQ: CHK)
Tepper’s Stake Value: $161,788,000
Percentage of David Tepper’s 13F Portfolio: 2.32%
Dividend Yield: 2.48%
No. of Hedge Fund Holders: 42
Chesapeake Energy Corporation (NASDAQ: CHK) is a gas industry company based in the US. The company works in hydrocarbon exploration and is headquartered in Oklahoma. It ranks 3rd on our list of the top 10 dividend stock picks of David Tepper.
2. Energy Transfer LP (NYSE: ET)
Tepper’s Stake Value: $175,260,000
Percentage of David Tepper’s 13F Portfolio: 2.51%
Dividend Yield: 5.62%
No. of Hedge Fund Holders: 25
Energy Transfer LP (NYSE: ET) is a gas industry company with headquarters in Dallas, Texas. The company ranks 2nd on our list of the 10 best dividend stocks to buy according to billionaire David Tepper.
Energy Transfer LP (NYSE: ET) gained 81.07% year to date and currently has a market value of approximately $29.9 billion.
1. Enterprise Products Partners L.P. (NYSE: EPD)
Tepper’s Stake Value: $71,253,000
Percentage of David Tepper’s 13F Portfolio: 1.02%
Dividend Yield: 7.23%
No. of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE: EPD) is a US-based midstream natural gas and crude oil pipeline company. The company acquired GulfTerra in 2004 and ranked 105th in the 2018 Fortune 500 list of the largest American corporations by total revenue. Enterprise Products Partners L.P. (NYSE: EPD) ranks 1st on our list of the top 10 dividend stock picks by David Tepper.
Enterprise Products Partners L.P. (NYSE: EPD) released its last earnings report a month ago, and since then its shares had added 3.9% as of June 2nd. The stock thus managed to outperform the S&P 500 and currently has 12 ‘By’ recommendations from trading analysts.
Enterprise Products Partners L.P. (NYSE: EPD) gained 29.57% year to date and has a market value of $54.6 billion.
See also: 10 Best Dividend Stocks Under $20 and 10 Best Healthcare Dividend Stocks.
