Billionaire Carl Icahn’s Favorite Dividend Stocks: Xerox Corp (XRX), American International Group Inc (AIG) & More

#3 CVR Energy, Inc. (NYSE:CVI)

– Annual Dividend: $2.00

– Dividend Yield: 12.94%

CVR Energy is one of Carl Icahn’s largest bets in the energy sector, with Icahn Capital having indicated ownership of 71.2 million shares at the end of the second quarter, unchanged from the previous quarter. According to the fund’s latest 13F filing, this position’s value was estimated at $1.1 billion. CVR Energy, Inc. (NYSE:CVI) stock has been hit hard by the slump in commodities markets, having fallen 68% since the $48.37 high in November 2015. The company’s revenue stream is composed of payments from its two refining and natural gas subsidiary partnerships. Both ventures have had to deal with falling prices, reduced demand and higher costs due to increased regulation. At the end of June, roughly 84% of CVR Energy, Inc. (NYSE:CVI)’s common stock was held by 16 of the funds followed by Insider Monkey, down from 18 funds that held shares at the end of March. Billionaire Ken Griffin made a big bullish play on this stock, having increased his fund’s position by 173% to 223,163 shares worth $3.46 million at the end of the quarter.

#2 American International Group Inc (NYSE:AIG)

– Annual Dividend: $1.28

– Dividend Yield: 2.18%

Carl Icahn is still bullish on AIG, as the company is putting the finishing touches on its turnaround. During the second quarter, Icahn Capital’s stake in the insurance giant has been increased by 3% to 45.6 million shares worth close to $2.41 billion. One of the most popular stocks among the funds in our database, American International Group Inc (NYSE:AIG) could be found in the portfolios of 85 hedge funds at the end of June, down from 94 registered a quarter before. Harris Associates, run by Natixis Global Asset Management, also held a sizable position at the end of June, having reported ownership of 32.1 million shares, down 10% from the previous quarter. So far this year, American International Group Inc (NYSE:AIG) stock’s performance has been disappointing, as it failed to regain the ground lost during the market selloff at the beginning of the year. Shares have ended Monday’s trading session at $58.99 apiece, down 2.7% for the year. At a recent conference, AIG Commercial CEO Rob Schimek said his division is considering a takeover in the region of “low billions or hundreds of millions” to generate growth. This claim is in stark contrast with Carl Icahn’s demands to split the company into three separate entities in order to unlock shareholder value.

#1 Icahn Enterprises LP (NASDAQ:IEP)

– Annual Dividend: $6.00

– Dividend Yield: 11.96%

Carl Icahn’s number one dividend stock, and also his fund’s top equity positions, is his own holding company. According to the latest regulatory filing, Icahn Capital holds 123 million shares of Icahn Enterprises LP (NASDAQ:IEP), up by 5% during the quarter, valued at $6.67 billion. Hedge fund sentiment towards Icahn Enterprises was unchanged during the quarter, with the same 6 funds having reported a stake in the company in their latest 13F filings. Jim Simons‘ Renaissance Technologies was among the funds invested in Icahn Enterprises, having indicated ownership of 25,842 shares at the end of June, down 57% for the quarter. Carl Icahn has recently reached a deal to acquire the remaining 18% stake in auto-parts maker Federal-Mogul Holdings Corp (NASDAQ:FDML) and make it a division of Icahn Enterprises LP (NASDAQ:IEP). Icahn had initially offered $7 per share but upped his offer to $8 per unit and finally to $9.25 apiece. This deal is part of a broader strategy in the auto-part industry, with Icahn Enterprises having completed the $340 million takeover of Auto Plus, the U.S. division of Canadian parts distributor Uni Select Inc in June 2015 and the $1 billion acquisition of Pep Boys – Manny Moe & Jack earlier this year.

Disclosure: none.