Dow Chemical (DOW), Chimera Investment (CIM) Among Billionaire Leon Cooperman’s Favorite Dividend Stocks

#3 Chimera Investment Corporation (NYSE:CIM)

– Annual Dividend: $1.92

– Dividend Yield: 12.08%

Another real estate investment trust, the same story. Omega Advisors’ stake in Chimera Investment Corporation was reduced by 43% during the second quarter to 5.59 million shares reportedly worth $87.8 million. At the beginning of August, Chimera Investment Corporation (NYSE:CIM), released second-quarter financial results, missing profit forecasts. The company posted a net income of $74.1 million or $0.51 per share when adjusted for non-recurring costs. Analysts, in turn, had projected $0.53 per share. The mortgage investor also reported a 2.4% increase in revenue to $137.9 million. Chimera Investment Corporation (NYSE:CIM) gained a slight increase in popularity among the funds we follow, as the number of long positions inched up to 13 at the end of the second quarter, from 12 a quarter earlier. Among them, Robert Raiff, the manager of Raiff Partners, has made a bullish play on Chimera Investment, having initiated a position that contained 150,000 shares at the end of June.

#2 Dow Chemical Co (NYSE:DOW)

– Annual Dividend: $1.84

– Dividend Yield: 3.54%

In their latest 13F filing, Omega Advisors and Leon Cooperman indicated ownership of 1.98 million shares of the US chemical giant, down by 11% during the quarter. The value of this position at the end of June was estimated at $98.7 million. As Dow Chemical Co (NYSE:DOW) edges closer to its merger with E I Du Pont De Nemours And Co (NYSE:DD), some hedge funds decided to join the party as well. The number of investors from our database long the stock increased by four to 48 during the second quarter. Among these funds, Dan Loeb‘s Third Point held the largest stake in Dow Chemical: 20 million shares, down by 20% from the previous quarter. The merger of the two chemical giants hit a snag last week, as European Union’s antitrust regulator halted its review of the deal because the companies did not supply important information that was required. Dow Chemical Co (NYSE:DOW) downplayed this delay, claiming it is “a routine procedural part of the European Commission process.” Both companies, however, said it is possible the deal’s closing date could move to early 2017.

#1 Navient Corp (NASDAQ:NAVI)

– Annual Dividend: $0.64

– Dividend Yield: 4.64%

Although Navient’s dividend does not have the largest yield, this is Leon Cooperman’s favorite dividend stock. During the second quarter, his investment in the loan management company was reduced by 2% to 13.8 million shares valued at $164.9 million at the end of June. Clint Carlson of Carlson Capital has also taken steps to reduce exposure to Navient Corp (NASDAQ:NAVI), having cut his fund’s stake by 41% to 3.59 million shares worth $42.9 million according to the fund’s latest 13F filing. At the end of the second quarter, roughly 10% of Navient’s common stock was held by 32 of the funds tracked by Insider Monkey, up from 27 registered a quarter before. At the end of July, analysts at Goldman Sachs downgraded Navient Corp (NASDAQ:NAVI) from ‘Buy’ to ‘Neutral’ but have maintained their price of $15 per share. For the second quarter, the company posted a 3.4% drop in revenue to $1.03 billion and a net profit of $125 million. On a per-share basis, Navient reported earnings of $0.47 in the period, topping analysts’ estimates of $0.44 per share.

Disclosure: none.