Top 10 John Paulson Dividend Stocks

John Paulson founded Paulson & Co in 1994. He managed the fund well but he didn’t rise to fame until it became known that he had bet against subprime mortgages; Paulson rose to even greater infamy after he profited so well from those bets. Paulson took it a step further and bet on gold in 2010, a wager that made his fund $5 billion; its portfolio is currently valued at $29 billion. These are his top 10 dividend bearing stocks:

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  1. Anglogold Ashanti Ltd (AU) is Paulson’s second largest position; he owns a stake valued in the company valued at $1.68 billion. AU has a dividend yield of 0.60% and a market cap of $15.69 billion. It recently traded at $40.70 and has a price to earnings ratio of 22.08.
  2. Citigroup Inc. (C) is the third largest position (by value) in Paulson’s portfolio, at its current value of $1.4 billion. It has a dividend yield of 0.20% and a price to earnings ratio of 7.14. C has a market cap of $67.43 billion and recently traded at
    $23.11 per share. Bruce Berkowitz, Fairholme, is also a fan (see Berkowitz’s top stock picks).
  3. Anadarko Petroleum Corporation (APC) has  a dividend yield of 0.60%. It has a market cap of $30.13 billion and a price to  earnings ratio of 35.94. It recently traded at $60.53 a share. Paulson has $1.28 billion position in the company.
  4. Transocean Ltd Co (RIG) offers a dividend yield of 6.60%. It has a market cap of $14.68 billion and most recently traded at $45.91/share. Paulson has a stake in the company worth $1.2 billion. Jim Roumell, Roumell Asset Management is a fan of RIG as well (check out Roumell’s top picks).
  5. Capital One Financial Corp (COF)  has a dividend yield of 0.50% and a market cap of $17.21 billion. It has a price to earnings ratio of 5.06 and recently traded at $37.75. Paulson owns a $1.09 billion position in the company.
  6. Hartford Financial Services Group Inc. (HIG) is Paulson’s seventh largest position at $1.07 billion. HIG has a $6.65 billion market cap and a price to earnings ratio of 4.27. It has a 2.50% dividend yield and most recently traded at $14.92.
  7. Wells Fargo & Company (WFC) has a 2.00% dividend. It also boasts a market cap of $122.39 billion and a price to earnings ratio of 8.98. WFC recently traded at $23.18 a share. Paulson owns $942 million in the company after increasing his position in the company by 64% in the second quarter.
  8. Hewlett-Packard Company (HPQ) is a $43.73 billion market cap company. It has a 2.10% dividend yield and a price to earnings ratio of 5.17. It recently traded at $22.01. Paulson owns $855 million in the company. HPQ is also a favorite of Bill Miller, Legg Mason Capital Management (see Miller’s top picks).
  9. SunTrust Banks, Inc. (STI) recently traded at $16.92. It has a $9 billion market cap and a dividend yield of 1.10%. It has a price to earnings ratio of 20.89. Paulson owns an $829 million stake in the company.
  10. Bank of America Corporation (BAC) has a $55.42 billion market cap and a dividend yield of 0.70%. It most recently traded at $5.47 a share. Paulson owns a $662 million position in the company after decreasing his stake by 51% last quarter.

Insiders Are Selling These 4 Dividend Stocks

There are many reasons why insiders sell stock in their own company. Some decide to diversify their holdings, others may do it for tax reasons, while many investors see a rally in the company’s stock as excessive and find the current price level as a good opportunity to unload their shares. Insider sales could be potential red flags, sending a strong signal to investors that, perhaps, now may be a good time to sell the shares. Here are four dividend-yielding stocks that recently insiders have been selling heavily.

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FirstEnergy (FE) is a $20.3 billion diversified energy company providing electric power to 6 million customers in six U.S. states. The utility company pays a dividend yield of 4.6% on a payout ratio of 81%. FirstEnergy’s peers Dominion Resources (D) and American Electric Power Co. (AEP) pay dividend yields of 3.9% and 4.7%, respectively. The company’s shares have hit 52-week high of $48.49 and are up 13.3% from the beginning of the year.

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Since the beginning of May, there have been four insider sales of FirstEnergy stock. (read the rest of the article here)