David Teppers Top 4 Dividend Stock Picks
0.52%April 24 | MyPlanIQ portfolio symbol P_37328

Danny Guttridge of Kapital.com reports on the four top dividend picks of Hedge Fund Meister David Tepper. They are

• Microsoft Corporation (MSFT)  -- who doesn't know what Microsoft does? Market cap at $275.64B. Dividend yield at 2.44%, payout ratio at 25.77%.
• International Paper Co. (IP)  is a paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia, and north Africa. Market cap at $15.71B. Dividend yield at 2.92%, payout ratio at 33.05%.
• Masco Corporation (MAS) distributes, and installs home improvement and building products for home improvement and new home construction markets in North America and Europe. Market cap at $4.86B. Dividend yield at 2.21%, with a loss last year, the payout ratio is meaningless
  
• Calumet Specialty Products Partners LP (CLMT) produces and markets hydrocarbon products in North America. Market cap at $1.27B. Dividend yield at 8.60%, payout ratio at 218.11%.

One of the issues with a stock selected by a hedge fund manager is that they may not plan to buy and hold for any length of time. So it could be that these are being held for other reasons. I note that MAS made a loss last year and that CLMT's payout ratio is 218% which is not sustainable in the long term. It could be that this is a blip but it causese concern.

The selections are diversified into different market segments and they range in size from around $1B to $275B. It will be interesting to see how the returns compare against our dividend bearing ETF portfolio