Prince Al-Waleed's Top-Yielding Stocks

Prince Al-Waleed Bin Talal may not be as famous as Warren Buffett, George Soros, Carl Icahn or T. Boone Pickens, but the Saudi royal family member is an incredibly successful stock investor.

The prince is ranked No. 13 on Forbes' world billionaires list, and his stock portfolio has generated an average annual return of 20% for the last 16 years, according to his Web site. Stockpickr has reviewed all of the stocks he owns and dug up the prince's top dividend-payers.

If you are wondering why you should analyze the prince's stockholdings, consider what happened with Four Seasons Hotels last year. The prince, along with an investor group that includes Bill Gates, bought out the hotel chain for a 28% premium over the stock's price. That deal provided a nice return for the stock's investors.

At the top of the high-yield list is Citigroup(C Quote). The stock gave the prince his start in the 1990s when he made a huge investment the then-beleaguered Citicorp. The stock now offers a 4.5% yield.

Citigroup has been making headlines, and taking some hits, thanks to a management shake-up and disappointing third-quarter earnings, a 57% drop from a year ago. Citigroup sports a price-to-earnings (P/E) ratio of 11 and a P/E-to-growth (PEG) ratio of 1.4.

In addition to being a favorite stock of the prince, Citigroup is also liked by Eddie Lampert, who just increased his position in the company by 62%.

Lampert is the head of Sears Holdings(SHLD Quote) and founder of ESL Investments, which has reportedly generated close to 30% annual returns since inception. Lampert and Al-Waleed also have a shared interest in Motorola(MOT Quote), a stock that offers a 1.1% yield.