Icahn became famous as a corporate raider and private equity investor, getting his start in 1985 with a hostile takeover of TWA. He is ranked No. 53 on
2006 list of the richest people.
Although he is known primarily for taking positions, especially controlling ones, in growth-oriented companies, many of his stock holdings include dividend-payers. At Stockpickr, we took a closer look at
, a list of stocks he owns that pay dividends. For Icahn's full portfolio, check out the
The first name we looked at was Temple-Inland, which is involved in several businesses, including corrugated packaging, forest products, real estate and financial services. The stock yields 1.8%, and this year the company raised its quarterly dividend from 25 cents a share to 28 cents.
In a recent 13D regulatory filing, Icahn disclosed a 6.73% stake, or 7.2 million shares. He noted that Temple-Inland's stock is undervalued due to the conglomerate structure of the company. He plans to recommend a divestiture or spinoff of one or more of the company's component businesses.
Our own Jim Cramer included Temple-Inland as one of his
, calling it his favorite of the four stocks in this particular portfolio and saying that "this company has finally realized that it needs to break up its operations and is going for it. ... I see 27 points of upside here." Others in this portfolio include
. And it never hurts when the stock is a holding of a legendary hedge fund giant -- Stevie Cohen's
also owns Temple-Inland shares.
Another dividend-payer in Icahn's portfolio is natural gas company
, which pays a yield of 1.3%. It has paid dividends quarterly for 25 years and just increased its dividend this quarter from 9 cents per share to 10 cents. The stock trades for just 11 times cash flows.
contributor David Peltier recently profiled Williams in his his
Should You Buy It?
series. Peltier said of Williams that "he believes it remains attractive to purchase at current levels. For one thing, any broader market rally in the second half of the year will likely be driven by the commodity sectors, where demand continues to outpace production capacity."
Adding to Williams' case is the fact that the stock is also owned by
, founder of the $4.5 billion hedge fund Omega Advisors. Cooperman spent 25 years at Goldman Sachs, where he was a general partner and chairman and CEO of Goldman's asset management division. Other Cooperman plays include
Doug Kass used to work for Cooperman.
Finally, another dividend-payer owned by Icahn is railroad play
, which generates a 1.3% yield and has been paying dividends quarterly for more than 25 years. It was also a part of our
a few weeks ago, in which we noted that the company announced it will repurchase an additional $1 billion in company stock, raise its dividend by 25% and make $6.4 billion in capital expenditures over the next four years.
CSX trades for only 8 times cash flows, which could certainly be one reason that one of my favorite investors, John Buckingham from the
, owns it. Buckingham is a well-known value investor who has a good eye for finding quality cheap stocks, as is evidenced by his 16% annual returns since his fund's inception in 1998. Other Buckingham picks include
The list of
can be found at Stockpickr.com, along with the rest of
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
to send him an email.
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