Skip to main content

Updated from 7:01 a.m. EDT

If you're looking for good stock ideas, one technique is to follow in the footsteps of top investors. And if you are looking to reduce volatility, you can choose stocks that pay dividends.

Ken Heebner is one of the top money managers in the country and a favorite of Jim Cramer. He's the general partner and portfolio manager of Capital Growth Management and portfolio manager of the CGM Focus Fund. The fund was ranked No. 3 for the year and had a return of 79.9% for 2007.

Stockpickr has put together a list of the

highest-yielding stocks that Heebner owns


One of his highest-yielding stocks is

Bank of America

(BAC) - Get Bank of America Corporation Report

, with a 6.9% yield. BofA just announced that it will stop making private student loans so it can concentrate on federal student loans. The stock has a price-to-earnings ratio (P/E) of 11 and a P/E-to-growth ratio (PEG) of 1.27.

Bank of America is also owned by the

LSV Value Equity Fund

, a Morningstar-rated 5-star fund managed by Josef Lakonishok. The fund has had an average annual return of 13.7% over the past five years. LSV also owns

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

, which yields 1.5%,

Scroll to Continue

TheStreet Recommends


(COP) - Get ConocoPhillips Report

, with a 2.3% yield, and

Parker Hannifin

(PH) - Get Parker-Hannifin Corporation Report

, yielding 1.1%.

Another high-yielding Heebner stock is


(C) - Get Citigroup Inc. Report

, with a payout of 5.5%. The CEO, Vikram Pandit, just announced that he would cut the bank's costs by as much as 20%, which could result in job reductions to the tune of tens of thousands. The stock has a P/E of 34 and a PEG of 2.07.

Citigroup is also owned by the

Fairholme Fund

, managed by Bruce Berkowitz, which invests in stocks that sell at a significant discount to their perceived value. The fund has had an average annual return of 20.2% over the past five years. The fund also owns

The St. Joe Company

(JOE) - Get St. Joe Company (The) Report

, which yields 1.6%,


(PGR) - Get Progressive Corporation (The) Report

, with a 0.8% yield, and

Canadian Natural Resources

(CNQ) - Get Canadian Natural Resources Limited Report

, with a 0.5% yield.

Merrill Lynch

( MER) is another high-yielding Heebner stock, with a yield of 3.1%. On Thursday, the company said that it had negative earnings for the third consecutive quarter, wrote down assets by an additional $6.6 billion and will continue to have job layoffs. The stock has a forward P/E of 9 and a PEG of 1.72.

Merrill shows up in the portfolio of the

Janus Adviser Forty Fund

, managed by Scott Schoelzel. Janus also owns shares of

Potash Corp. of Saskatchewan


, with a 0.2% yield,

Goldman Sachs

(GS) - Get Goldman Sachs Group Inc. (The) Report

, with a 0.8% yield, and

Procter & Gamble

(PG) - Get Procter & Gamble Company (The) Report

, with a 2.4% yield.

To see the entire list of the

highest-yielding Heebner stocks

, go to

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


LLC, a wholly owned subsidiary of and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the

Financial Times

and 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;

click here

to send him an email. has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from