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Prince Al-Waleed's Top-Yielding Stocks

The royal investor earns dividends from these 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


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


(C) - Get Report

. 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


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



, a stock that offers a 1.1% yield.

Another dividend-paying stockholding of Al-Waleed is


(PEP) - Get Report

, which yields 2%. The soda maker just delivered a

solid third-quarter earnings beat

with a 17% increase in earnings and an 11% rise in revenue. Pepsi has a P/E of 20 and a PEG of 1.9.

Pepsi is a stock owned by

Adage Capital

, an $8.9 billion money management firm that handles investment for endowments of large organizations such as Harvard University, Northwestern University, Dartmouth College, the American Red Cross and the Getty Foundation. Adage also owns

TST Recommends


(T) - Get Report

, which yields 3.4%, and

Exxon Mobil

(XOM) - Get Report

, which yields 1.4%.

Procter & Gamble

(PG) - Get Report

is another Al-Waleed stock that yields 2%. It has a P/E of 23 and a PEG of 1.8. P&G shares are also held by

Warren Buffett

, who has several income stocks in his portfolio including


(LOW) - Get Report

, which yields 1.1%, and

Home Depot

(HD) - Get Report

, which produces 2.7%.

For the rest of the prince's dividend-paying stocks, check out the

Top-Yielding Stocks of Prince Al-Waleed

. And for all of his holdings, check out the complete

Prince Al-Waleed

portfolio, both at

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 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;

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