George Soros, the famous investor who is known for "breaking" the Bank of England when he bet billions of dollars against the British pound in 1992, has had an outstanding track record with his hedge fund, the Quantum Fund. He is primarily known for his growth-oriented investment philosophy, so it was surprising to find so many of his stocks that pay a yield. On Stockpickr, we keep track of the portfolio, High-Yield George Soros Stocks.
I'm getting the best of both worlds if I can piggyback the growth instincts of Soros, who clearly thinks the stocks in his portfolio are all riding strong demographic trends, and get paid a dividend while doing it.
Soros' stock with the highest yield is
, a timber, lumber, wood products and paper company. It is generating a yield of 2.92%, with a price-to-earnings ratio of 11 and a P/E-to-growth ratio of 6.4. The stock was recently added to the portfolio of
, a fund specializing in distressed securities run by Marc Lasry.
Not only do you get yield, but it's a great inflation hedge and a play on the rising prices of timber and wood products. Check the Stockpickr
portfolio for the full list of companies in the space as well as a contrarian view of where this space could head if housing completely falls apart from here.
Another Soros holding that pays a dividend is
, a Mexico-based cement company. Although it only pays a dividend once a year, it has been consistent in paying every May for the last eight years, and has raised that dividend each year since 2004. The yield is 1.87%, the P/E is 36 and the PEG is 4.6. This stock was recently added to the portfolio of the five-star
(JSVAX), which has had an average annual return of 21.39% over the past three years.
Cemex was also discussed in a recent interview with
that appeared in this weekend's
. For our list of top Mexican stocks, go to the
Brazil-based mining company
Companhia Vale do Rio Doce
is another holding of Soros', and pays a yield of 1.47%. It has been paying dividends at least twice a year since 2002. It carries a P/E of 15.5, with a fairly high PEG of 17.8. RIO is also owned by
, a group of hedge funds run by Louis Bacon. The Moore Global Investments Fund has had an average return of 24% per year since 1990.
RIO also makes the
Investor's Business Daily
, which also holds
and tech companies like
The full dozen
of Soros can be found at Stockpickr.com. Also, his
can also be found at Stockpickr, including a description of his most recent changes, including new positions in
Level 3 Communications
and others, and increased positions in
, among others.
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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