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). 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) 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), a stock that offers a 1.1% yield.
Another dividend-paying stockholding of Al-Waleed is PepsiCo ( PEP), 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 AT&T ( T), which yields 3.4%, and Exxon Mobil ( XOM), which yields 1.4%. Procter & Gamble ( PG) 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 Lowe's ( LOW), which yields 1.1%, and Home Depot ( HD), 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 Stockpickr.com.