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By Eric Winter

David Tepper gained major clout in the hedge fund industry in 2009 by achieving a $7bn gain with his fund, Appaloosa Management. Personally, he netted $4bn that year and was the highest earning fund manager in the world, gracing him a spot on the Forbes 400 list. He is a value-driven opportunistic investor and is diversified on many accounts, including holding period, market cap, and sector. We've tracked Tepper's positions as well as many other hedge fund managers and have found that their small-cap picks outperform the market in a big way, around 18 percent per year (see here for more details). With that in mind, we dug into Tepper's 13F filings for the past year and have organized his top five longer-term holdings by dividend yield. Tepper isn't an income investor. He probably bought these stocks because he expects them to deliver strong capital gains.

Calumet Specialty Products Partners LP (NASDAQ:CLMT) tops our list, showering Tepper with an obscene dividend yield of 7.4%. The master limited partnership was a stand-out winner for anyone who piled in at the start of 2012, as the stock gave both the extravagant dividend and an increase in share value north of 60%. Earnings per share for the last announcement amounted to a high $3.29, prompting CLMT to up their dividend even more last month. Tepper's position has hovered roughly around the 1.2mm share mark, with some slight unwinding of the position between Q1 2012 and Q2 2012. Richard Driehaus of Driehaus Capital recently initiated a $4.6mm investment in CLMT according to his latest 13F filing.

Microsoft Corporation (NASDAQ:MSFT) is no stranger to both tech-focused and generalist hedge funds alike. Although the stock pushed investors who bought in a year ago into the red, the 3.3% dividend yield helped to provide some income to conquer the loss in value. Tepper started 2012 with 725,000 shares, eventually pushing it up to 1.1mm as of his latest 13F filing, showing his commitment to the company despite the depreciation. Sell-side analysts do expect upside for the stock in 2013, as they have given it a future value of around $33.30, which would represent a 19.5% gain if they are correct. Consumers have been pumping the brakes on both hardware and software purchases, which has resulted in slow growth for many tech stocks, so we would be impressed to see MSFT hit that price target. Billionaire David Einhorn of Greenlight capital still holds roughly $228mm worth of MSFT (see how his portfolio measures up here).

Global paper and packaging company International Paper Company (NYSE:IP) has been another mainstay for Tepper, although his position size dropped by more than half from the last quarter of 2011 to the third quarter of 2012. The stock provides investors with a dividend yield of 2.8%, which complemented the stock's double-digit 2012 returns nicely. We see some additional upside to IP, as the company's forward price to earnings ratio has shrunk relative to measurements taking into account the past twelve months, and a majority of sell-side analysts are tilted towards the bullish side. Doug Silverman of Senator Investment Group has both a cash and call position in IP, with the total value of the two equating to about $170mm.

Apple, Inc. (NASDAQ:AAPL) finds its way into many hedge fund and investor portfolios, and Appaloosa Management is no different, with approximately 8.7% of total assets invested in the tech giant. 2012 saw a new development in the company, as they issued a dividend with a 2.2% yield to help distribute the huge cash reserves that the company has built. The stock has made up some ground after the major loss in share value resulting from its last earnings announcement but still has about $60 to go in order to resume the trading levels from the start of the year. There is no doubt that a certain stigma now surrounds the stock, which we go into further detail here.

Retailer Macy's, Inc. (NYSE:M) rounds out the bottom of our list, earning Appaloosa a dividend yield of 2%. The stock has roughly matched the performance of the market going back 12 months, beating it by approximately one percent. Macy's gave earnings beats for each quarter last year, with the most recent announcement posting positive growth in revenue for the same quarter last year. Tepper has reduced his position considerably since the fourth quarter of 2011, dropping the previous $24mm market value position to a current value of slightly under $4mm. Billionaire Jeffrey Vinik has taken the same views as Tepper, cutting his position by over 50% according to his last 13F.

Source: David Tepper's Long-Term Dividend Positions