The 7 Highest Yielding Stocks in George Soros' Portfolio

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Includes: CIM, CTL, DTEGY, NOK, PWE, T, VOD, VZ
by: Vatalyst

George Soros, notoriously known as "the Man Who Broke the Bank of England" should also be credited for his genius and how he correctly predicted that the British government would have to devalue the pound sterling. Soros, is a very successful financier and is the Chairman of Soros Fund Management, LLC, which is a billion dollar fund. He is a renowned hedge fund investor and is also known for his philanthropy and support of many progressive causes. Soros's extremely successful Quantum fund was started in 1969 and the fund has given annualized returns in excess of 30% on an average till the year 2000. Here are his highest yielding picks:

Chimera Investment Corp (NYSE:CIM) — Chimera is a specialty finance company that invests in residential mortgage-backed securities (RMBS) and other real estate loans. Its objective is to provide attractive risk-adjusted returns to its investors over the long-term, primarily through dividends. It is taxed as a REIT for federal income tax purposes and therefore required to pay out at least 90% of its earnings to its shareholders in order to avoid taxation at the corporate level. The stock currently trades at $3.13 with a trailing PE multiple of 5.5x and has a market capitalization of $3.2bn. The return on equity is also high at 18.3%. This year has been an extremely difficult for the financial companies and the stock price of many companies have taken a beating. Although the stock has fallen by 6.0% during the last one year, the total returns to the shareholders have been positive as the current dividend yield is 19.75%. So, the total returns to share holders have been 13.75% in the last one year. Also, this stock is expected to perform better as U.S. economy improves. Soros holds 20,300 shares in this company (0.002% of total shares).

AT&T (NYSE:T) — T remains as the largest communications holding company in the world and may get even bigger with the T-Mobile USA (OTCQX:DTEGY) acquisition. The stock currently trades at $29.45 with a trailing PE multiple of 13.7x and has a market capitalization of $174.0bn. During the last one year the stock has given a good return of 17.0%. Also, the stock has a dividend yield of 5.9%. So, the total returns to share holders have been 22.9% in the last one year. The return on equity is also high at 18.6%. We believe that the company has the potential to continue to be the leader in the communication space and the operational performance will drive the stock in the future. Soros holds 15,98,608 shares in the company (0.03% of total shares).

Vodafone Group (NASDAQ:VOD) — A large mobile telecommunications company that provides a range of services, including voice and data communications. It has equity interests in 28 countries and partner networks in an additional seven countries, with most of its subsidiaries operating under the brand name Vodafone. In the United States it is a partial parent company of Verizon Wireless, with a 45% stake. The stock currently trades at $27.6 with a trailing PE multiple of 11.1x and has a market capitalization of $141.0bn. During the last one year the stock has provided an excellent return of 21.9% and had a dividend yield of 5.3% giving a total return of 27.2%. The return on equity is 9.0%. Vodafone has expanded into many developing countries as a part of its growth strategy. It is one of the dominant players in the fast emerging Indian market which is expected to be strong growth driver for the company in the future. Soros holds 1,95,100 shares in the company (0.004% of total shares).

Nokia Oyj (NYSE:NOK) — Nokia is a prominent player in the mobile industry and makes a range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and much more. It also provides equipment, solutions and services for communications networks. The stock currently trades at $5.43 with a trailing PE multiple of 8.13x and has a market capitalization of $20.4bn. During the last one year the company has gone through a rough phase and the stock has given a negative return of 39.8%. However, this can be seen as good time to enter the stock as the stock is trading as cheap valuations and Nokia has also aligned with Microsoft to provide a more robust operating system than Symbian to its users. The stock has a healthy dividend yield of 10.5%. The return on equity is a healthy 13.5%. We expect that the worst is over for the company and the stock should see some recovery in the future. Soros holds 3,83,852 shares in the company (0.002% of total shares).

CenturyLink Inc (NYSE:CTL) — It is an integrated communications company that provides communications services, including voice, internet, data and video services. The company has its span of operations throughout US. The stock currently trades at $37.3 with a trailing PE multiple of 11.5x and has a market capitalization of $22.4bn. During the last one year the stock has provided an excellent return of 11.2%. Also, it has a healthy dividend yield of 7.8%. So, the total returns to share holders have been 19.0% in the last one year. The return on equity is 9.9%.

The company's strength is the rural phone customer business which is a low competition business for CTL. This business is expected to drive the growth of the company. Soros holds 2,86,895 shares in the company (0.001% of total shares).

Verizon Communications (NYSE:VZ) — An integrated telecommunications company that provides wire line voice and data services, wireless services, internet services and published directory information. The company also provides network services for the federal government including business phone lines, data services, telecommunications equipment and payphones. The stock currently trades at $35.8 with a trailing PE multiple of 16.5x and has a market capitalization of $101.6bn. During the last one year the stock has given a whopping 28.1% returns. This coupled with a dividend yield of 5.5% gives a total return of 33.6%. The return on equity of this stock is 6.4%. The stock has reaped in good returns to its share holders and we expect another strong performance from the stock this year. Soros holds 16,85,376 shares in the company (0.002% of total shares).

Penn West Petroleum (NYSE:PWE) — It explores for oil and natural gas. The company primarily operates in the Western Canadian sedimentary basin. It produces light and medium crude oil, natural gas liquids, heavy oil and natural gas. It majorly operates in two regions, Southern District, covering Manitoba, Saskatchewan, and Southern and East Central Alberta with developed and undeveloped land base totaling ~3.3 mn net acres and the Northern District covering North Eastern British Columbia and Northern Alberta with developed and undeveloped land position of ~2.9mn net acres. The stock currently trades at $21.61 with a trailing PE multiple of 23.08x and has a market capitalization of $10.1bn. During the last one year the stock has given 14.5% returns and has a dividend yield of 4.8%, giving a total return of 19.3%. The return on equity of this stock is 2.8%. Soros holds 5,12,100 shares in the company (0.01% of total shares).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.