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David Einhorn is the president of Greenlight Capital, which is a value oriented hedge fund. Mr. Einhorn founded the company in 1996 with an initial investment of $1 million. Greenlight now has a value of $4.68 billion and has an average annualized return of over 28%. Mr. Einhorn is considered to be a value investor but has had some of his biggest winners as a short seller. This article will review seven of the highest yielding stocks in Mr. Einhorn’s portfolio.

Fifth Street Financial Corporation (NASDAQ:FSC) FSC has a market cap of $721 million with a price-to-earnings ratio of 10.10. The stock has traded in a 52-week range between $8.38 and $13.95. The current stock price is around $10. The company reported third quarter revenue for the period ending on June 30, in the amount of $36.7 million, compared with revenue of $19.4 million in the third quarter of 2010. Third quarter net income was $20.8 million compared with net income of $-1.89 in the third quarter of 2010.

One of FSC's competitors is Gladstone Capital Corporation (NASDAQ:GLAD). GLAD is currently trading around $8 with a market cap of $172.73 million and a negative price-to-earnings ratio. GLAD pays a dividend, which yields 10.7% versus FSC, whose dividend yields 13.3%.

Greenlight Capital currently owns 1,998,692 shares of FSC. Greenlight’s last FSC transaction was for the sale of 127,300 shares in the second quarter of 2011. FSC is a financial institution that lends to and invest in small and mid-sized businesses. The company’s 2010 net income increased by 261% to $22.4 million from $6.19 million. The company has reported net income of $53.9 million through the first three quarters of the 2011 fiscal year, and is on course to set record high annual earnings. The company first paid a dividend in September of 2008. The company is currently paying a monthly dividend of $0.107, which works out to an annual dividend of $1.28 per share. CNBC stock analyst has warned investors to stay away from this stock because a potential dividend miss could smash its shares. While the company has been increasing earnings, its cash and equivalents has slipped from $107 million in the third quarter of 2010, to $18 million at the end of the third quarter of 2011. Investing in FSC is not for the risk adverse and I rate FSC as a hold.

BP Plc. (NYSE:BP) BP has a market cap of $139.09 billion with a price-to-earnings ratio of 6.09. The stock has traded in a 52-week range between $33.62 and $49.50. The stock is currently trading around $44. The company reported third quarter revenue of $97.6 billion compared with revenue of $72 billion in the third quarter of 2010. Third quarter net income was $4.91 billion compared with net income of $1.78 billion in the third quarter of 2010.

One of BP’s competitors is the Chevron Corporation (NYSE:CVX). CVX is currently trading around $106 with a market cap of $212.58 billion and a price-to-earnings ratio of 7.86. CVX pays a dividend, which yields 3.2% versus BP, whose dividend yields 3.9%.

Greenlight Capital currently owns 2,467,166 shares of BP. Greenlight’s last BP transaction was for the sale of 867,167 shares in the second quarter of 2011. In 2010 BP’s earnings were badly hurt because of the Deepwater Horizon oil spill disaster. The company’s 2010 net income was $-3.72 billion. In 2011, BP has made a turnaround and has reported net income of $17.65 billion through the first three quarters of 2011. The company’s stock price has performed moderately well and is up by 11.5% over the last 52 weeks. BP briefly suspended its dividend in 2010 but reinstated it in 2011 at a rate of $1.68 per share. BP is (price-to-earnings ratio 6.09/price-to-book ratio 1.27) underpriced, and I expect that the stock price will increase. In addition, Bp’s pre-oil spill disaster dividend was $3.36 per share, and I believe that BP will be increasing its dividend. BP’s future looks bright, and I rate the stock a buy.

Broadridge Financial Solutions (NYSE:BR) BR has a market cap of $2.81 billion with a price-to-earnings ratio of 17.21. The stock has been trading in a 52-week range between $19.01 and $24.84. The stock is currently trading around $22. The company reported fourth quarter revenue for the period ending on June 30, in the amount of $776 million compared with revenue of $751 million in the fourth quarter of 2010. Fourth quarter net income was $116 million compared with net income of $105 million in the fourth quarter of 2010.

One of BR’s competitors is The Bank of New York Mellon Corporation (NYSE:BK). BK is currently trading around $22 with a market cap of $25.87 billion and a price-to-earnings ratio of 9.87. BK pays a dividend, which yields 2.5% versus BR, whose dividend yields 3%.

Greenlight Capital currently owns 2,650,000 shares of BR. Greenlight purchased all 2,650,000 shares of BR in the third quarter of 2010. BR is a provider of stock investor financial information services. BR saw its fiscal year 2011 net income decrease by 30% to $172 million from $225 million in 2010. The company began paying quarterly dividends in 2007 and since then has increased its dividend four times by 167%. The stock's performance has been mediocre. The stock price is up by just1.38% over the last 52 weeks but has zoomed up 14.5% over the last month. On September 9, CNBC stock analyst Jim Cramer had this to say about BR, “tech outsourcing has been a good business. I want to buy the stock...it has a decent yield, too." This stock's recent price increase makes Jim Cramer and David Einhorn look brilliant. I would consider buying this stock on any price dips. I rate BR a buy.

Ensco Plc. (NYSE:ESV) ESV has a market cap of $11.88 billion with a price-to-earnings ratio of 18. The stock has traded in a 52-week range between $37.39 and $60.31. The stock is currently trading around $52. The company reported second quarter revenue of $564 million compared with revenue of $406 million in the second quarter of 2010. Second quarter net income was $103 million compared with net income of $126 million in the second quarter of 2010.

One of ESV competitors is Diamond Offshore Drilling Inc. (NYSE:DO). DO is currently trading around $65 with a market cap of $9 billion and a price-to-earnings ratio of 8.86. DO pays a dividend, which yields 0.80% versus ESV whose dividend yields 2.9%.

Greenlight Capital currently owns 4,223,604 shares of ESV. Greenlight sold 4,605,000 shares of ESV in the first quarter of 2011 and an additional 183,000 shares in the second quarter of 2011. ESV is an offshore drilling and exploration company. The company has seen its net income decrease in each of the last two years by a total of 98%. In spite of the decrease in earnings, the stock price has held up fairly well and is up by 5.65% over the last 52 weeks. The company has been paying a quarterly dividend since 1997 and increased its dividend by 40% to $1.40 in the second quarter of 2010. ESV has recently had success renting its oil rigs and Jim Cramer said “Ensco's younger fleet of rigs is on fire.” He backed up his recommendation by purchasing 2100 shares of ESV for his charitable trust. Jim Cramer has been proven right, because shares of ESV are up by 33% over the last month. I rate ESV a buy.

Microsoft Corporation (NASDAQ:MSFT) MSFT has a market cap of $220.90 billion with a price-to-earnings ratio of 9.55. The stock has traded in a 52-week range between $23.65 and $29.46. The stock is currently trading around $26. The company reported first quarter revenue for the period ending on September 30, in the amount of $17.4 billion compared with revenue of $16.1 billion in the first quarter of 2010. First quarter net income was $5.7 billion compared with net income of $5.4 billion in the first quarter of 2010.

One of MFST’s competitors is the Oracle Corporation (NYSE:ORCL). ORCL is currently trading around $33 with a market cap of $164.30 billion and a price-to-earnings ratio of 18.53. ORCL pays a dividend, which yields 0.70% versus MSFT, whose dividend yields 3.1%.

Greenlight Capital currently owns 14,819,042 shares of MFST. Greenlight purchased 5,750,000 shares of MSFT in the second quarter of 2011. MSFT is the largest manufacturer of computer operating systems in the world. Despite its large size the company is still doing a good job of growing earnings, and increased its fiscal year 2011 net income by 23%. The company has paid quarterly dividends since 2005 and since that time it has increased the dividend five times by 100%. MSFT's stock price has been relatively stable and has gone down by 2.25% over the last 52 weeks. MSFT is a mature company that is unlikely to see rapid earnings growth anytime soon. The company has introduced what it calls the “Window Phone” in an effort to break into the lucrative smartphone business. However, the Window Phone has not been well received and Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) continue to dominate the smartphone market. MSFT will interest investors that like a bellwether company that offers consistent earnings and dividend yield of around 3%. I rate MSFT a hold.

Best Buy Company Inc. (NYSE:BBY) BBY has a market cap of $9.88 billion with a price-to-earnings ratio of 9.12. The stock has traded in a 52-week range between $21.79 and $45.63. The stock is currently trading around $27. The company reported second quarter revenue for the period ending on August 27, in the amount of $11.3 billion compared with revenue of $11.3 billion in the second quarter of 2010. Second quarter net income was $177 million compared with net income of $254 million in the second quarter of 2010.

One of BBY’s competitors is Wal-Mart Stores Inc. (NYSE:WMT). WMT is currently trading around $57 with a market cap of $197.56 billion and a price-to-earnings ratio of 12.2. WMT pays a dividend, which yields 2.6% versus BBY, whose dividend yields 2.4%.

Greenlight Capital currently owns 6,887,600 shares of BBY. Greenlight purchased 887,600 shares of BBY in the second quarter of 2011. BBY is a retailer of consumer electronic devices. BBY is a retailer that has suffered because of the poor economy. Perhaps the poor economy is the reason that the company has struggled to grow earnings. In 2011, it saw its earnings decrease by 3%. BBY has a good record of paying dividends and has increased its dividend by 87.5% over the last five years. Investors have not liked what they have seen in the company’s recent earnings reports, and as a result the stock price is down by 38.16% over the last 52 weeks. I do not see any near-term catalyst that can turn BBY around. I rate BBY a hold.

Einstein Noah Restaurant Group (NASDAQ:BAGL) BAGL has a market cap of $262.52 million with a price-to-earnings ratio of 23.34. The stock has traded in a 52-week range between $11.00 and $17.18. The stock is currently trading around $16. The company reported second quarter revenue of $103 million compared with revenue of $103 million in the second quarter of 2010. Second quarter net income was $3.08 million compared with net income of $3.5 million in the second quarter of 2010.

One of BAGL’s competitors is Panera Bread Company (NASDAQ:PNRA). PNRA is currently trading around $136 with a market cap of $4.01 billion and a price-to-earnings ratio of 30.46. PNRA does not pay a dividend versus BAGL, which pays a $0.50 dividend with a 3.3% yield.

Greenlight Capital currently owns 10,733,469 shares of BAGL. Greenlight has not recently bought or sold any shares of BAGL. BAGL is a specialty restaurant that has had relatively flat revenue and operating income in each of the last five years. The company began paying a quarterly dividend in February 2011, in the amount of $0.125. The company’s stock has performed exceptionally well and is up by 129% over the last three years and 34.6% over the last month. I do not know what David Einhorn saw in this stock, but it has been one of his best picks. The company has initiated a dividend and the stock price is on a tear. The stock (price-to-earnings ratio of 23.34/price-to-book ratio 3.22) is not cheap but it still has upward momentum. I cannot recommend this stock, because I am not sure what is driving up the price. I rate BAGL a hold.

Source: 7 Highest-Yielding Stocks In Billionaire David Einhorn's Portfolio