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John Paulson is the founder and president of Paulson & Co.. Paulson made $4 billion by betting against subprime mortgage investments in 2007 and another $5 billion by betting on gold and the recovery of the economy in 2010. Paulson & Co had 71 securities in its 13F portfolio valued at $11.98 billion at the end of June (see Paulson's entire portfolio here).

Below we've compiled a list of John Paulson's dividend stock picks from Paulson & Co's most recent 13F filing. We required a minimum dividend yield of 2.5%. We obtained hedge fund holdings from Insider Monkey, 10-Year Summary data from MSN Money and all other market data from Finviz.

Stock

Market Cap
(Billion $)

Sector

Dividend Yield

P/E

Profit Margin

% Port
in 13F Portfolio

Gold Fields (NYSE:GFI)

8.7

Basic Materials

4.1%

8.7

16.9%

1.92%

Baxter International (NYSE:BAX)

33.5

Healthcare

2.9%

14.9

16.4%

1.19%

JPMorgan Chase & Co. (NYSE:JPM)

156.4

Financial

2.9%

8.7

20.4%

1.19%

Wells Fargo (NYSE:WFC)

179.7

Financial

2.6%

10.7

21.5%

0.97%

Cablevision Systems (NYSE:CVC)

4.8

Services

3.4%

22.4

3.3%

0.23%

Kinder Morgan (NYSE:KMI)

36.0

Basic Materials

4.2%

29.2

10.8%

0.04%

Gold Fields is a gold exploration and mining company, South Africa's second largest after AngloGold Ashanti (NYSE:AU). GFI recently traded at $11.98 with a trailing price to earnings of 8.74 and a forward price to earnings of 6.27. GFI has a 4.14% dividend yield and lost 29.24% during the past 12 months. The stock has a market cap of $8.7 billion and Total Debt/Equity Ratio of 0.37. Its dividend has increased at an average rate of 9.6% per year over the past five years. At the same time, EPS growth averaged 36% per year. GFI has an estimated growth rate of 16.93% for this year and -8.3% for next five years. Paulson had $231 million invested in GFI shares. Jim Simons and Carlson Capital also increased their holdings of GFI by 40% and 130%, respectively, during the second quarter. Gold Fields is one of the top ten gold miners paying a dividend.

Baxter International is a diversified medical products and services company producing medical devices, pharmaceuticals, and biotech products. BAX recently traded at $61.16 with a trailing price to earnings of 14.88 and a forward price to earnings of 12.58. BAX has a 2.94% dividend yield and gained 12.97% during the past 12 months. The stock has a market cap of $33.5 billion and Total Debt/Equity Ratio of 0.8. BAX has an estimated growth rate of 16.42% for this year and 8.55% for next five years. Paulson had $144 million invested in BAX shares. Paulson reduced his shares of BAX by 50% during the second quarter. David Cohen's Iridian Asset Management also had $200 million invested in BAX at the end of June.

JPMorgan Chase is the largest U.S. bank by assets. Despite a financial crisis and interest margin compressions, the bank reported growth in its EPS averaging 3.3% per year over the past five years. JPM recently traded at $41.16 with a trailing price to earnings of 8.74 and a forward price to earnings of 7.78. JPM has a 2.92% dividend yield and gained 14.49% during the past 12 months. The stock has a market cap of $156.4 billion and Total Debt/Equity Ratio of 3.54. JPM has an estimated growth rate of 20.37% for this year and 7.13% for next five years. Paulson had $143 million invested in JPM shares. Paul Ruddock also reported holding 18.3 million shares of the stock worth more than $650 million at the end of the previous quarter.

Wells Fargo recently traded at $33.97 with a trailing price to earnings of 10.65 and a forward price to earnings of 9.36. WFC has a 2.59% dividend yield and gained 28.29% during the past 12 months. The stock has a market cap of $179.7 billion and Total Debt/Equity Ratio of 1.18. WFC has an estimated growth rate of 21.54% for this year and 8.74% for next five years. Paulson had $117 million invested in WFC shares.

Cablevision Systems recently traded at $17.89 with a trailing price to earnings of 22.36 and a forward price to earnings of 18.44. CVC has a 3.35% dividend yield and gained 7.84% during the past 12 months. The stock has a market cap of $4.8 billion. CVC has an estimated growth rate of 3.29% for this year and 12.52% for next five years. Paulson had $28 million invested in CVC shares.

Kinder Morgan is owner and operator of oil and natural gas transportation and storage assets in the United States and Canada. It is the largest midstream energy company. KMI recently traded at $34.7 with a trailing price to earnings of 29.16 and a forward price to earnings of 25.51. KMI has a 4.15% dividend yield and gained 21.24% during the past 12 months. The company raised dividends in four out of five past quarters, with its dividend cumulatively increasing by 150% since April-quarter 2011. The stock has a market cap of $36 billion and Total Debt/Equity Ratio of 2.39. KMI has an estimated growth rate of 10.83% for this year and 34.41% for next five years. Paulson had $6 million invested in KMI shares.

Source: John Paulson's Favorite 6 Dividend Stock Picks

Additional disclosure: Additional disclosure: Dividendinvestr is a team of analysts. This article was written by Serkan Unal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.