10 Best High Dividend Stocks to Buy According to Billionaire Lee Cooperman

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In this article, we review billionaire Lee Cooperman's stock market predictions and the 10 best high dividend stocks to buy according to billionaire Lee Cooperman. Click to skip our discussion on Cooperman's investment philosophy, his returns and portfolio updates and see 5 Best High Dividend Stocks to Buy According to Billionaire Lee Cooperman.

Early this year, the self-made billionaire and Omega Advisors founder Leon Cooperman had predicted that the stock market is in the state of euphoria and it will be difficult to sustain that momentum in the long run. He further added that he is looking for value despite his concerns over Joe Biden’s business policies as well as the long-term economic outlook. His prediction was certainly right as growth stocks fumbled strongly after hitting an all-time high in February. Meanwhile, value and dividend growth stocks have strongly outperformed growth stocks so far this year. Nevertheless, investors' rotation out of technology stocks as well as economic recovery will help the self-made billionaire Leon Cooperman make big gains from his equity investments. Further bolstering the profitability prospects is his stakes in high dividend-yielding stocks from finance, real estate, energy, and industrial sectors.

In an interview with CNBC, Cooperman said that a "meaningful chunk" of the market was in "euphoria." The billionaire cited soaring valuations, SPAC-based IPOs, massive fluctuations and "no revenues and no earnings" for his bearish outlook.

Leon Cooperman, who worked 25 years for Goldman Sachs and turned his hedge fund into a family office in 2018, doubled down on his stake in financial services stocks last year when they were suffering losses due to pandemic-related volatility. Companies operating in the financial services industry have always been considered lucrative investments for long-term investors due to two reasons: dividends and a steady share price gain. Stocks from the financial sector accounted for around 36% of the $1.3 billion worth of the billionaire's 13F portfolio at the end of the latest quarter compared to 17% in the year-ago period. Cooperman's stock-picking strategy based on fundamental analysis and macro trends helped Omega Advisors in generating more than 12% annualized returns since inception through 2018. The dividends also played a key role in enhancing overall returns.

Dividend investing is one of the best ways of generating strong returns over the long term. Dividends accounted for more than 2.14% of the overall S&P 500 returns last year, with expectations that dividend growth will accelerate this year amid improving business and economic trends. Dividend-paying stocks had returned 8.92% on average from 1982 through 2009, compared with just 1.83% for non-dividend payers, according to Wall Street Journal.