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Carl Icahn's 3 Biggest Dividend Stock Bets from His Recent Buys

Carl Icahn is a well-known investor. He serves around USD16.9 billion in his asset management company Icahn Capital Management LP. His asset allocation is very focused on single stocks. In total he has only 19 stock holdings of which four are new. Within the recent quarter, Icahn bought only five companies. He’s a guy who wants control and he wants to change something. In his portfolio holdings he has a significant influence with an ownership of more than 10 percent of the outstanding capital.

From his 13 latest stock buys, only seven pay dividends. Eight of them have a current buy or better rating by brokerage analysts.

Here are my favorite stocks:

Transocean (RIG) has a market capitalization of $17.89 billion. The company employs 18,400 people, generates revenue of $9.196 billion and has a net income of $816.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.592 billion. The EBITDA margin is 39.06 percent (the operating margin is 17.21 percent and the net profit margin 8.87 percent).

Financial Analysis: The total debt represents 36.37 percent of the company’s assets and the total debt in relation to the equity amounts to 79.13 percent. Due to the financial situation, a return on equity of 5.15 percent was realized. Twelve trailing months earnings per share reached a value of $2.69. Last fiscal year, the company paid $2.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.44, the P/S ratio is 1.93 and the P/B ratio is finally 1.13. The dividend yield amounts to 4.54 percent and the beta ratio has a value of 1.27.

Herbalife (HLF) has a market capitalization of $5.03 billion. The company employs 6,200 people, generates revenue of $4.072 billion and has a net income of $477.19 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $735.83 million. The EBITDA margin is 18.07 percent (the operating margin is 16.24 percent and the net profit margin 11.72 percent).

Financial Analysis: The total debt represents 28.62 percent of the company’s assets and the total debt in relation to the equity amounts to 115.89 percent. Due to the financial situation, a return on equity of 97.29 percent was realized. Twelve trailing months earnings per share reached a value of $4.28. Last fiscal year, the company paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.41, the P/S ratio is 1.22 and the P/B ratio is finally 12.28. The dividend yield amounts to 2.48 percent and the beta ratio has a value of 1.85.

Dell (DELL) has a market capitalization of $23.43 billion. The company employs 108,800 people, generates revenue of $56.940 billion and has a net income of $2.372 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.504 billion. The EBITDA margin is 7.91 percent (the operating margin is 5.29 percent and the net profit margin 4.17 percent).

Financial Analysis: The total debt represents 19.11 percent of the company’s assets and the total debt in relation to the equity amounts to 85.07 percent. Due to the financial situation, a return on equity of 24.21 percent was realized. Twelve trailing months earnings per share reached a value of $1.06. Last fiscal year, the company paid $0.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.60, the P/S ratio is 0.41 and the P/B ratio is finally 2.18. The dividend yield amounts to 2.39 percent and the beta ratio has a value of 1.46.

Take a closer look at the full list of Carl Icahn's latest Portfolio. The average P/E ratio amounts to 16.62 and forward P/E ratio is 17.51. The dividend yield has a value of 3.59 percent. Price to book ratio is 2.18 and price to sales ratio 1.37. The operating margin amounts to 7.78 percent and the beta ratio is 1.47. Stocks from the list have an average debt to equity ratio of 1.01.

Related stock ticker symbols:

CVI, IEP, RIG, CMC, HLF, DELL, CHK, FRX, NAV, NFLX, NUAN, OSK, TTWO

Selected Articles:

· Bruce Berkowitz Biggest Dividend Stock Buys

· Ken Fishers Biggest Dividend Stock Buys

· Bill Gates’ Best Yielding Dividend Stocks

· George Soros’s Biggest Dividend Stock Buys As Of Q1/2013

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.Carl Icahn’s recent stock buys and largest stock holdings as of Q1/2013 originally published at long-term-investments.blogspot.com.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

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