See What This Huge Hedge Fund Company Has Been Selling

Does this 11.7% dividend yield interest you?

Feb 27, 2014 at 5:15PM

The latest 13F season is commencing, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider D. E. Shaw & Co. Founded by David E. Shaw , it has a reportable stock portfolio totaling $73.3 billion in value as of Dec. 31, 2013. Shaw is known as a math wizard and a quantitative-investing pioneer. His firm is said to be extremely selective when hiring, reportedly accepting about one in 500 applicants -- CEO Jeff Bezos once made the cut.

D. E. Shaw's latest 13F report shows that it reduced its holdings of Wendy's Company (NASDAQ:WEN), Chimera Investment Corporation (NYSE:CIM), and Boston Scientific Corporation (NYSE:BSX).

Wendy's is not the biggest name in fast food, but its stock has averaged annual growth of about 20% over the past five years. The company has been transforming and rejuvenating its brand with updated decor and new offerings such as a popular Pretzel Bacon Cheeseburger. Its last quarter featured earnings up 25% over year-ago levels, topping expectations by a penny. Still, some worry that without additional highly successful new offerings, future sales might flag. Wendy's stock yields 2%.

Chimera Investment draws investors' attention with its 11.7% dividend yield. It's a mortgage REIT, profiting via mortgage-backed investments. Thus it's quite vulnerable to interest rate swings and got a boost recently when new Fed chair Janet Yellen said that she aims to keep rates low for the time being. Chimera's stock has been in penny-stock territory lately, and it may not be able to maintain its listing on the New York Stock Exchange. It has also been the subject of some accounting-related head-scratching.

Stent and defibrillator specialist Boston Scientific (NYSE:BSX) topped earnings expectations in its fourth quarter, but stent sales were disappointing. Indeed, profits have been a bit elusive for the company in the past few years, though some see it successfully turning itself around. Like its peers, the company has been investing heavily in research and development, and its newer technologies, such as neurotech devices, have been paying off. Endoscopy sales recently rose 8%.

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Selena Maranjian, whom you can follow on Twitterowns shares of The Motley Fool recommends The Motley Fool owns shares of Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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