Johnson & Johnson (Prem Watsa)
Dividend Yield: 3.2%
And finally, we get to Prem Watsa of Fairfax Financial, commonly known as the “Warren Buffett of Canada” for both his investment acumen and his use of insurance companies as investment vehicles.
Watsa’s biggest current position is one you have to have an iron stomach to hold: smartphone also-ran BlackBerry (NASDAQ:BBRY). BlackBerry doesn’t pay a dividend at this time, and I consider the company’s outlook too uncertain to recommend at this time.
I do, however, like his No. 2 holding: health care giant Johnson & Johnson (NYSE:JNJ).
Johnson & Johnson is the ultimate dividend-paying machine, raising its dividend for 50 consecutive years, and currently yielding 3.2%. Plus, after underperforming the market for years, J&J is finally showing signs of life. The stock is up nearly 10% in 2013.
If Watsa’s track record is any indication, I would expect more gains to come.
Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management. As of this writing, Sizemore Capital was long JNJ. Click here to receive his FREE 8-part investing series that will not only show you which sectors will soar but also which stocks will deliver the highest returns. The series starts November 5 and includes a FREE copy of his 2014 Macro Trend Profit Report.