Prem Watsa: BP (BP)
Watsa is sometimes called the “Warren Buffett of Canada” due to both his value investing prowess and the fact that, like Buffett, he uses an insurance powerhouse as the foundation of his investment empire.
Watsa has a little egg on his face at the moment. He accumulated an enormous position in BlackBerry (BBRY) that now makes up a full quarter of his long stock portfolio.
I wouldn’t touch BlackBerry, even at current prices. But one of Watsa’s newer dividend stocks caught my attention: British oil major BP (BP).
Like Warren Buffett, Watsa appears to see value in Big Oil. And BP is one of the highest-yielding mega-caps on the market — the company sports a dividend yield of 4.7%.
BP slashed its dividend in half after the 2010 Deepwater Horizon oil spill in the Gulf of Mexico hit the company like a wrecking ball. Total criminal and civil settlements and payments have already totaled more than $40 billion, and the final total might not be known until 2014 or later.
Yet the company has managed to get on with business, and it has raised its dividend in each of the past two years.