Billionaire investor bets big on dividend stocks

Investor looking at his phone with an idea. Skyscrapers in the background.

By: Bruce Jackson

Warren Buffett is not the only billionaire to make his vast fortune from the stock market.

In 2009, David Tepper's hedge fund earned about $US7 billion, making him the top-earning hedge fund manager of that year.

So it makes sense that when he makes a big call on the stock market, it might pay to sit up and take notice.

Tepper made his fortune by investing in distressed assets, pocketing huge profits when they recovered in value. Essentially, Tepper pocketed billions by betting against the herd.

Why could that be important right now?

We believe Tepper may have just made what could be one of the most contrarian calls, and potentially one of the biggest stock market calls of 2021 so far.

You see, many commentators fear rising inflation will see reserve banks start edging interest rates higher, something that could have a devastating impact on global stock markets.

We've already had a glimpse of the chaos it could unleash, with the S&P ASX All Technology Index close to falling into a full blown bear market in the first quarter of 2021.

Unlike many in the market, Tepper thinks inflation fears are overblown, saying "it makes it safer to be in stocks."

Tepper has backed up his conviction by betting big on two "strong buy" dividend stocks.

We believe you don't have to be a billionaire to make money in the stock market. In fact, we think you can make money investing as little as $1,000 into carefully selected stocks.

That's where things can get tricky… knowing exactly which shares to buy, and when.

Tepper has placed his big dividend bet on two US mega-cap energy stocks.

Of course, you are welcome to follow Tepper into Marathon Petroleum and Enterprise Products Partners.

Or you could follow the expert guidance of The Motley Fool's local dividend wizard — Edward Vesely — and buy his top ASX dividend stock for 2021, while it still trades at what Edward thinks is a very attractive valuation.

Edward has some outstanding form when it comes to dividend stocks, having led members of his market-beating Dividend Investor stock picking service to huge winners like these…

  • Accent Group (recommended November 2018) — up 125%
  • Collins Foods (recommended July 2018) — up 100%

  • And little known PWR Holdings (recommended March 2019) — up 236%

While not every pick has performed as well, not only have those three big winners delivered some serious capital gains, they also pay fully franked dividends.

Which is where Edward's top dividend stock for 2021 comes into its own.

The good news in all of this is that you can get the name of Edward's top ASX dividend share to buy for 2021 for free.

As an added bonus, in addition to his top dividend share for 2021, Edward has also named two other ASX dividend stocks he likes almost as much, and they also both pay fully franked dividends.

All three stocks are revealed inside Edward's latest free dividend report. Simply enter your email below and we'll send your three free ASX dividend stock picks directly to your inbox.

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Returns as of 15 June 2024. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group, Collins Foods Limited, and PWR HLDING FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. For more information about The Motley Fool see our Financial Services Guide. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.