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Thanks to the existing securities laws, most of the best professional investors are off limits to individual investors. Only the super wealthy can access top investment managers like George Soros, David Tepper, and Ray Dalio.
That’s because their hedge funds only accept “accredited investors” who have a liquid net worth of at least $1 million. Meanwhile, many funds require a minimum investment of at least $500,000.
But one of the top hedge fund managers is completely accessible. And any investor can get started by purchasing a single share of his stock.
The hedge fund manager is Carl Icahn and his company is Icahn Enterprises (Nasdaq: IEP).
Icahn is the 78-year-old activist investor who has been involved in major takeovers including RJR Nabisco and Trans World Airlines. More recently he’s attempted to buy Dell, publicly sparred with Bill Ackman and Herbalife (NYSE: HLF), and successfully urged Apple (Nasdaq: AAPL) to increase its share buyback program.
Last year, Icahn personally earned $1.7 billion. That was enough to place him at #5 on a list of the highest paid hedge fund managers. Much of his profits last year came from his large Netflix (Nasdaq: NFLX) stake. Icahn purchased shares for just $58 and cashed in a 457% profit.
He has much of his wealth invested in Icahn Enterprises, and personally owns 90% of the company. Thus, his financial interests are aligned with shareholders.
How to Get Your Dividend Check
Income investors will be thrilled to learn that Icahn is a huge advocate of dividends. His company just increased its dividend payment by 20%. With a current dividend of $6, Icahn Enterprises yields a juicy 5.9%.
The company expects to pay out $690 million in dividends in 2014. And given his large controlling stake, Carl Icahn stands to receive $621 million in dividends. Clearly, the investing icon has good reason to keep raising the dividend, which has grown 5x since 2011.
The company is in great financial shape, and has plenty of cash to cover its dividend obligations. Last year, the company had earnings per share of $9 and dividend payments of $4.50. That means that the company’s dividend payout ratio is a healthy 50%.
Icahn Enterprises is a sizable company, with a $12 billion market cap. The stock has performed handsomely, rising 273% in the last five years. Yet shares are still overlooked, with just one analyst covering the name.
I love discovering overlooked income opportunities like this. I previously tipped off Income & Prosperity readers to the opportunity with this stock in my article, How to Partner with Carl Icahn. When I shared that idea, Icahn shares traded at $72. Since then, the stock climbed as high as $149 in early January.
I also recommended shares of Icahn Enterprises to my High Yield Wealth investment newsletter subscribers. When Icahn shares reached $112, I issued a sell notice on the stock. And in just six months, my subscribers earned a profit of 60%.
Now is a great time to reconsider buying shares of Icahn once again, even if you missed out on the last run. The stock is down 31% from its recent highs. But that selloff seems overdone.
Three of Icahn’s largest investments have performed well since the company’s last financial report in March. Since then, Apple has jumped 15%. Meanwhile, Herbalife and Netflix are each up 10%.
Yet Icahn Enterprises shares are flat over the same period of time. With the stock down 9% in 2014, now is an opportune time to invest alongside Carl Icahn and get your dividend check.
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