Billionaires Bet on High-Yield, High-Risk: Top Stocks They Bought for Dividends
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Dividend-paying stocks tend to outperform non-payers over the long run, with S&P 500 dividend payers returning 9.18% vs 3.95% for non-payers over 50 years.
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Medical Properties Trust (MPW) is a hospital REIT with an ultra-high 15.6% dividend yield that billionaire investors were buying in Q4 2022. However, it relies heavily on its largest tenant, making it a risky pick.
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British American Tobacco (BTI) offers a stable 9.7% dividend yield and has growth potential in non-combustible products like its Vuse e-cigarette brand, which several billionaires were also buying.
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Billionaires like Ken Griffin and Jeff Yass made relatively small investments in high yielding but risky stocks like Medical Properties Trust and British American Tobacco.
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British American Tobacco expects over half its revenue to come from non-combustible products by 2035 as traditional cigarettes decline but total nicotine consumption remains steady.