Anybody attempting to maintain observe of the place the markets may be heading, could possibly be forgiven for displaying indicators of dizziness. The markets are being violently pulled in reverse instructions currently, making it tough to kind a coherent investing technique. It’s in time like this that some skilled recommendation would possibly present a clearer image. Hardly any on the Avenue come extra extremely regarded than billionaire David Tepper. The co-founder of world hedge fund Appaloosa Administration, Tepper is thought for his brash and assured type, traits which might turn out to be useful in at the moment’s confused local weather. Tepper made his fortune – and constructed his hedge fund – by investing in distressed belongings and profiting mightily when markets reversed afterward. And with $14 billion price of belongings beneath Appaloosa’s administration, it’s pure for Wall Avenue to take discover when Tepper has one thing to say. “Principally, I feel charges have briefly made the many of the transfer and needs to be extra steady within the subsequent few months, which makes it safer to be in shares for now,” Tepper famous. The billionaire believes the rising charges ought to settle and factors out that with the Senate’s approval of the coronavirus fiscal stimulus package deal, it’s presently “very tough to be bearish.” With this in thoughts, we’ve opened up the TipRanks database to get the inside track on two of Tepper’s current new positions. These are Sturdy Purchase shares – and maybe extra curiously, each are robust dividend payers, with annual yields exceeding 7%. We are able to flip to the Wall Avenue analysts to search out out what else might need introduced these shares to Tepper’s consideration. MPLX LP (MPLX) We’ll begin with a long-established identify within the vitality sector. Marathon Petroleum, one of many giants of Huge Oil, operates throughout the US, within the Rocky Mountains, the Midwest, and alongside the Gulf Coast, shifting oil and pure gasoline merchandise from the wells to the storage and distribution amenities. MPLX has benefited from the overall financial reopening within the second half of 2020, with the inventory gaining as extra folks returned to work and demand for gasoline elevated. General, shares are up 98% within the final 12 months. On the high line, revenues have rebounded from a dip in 2Q20, gaining 8.5% to achieve $2.17 billion by This fall. Earnings, which turned sharply adverse in 1Q20, rose steadily by way of the remainder of the yr, and got here in at 64 cents per share in This fall. However maybe a very powerful metric, for traders, was MPLX’s web money place – for the complete yr 2020, the corporate generated $4.5 billion in money, and returned over $3 billion of that to shareholders. In its most up-to-date dividend declaration, the corporate introduced a 68.75 cent fee per widespread share, or $2.75 annualized. This provides a yield of 10.5%, far above the typical yield. And David Tepper, within the final quarter, purchased closely into MPLX, choosing up greater than 3.45 million shares of the inventory. At present costs, these shares at the moment are price $89.77 million. As famous, this can be a new place for Tepper, and it’s a substantial one. Masking this inventory for RBC Capital, 5-star analyst TJ Schultz believes the corporate’s robust steadiness sheet justifies a optimistic sentiment. “[We] suppose MPLX is nicely positioned to proceed regular money stream and distributions into 2021+. Administration bolstered MPC’s dedication to MPLX contract renewals. Some modest value slippage on near-term barge renewables, however the chunkier contracts have been both set extra not too long ago (longer runway) or are already tied to FERC oil dynamics. We like MPLX’s enhancing FCF profile and stable steadiness sheet, which we predict offers administration extra choices for returning worth by way of unit buybacks over the following yr,” Schultz wrote. To this finish, Schultz offers MPLX a $29 value goal, implying a 12% upside, to go together with his Outperform (i.e. Purchase) ranking. (To observe Schultz’s observe file, click on right here) MPLX’s robust share appreciation has pushed the inventory value near the typical value goal. Shares are promoting for $25.92 now, with a median goal of $27.67 suggesting room for ~7% additional development. The inventory holds a Sturdy Purchase consensus ranking, primarily based on 5 Buys and 1 Maintain given over the previous 3 months. (See MPLX inventory evaluation on TipRanks) Enterprise Merchandise Companions (EPD) Sticking with the vitality sector, we’ll take a look at one other midstream firm that caught Tepper’s consideration. Enterprise Merchandise Companions, with a $50 billion market cap, is a serious participant within the midstream section, and operates a community of belongings together with greater than 50,000 pipeline miles, storage amenities for 160 million barrels of oil and 14 billion cubic ft of pure gasoline, and transport terminals on the Gulf Coast in Texas. The story right here is much like that for MPLX. Enterprise was harm by the lockdowns put in place to fight the COVID pandemic, however within the final six months has seen a rebound in share worth and revenues. Shares are up 40% in that point, whereas revenues in This fall broke again above $7 billion. General, Enterprise’s 2020 efficiency confirmed declines from 2019 – however one vital metric confirmed a achieve. Of the corporate’s complete money stream, $5.9 billion, $2.7 billion was free money stream (FCF), or money obtainable for distribution. This was up 8% year-over-year, and allowed the corporate to maintain up its common dividend fee – and even to lift the fee in the latest declaration, from 44 cents per widespread share to 45 cents. With a $1.80 annualized payout per share, this offers a sturdy yield of seven.7%. Tepper’s new place in EPD is substantial. The hedge fund chief purchased up 1.09 million shares of the inventory for his first place, a purchase that’s now price $25.23 million. Analyst Matt O’Brien, of JPMorgan, sides with the bulls, reiterating a Purchase ranking and $28 value goal. This goal conveys his confidence in EPD’s capacity to climb 20% from present ranges. (To observe O’Brien’s observe file, click on right here) “With capex wants slowing, EPD expects to achieve optimistic discretionary free money stream in 2H21, enabling totally funding capex, rising money distributions, and opportunistic buybacks… General, we proceed to consider EPD affords the optimum mixture of offense and protection, with enticing embedded working leverage, notable boundaries to entry, low leverage, and best-in-class monetary flexibility,” O’Brien commented. Wall Avenue’s analysts could be a contentious lot – however after they agree on a inventory, it’s a optimistic signal for traders to take be aware. That’s the case right here, as all the current critiques on EPD are Buys, making the consensus ranking a unanimous Sturdy Purchase. The analysts have given a median value goal of $27, which signifies ~15% upside from the present share value of $23.38. (See EPD inventory evaluation on TipRanks) To seek out good concepts for dividend shares buying and selling at enticing valuations, go to TipRanks’ Finest Shares to Purchase, a newly launched instrument that unites all of TipRanks’ fairness insights. Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is extremely vital to do your personal evaluation earlier than making any funding.