Value investor: Bet on an eBay dividend

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Susan Byrne, founder and chairman of Westwood Holdings, is making a bet that eBay will likely issue a dividend following the spin off of PayPal.

The e-commerce giant announced last September it will separate its payment unit, Paypal, in a tax-free spin off that is expected to take place in the third quarter this year.

That move, according to Byrne, will likely result in a dividend payment or a share repurchase program that could boost the stock.

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"In our view, the spin-off creates value over time," said Byrne, who thinks once PayPal is able to operate as a separate entity, it will be able to form "additional partnerships for growth."

In turn, eBay will focus on growing its existing network of sellers for its market place unit, allowing the company to grow its "top line at mid-single digit and the payment business at low double digits consistently."

In order to capitalize on this trend and other of her top ideas, here are the changes she is making for the "Squawk Box" Portfolio Challenge.