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3 Most Attractive Stocks Bought by Popular Investment Gurus
Posted by: Dividend (IP Logged)
Date: December 3, 2012 11:15AM

Investment gurus are asset or fund managers with big amounts of cash under management. They became popular by big returns and spectacular investment strategies. I talk about investors like George Soros and Warren Buffett. They all have one thing in common: Their average return beats the market and if they invest, the market follows.

I made a screen of the biggest stock buys from 49 super investors over the recent six months and ranked them in my 100 best guru buy list. They all bought 594 stocks within the past half year.

The top stocks are now Berkshire Hathaway and Google. Berkshire was bought by 16 stock market professionals and Google by 15. Half of the top 10 buys came from the technology sector. Investors still love this field because of the high growth potential and strong cash flows. But technology stocks are no big dividend payer. That’s why I did not invest much of my private wealth in technology stocks. That’s a bad strategy because if you want to have growth, the sector is one of the safest bets for the time being.

Here are the most bought dividend stocks:

Dell (DELL) has a market capitalization of $16.72 billion. The company employs 106,700 people, generates revenue of $62.07 billion and has a net income of $3.49 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.37 billion. The EBITDA margin is 8.65 percent (the operating margin is 7.14 percent and the net profit margin 5.63 percent).

Financial Analysis: The total debt represents 20.78 percent of the company’s assets and the total debt in relation to the equity amounts to 103.78 percent. Due to the financial situation, a return on equity of 41.86 percent was realized. Twelve trailing months earnings per share reached a value of $1.47. Last fiscal year, the company paid $0.00 in the form of dividends to shareholders. Dell was bought by 13 gurus.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.54, the P/S ratio is 0.27 and the P/B ratio is finally 1.90. The dividend yield amounts to 3.32 percent and the beta ratio has a value of 1.36.

Schlumberger (SLB) has a market capitalization of $95.08 billion. The company employs 113,000 people, generates revenue of $39.67 billion and has a net income of $4.79 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.66 billion. The EBITDA margin is 24.35 percent (the operating margin is 15.98 percent and the net profit margin 12.08 percent).

Financial Analysis: The total debt represents 17.99 percent of the company’s assets and the total debt in relation to the equity amounts to 31.77 percent. Due to the financial situation, a return on equity of 15.29 percent was realized. Twelve trailing months earnings per share reached a value of $4.09. Last fiscal year, the company paid $1 in the form of dividends to shareholders. SLB was bought by 11 gurus.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.52, the P/S ratio is 2.40 and the P/B ratio is finally 3.06. The dividend yield amounts to 1.54 percent and the beta ratio has a value of 1.41.

Oracle (ORCL) has a market capitalization of $155.05 billion. The company employs 115,899 people, generates revenue of $37.12 billion and has a net income of $9.98 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.62 billion. The EBITDA margin is 44.78 percent (the operating margin is 36.92 percent and the net profit margin 26.89 percent).

Financial Analysis: The total debt represents 21.03 percent of the company’s assets and the total debt in relation to the equity amounts to 37.71 percent. Due to the financial situation, a return on equity of 23.92 percent was realized. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders. ORCL was bought by 14 gurus.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.94, the P/S ratio is 4.18 and the P/B ratio is finally 3.61. The dividend yield amounts to 0.75 percent and the beta ratio has a value of 1.09.

Take a closer look at the full table of stocks with biggest guru buys over the past six months. The average P/E ratio amounts to 24.89. Exactly 71 companies pay dividends of which two have a high yield. The average dividend yield amounts to 1.65 percent. P/S ratio is 2.09 and P/B ratio 3.43.

Monthly Yield Fact Book | Yields Dividend Champions | Yields Dividend Contenders | Yields Dividend Challengers | High-Yield Large Cap | +10% Yielding Stocks



Guru Discussed: George Soros: Current Portfolio, Stock Picks
Stocks Discussed: BRK.B, GOOG, ORCL, DELL, SLB, CSCO, JPM, SCHW, PG, MSFT, GM,
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