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Dodge & Cox's 3 Latest Added Dividend Stocks with Largest Portfolio Impact
Posted by: Dividend (IP Logged)
Date: July 15, 2013 09:11AM

The Dodge & Cox fund is a real equity based investment vehicle with around USD81.3 billion in assets under management.

The investment firm was founded in 1930, by Van Duyn Dodge and E. Morris Cox. With this long history in background, there is also a long performance review available.

Over the recent years, the fund’s performance suffered a bit. There was a small underperformance of 2.7 percent over the recent three years and 9.2 percent over the past five years. The excess gain to the S&P 500 over the longer term was also small with up to 2.9 percent at the peak (15 years).

They own in total 163 companies of which two were recently new in the fund. Kraft Foods Group and Abbvie are the two names.

Dodge & Cox have a real focus on financial, health care and technology stocks. More than half of their funds (59.9 percent) are invested in these three stock categories. The biggest impact on the buy side had the technology sector which is now net 0.7 percentage points bigger compared to the previous quarter.

Dodge & Cox have a dividend focus and they like large capitalized stocks. From their 20 biggest stock buys and sells in first quarter 2013, 17 pay a solid dividend and 17 have a valuation over USD10 billion. Hewlett Packard is the biggest holding, worth around USD4 billion. The latest big stock increases are up 26.03 percent year to date.

Here are the latest big dividend stock buys:

Chevron (CVX)
has a market capitalization of $240.55 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).

Financial Analysis: The total debt represents 5.23 percent of the company’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized. Twelve trailing months earnings per share reached a value of $13.23. Last fiscal year, the company paid $3.51 in the form of dividends to shareholders. CVX shares were added by 42.5 percent and had an impact to the full portfolio of .39%

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.38, the P/S ratio is 0.99 and the P/B ratio is finally 1.77. The dividend yield amounts to 3.22 percent and the beta ratio has a value of 0.80.

Microsoft (MSFT) has a market capitalization of $297.88 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $30.714 billion. The EBITDA margin is 41.66 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).

Financial Analysis: The total debt represents 9.85 percent of the company’s assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.94. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. MSFT shares were added by 14.64 percent and had an impact to the full portfolio of .34%

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.38, the P/S ratio is 4.04 and the P/B ratio is finally 4.50. The dividend yield amounts to 2.58 percent and the beta ratio has a value of 0.99.

CIGNA (CI) has a market capitalization of $21.69 billion. The company employs 35,800 people, generates revenue of $29.119 billion and has a net income of $1.624 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.037 billion. The EBITDA margin is 10.43 percent (the operating margin is 8.51 percent and the net profit margin 5.58 percent).

Financial Analysis: The total debt represents 9.65 percent of the company’s assets and the total debt in relation to the equity amounts to 53.10 percent. Due to the financial situation, a return on equity of 18.27 percent was realized. Twelve trailing months earnings per share reached a value of $4.52. Last fiscal year, the company paid $0.04 in the form of dividends to shareholders. CI shares were added by 314.36 percent and had an impact to the full portfolio of .32%

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.83, the P/S ratio is 0.74 and the P/B ratio is finally 2.22. The dividend yield amounts to 0.05 percent and the beta ratio has a value of 1.38.

Take a closer look at the full list of the latest big portfolio transactions from Dodge & Cox and the 20 biggest stock holdings. The average P/E ratio amounts to 19.97 and forward P/E ratio is 14.77. The dividend yield has a value of 1.98 percent. Price to book ratio is 4.42 and price to sales ratio 2.47. The operating margin amounts to 21.37 percent and the beta ratio is 0.97. Stocks from the list have an average debt to equity ratio of 1.44.

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Stocks Discussed: DUK, ABBV, KRFT, CVX, GIS, MSFT, SYMC, CL, TWC, HPQ, NTRS, IP,
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