Charles Brandes is Chairman of the Brandes Investment Management, a firm he founded in 1974. The research arm of the firm, the Brandes Institute investigates potential opportunities arising from the influence of behavioral and structural factors on global investing. The Institute’s publications can be found here.
Recently, The Brandes Institute published a report entitled “Dividend Yield and the Implications of Cash Sitting on Balance Sheets”, writing by Bill Raver.
Abstract of the report:
Robust cash flow yields for large-cap stocks have reached unprecedented territory in 2010 in relation to both investment-grade and junk-bond yields. In this article, Brandes Institute Advisory Board Member Bill Raver examines how these cash flow yields suggest stocks offer compelling potential for capital return and appreciation for shareholders. Mr. Raver also examines the record cash levels sitting on the balance sheets of public companies and the impact an increase in dividends and share buyback activity may have on performance and liability obligations going forward.
GuruFocus tracks Brandes’s stock holdings. As of September 30, 2010, his firm manages over $16 billion in equities, distributed among over 200 stocks. Eight of the stocks are new for the quarter. You can say that he is rather diversified and yet slow churning investor. Most value investors churn their portfolio ever so slowly.
In Charles Brandes’s portfolio, here are some stocks that have the highest dividend yields.
|Ticker||Company||Yield (%)||Shares||Value ($1000)||% Weighting as of 2010-09-30|
|NZT||Telecom Corp. of New Zealand Ltd.||8.14||5,232,481||39,348||0.24%|
|DTEGY||DEUTSCHE TELEKOM AG S/ADR||7.51||22,024,477||301,485||1.87%|
|VZ||Verizon Communications Inc.||5.99||9,622,205||313,588||1.95%|
A brief review and Brandes’s holding history in these stocks:
Telecom Corp. of New Zealand Ltd. (NZT)Telecom Corporation of New Zealand is a major supplier of telecommunications services in New Zealand. Telecom Corp. Of New Zealand Ltd. has a market cap of $3.25 billion; its shares were traded at around $8.45 with a P/E ratio of 18.37 and P/S ratio of 0.88. The dividend yield of Telecom Corp. Of New Zealand Ltd. stocks is 8.14%. Telecom Corp. Of New Zealand Ltd. had an annual average earning growth of 1% over the past 10 years.
DEUTSCHE TELEKOM AG S/ADR (DTEGY)Deutsche Telekom is Europe's largest communications company and one of the largest communications carriers worldwide. with a P/E ratio of 26.4 and P/S ratio of 0.66. The dividend yield of Deutsche Telekom Ag S/adr stocks is 7.51%.
France Telecom (FTE)France Telecom is the world's fourth-largest telecommunications carrier with 1996 consolidated operating revenues of FF 151. France Telecom has a market cap of $60.97 billion; its shares were traded at around $23.02 with and P/S ratio of 0.95. The dividend yield of France Telecom stocks is 6.42%.
Verizon Communications Inc. (NYSE:VZ)Verizon Communications, formed by the merger of Bell Atlantic and GTE, is one of the world's providers of high-growth communications services. Verizon Communications Inc. has a market cap of $92.05 billion; its shares were traded at around $32.56 with a P/E ratio of 14.54 and P/S ratio of 0.85. The dividend yield of Verizon Communications Inc. stocks is 5.99%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years.
AT&T Inc. (NYSE:T)AT&T Inc. is a premier communications holding company. At&t Inc. has a market cap of $168.17 billion; its shares were traded at around $28.46 with a P/E ratio of 12.65 and P/S ratio of 1.37. The dividend yield of At&t Inc. stocks is 5.9%. At&t Inc. had an annual average earning growth of 2.8% over the past 10 years.
You got the picture where the top yields are around the world.
To see his other holdings and trading activities, click on Charles Brandes.