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High Yield Tweedy Browne Stocks: MO, T, GSK, PM, AJG

January 18, 2011 | About:
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gurufocus

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In a paper published by Tweedy Browne, the long term value investing shop found that there is an abundance of empirical evidence which suggests that portfolios consisting of higher dividend yielding securities produce returns that are attractive relative to lower yielding portfolios and to overall stock market returns over long measurement periods. If you are not familiar with Tweedy Browne, you should. Tweedy, Browne is an investment partnership owned by its four Managing Directors, William H. Browne, John D. Spears, Thomas H. Shrager, and Robert Q. Wyckoff, Jr. The operations of Tweedy, Browne are managed by its Management Committee consisting of Christopher H. Browne, William H. Browne and John D. Spears. This investment partnership has been recognized by Warren Buffett as Graham-Doddsville Superinvestors. The Firm has been in the investment business for close to 90 years. Benjamin Graham, through his investment in Graham-Newman Corp., was one of Tweedy's brokerage clients in the 1930s and 1940s.

In this article we look into the high dividend yield stocks that are owned in Tweedy Browne’s portfolio. We list the 6 stocks that have yield above 4%. These stocks are MO, T, GSK, PM, AJG. To check the complete list of High Yield Stocks of Tweedy Browne, please go to http://www.gurufocus.com/holdings.php?GuruName=Tweedy+Browne&tab=yield

Altria Group (MO) -- Yield = 6.2

The yield of Altria Group (MO) stocks is 6.2%. Altria Group is the parent company of Philip Morris USA, U. Altria Group has a market cap of $51.11 billion; its shares were traded at around $24.16 with a P/E ratio of 13.2 and P/S ratio of 2.2. The dividend yield of Altria Group stocks is 6.2%.

Hedge Fund Gurus that owns MO:

Tom Russo of Gardner Russo & Gardner, Stanley Druckenmiller of Duquesne Capital Management, LLC, Louis Moore Bacon of Moore Capital Management, LP, Manning & Napier Advisors, Inc, Kenneth Fisher of Fisher Asset Management, LLC.

Mutual Fund and Other Gurus that owns MO:

Jeff Auxier of Auxier Focus Fund, James Barrow of Barrow, Hanley, Mewhinney & Strauss, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, Tom Gayner of Markel Gayner Asset Management Corp, Pioneer Investments, Donald Yacktman of Yacktman Asset Management Co., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Murray Stahl of Horizon Asset Management, Tweedy Browne of Tweedy Browne CO LLC, Mario Gabelli of GAMCO Investors, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Dodge & Cox.

For details of gurus' trades and ownership with MO, click here

At&T Inc (T) -- Yield = 5.8

The yield of At&T Inc (T) stocks is 5.8%. AT&T Inc. is a premier communications holding company. At&t Inc has a market cap of $173.68 billion; its shares were traded at around $28.43 with a P/E ratio of 13.1 and P/S ratio of 1.4. The dividend yield of At&t Inc stocks is 5.8%. At&t Inc had an annual average earning growth of 2.8% over the past 10 years.

Hedge Fund Gurus that owns T:

Stanley Druckenmiller of Duquesne Capital Management, LLC, Louis Moore Bacon of Moore Capital Management, LP, George Soros of Soros Fund Management LLC, Irving Kahn of Kahn Brothers & Company Inc., Tom Russo of Gardner Russo & Gardner, Steven Cohen of SAC Capital Advisors, Kenneth Fisher of Fisher Asset Management, LLC.

Mutual Fund and Other Gurus that owns T:

Mark Hillman of Hillman Capital Management, Ronald Muhlenkamp of Muhlenkamp Fund, Brian Rogers of T Rowe Price Equity Income Fund, Charles Brandes of Brandes Investment, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Arnold Van Den Berg of Century Management, Pioneer Investments, Jeff Auxier of Auxier Focus Fund, Tweedy Browne of Tweedy Browne CO LLC, Mario Gabelli of GAMCO Investors, Jeremy Grantham of GMO LLC, Bill Frels of Mairs & Power Inc. , Richard Aster Jr of Meridian Fund, David Dreman of Dreman Value Management, Dodge & Cox.

3 Gurus Increased Positions, 12 Gurus Kept Positions in T Unchanged or Slightly Adjusted.

For details of gurus' trades and ownership with T, click here

Glaxosmithkline (GSK) -- Yield = 5.1

The yield of Glaxosmithkline (GSK) stocks is 5.1%. GlaxoSmithKline is one of the world's research based pharmaceutical and healthcare companies and is committed to improving the quality of human life by enabling people to do more, feel better and live longer. Glaxosmithkline has a market cap of $102.19 billion; its shares were traded at around $39.18 with a P/E ratio of 13 and P/S ratio of 2.3. The dividend yield of Glaxosmithkline stocks is 5.1%. Glaxosmithkline had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Glaxosmithkline the business predictability rank of 3-star.

Hedge Fund Gurus that owns GSK:

Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.

Mutual Fund and Other Gurus that owns GSK:

Kenneth Fisher of Fisher Asset Management, LLC, Manning & Napier Advisors, Inc, Dodge & Cox, Bill Nygren of Oak Mark Fund, Jeff Auxier of Auxier Focus Fund, Charles Brandes of Brandes Investment, Edward Owens of Vanguard Health Care Fund, PRIMECAP Management, Tweedy Browne of Tweedy Browne CO LLC, Warren Buffett of Berkshire Hathaway, David Dreman of Dreman Value Management, NWQ Managers of NWQ Investment Management Co, Mario Gabelli of GAMCO Investors.

10 Gurus Kept Positions in GSK Unchanged or Slightly Adjusted, 1 Guru Reduced Positions.

For details of gurus' trades and ownership with GSK, click here

Philip Morris (PM) -- Yield = 4.5

The yield of Philip Morris (PM) stocks is 4.5%. Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris has a market cap of $103.56 billion; its shares were traded at around $56.67 with a P/E ratio of 15.4 and P/S ratio of 1.7. The dividend yield of Philip Morris stocks is 4.5%.

Hedge Fund Gurus that owns PM:

Tom Russo of Gardner Russo & Gardner, Bruce Kovner of Caxton Associates, Louis Moore Bacon of Moore Capital Management, LP, Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc, George Soros of Soros Fund Management LLC, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors.

Mutual Fund and Other Gurus that owns PM:

Tweedy Browne of Tweedy Browne CO LLC, David Winters of Wintergreen Advisors, Jeff Auxier of Auxier Focus Fund, Ronald Muhlenkamp of Muhlenkamp Fund, James Barrow of Barrow, Hanley, Mewhinney & Strauss, NWQ Managers of NWQ Investment Management Co, Jeremy Grantham of GMO LLC, HOTCHKIS & WILEY of Hotchkis & Wliey Capital Management LLC, Chris Davis of Davis Selected Advisers, John Buckingham of Al Frank Asset Management, Inc., David Dreman of Dreman Value Management, Tom Gayner of Markel Gayner Asset Management Corp, Murray Stahl of Horizon Asset Management, Pioneer Investments, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Donald Yacktman of Yacktman Asset Management Co., RS Investment Management, Bill Frels of Mairs & Power Inc. , Jean-Marie Eveillard of First Eagle Investment Management, LLC, Mario Gabelli of GAMCO Investors, Dodge & Cox.

1 Guru Initiated Positions: Mario Gabelli bought 102,500 shares in the quarter that ended on 09/30/2010, which is 0.02% of the $23.32 billion portfolio of GAMCO Investors. 12 Gurus Kept Positions in PM Unchanged or Slightly Adjusted. 3 Gurus Reduced Positions.

For details of gurus' trades and ownership with PM, click here

Director Sergio Marchionne bought more than 10,000 shares of PM stock over the past 6 months. For details of insider trades and ownership of PM, click here

Arthur J. Gallagher & Co (AJG) -- Yield = 4.4

The yield of Gallagher Arthu (AJG) stocks is 4.4%. Arthur J. Gallagher & Co. and its subsidiaries are engaged in providing insurance brokerage, risk management, employee benefit and other related services to clients in the United States and abroad. Gallagher Arthur has a market cap of $3.08 billion; its shares were traded at around $28.93 with a P/E ratio of 22.1 and P/S ratio of 1.8. The dividend yield of Gallagher Arthu stocks is 4.4%. Gallagher Arthu had an annual average earning growth of 6.1% over the past 10 years.

1 Guru Increased Positions: Tweedy Browne owns 240,049 shares as of 09/30/2010, an increase of 84.98% from the previous quarter. This position accounts for 0.23% of the $2.77 billion portfolio of Tweedy Browne CO LLC.

2 Gurus Kept Positions in AJG Unchanged or Slightly Adjusted: John Keeley owns 774,820 shares as of 09/30/2010, which accounts for 0.36% of the $5.72 billion portfolio of Keeley Fund Management. Richard Pzena owns 1,055,700 shares as of 09/30/2010, which accounts for 0.27% of the $10.22 billion portfolio of Pzena Investment Management LLC.

1 Guru Reduced Positions: Charles Brandes owns 244,879 shares as of 09/30/2010, a decrease of 21.79% of from the previous quarter. This position accounts for 0.04% of the $16.09 billion portfolio of Brandes Investment.

For details of gurus' trades and ownership with AJG, click here

To check the complete list of High Yield Stocks of Tweedy Browne, please go to http://www.gurufocus.com/holdings.php?GuruName=Tweedy+Browne&tab=yield

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

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