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New Guru Lou Simpson’s Top-Yielding Stocks

January 04, 2013 | About:
SQ Advisors head and Buffett comrade Lou Simpson runs a pretty concentrated portfolio, with only 15 stocks, the majority weighted in the financial sector. Valued about $1.2 billion, with a quarter-over-quarter turnover rate of 9 percent, about 10 of Simpsons’ stocks pay dividends.

Based on his high-yield stocks list, these three companies maintain the highest yield percentages in his portfolio.

Dell Inc. (DELL)

Technology solutions and products maven Dell Inc. has a dividend yield of 3.1 percent, and a payout ratio of 0.05.

In 2012, Simpson’s highest reported holding of Dell shares was in the first half of the year when he had over $6 million shares. But by the third quarter, Dell’s market value took a hit when its average descended down to about $14 from $17 in the second quarter.

It was then that Simpson reduced his stake, shedding about 58,000 shares. Dell’s lowest for 2012 was in November when the stock reached $8.

Early December, Dell announced a quarterly cash dividend of $0.08 per common share, which will be paid out to its shareholders on Jan. 23.

A few days before the year ended, Dell announced its completion of its acquisition of data protection solutions provider, Credant Technologies.

Currently, Simpson sits with a total Dell shareholding of 5,952,623. The stock is trading at $10.85, down 0.91 percent this morning.



To view Dell’s financial stats, go to 10-Year Financials.



Wells Fargo & Co. (WFC)


Nationwide diversified financial services company, Wells Fargo has a dividend yield of 2.7 percent and a payout ratio of 0.05.

Simpson currently owns 2,782,417 shares. Throughout 2012, he continuously added to his stake strategically, as Wells Fargo’s market value soared 23 percent.

The company’s last dividend payout was dispersed Dec. 31, a distribution of Wells Fargo Series A 7.25 percent preferred securities, equal to $0.453125 per security.

In November, Wells Fargo announced its dividends on three series of preferred stock.

The company paid a $20 per share cash dividend from its Series J preferred stock, an $18.75 per share dividend from its Series L preferred stock, as well as a $429.72 per share dividend from its Series N preferred stock, all paid to shareholders on Dec. 17.

In recent news, Wells Fargo Asset Management announced obtaining a minority stake in privately held hedge fund firm, The Rock Creek Group, based in Washington, D.C. The stake provides Wells Fargo an opportunity to increase businesses in alternative investments solutions between Rock Creek and its clients, hoping to obtain additional ownership interests in the long-term.

Currently, Wells Fargo is down 0.19 percent, trading at $34.62.



To view Wells Fargo’s financial stats, go to 10-Year Financials.

Cenovus Energy Inc. (CVE)

Cenovus Energy has a dividend yield of 2.7 percent and a payout ratio of 0.47.

On Dec. 31, Cenovus paid $0.22 per common share in dividends to its shareholders, the rate it paid in all quarterly payouts throughout the year.

Cenovus remains 6.9 percent of Simpson’s portfolio, with a holding of 2,322,866 million shares valued at $81 million. In 2012, Simpson vastly increased his stake, as the stock fluctuated between $29 and $39 throughout the year.

An integrated oil company, Canada-based Cenovus has oil sands operations in northern Alberta and Saskatchewan, as well as 50 percent ownership in two U.S. refineries. It anticipates growing its company by 14 percent in 2013, as it initiates significant investments in various oil assets, worth between $3.2 billion and $3.6 billion.

Cenovus is currently trading at $34.11, down 0.68 percent.



To view Cenovus Energy’s financial stats, go to 10-Year Financials.

View more articles about Lou Simpson in our GuruFocus archives. See the rest of Lou Simpson’s stock holdings in his portfolio here. Also check out his Undervalued Stocks, Top Growth Companies and the rest of his High Yield stocks.



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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


Rating: 3.3/5 (9 votes)

Comments

vgm
Vgm - 1 year ago
Thanks for the article.

However, you state that the holdings are mainly in financials. This is incorrect. At least half of SQ's 15 holdings are NOT in financials.

Please leave your comment:


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