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Top Three Dividend Picks from 49 Big Investment Gurus

I personally follow the activities of Warren Buffett. He is a highly trusted investor with a proven long-term track record. I also look at Carl Icahn’s (estimated net worth of $20 billion) stock purchases because he is one younger investor who can replace Warren Buffett's wisdom one day. Both investors have a different view on the capital market but they are very successful in the how they invest. These two men are great examples of people who built careers on Wall-Street then developed into top investment gurus. I also follow investors like George Soros.

Investment gurus are asset or fund managers with large amounts of cash under management. They became popular through big returns and spectacular investment strategies. The investment gurus all have one thing in common: They average returns that beats the market, and if they invest, the market follows.

In order to show the hottest stocks of the investment premier league, 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. All combined they bought 569 stocks within the recent half year.

The top stock picks are now Berkshire Hathaway Inc. (BRK.A) (BRK.B) and American International Group Inc. (AIG). Berkshire was bought by 14 gurus and AIG stakes were increased by 12 investors. Technology dividend stocks and insurers are hot picks within the guru scene. Seventy-one of the top 100 guru stock buys pay dividends.

Here are the top dividend picks:

Microsoft Corpoation (MSFT) has a market capitalization of $234.53 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 $24.819 billion. The EBITDA margin is 33.67% (the operating margin is 29.92% and the net profit margin 23.03%).

Financial Analysis: The total debt represents 9.85% of the company’s assets and the total debt in relation to the equity amounts to 18.00%. Due to the financial situation, a return on equity of 27.51% was realized. Twelve trailing months earnings per share reached a value of $1.82. Last fiscal year the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.36, the P/S ratio is 3.20 and the P/B ratio is finally 3.55. The dividend yield amounts to 3.27% and the beta ratio has a value of 0.94.

Apple (AAPL) has a market capitalization of $405.41 billion. The company employs 72,800 people, generates revenue of $156.508 billion and has a net income of $41.733 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $58.446 billion. The EBITDA margin is 37.34% (the operating margin is 35.30% and the net profit margin 26.67%).

A return on equity of 42.84% was realized. Twelve trailing months earnings per share reached a value of $44.10. Last fiscal year, the company paid $2.65 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.79, the P/S ratio is 2.58 and the P/B ratio is finally 3.42. The dividend yield amounts to 2.46% and the beta ratio has a value of 1.04.

Charles Schwab (SCHW) has a market capitalization of $22.57 billion. The company employs 13,800 people, generates revenue of $4.883 billion and has a net income of $928.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.646 billion. The EBITDA margin is 33.71% (the operating margin is 29.69% and the net profit margin 19.00%).

Financial Analysis: The total debt represents 1.22% of the company’s assets and the total debt in relation to the equity amounts to 17.02%. Due to the financial situation, a return on equity of 10.74% was realized. Twelve trailing months earnings per share reached a value of $0.69. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.50, the P/S ratio is 4.62 and the P/B ratio is finally 2.59. The dividend yield amounts to 1.36 percent and the beta ratio has a value of 1.31.

Take a closer look at the full table of stocks with biggest guru buysover the past six months. The average P/E ratio amounts to 23.03. Exactly 76 companies pay dividends of which two have a high yield. The average dividend yield amounts to 1.52 percent. P/S ratio is 2.45 and P/B ratio 3.93.

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100 most bought stocks by investment professionals originally published on Dividend Yield – Stock, Capital, Investment.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

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