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4 Highest Yielding Dividend Stocks Bought by Major Investment Gurus

Covering investment professionals does make sense to get inspired. I look at Warren Buffett’s investment choices. Guru stock buys are only one point of hundreds in the selection process of an investment target.

Investment gurus are asset or fund managers with big amounts of cash under management. They became popular by big returns and spectacular investment strategies. I also talk about investors like George Soros. They all have one thing in common: The average return beats the market and if they invest, the market follows.

Today I create a screen of the biggest stock buys from 49 super investors over the recent six months and rank them in my 100 best guru buy list. They all combined bought 571 stocks within the recent half year.

The most wanted stock was Berkshire Hathaway. The company was bought by 14 investment professionals over the recent six months. Microsoft and AIG were also very popular with 13 and 12 guru buys.

Sixty-nine stocks from the list pay dividends and 68 have a buy or better recommendation.

Here are my favorites:

GlaxoSmithKline (GSK)
has a market capitalization of $115.25 billion. The company employs 99,488 people, generates revenue of $39.916 billion and has a net income of $7.164 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13.332 billion. The EBITDA margin is 33.40 percent (the operating margin is 27.97 percent and the net profit margin 17.95 percent). [/b]

Financial Analysis: The total debt represents 44.13 percent of the company’s assets and the total debt in relation to the equity amounts to 315.01 percent. Due to the financial situation, a return on equity of 65.96 percent was realized. Twelve trailing months earnings per share reached a value of $2.76. Last fiscal year, the company paid $2.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.01, the P/S ratio is 2.90 and the P/B ratio is finally 13.12. The dividend yield amounts to 4.99 percent and the beta ratio has a value of 0.64.

[b]Intel Corporation (INTC)
has a market capitalization of $106.12 billion. The company employs 105,000 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of the company’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized. Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.08, the P/S ratio is 1.99 and the P/B ratio is finally 2.07. The dividend yield amounts to 4.19 percent and the beta ratio has a value of 1.02.

Staples (SPLS) has a market capitalization of $8.74 billion. The company employs 50,020 people, generates revenue of $24.380 billion and has a net income of $-160.85 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $940.42 million. The EBITDA margin is 3.86 percent (the operating margin is 1.86 percent and the net profit margin -0.66 percent).

Financial Analysis: The total debt represents 16.20 percent of the company’s assets and the total debt in relation to the equity amounts to 32.46 percent. Due to the financial situation, a return on equity of -2.45 percent was realized. Twelve trailing months earnings per share reached a value of $-0.25. Last fiscal year, the company paid $0.44 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.36 and the P/B ratio is finally 1.43. The dividend yield amounts to 3.67 percent and the beta ratio has a value of 1.02.

E I Du Pont De Nenours (DD) has a market capitalization of $45.75 billion. The company employs 70,000 people, generates revenue of $35.310 billion and has a net income of $2.493 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.270 billion. The EBITDA margin is 14.92 percent (the operating margin is 8.82 percent and the net profit margin 7.06 percent).

Financial Analysis: The total debt represents 23.60 percent of the company’s assets and the total debt in relation to the equity amounts to 116.38 percent. Due to the financial situation, a return on equity of 27.00 percent was realized. Twelve trailing months earnings per share reached a value of $2.60. Last fiscal year, the company paid $1.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.85, the P/S ratio is 1.28 and the P/B ratio is finally 4.64. The dividend yield amounts to 3.51 percent and the beta ratio has a value of 1.53.

Take a closer look at the full table of stocks with biggest guru buys over the past six months. The average P/E ratio amounts to 18.86. Exactly 69 companies pay dividends of which one has a high yield. The average dividend yield amounts to 1.49 percent. P/S ratio is 2.42 and P/B ratio 3.91.

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One hundred 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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