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The Top Five Dividend Stocks that Gurus are Holding

June 19, 2014 | About:
Monica Wolfe

Monica Wolfe

121 followers

Using the GuruFocus All-In-One Guru Screener you can filter and find all sorts of stocks based on criteria you’ve created. I decided to take a look at which dividend-focused stocks were held by the highest number of gurus. In my personalized filter I chose to focus on companies with a dividend yield of at least 4% and that have been consistently increasing their dividends. You can view the results of my filter by clicking here. The following five stocks are held by the highest number of gurus and are actually all traded in the U.S. Market.

Verizon Communications (VZ)

The largest held dividend stock is in Verizon Communications where 33 gurus hold a piece of the stock. Together these gurus hold on to 84,230,596 shares or 19.5% of the company’s shares outstanding. At the time of this article Verizon Communications held a dividend yield of 4.3%.

The top guru shareholders of Verizon Communications:

  1. James Barrow (Trades, Portfolio): 26,524,596 shares, representing 0.93% of the company’s shares outstanding and 1.8% of the guru’s total portfolio.
  2. Warren Buffett (Trades, Portfolio): 11,022,743 shares, representing 0.39% of the company’s shares outstanding and 0.5% of the guru’s total portfolio.
  3. Jim Simons (Trades, Portfolio): 10,356,855 shares, representing 0.36% of the company’s shares outstanding and 1.2% of Simons’ total portfolio.

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Verizon Communications is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies.

Verizon Communications’ historical revenue and earnings growth:

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The analysis on Verizon reports that the company’s revenue per share has slowed down over the past year, the company’s price is near a 10-year high and the company has issued $39.7 billion of debt over the past three years. The analysis also notes that the company’s Piotroski F-Score is high and that its operating margin is expanding.

The Peter Lynch Chart suggests that Verizon is currently undervalued:

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Verizon Communications has a market cap of $204.66 billion. Its shares are currently trading at around $49.42 with a P/E ratio of 11.10, a P/S ratio of 1.20 and a P/B ratio of 16.00. Verizon had an annual average earnings growth of 4.60% over the past ten years.

GuruFocus rated Verizon the business predictability rank of 1403196445843.png">4-star.

Philip Morris International (PM)

The second most held guru dividend stock is in Philip Morris. The company is held by 28 different gurus who own a combined 66,088,501 shares of the company’s stock. These combined gurus hold on to 16.6% of the company’s shares outstanding. At the time of this article Philip Morris maintained a dividend yield of 4.1%.

The top guru shareholders of Philip Morris:

  1. James Barrow (Trades, Portfolio): 22,589,693 shares, representing 1.4% of the company’s shares outstanding as well as 2.6% of Barrows’ assets managed.
  2. Jeremy Grantham (Trades, Portfolio): 19,839,326 shares, representing 1.23% of the company’s shares outstanding and 4.2% of his total portfolio.
  3. Tom Russo (Trades, Portfolio): 10,191,037 shares, representing 0.63% of the company’s shares outstanding and 8.1% of his total portfolio.

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Philip Morris’ subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the US. Its portfolio comprises both international and local brands. Its portfolio of international and local brands is led by Marlboro.

Philip Morris’ historical revenue and net income:

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The analysis on Philip Morris reports that the company’s operating margin is expanding and that its dividend yield is near a 3-year high. It also notes that Philip Morris’ price is near a 10-year high, its revenue per share has slowed down over the past year and the company has issued $12.8 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Philip Morris has a market cap of $142.63 billion. Its shares are currently trading at around $90.68 with a P/E ratio of 17.80 and a P/S ratio of 4.80. The company had an annual average earnings growth of 13% over the past five years.

BP PLC (BP)

BP is the third most guru-held dividend stock. As of the close of the first quarter there are 26 gurus holding on to 64,413,514 shares of the company’s stock. These gurus hold on to a combined 15.4% of the company’s shares outstanding. BP’s dividend yield is currently at 4.4%.

The top three guru owners of BP:

  1. James Barrow (Trades, Portfolio): 28,643,043 shares, representing 0.91% of the company’s shares outstanding and 2% of his total assets managed.
  2. Richard Pzena (Trades, Portfolio): 10,891,504 shares, representing 0.35% of the company’s shares outstanding and 3% of his total portfolio.
  3. Bill Gates (Trades, Portfolio): 7,315,267 shares, representing 0.23% of the company’s shares outstanding and 1.8% of his total portfolio.

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BP PLC operates as an integrated oil and gas company and is the parent company of the BP group of companies. The company has three reportable segments: Upstream, Downstream and TNK-BP.

BP’s historical revenue and earnings growth:

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The analysis on BP reports that the company’s revenue per share has been in decline over the past year, its price is sitting near a 3-year high and the company has issued $10.4 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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BP has a market cap of $179.45 billion. Its shares are currently trading at around $52.71 with a P/E ratio of 16.30, a P/S ratio of 0.40 and a P/B ratio of 1.30. The company had an annual average earnings growth of 20.10% over the past five years.

AT&T (T)

AT&T is held by 24 gurus who hold on to a combined 44,649,994 shares of the company’s stock. This combined position is worth 14.2% of the company’s shares outstanding. AT&T’s dividend currently sits at 5.2%.

The top guru shareholders of AT&T:

  1. James Barrow (Trades, Portfolio): 29,428,422 shares, representing 0.55% of the company’s shares outstanding and 1.5% of his total portfolio.
  2. Brian Rogers (Trades, Portfolio): 12,267,200 shares, representing 0.23% of the company’s shares outstanding and 1.6% of his total assets managed.
  3. Joel Greenblatt (Trades, Portfolio): 704,440 shares, representing 0.01% of the company’s shares outstanding as well as 0.37% of Greenblatt’s total portfolio.

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AT&T, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the US and internationally. The company has three reportable segments: Wireless, Wireline, and Other.

AT&T’s historical revenue and net income:

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The analysis on AT&T reports that the company’s price is near a 5-year high, over the past three years the company has issued $15.1 billion of debt and the company had operating loss over the past three years. The analysis also noted that the company’s Piotroski F-Score is high and that its P ratios are all trading at near historical lows.

The Peter Lynch Chart suggests that the company is currently undervalued:

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AT&T has a market cap of $183.52 billion. Its shares are trading at around $35.36 with a P/E ratio of 10.20, a P/S ratio of 1.40 and a P/B ratio of 2.00. The company had an annual average earnings growth of 4.10% over the past ten years.

Vodafone (VOD)

The fifth most guru-held dividend stock is Vodafone where 23 gurus hold a stake in the company. These gurus hold on to a total of 66,820,681 shares of the company’s stock, representing 13.6% of the company’s shares outstanding. Vodafone’s dividend yield at the time of this article was the highest at 6.9%.

The top guru shareholders of Vodafone:

  1. John Paulson (Trades, Portfolio): 28,520,289 shares, representing 1.08% of the company’s shares outstanding and 5.1% of his total portfolio.
  2. HOTCHKIS & WILEY: 14,428,182 shares, representing 0.55% of the company’s shares outstanding and 2% of the fund’s portfolio.
  3. Dodge & Cox: 4,772,079 shares, representing 0.18% of the company’s shares outstanding as well as 0.18% of the fund’s total portfolio.

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Vodafone Group PLC is a provider of mobile communications. It has a single group of related services and products being the supply of communications services and products.

Vodafone’s historical revenue and net income:

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The analysis on Vodafone reports that the company’s revenue per share has been in decline for the past five years, its price is near a 3-year low, and the company’s P/E, P/S and P/B ratios are all trading near historic lows.

The Peter Lynch Chart suggests that Vodafone is currently undervalued:

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Vodafone has a market cap of $87.83 billion. Its shares are currently trading at around $33.05 with a P/E ratio of 0.90, a P/S ratio of 1.40, and a P/B ratio of 0.70.

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arbuge
Arbuge - 2 months ago

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