I used the GuruFocus All-In-One Screener to find stocks with the highest dividend yields owned by the gurus. I wanted a consensus opinion that the stock was worth owning, so I narrowed my search to only display stocks that were held by at least five gurus. Below are the results:
Vodafone Group Plc (VOD) 7.5%
Market Cap: 88.28 billion, P/E: 0.90 (Forward P/E: 19.05), Dividend Yield: 5.5%
Business Predictability: 1/5, Financial Strength: 6/10, Profitability & Growth: 7/10
Vodafone is the highest yielding dividend stock held by at least five gurus with a dividend yield of 7.5 percent. The company is based in the UK and is one of the most valuable telecom brands in the world. It has operations in 27 countries and partners with mobile networks in 48 more. Vodafone recently sold its 45 percent stake in Verizon Wireless to Verizon for $130 billion and issued a special dividend. The stock is held by 22 gurus we follow with John Paulson holding the largest position at 28.5 million shares, representing 1.1 percent of the shares outstanding.
Transocean Ltd (RIG)
Market Cap: 16.3 billion, P/E: 10.60, Dividend Yield: 6.7%
Business Predictability: 1/5, Financial Strength: 6/10, Profitability & Growth: 6/10
Transocean is currently yielding 6.7 percent. The company’s primary business is to contract drilling rigs, related equipment and work crews predominantly on a dayrate basis to drill oil and gas wells. They specialize in technically demanding regions of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services. The stock is held by 15 gurus we follow with PRIMECAP Management having the largest holding at 30.5 million shares, representing 8.5 percent of the shares outstanding.
Ensco Plc (ESV) 5.4%
Market Cap: 12.98 billion, P/E: 9.30, Dividend Yield: 5.4%
Business Predictability: 1/5, Financial Strength: 7/10, Profitability & Growth: 8/10
Ensco is yielding a high 5.4 percent. Just like Transocean, it is a global offshore contract drilling company. It owns the world’s second largest offshore drilling rig fleet. Its ultra-deepwater fleet is the newest in the industry, and its premium jackup fleet is the largest of any offshore drilling company. The stock is held by 12 gurus we follow with First Pacific Advisors holding the largest position at 1.85 million shares, representing 0.8 percent of the shares outstanding.
AT&T Inc (T) 5.2%
Market Cap: 183.52 billion, P/E: 10.30, Dividend Yield: 5.2%
Business Predictability: 1/5, Financial Strength: 5/10, Profitability & Growth: 8/10
AT&T is currently yielding 5.2 percent. It is one of the largest telecommunications providers in the world. AT&T recently made a bid to buy DIRECTV for $48.5 billion, equating to $95 per share. The stock is currently held by 24 gurus we follow with James Barrow holding the largest position with 29.4 million shares, representing 0.56% of the shares outstanding.
GlaxoSmithKline (GSK) 4.7%
Market Cap: 131.69 billion, P/E: 15.30, Dividend Yield: 4.7%
Business Predictability: 2/5, Financial Strength: 7/10, Profitability & Growth: 6/10
GlaxoSmithKline is currently yielding 4.7 percent. It is a megacap drug company based out of the UK. The company creates, discovers, develops, manuctures, and markets pharmaceutical products, such as vaccines, over-the-counter medicines, and health related consumer products worldwide. The stock is held by 21 gurus we follow with Dodge & Cox having the largest holding at 60.4 million shares, representing about 2.5 percent of the shares outstanding.
SLM Corp (SLM) was on the list with a dividend yield of 7.22 percent, but the data used to generate the yield is from before the Navient (NAVI) spinoff. The next dividend will likely bring the yield down to a lower rate.
