Donald Yacktman's Top Dividend Paying Stocks

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Jun 16, 2015
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Donald Yacktman (Trades, Portfolio) has dedicated his two mutual funds, the Yacktman Fund (Trades, Portfolio) and the Yacktman Focused Fund (Trades, Portfolio), to stocks of high-quality companies with attractive valuations and solid prospects despite market conditions. Achieving strong returns while guarding against risk are also primary investing objectives at his funds.

Yacktman and his managers generally do not highly prioritize dividends, telling CNBC in 2012 that share buybacks and tender offers are a better way for companies to return money to shareholders. But a sizable number of his funds’ 50 high-quality stock positions have strong yields.

The largest dividend paying stocks in Yacktman’s portfolio are: Philip Morris International Inc. (PM, Financial), ConocoPhillips (COP, Financial), Altria Group Inc. (MO, Financial), Avon Products Inc. (AVP, Financial) and Exxon Mobil Corp (XOM, Financial).

Philip Morris International Inc. (PM, Financial)

Philip Morris International pays a yield of 4.8%, higher than 86% of the companies in the Global Tobacco industry. In the first quarter, it distributed $1 per share to shareholders.

Yacktman held 29,389 shares of Philip Morris at the end of the first quarter, a 0.01% portion of his portfolio. He has held the position since before the first quarter of 2010 but has downsized it substantially since.

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ConocoPhillips (COP, Financial)

ConocoPhillips pays a 4.6% dividend yield, higher than 52% of the stocks in the Global Oil & Gas E&P industry. In the first quarter, it paid $0.73 per share to shareholders.

Yacktman held 371,752 at the end of the first quarter, a 1.71% portfolio of his portfolio. He started the position before the first quarter of 2010.

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Altria Group Inc. (MO, Financial)

Altria Group offers a 4.4% dividend yield, higher than 57% of the companies in the Global Tobacco industry. In quarter one, it paid $0.52 in dividends per share to shareholders.

Yacktman holds 26,400 shares of Altria Group, a 0.01% portion of the portfolio. He started the position before the first quarter of 2010, and he has reduced the position by almost half since.

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Avon Products Inc. (AVP, Financial)

Avon Products pays a dividend yield of 3.8%, higher than 80% of the companies in the Global Household and Personal Products industry. In the first quarter it paid $0.06 per share to shareholders, having cut its dividend from $0.75 per year in 2012.

Yacktman holds 286,168 shares of the company, a 1.32% portion of the portfolio. He started the position before the third quarter of 2010 and has added shares in most of the quarters since.

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Exxon Mobil Corp (XOM, Financial)

Exxon Mobil Corp has a 3.4% dividend yield, lower than 92% of the companies in the Oil and Gas Integrated industry. In the first quarter it paid $0.69 per share to shareholders.

Yacktman holds 588,077 shares of Exxon Mobil, a 2.71% portion of the portfolio. He has held the position since before the first quarter of 2010.

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See more of Yacktman’s dividend stocks in that section of his funds’ portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.