Bill Frels (Trades, Portfolio) is the portfolio manager at Mairs & Power, which is an SEC-registered investment advisory firm and is Minnesota's oldest investment firm under private ownership and management.
His portfolio is composed of 187 stocks and it has a total value of $7,270 million.
The following are the stocks on his portfolio with the most growing yield :
Novartis AG (NVS)
NVS is engaged in the research, development, manufacturing and marketing of healthcare and pharmaceuticals products. It has a market cap of $247.16 billion.
NVS has a dividend yield of 2.61% with a payout ratio of 63%. Its growth rate is 7.80% over the last 5 years and 11% over the last 10 years.
The DCF model gives a fair value of $39.58 that put the stock as overpriced by 155%.
NVS has a ROE of 29.05 , a ROA of 16.39 and a ROC of 63.37 which are higher than 88% of other companies in the Global Drug Manufacturers - Major industry.
The Investor holds a very small stake of NVS. The main holder is Dodge & Cox with 2.09% of outstanding shares or 4.55% of total assets.
Polaris Industries Inc (PII)
PII and its subsidiaries are engaged in the designing, engineering and manufacturing Off-Road Vehicles (ORV), including All-Terrain Vehicles (ATV) and side-by-side vehicles for recreational and utility use, Snowmobiles, and On-Road vehicles, including motorcycles and Small Electric Vehicles (SEV). The company has a market cap of $10.00 billion.
PII has a dividend yield of 1.34% with a payout ratio of 29%. Its growth rate is 22.90% over the last five years and 14.40% over the last 10 years.
The DCF model gives a fair value of $160.98 that put the stock as undervalued with margin of safety of 7% at current prices.
PII has a ROE of 59.86 , a ROA of 23.44 and a ROC of 107.09 which are higher than 97% than its competitors in the Global Recreational Vehicles industry.
The Investor holds a very small stake of PII (0.01% of shares outstanding). The main holder is Ken Heebner (Trades, Portfolio) with 0.97% of outstanding shares or 2.49% of his total assets.
Schlumberger NV (SLB)
SLB is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. It has a market cap of $110.43B.
SLB has a dividend yield of 2.08% with a payout ratio of 44%. Its growth rate is 13.80% over the last 5 years and 14.30% over the last 10 years.
The DCF model gives a fair value of $64.27 that put the stock as overpriced by 34%.
SLB has a ROE of 12.26, a ROA of 7.19 and a ROC of 32.08 which are higher than 71% of other companies in the Global Oil & Gas Equipment & Services industry.
The Investor holds 0.18% of shares outstanding of SLB that is 2.68% of his total assets. The main holder is Dodge & Cox with 4.48% of outstanding shares or 4.38% of his total assets.
Becton Dickinson & Co. (BDX)
BDX is a medical technology company engaged in the development, manufacture and sale of medical devices, instrument systems. It has a market cap of $29.94 billion.
BDX has a dividend yield of 1.65% with a payout ratio of 44%. Its growth rate is 10.40% over the last 5 years and 13.60% over the last 10 years.
The DCF model gives a fair value of $76.83 that put the stock as overpriced by 85%.
BDX has a ROE of 19.29, a ROA of 6.43 and a ROC of 29.38 which are higher than 66% of its competitors in the Global Medical Instruments & Supplies industry.
The Investor holds a very small stake of BDX that sees as main investor Vanguard Health Care Fund (Trades, Portfolio) that holds 1.47% of outstanding shares (0.94% of the fund’s total assets).
Automatic Data Processing (ADP)
ADP is a provider of business outsourcing solutions. It offers a range of human resource (HR), payroll, tax and benefits administration solutions from a single source. It has a market cap of $39.91B.
ADP has a dividend yield of 2.34% with a payout ratio of 58%. Its growth rate is 8% over the last 5 years and 13.40% over the last 10 years.
The DCF model gives a fair value of $49.86 that put the stock as overpriced by 67%.
ADP has ROE of 23.59, ROA of 3.91 and ROC of 266.13 which are higher than 51% of other companies in the GlobalBusiness Services industry.
The Investor holds a very small stake of ADP that sees as main investor Bill Nygren (Trades, Portfolio) that holds 0.90 % of outstanding shares (2.15% of his total assets).
Summary
Let’s summarize the yields and growth rates of the above mentioned companies:
| ticker | Yield | Payout ratio | 5 years gr. rate | 10 years gr. rate |
| NVS | 2.61% | 63% | 7.80% | 11.00% |
| PII | 1.34% | 29% | 22.90% | 14.40% |
| SLB | 2.08% | 44% | 13.80% | 14.30% |
| BDX | 1.65% | 44% | 10.40% | 13.60% |
| ADP | 2.34% | 58% | 8.00% | 13.40% |
Passive investors should think about having shares of the above companies in their portfolios, even so some of them are heavily overpriced and to wait for a cheaper price would be a good idea.
