Large cap stocks are generally defined as those with a market capitalization of at least $10 billion. Using the All-In-One Screener, the following stocks are the most popular large-cap companies held by the gurus as of the second quarter.
American International Group (AIG, Financial)
Of the 36 gurus who currently hold positions in AIG, Bruce Berkowitz (Trades, Portfolio) is the top shareholder with a 1.45% stake. The company comprises nearly a quarter of his portfolio at 23.6%. Hotchkis & Wiley holds a 1.32% stake, while John Paulson (Trades, Portfolio) has a 1.13% holding.
AIG’s stock has risen 7% over the past year, closing at $56.90 on Sept. 24, and currently trades at 11.41 times earnings. In 2014, AIG earned $5.20 per share compared to $6.13 per share the year before.
The company’s dividend yield is near the five-year high at 1.17% with a 10% payout ratio.
Goldman Sachs Group (GS, Financial)
Warren Buffett (Trades, Portfolio) is the largest shareholder in investment bank Goldman Sachs among the 33 gurus who own the stock. Buffett holds 12,631,531 shares, or a 2.92% stake in the company. Dodge & Cox and Bill Nygren (Trades, Portfolio) are the second and third-largest shareholders respectively.
The stock price has declined just 2% over the last year and closed at $176.91 on Sept. 24. It currently trades with a PE of 10.57. Earnings per share have increased each year since 2012 and recorded at $17.07 last year. The trend in earnings over time is shown in the graph below.
Goldman Sachs’ dividend yield is close to the three-year high at 1.42%, while the payout ratio is 14%.
Thirty-two gurus hold positions in eBay as of the second quarter. Activist investor Carl Icahn (Trades, Portfolio) is the largest shareholder with a 3.8% stake, and likely the most well-known with his successful push to spin off PayPal Holdings (PYPL, Financial), which took place on July 17.
eBay’s stock has risen 15% in the past year, closing at $25.61 at the end of trading on Sept. 24. GuruFocus rates the company’s business predictability as an excellent 4.5 out of 5 stars. In its second quarter ended June 30, eBay reported 7 cents in earnings per share, a decrease from 53 cents per share in the year-ago quarter.
The operating margin also decreased to 16.9% from 20.8% in the year-ago quarter.
Bank of New York Mellon Corp. (BK, Financial)
Dodge & Cox is the largest shareholder of Bank of New York Mellon as of the second quarter, with a 5.26% stake. Chris Davis (Trades, Portfolio) and First Eagle Management are the second and third-largest guru shareholders, respectively.
The global investment company’s stock has risen marginally by 2% in the last year, closing at $38.52 on Sept. 24. It currently trades at 15.65 times earnings. Earnings per share in 2014 was $1.74, the exact same from the year before.
Net income in 2014 was $2.5 billion, slightly up from $2.1 billion the year before.
Bank of New York Mellon pays a dividend yield of 1.77%, with a payout ratio of 27%.
General Motors Co. (GM, Financial)
Like Goldman Sachs, Warren Buffett (Trades, Portfolio) is the largest shareholder in GM with a 2.59% stake. David Tepper (Trades, Portfolio) holds a 1.19% stake, while David Einhorn (Trades, Portfolio) is the third-largest shareholder with a 0.92% stake.
GM’s stock has declined 11% in the past year, closing at $29.44 on Sept. 24 and trading 11 times earnings. Earnings per share have been in decline since 2011, recording at $1.65 in FY 2014.
Net income last year was $3.9 million, down from $5.3 million the year before.
GM pays a dividend yield of 4.16%, which is close to the two-year high. Its payout ratio is 46%.
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