Donald Yacktman is the president and co-chief investment officer of Yacktman Asset Management Co., a boutique investment advisory firm located in Austin, Texas. Since 1992, the firm has navigated multiple market cycles while adhering to a disciplined investment approach.
His portfolio is composed of 48 stocks and the following are the ones that pay the highest annual dividend yield.
Avon Products Inc. (AVP) pays its shareholders an annual dividend yield of 6.38% with a payout ratio of 140% and a negative growth rate of -25.60% over the last five years.
The company's reportable segments are based on geographic operations in four regions: Latin America; Europe, Middle East and Africa; North America and Asia Pacific. Its product categories are Beauty and Fashion and Home and conducts its business through direct selling.
During the last quarter total revenue decreased 17% but was relatively unchanged in constant dollars and net income was 7 cents per diluted share, compared to 4 cents per diluted share, for the second quarter of 2014. For full year 2015 the company expects modest constant-dollar revenue growth and due to foreign currency translation it expects an approximate 17-point negative impact on reported revenue.
Avon looks overpriced at the current price of $3.76. The Peter Lynch earnings line gives a fair value of $1.6. It is trading with a forward P/E ratio of 8.63 and during the last 12 months the price has dropped by 66%, trading now 67.47% below its 52-week high and 18.24% above its 52-week low.
Yacktman is the company's leading shareholder among the gurus with a stake of 8.81% of outstanding shares, followed by Yacktman Fund (Trades, Portfolio) with 3.77% and Yacktman Focused Fund with 3.49%.
ConocoPhillips (COP) pays its shareholders an annual dividend yield of 5.38% with a payout ratio of 217%. The yield has a five-year growth rate of 7.90%.
The company is engaged in exploring for, developing and producing crude oil and natural gas. Its portfolio mainly includes legacy assets in North America, Europe, Asia and Australia; growing North American shale and oil sands businesses; several major international developments; and a global exploration program.
ConocoPhillips reported a second-quarter 2015 net loss of 15 cents per share, compared to $1.67 per share for the second quarter of a year before. The company achieved production of 1,595 MBOED; on track to achieve higher end of 2015 growth target and had 4% year-over-year production growth from continuing operations.
The stock is trading at the price of $54.61. The DCF calculator gives a fair value of $19.91 so the company currently looks overpriced by 174%; the Peter Lynch earnings line gives a fair value of $33.7.
ConocoPhillips is trading with a P/E ratio of 24.70; during the last 12 months the price has dropped by 21%, trading now 26.87% below its 52-week high and 32.87% above its 52-week low.
The company's leading shareholder among the gurus is James Barrow (Trades, Portfolio) with a stake of 1.79% of outstanding shares, followed by the hedge fund First Eagle Investment (Trades, Portfolio) with 0.62% and Donald Yacktman (Trades, Portfolio) with 0.47%.
Philip Morris International Inc. (PM) pays its shareholders an annual dividend yield of 4.55% with a payout ratio of 84%. The yield has a five-year growth rate of 12.20%.
The company's subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the United States of America. Its portfolio comprises both international and local brands. Its portfolio of international and local brands is led by Marlboro.
For the third quarter diluted earnings per share were down by 9.4% compared to the third quarter of 2014. The company posted operating companies income which was down by 12.3% but Philip Morris increased the regular quarterly dividend by 2.0% to an annualized rate of $4.08 per common share.
The stock is trading at the price of $89.63. The DCF calculator gives a fair value of $68.7 so the company currently looks overpriced by 30%; the Peter Lynch earnings line gives a fair value of $71.4.
Philip Morris is trading with a forward P/E ratio of 26.50; during the last 12 months the price has risen by 2%, trading now 0.69% below its 52-week high and 19.08% above its 52-week low.
James Barrow (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 1.49% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.12% and Tom Russo (Trades, Portfolio) with 0.07%.
Staples Inc. (SPLS) pays an annual dividend yield of 3.81% with a payout ratio of 601%. The yield has a five-year growth rate of 8.40%.
It operates as an office products company. The company's three reportable segments are; North American Delivery, North American Retail and International Operations. The second quarter results were in line with the expectations of the company and reflect steady progress on its strategic reinvention in which total company gross profit as a percentage of sales increased by 54 basis points on a GAAP basis, or 44 basis points. Total company sales increased 1% during the second quarter and Staples achieved 3% growth for the sales of North American Commercial.
The stock is trading at the price of $12.61. The DCF calculator gives a fair value of $1.18 so the company currently looks overpriced by 969%; the Peter Lynch earnings line gives a fair value of $1.7.
Staples is trading with a P/E ratio of 153.80; during the last 12 months the price has risen by 1%, trading now 35.00% below its 52-week high and 8.61% above its 52-week low.
Richard Pzena (Trades, Portfolio) is the main shareholder of the company with a stake of 3.45% of outstanding shares, followed by Brian Rogers (Trades, Portfolio) with 2.18% and HOTCHKIS & WILEY with 0.53%. Yacktman holds 0.35% of outstanding shares.
Altria Group Inc. (MO) pays its shareholders an annual dividend yield of 3.70% with a payout ratio of 80%. The yield has a five-year growth rate of 8.50%.
The company, through its subsidiaries, is engaged in the manufacture and sale of cigarettes and certain smokeless tobacco products in the United States. It also maintains a portfolio of leveraged and direct finance leases. The company's segments are smokeable products, smokeless products and wine.
For the second quarter Altria Group delivered excellent results in which it reported an increase of 15.6% for diluted earnings per share (EPS) and adjusted diluted EPS, which excludes the impact of special items, increased by 13.8%.
The stock is trading at the price of $61.05. The DCF calculator gives a fair value of $38.2 so the company currently looks overpriced by 60%; the Peter Lynch earnings line confirms the same fair value of $38.1.
Altria Group is trading with a P/E ratio of 23.60; during the last 12 months the price has risen by 28%, trading now 0.86% below its 52-week high and 29.73% above its 52-week low.
James Barrow (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 1.17% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.33% and Sarah Ketterer (Trades, Portfolio) with 0.07%.
