Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of Fairholme Capital Management. He focuses investments on companies that have exceptional management, generate free cash and are cheaply priced.
Berkowitz will also invest in mediocre companies trading at a significant discount to intrinsic value where there exists a catalyst. I've selected the stocks with highest dividend yields in Berkowitz’s portfolio.
National Oilwell Varco Inc. (NOV)
Berkowitz holds 1,653,800 shares of National Oilwell –Â 1.79% of his total assets.
National Oilwell has a market cap of $14.03 billion and is a provider in the design, manufacture and sale of equipment and components used in oil and gas drilling, completion and production operations and the provision of oilfield services to the upstream oil and gas industry.
The stock currently offers a dividend payout ratio of 55%, dividend yield of 2.9% and five-year payout ratio of 60.10%. National Oilwell’s dividend growth rate over the past five years and three years are 53.90% and 60.10%.
National Oilwell Varco also has the following five-year growth rates: 14.00% for revenue, 10.00% for EBITDA and 9.00% for book value.
Dodge & Cox and First Eagle Investment (Trades, Portfolio) are the largest shareholders of National Oilwell among the gurus with outstanding shares of above 5%. David Rolfe and Bill Nygren (Trades, Portfolio) have outstanding shares over 0.9%.
International Business Machines Corp. (IBM)
Berkowitz holds 754,400 shares of IBMÂ –Â 3.15% of his total assets.
IBM has a market cap of $134.32 billion and creates business value for clients and solves business problems through integrated solutions that leverage information technology and knowledge of business processes.
The stock currently offers a dividend payout ratio of 33%, dividend yield of 3.7 and five-year payout ratio of 14.40%. IBM’s dividend growth rate over the last five years and three years are 14.40% and 13.60%.
IBM also has the following five-year growth rates: 5.00% for revenue, 6.80% for EBITDA and a negative rate of 2.10% for book value.
Warren Buffett is the largest shareholder of IBM among the gurus with outstanding shares of above 8%. Jeremy Grantham (Trades, Portfolio), T Rowe Price Equity Income Fund (Trades, Portfolio), Prem Watsa, Ruane Cunniff (Trades, Portfolio) and Diamond Hill Capital (Trades, Portfolio) have outstanding shares over 0.1%.
Canadian Natural Resources Ltd. (CNQ)
Berkowitz holds 9,710,500 shares of Canadian Natural Resources – 5.44% of his total assets.
Canadian Natural Resources has a market cap of $27 billion and is a Canadian-based senior independent energy company engaged in the acquisition, exploration, development, production, marketing and sale of crude oil, NGLs and natural gas.
The stock currently offers a dividend payout ratio of 233%, dividend yield of 2.8 and five-year payout ratio of 30.70%. Canadian Natural Resources' dividend growth rate over the last five years and three years are 30.70% and 35.70%.
Canadian Natural Resources also has the following five-year growth rates: 11.90% for revenue, 11.00% for EBITDA and 7.80% for book value.
First Eagle Investment (Trades, Portfolio) is the largest shareholder of Canadian Natural Resources among the gurus with outstanding shares of over 2%. Bruce Berkowitz (Trades, Portfolio), T Rowe Price Equity Income Fund (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio) and Steven Romick (Trades, Portfolio) have outstanding shares of over 0.2%
Leucadia National (Trades, Portfolio) Corp. (LUK)
Berkowitz holds 10,208,903 shares of Leucadia National (Trades, Portfolio)Â –Â 5.95% of his total assets.
Leucadia National (Trades, Portfolio) has a market cap of $6.54 billion, and its subsidiaries are engaged in a variety of businesses, including investment banking and capital markets, beef processing, manufacturing, energy projects, asset management and real estate and other investments, which include Berkadia, Linkem and Garcadia.
The stock currently offers a dividend payout ratio of 43% and dividend yield of 1.3%. Leucadia National (Trades, Portfolio)’s dividend growth rate did not face any change over the last 10 years, five years and three years.
Leucadia National (Trades, Portfolio) Corp. also has the following five-year growth rates: 61.20% for revenue and 6.60% for book value. EBITDA did not face any change during last five years.
Bruce Berkowitz (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio) and Fairholme Fund (Trades, Portfolio) are the largest shareholders of Leucadia National (Trades, Portfolio) among the gurus with outstanding shares of more than 2%. Columbia Wanger (Trades, Portfolio) and Charles Brandes (Trades, Portfolio) have more than 1% of outstanding shares.
Bank of America Corporation (BAC)
Berkowitz holds 27,523,418 shares of Bank of America – 12.35% of his total assets.
Bank of America has a market cap of $181.91 billion and through its banking and various nonbanking subsidiaries, throughout the United States and in selected international markets provides a diversified range of banking and nonbanking financial services.
The stock currently offers a dividend payout ratio of 15%, dividend yield of 1.13 and five-year payout ratio of 17.00%. Bank of America’s dividend growth rate over the last five years and three years are 17% and 44.20%.
Bank of America also has the following five-year growth rates: 15.10% for EBITDA, negative rate of 12.40% for revenue and negative rate of 2.90% for book value.
Dodge & Cox is the largest shareholder of Bank of America among the gurus with outstanding shares over 1.8%. James Barrow (Trades, Portfolio), HOTCHKIS & WILEY, Fairholme Fund (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have outstanding shares over 0.4%
American International Group Inc. (AIG)
Berkowitz holds 742,936 shares of AIGÂ –Â 1.22% of his total assets.
AIG has a market cap of $77.63 billion and is a holding company which, through its subsidiaries, is engaged in insurance and insurance-related activities in the United States and abroad.
The stock currently offers a dividend payout ratio of 19% and dividend yield of 1.8%. AIG’s dividend growth rate over the last five years and three years did not face any change.
AIG also has the following five-year growth rates: a negative rate of 43.40% for revenue, a negative rate of 42.50% for EBITDA and a positive rate of 116.40% for book value.
HOTCHKIS & WILEY and John Paulson (Trades, Portfolio) are the largest shareholders of AIG among the gurus with outstanding shares over 1%. Richard Perry (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Steven Romick (Trades, Portfolio) have outstanding shares over 6%.
Citigroup Inc. (C)
Berkowitz holds 3,010,000 shares of Citigroup – 4.30% of his total assets.
Citigroup has a market cap of $161.7 billion and is a financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services.
The stock currently offers a dividend payout ratio of 3% and dividend yield of 0.3%. Citigroup’s dividend growth rate over the last five years did not face any change and is 10.10% over the last three years.
Citigroup also has the following five-year growth rates: a negative rate of 14.30% for revenue and positive rates of 4.50% for book value. EBITDA did not face any change over the last five years.
James Barrow (Trades, Portfolio) and HOTCHKIS & WILEY are the largest shareholders of Citigroup among the gurus with outstanding shares over 5%. Ken Fisher (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Steven Romick (Trades, Portfolio), Richard Pzena (Trades, Portfolio) and Bill Nygren (Trades, Portfolio) have outstanding shares of over 0.3%.
