Western Union, Wells Fargo Among Popular High Yield Guru Stocks

Top stock offers 3.6% dividend yield

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Jan 25, 2016
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The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

Western Union Co. (WU) has a trailing dividend yield of 3.6% with a three-year growth rate of 17.30% and a five-year growth rate of 45%. The stock is now trading with a trailing 12-month P/E multiple of 10.70 and an estimated forward P/E multiple of 9.34. During the last 12 months, the stock price has dropped by 2%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports high returns such as ROA of 8.48% and ROE of 65.31% that are ranked higher than 87% of other companies in the Global Credit Services industry. Operating margin of 20.02% and net-margin of 15.36% are outperforming 53% of its competitors. Financial strength has a rating of 7/10 and it shows a cash to debt ratio of 1.05, and an equity to asset ratio of 0.14

The company is engaged in global money transfer and payment services, providing people with fast, reliable and convenient ways to send money around the world. Its services are available through a network of over 410,000 agent locations in more than 200 countries and territories.

The company is held by five gurus; David Abrams (Trades, Portfolio) is the main shareholder among the gurus with a stake of 4.28% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 2.09%, Mairs and Power (Trades, Portfolio) with 0.96%, Joel Greenblatt (Trades, Portfolio) with 0.66% and Ray Dalio (Trades, Portfolio) with 0.12%.

Weyerhaeuser Co. (WY) has a trailing dividend yield of 4.7% with a three-year growth rate of 19.30% and a five-year growth rate of 45%. The stock is now trading with a trailing 12-month P/E multiple of 23.20 and an estimated forward P/E multiple of 14.99. During the last 12 months, the stock has dropped by 30%.

GuruFocus gives the company a profitability and growth rating of 6/10 since it reports positive returns such as ROA of 4.67% and ROE of 10.95% that are ranked higher than 73% of other companies in the Global Lumber & Wood Production industry. Operating margin of 13.96% and net-margin of 8.59% are outperforming 81% of its competitors. Financial strength has a rating of 7/10 and it shows a cash to debt ratio of 0.19, as well as an equity to asset ratio of 0.38 that is below the industry median of 0.47.

The company is a private owner of timberlands. It owns or controls nearly seven million acres of timberlands in the U.S., and manages additional timberlands under long-term licenses in Canada.

The company is held by five gurus; First Eagle Investment (Trades, Portfolio) is the main shareholder among the gurus with a stake of 3% of outstanding shares, followed by Third Avenue Management (Trades, Portfolio) with 2.31%, Manning & Napier Advisors with 1.28%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.27% and Martin Whitman (Trades, Portfolio) with 0.65%.

U.S. Bancorp. (USB) has a trailing dividend yield of 2.6% with a three-year growth rate of 24.50% and a five-year growth rate of 44%. The stock is now trading with a trailing 12-month P/E multiple of 12.50 and an estimated forward P/E multiple of 10.85. During the last 12 months, the stock has dropped by 10%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports positive returns such as ROA of 1.42% and ROE of 12.55% that are ranked higher than 76% of other companies in the industry. Operating margin of 39.96% and net-margin of 29.26% are outperforming 72% of its competitors. Financial strength has a rating of 6/10 and it shows a cash to debt ratio of 0.19 that is underperforming 83% of its competitors, and an equity to asset ratio of 0.11 that is above the industry median of 0.10%.

U.S. Bancorp is a multi-state financial services holding company headquartered in Minneapolis, Minnesota. U.S. Bancorp provides financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services.

The company is held by five gurus; Warren Buffett (Trades, Portfolio) is the main shareholder among the gurus with a stake of 4.86% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.65%, Donald Yacktman (Trades, Portfolio) with 0.51%, Mairs and Power (Trades, Portfolio) with 0.36% and Yacktman Fund (Trades, Portfolio) with 0.24%.

Delek US Holdings Inc. (DK) has a trailing dividend yield of 3.3% with a three-year growth rate of 58.70% and a five-year growth rate of 43%. The stock is now trading with a trailing 12-month P/E multiple of 12.50 and an estimated forward P/E multiple of 12.39. During the last 12 months, the stock has dropped by 42%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports positive returns such as ROA of 12.79% and ROE of 8.08% that are ranked lower than 54% of other companies in the industry. Operating margin of 2.72% and net-margin of 1.44% are underperforming 54% of its competitors. Financial strength has a rating of 8/10 and it shows a cash to debt ratio of 0.38 that is underperforming 53% of its competitors, and an equity to asset ratio of 0.36 that is below the industry median of 0.42.

The company is engaged in the integrated energy business. It focuses on petroleum refining, transportation, storage and wholesale of crude oil and intermediate and refined products and convenience store retailing.

The company is held by five gurus; Steven Cohen (Trades, Portfolio) is the main shareholder among the gurus with a stake of 7.74% of outstanding shares, followed by George Soros (Trades, Portfolio) with 1.54%, Louis Moore Bacon (Trades, Portfolio) with 0.15%, Jim Simons (Trades, Portfolio) with 0.13% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

HollyFrontier Corp. (HFC) has a trailing dividend yield of 3.6% with a three-year growth rate of 55.10% and a five-year growth rate of 41%. The stock is now trading with a trailing 12-month P/E multiple of 12.30 and an estimated forward P/E multiple of 7.59. During the last 12 months, the stock has risen by 5%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports positive returns such as ROA of 5.99% and ROE of 9.91% that are ranked higher than 55% of other companies in the industry. Operating margin of 6.49% and net-margin of 3.85% are outperforming 71% of its competitors. Financial strength has a rating of 8/10 and it shows a cash to debt ratio of 0.64 that is outperforming 62% of its competitors, and an equity to asset ratio of 0.62 that is above the industry median of 0.42.

The company is an independent petroleum refiner that produces high-value refined products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt.

The company is held by five gurus; Steven Cohen (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.67% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.09%, John Buckingham (Trades, Portfolio) with 0.08%, Paul Tudor Jones (Trades, Portfolio) with 0.03% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Legg Mason Inc. (LM) has a trailing dividend yield of 2.4% with a three-year growth rate of 26% and a five-year growth rate of 39%. The stock is now trading with a trailing 12-month P/E multiple of 11 and an estimated forward P/E multiple of 10.55. During the last 12 months, the stock has dropped by 44%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports positive returns such as ROA of 4.61% and ROE of 6.83% that are ranked higher than 62% of other companies in the Global Asset Management industry. Operating margin of 18.05% and net-margin of 11.38% are underperforming 68% of its competitors. Financial strength has a rating of 8/10 and it shows a cash to debt ratio of 1.05 that is underperforming 80% of its competitors, and an equity to asset ratio of 0.65 that is far below the industry median of 0.85.

The company provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles. It offers these products and services directly and through various financial intermediaries.

The company is held by six gurus; Mario Gabelli (Trades, Portfolio) is the main shareholder among the gurus with a stake of 3.78% of outstanding shares, followed by Andreas Halvorsen (Trades, Portfolio) with 2.29%, First Pacific Advisors (Trades, Portfolio) with 1.21%, Jim Simons (Trades, Portfolio) with 0.84%, Richard Pzena (Trades, Portfolio) with 0.48% and Robert Olstein (Trades, Portfolio) with 0.34%.

Williams Companies Inc. (WMB) has a trailing dividend yield of 12.4% with a three-year growth rate of 36.20% and a five-year growth rate of 38%. The stock is now trading with a trailing 12-month P/E multiple of 44.20 and an estimated forward P/E multiple of 12.84. During the last 12 months, the stock has dropped by 55%.

GuruFocus gives the company a profitability and growth rating of 6/10 since it reports low returns such as ROA of 0.67% and ROE of 4.07% that are ranked lower than 72% of other companies in the Global Oil & Gas Midstream industry. Operating margin is 20.09% and net-margin is 4.50%. Financial strength has a rating of 4/10 and it shows a cash to debt ratio of 0.01 that is underperforming 85% of its competitors, and an equity to asset ratio of 0.15 that is below the industry median of 0.40.

The company is an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to growing markets for natural gas, NGLs, and olefins.

The company is held by eight gurus; Steve Mandel (Trades, Portfolio) is the main shareholder among the gurus with a stake of 5.6% of outstanding shares, followed by Richard Perry (Trades, Portfolio) with 1.11%, Eric Mindich (Trades, Portfolio) with 0.5%, John Griffin (Trades, Portfolio) with 0.29%, Murray Stahl (Trades, Portfolio) with 0.04%, Louis Moore Bacon (Trades, Portfolio) with 0.03%, Steven Cohen (Trades, Portfolio) with 0.02% and Pioneer Investments (Trades, Portfolio) with 0.01%.

International Paper Co. (IP) has a trailing dividend yield of 4.5% with a three-year growth rate of 14.10% and a five-year growth rate of 37%. The stock is now trading with a trailing 12-month P/E multiple of 17.20 and an estimated forward P/E multiple of 8.61. During the last 12 months, the stock has dropped by 33%.

GuruFocus gives the company a profitability and growth rating of 6/10 with positive returns such as ROA of 3.06% and high ROE of 17.17%. Operating margin of 9.67% and net-margin of 3.91% are outperforming 54% of its competitors in the Global Packaging & Containers industry. Financial strength has a rating of 6/10 and it shows a cash to debt ratio of 0.62 that is outperforming 64% of its competitors, and an equity to asset ratio of 0.14 that is far below the industry median of 0.50.

The company is a paper and packaging company that is complemented by an extensive North American merchant distribution system, with main markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.

The company is held by six gurus; T Rowe Price Equity Income Fund (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.59% of outstanding shares, followed by HOTCHKIS & WILEY with 0.68%, Richard Snow (Trades, Portfolio) with 0.41%, Jim Simons (Trades, Portfolio) with 0.28%, James Barrow (Trades, Portfolio) with 0.27% and Pioneer Investments (Trades, Portfolio) with 0.22%.

Wells Fargo & Co. (WFC) has a trailing dividend yield of 3.0% with a three-year growth rate of 48.80% and a five-year growth rate of 37%. The stock is now trading with a trailing 12-month P/E multiple of 11.80 and an estimated forward P/E multiple of 10.40. During the last 12 months, the stock has dropped by 9%.

GuruFocus gives the company a profitability and growth rating of 5/10 since its returns are positive but not high: ROA of 1.33% and ROE of 11.38% are ranked higher than 71% of other companies in the Global Banks - Global industry. Operating margin of 39.32% and net-margin of 26.76% are outperforming 66% of its competitors. Financial strength has a rating of 6/10 and it shows a cash to debt ratio of 0.06 that is underperforming 95% of its competitors, and an equity to asset ratio of 0.11 that is just above the industry median of 0.10.

The company provides retail, commercial and corporate banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.

The company is held by 11 gurus; Warren Buffett (Trades, Portfolio) is the main shareholder among the gurus with a stake of 9.21% of outstanding shares, followed by Dodge & Cox with 1.4%, James Barrow (Trades, Portfolio) with 0.79%, Chris Davis (Trades, Portfolio) with 0.59%,Ken Fisher (Trades, Portfolio) with 0.37%, PRIMECAP Management (Trades, Portfolio) with 0.3%, Tom Russo (Trades, Portfolio) with 0.29%, Lou Simpson (Trades, Portfolio) with 0.12%, Pioneer Investments (Trades, Portfolio) with 0.11%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.1% and Bill Nygren (Trades, Portfolio) with 0.1%.