Popular Guru Stocks With High, Growing Yield

KeyCorp and Union Pacific have strong track records of growing yields

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Feb 03, 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.

KeyCorp (KEY) has a trailing dividend yield of 2.6% with a three-year growth rate of 35.70% and a five-year growth rate of 35.30%. The stock is now trading with a trailing 12-month P/E multiple of 10.43 and an estimated forward P/E multiple of 8.01. During the last 12 months, the stock price has dropped by 17%.

GuruFocus gives the company a profitability and growth rating of 6/10 since it reports average returns such as ROA of 0.97% and ROE of 8.40% that are ranked higher than 51% of other companies in the Global Banks - Regional - US industry. Operating margin of 28.90% and net-margin of 21.67% are under performing 53% of its competitors. Financial strength has a rating of 6/10, the cash to debt ratio is 0.06 and the equity to asset ratio is 0.11.

Keycorp is the holding company for KeyBank National Association, its principal subsidiary, through which its banking services are provided. The company provides retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients.

The company is held by six gurus; Richard Snow (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.64% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.63%, Pioneer Investments (Trades, Portfolio) with 0.61%, Third Avenue Management (Trades, Portfolio) with 0.3%, Martin Whitman (Trades, Portfolio) with 0.25% and Steven Cohen (Trades, Portfolio) with 0.05%.

Noble Corp PLCÂ (NE) has a trailing dividend yield of 17% with a three-year growth rate of 39.20% and a five-year growth rate of 34.80%. The stock is now trading with a trailing 12-month P/E multiple of 27.09 and an estimated forward P/E multiple of 163.93. During the last 12 months the stock price has dropped by 58%.

GuruFocus gives the company a profitability and growth rating of 5/10 since it reports almost null returns such as ROA of 0.40% and ROE of 0.77%. Operating margin of 12.96% and net-margin of 1.63% are outperforming 63% of its competitors. Financial strength has a rating of 4/10, a cash to debt ratio of 0.04 and an equity to asset ratio of 0.53.

The company is an offshore drilling contractor for the oil and gas industry. It performs contract drilling services with its fleet of mobile offshore drilling units. The company also owns one floating production storage and offloading unit.

The company is held by five gurus; Donald Smith (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 1.68% of outstanding shares, followed by Ray Dalio (Trades, Portfolio) with 0.86%, Steven Cohen (Trades, Portfolio) with 0.39%, Joel Greenblatt (Trades, Portfolio) with 0.35% and Private Capital (Trades, Portfolio) with 0.26%.

Comerica Inc. (CMA) has a trailing dividend yield of 2.5% with a three-year growth rate of 25.50% and a five-year growth rate of 34%. The stock is now trading with a trailing 12-month P/E multiple of 11.16 and an estimated forward P/E multiple of 9.43. During the last 12 months the stock price has dropped by 23%.

GuruFocus gives the company a profitability and growth rating of 5/10 since it reports flat returns such as ROA of 0.76% and ROE of 7.03% that are ranked lower than 68% of other companies in the Global Banks - Regional - US industry. Operating margin of 28.18% and net-margin of 19.53% are under performing 59% of its competitors. Financial strength has a rating of 6/10, a cash to debt ratio of 2, and an equity to asset ratio of 0.11.

The company is a financial services company that operates in three business segments: the Business Bank, the Retail Bank, and Wealth Management.Â

The company is held by five gurus; Third Avenue Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.47% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 1.03%, Martin Whitman (Trades, Portfolio) with 0.99%, Jim Simons (Trades, Portfolio) with 0.53% and RS Investment Management (Trades, Portfolio) with 0.32%.

Cummins Inc. (CMI) has a trailing dividend yield of 3.9% with a three-year growth rate of 28.50% and a five-year growth rate of 33.40%. The stock is now trading with a trailing 12-month P/E multiple of 9.73 and an estimated forward P/E multiple of 10.85. During the last 12 months, the stock price has dropped by 37%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports high returns such as ROA of 10.67% and ROE of 21.67% that are ranked higher than 89% of other companies in the Global Diversified Industrials industry. Operating margin of 12.40% and net-margin of 8.65% are outperforming 75% of its competitors. Financial strength has a rating of 6/10, a cash to debt ratio of 1.04 and an equity to asset ratio of 0.49.

The company designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems.

The company is held by seven gurus; HOTCHKIS & WILEY is the largest shareholder among the gurus with a stake of 2.18% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 1.07%, David Rolfe (Trades, Portfolio) with 0.93%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.44%, Pioneer Investments (Trades, Portfolio) with 0.37%, Joel Greenblatt (Trades, Portfolio) with 0.31% and RS Investment Management (Trades, Portfolio) with 0.16%.

Ameriprise Financial Inc. (AMP) has a trailing dividend yield of 3.0% with a three-year growth rate of 37.50% and a five-year growth rate of 32%. The stock is now trading with a trailing 12-month P/E multiple of 9.89 and an estimated forward P/E multiple of 7.53. During the last 12 months the stock price has dropped by 32%.

GuruFocus gives the company a profitability and growth rating of 7/10. Operating margin of 17.57% and net-margin of 12.81% are under performing 67% of its competitors. Financial strength has a rating of 4/10, a cash to debt ratio of 0.23, and an equity to asset ratio of 0.05.

The company is engaged in providing financial planning, products and services that are designed to offer solutions for its clients' asset accumulation, income and protection needs.

The company is held by six gurus; James Barrow (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.58% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.02%, Andreas Halvorsen (Trades, Portfolio) with 0.92%, Jim Simons (Trades, Portfolio) with 0.28%, Ken Fisher (Trades, Portfolio) with 0.09% and First Pacific Advisors (Trades, Portfolio) with 0.06%.

Thor Industries Inc. (THO) has a trailing dividend yield of 2.15% with a three-year growth rate of 21.60% and a five-year growth rate of 30.90%. The stock is now trading with a trailing 12-month P/E multiple of 13.34 and an estimated forward P/E multiple of 10.82. During the last 12 months, the stock price has dropped by 10%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports high returns such as ROA of 14.08 and ROE of 20.07% that are ranked higher than 92% of other companies in the Global Recreational Vehicles industry. Operating margin of 7.59% and net-margin of 5.13% are outperforming 60% of its competitors. Financial strength has a rating of 9/10 and an equity to asset ratio of 0.70.

The company is engaged in manufacturing recreational vehicles in the U.S. and sells those vehicles in the U.S. and Canada, as well as related parts and accessories. Its segments are towable recreational vehicles and motorized recreational vehicles.

The company is held by five gurus; Chuck Royce (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 6.27% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.34%, Scott Black (Trades, Portfolio) with 0.34%, Joel Greenblatt (Trades, Portfolio) with 0.28% and Jeremy Grantham (Trades, Portfolio) with 0.06%.

Union Pacific Corp. (UNP) has a trailing dividend yield of 3.0% with a three-year growth rate of 25.60% and a five-year growth rate of 29.40%. The stock is now trading with a trailing 12-month P/E multiple of 12.58 and an estimated forward P/E multiple of 12.08. During the last 12 months the stock price has dropped by 39%.

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 86% of other companies in the Global Railroads industry. Operating margin of 36.91% and net-margin of 21.88% are outperforming 85% of its competitors. Financial strength has a rating of 7/10, a cash to debt ratio of 0.10, and an equity to asset ratio of 0.38.

It is a rail transporting company. Its operating company is Union Pacific Railroad Company, which links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain.

The company is held by seven gurus; PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.55% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.23%, Pioneer Investments (Trades, Portfolio) with 0.19%, First Eagle Investment (Trades, Portfolio) with 0.18%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.17%, Manning & Napier Advisors with 0.15% and NWQ Managers (Trades, Portfolio) with 0.05%.

Quest Diagnostics Inc. (DGX) has a trailing dividend yield of 2.3% with a three-year growth rate of 28.20% and a five-year growth rate of 27.80%. The stock is now trading with a trailing 12-month P/E multiple of 13.54 and an estimated forward P/E multiple of 12.24. During the last 12 months, the stock price has dropped by 8%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports positive returns such as ROA of 7.06% and ROE of 15.97% that are ranked higher than 81% of other companies in the Global Diagnostics & Research industry. Operating margin of 18.67% and net-margin of 9.46% are outperforming 80% of its competitors. Financial strength has a rating of 8/10 and it shows a cash to debt ratio of 0.04, and an equity to asset ratio of 0.47.

The company and its subsidiaries are the providers of diagnostic testing. The company operations are organized in two business groups; Diagnostics Information Services and Diagnostic Solutions group.

The company is held by five gurus; Chris Davis (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 2.93% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.49%, Joel Greenblatt (Trades, Portfolio) with 0.42%, Ray Dalio (Trades, Portfolio) with 0.17% and Pioneer Investments (Trades, Portfolio) with 0.15%.