Gap, Qualcomm Are High-Yield Stocks Gurus Are Buying

These strong companies are held by six or more gurus

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Feb 16, 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.

Ingersoll-Rand PLCÂ (IR) has a trailing dividend yield of 2.26% with a three-year growth rate of 32.50% and a five-year growth rate of 22.70%. The stock is now trading with a trailing 12-month P/E multiple of 20.10 and an estimated forward P/E multiple of 11.60. During the last 12 months, the stock price has dropped by 24%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports easy returns such as ROA of 3.81% and ROE of 11.40% that are ranked higher than 54% of other companies in the Global Diversified Industrials industry. Operating margin of 10.96% and net-margin of 5% are over performing 57% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.17 and the equity to asset ratio is 0.35.

The company provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, and increase industrial productivity and efficiency.

The company is held by six gurus. Pioneer Investments (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.18% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.51%, David Tepper (Trades, Portfolio) with 0.4%, Steven Cohen (Trades, Portfolio) with 0.31%, Jim Simons (Trades, Portfolio) with 0.28%, First Pacific Advisors (Trades, Portfolio) with 0.09% and Robert Olstein (Trades, Portfolio) 0.04%.

Omnicom Group Inc. (OMC) has a trailing dividend yield of 2.73% with a three-year growth rate of 18.60% and a five-year growth rate of 21.40%. The stock is now trading with a trailing 12-month P/E multiple of 16.60 and an estimated forward P/E multiple of 14.12. During the last 12 months, the stock price has dropped by 5%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports strong returns such as ROA of 5.22% and ROE of 42.29% that are ranked higher than 67% of other companies in the Global Advertising Agencies industry. Operating margin of 12.69% and net-margin of 7.23% are over performing 77% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.57 and the equity to asset ratio is 0.11.

The company provides advertising, marketing and corporate communications services to clients.

The company is held by six gurus. The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with a stake of 5.26% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 2.34%, Ruane Cunniff (Trades, Portfolio) with 1.18%, Bill Nygren (Trades, Portfolio) with 0.65%, John Rogers (Trades, Portfolio) with 0.61% and HOTCHKIS & WILEY with 0.59%.

Gap Inc. (GPS) has a trailing dividend yield of 3.88% with a three-year growth rate of 2.10% and a five-year growth rate of 21.30%. The stock is now trading with a trailing 12-month P/E multiple of 9.70 and an estimated forward P/E multiple of 9.80. During the last 12 months, the stock price has dropped by 42%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports strong returns ROA of 13.45% and ROE of 36.61% that are ranked higher than 89% of other companies in the Global Apparel Stores industry. Operating margin of 10.47% and net-margin of 6.36% are over performing 75% of its competitors. Financial strength has a rating of 8/10, the cash to debt ratio is 0.60 and the equity to asset ratio is 0.33.

Gap offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands.

The company is held by six gurus. Larry Robbins (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.32% of outstanding shares, followed by Edward Lampert (Trades, Portfolio) with 0.98%, James Barrow (Trades, Portfolio) with 0.72%, Joel Greenblatt (Trades, Portfolio) with 0.29%, Ray Dalio (Trades, Portfolio) with 0.12%, Jeremy Grantham (Trades, Portfolio) with 0.04% and Manning & Napier Advisors with 0.02%.

Qualcomm Inc. (QCOM) has a trailing dividend yield of 4.17% with a three-year growth rate of 16.30% and a five-year growth rate of 20.60%. The stock is now trading with a trailing 12-month P/E multiple of 14.70 and an estimated forward P/E multiple of 9.52. 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 strong returns such as ROA of 17.49% and ROE of 29.24% that are ranked higher than 80% of other companies in the Global Communication Equipment industry. Operating margin of 22.82% and net-margin of 22.02% are over performing 94% of its competitors. Financial strength has a rating of 8/10, the cash to debt ratio is 1.51 and the equity to asset ratio is 0.60.

The company develops and commercializes digital communication technology called CDMA (Code Division Multiple Access), and owns intellectual property applicable to products that implement any version of CDMA including patents, patent applications and trade secrets.

The company is held by seven gurus. Jana Partners (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.91% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 1.22%, PRIMECAP Management (Trades, Portfolio) with 1.08%, David Rolfe (Trades, Portfolio) with 0.64%, Ken Fisher (Trades, Portfolio) with 0.63%, Jeremy Grantham (Trades, Portfolio) with 0.6% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.35%.

Lockheed Martin Corp. (LMT) has a trailing dividend yield of 2.98% with a three-year growth rate of 19.10% and a five-year growth rate of 19.7%. The stock is now trading with a P/E ratio of 18.30 and an estimated forward P/E multiple of 15.46. During the last 12 months, the stock price has risen by 5%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports strong returns such as ROA of 8.77% and ROE of 114% that are ranked higher than 87% of other companies in the Global Aerospace & Defense industry. Operating margin of 5.90% and net-margin of 7.81% are over performing 56% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.07 and the equity to asset ratio is 0.06.

The company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

The company is held by seven gurus. First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 0.59% of outstanding shares, followed by Tweedy Browne (Trades, Portfolio) with 0.05%, John Rogers (Trades, Portfolio) with 0.01%, Steven Cohen (Trades, Portfolio) with 0.01%, Jim Chanos (Trades, Portfolio) with 0.01% and Manning & Napier Advisors with 0.01%.

Chubb Ltd. (CB) has a trailing dividend yield of 2.33% with a three-year growth rate of 46.10% and a five-year growth rate of 19.60%. The stock is now trading with a trailing 12-month P/E multiple of 13.90 and an estimated forward P/E multiple of 12.03. During the last 12 months, the stock price has risen by 1%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports easy returns such as ROA of 2.85% that is ranked lower and ROE of 9.63% that is ranked higher than other companies in the industry. Operating margin of 11.56% and net-margin of 9.83% are over performing 50% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.19 and the equity to asset ratio is 0.29.

The company provides insurance and reinsurance organization, serving the needs of a diverse group of clients. It offers commercial insurance products and service offerings such as risk management programs, loss control and engineering and complex claims management.

The company is held by nine gurus. HOTCHKIS & WILEY is the main shareholder among the gurus with a stake of 0.76% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.55%, Daniel Loeb (Trades, Portfolio) with 0.46%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.38%, Andreas Halvorsen (Trades, Portfolio) with 0.35%, Jim Simons (Trades, Portfolio) with 0.14%, PRIMECAP Management (Trades, Portfolio) with 0.13%, Steven Cohen (Trades, Portfolio) with 0.07% and Chris Davis (Trades, Portfolio) with 0.05%.

Hess Corp. (HES) has a trailing dividend yield of 2.49% with a three-year growth rate of 35.70% and a five-year growth rate of 19.60%. The stock is now trading with a trailing 12-month P/B multiple of 0.59. During the last 12 months, the stock price has dropped by 48%.

GuruFocus gives the company a profitability and growth rating of 4/10 since it reports negative returns such as ROA of -8.45% and ROE of -14.46%, but they are ranked higher than 52% of other companies in the Global Oil & Gas E&P industry. Operating margin of -35.44% and net-margin of -46.71% are under performing 52% of its competitors. Financial strength has a rating of 3/10, the cash to debt ratio is 0.41 and the equity to asset ratio is 0.57.

The company develops, produces, purchases, transports and sells crude oil and natural gas.

The company is held by six gurus. Paul Singer (Trades, Portfolio) is the main shareholder among the gurus with a stake of 6.22% of outstanding shares, followed by HOTCHKIS & WILEY with 2.69%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.75%, NWQ Managers (Trades, Portfolio) with 0.41%, Steven Cohen (Trades, Portfolio) with 0.24% and Michael Price (Trades, Portfolio) with 0.22%.