Growing Yield and Profitability: Ross Stores, Novo Nordisk

Companies with growing 5-year yields

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Jun 02, 2016
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Thanks to GuruFcus’ All-In-One Screener, I highlight stocks that have growing dividend yields with sustainable payout ratios. This sustainability is confirmed to long-term company profitability and very strong financial situations:

PT Telekomunikasi Indonesia (Persero) Tbk. (TLK) has a dividend yield that during the last five years has grown by 55%. The yield is 2.18% with a payout ratio of 44.00%. The average ROA of the last five years has been positive, 11.62%, as has the ROE with an average performance of 26.39%.

The company has a current ROE of 22.31% that is outperforming 84% of other companies in the Global Telecom Services industry, and the ROA is 10.11%, above the industry median of 2.48%. Financial strength has a rating of 6/10, and it shows a cash-to-debt ratio of 1.10 that is outperforming 61% of its competitors and an equity-to-asset ratio of 0.45 that is a few above the industry median of 0.40.

The company provides network and telecommunication services to individual and home customers, companies and institutions in Indonesia. It operates through four segments: Personal, Home, Corporate and Others.

The company's main investors among the gurus are Jim Simons (Trades, Portfolio), who holds 0.11% of outstanding shares, followed by Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.07% and Manning & Napier Advisors Inc. with 0.01%.

Novo Nordisk A/SĂ‚ (NVO) has a dividend yield that during the last five years has grown by 38%. The yield is now 1.73% with a payout ratio of 47%. The average ROA of the last five years has been positive, 35.93%, as has the ROE with an average performance of 60.54%.

The company has a current ROE of 88.71% that is outperforming 99% of other companies in the Global Biotechnology industry, and the ROA is 41.18%, far above the industry median that is -26.89%. Financial strength has a rating of 4/10 with cash to debt of 21.80 that is underperforming 51% of its competitors and an equity-to-asset ratio of 0.45 that is below the industry median of 0.69.

The company is a health care company that is engaged in the discovery, development, manufacturing and marketing of pharmaceutical products.

Simons, who holds 0.49% of outstanding shares of the company, is the main investor among the gurus followed by Ken Fisher (Trades, Portfolio) with 0.43%, Spiros Segalas (Trades, Portfolio) with 0.24% and Tom Gayner (Trades, Portfolio) with 0.04%.

Cohen & Steers Inc. (CNS) has a dividend yield that during the last five years has grown by 32%. The yield is now 2.62% with a payout ratio of 75%. The average ROA of the last five years has been positive, 21.21%, as has the ROE with an average performance of 29.58%.

The company has a current ROE of 26.09% that is outperforming 94% of other companies in the Global Asset Management industry, and the ROA is 21.90%, above the industry median of 1.63%. Financial strength has a rating of 7/10. It has no debt and an equity-to-asset ratio of 0.85.

The company is an investment manager engaged in real assets, including real estate, infrastructure and commodities along with preferred securities and other income solutions.

The company's main investors among the gurus are Ron Baron (Trades, Portfolio), who holds 6.53% of outstanding shares, and Mario Gabelli (Trades, Portfolio) with 2.54%, Simons with 1.17%, Chuck Royce (Trades, Portfolio) with 0.73% and Murray Stahl (Trades, Portfolio) with 0.03%.

SEI Investments Co.Ă‚ (SEIC) has a dividend yield that during the last five years has grown by 31%. The yield is now 0.97% with a payout ratio of 26%. The average ROA of the last five years has been positive, 15.92%, as has the ROE with an average performance of 23.75%.

The company has a current ROE of 25.00% that is outperforming 94% of other companies in the Global Asset Management industry, and the ROA is 20.99%, above the industry median of 1.63%. Financial strength has a rating of 9/10. It shows no debt and equity-to-asset ratio of 0.84 that is a few below the industry median of 0.85.

The company is a provider of investment processing, investment management and investment operations solutions that help financial institutions, financial advisers, institutional investors and investment managers create and manage wealth.

Columbia Wanger (Trades, Portfolio), who holds 0.94% of outstanding shares, is the company's main investor among the gurus followed by Chuck Royce (Trades, Portfolio) with 0.38%, RS Investment Management (Trades, Portfolio) with 0.34%, Pioneer Investments (Trades, Portfolio) with 0.23%, Gayner with 0.15% and Simons with 0.15%.

Tessco Technologies Inc. (TESS) has a dividend yield that during the last five years has grown by 30%. The yield is now 6.27% with a payout ratio of 92%. The average ROA of the last five years has been positive, 8.52%, as has the ROE with an average performance of 14.93%.

The company has a current ROE of 4.68% that is underperforming 51% of other companies in the Global Communication Equipment industry, and the ROA is 2.87%, above the industry median of 2.17%. Financial strength has a rating of 9/10 with cash to debt of 8.62 that is outperforming 61% of its competitors and an equity-to-asset ratio of 0.66 that is a few above the industry median of 0.59.

The company delivers products and solutions to support wireless systems. It offers products in four categories: base station infrastructure; network systems; installation, test and maintenance and mobile devices and accessories.

The company's main investors among the gurus are Royce, who holds 10.56% of outstanding shares, and Simons with 3.8%.

Ross Stores Inc. (ROST) has a dividend yield that during the last five years has grown by 2%. The yield is now 0.91% with a payout ratio of 19%. The average ROA of the last five years has been positive, 21.51%, as has the ROE with an average performance of 44.56%.

The company has a current ROE of 42.43% that is outperforming 96% of other companies in the Global Apparel Stores industry, and the ROA is 20.88%, above the industry median that is 2.80%. Financial strength has a rating of 9/10 with cash to debt of 2.30 that is outperforming 60% of its competitors and an equity-to-asset ratio of 0.50 that is a few above the industry median of 0.48.

The company is the off-price apparel and home fashion chain in the U.S. It operates two brands of off-price retail apparel and home fashion stores –Â Ross Dress for Less(r) and dds DISCOUNTS(r).

PRIMECAP Management (Trades, Portfolio), with 3.75% of the company's outstanding shares, is the main investor among the gurus followed by Pioneer Investments (Trades, Portfolio) with 1.23% and Jeremy Grantham (Trades, Portfolio) with 0.13%, Westport Asset Management (Trades, Portfolio) with 0.1%, Fisher with 0.05%, Joel Greenblatt (Trades, Portfolio) with 0.03%, John Hussman (Trades, Portfolio) with 0.02%, Lee Ainslie (Trades, Portfolio) with 0.01% and Gayner with 0.01%.

Flexsteel Industries Inc.Ă‚ (FLXS) has a dividend yield that during the last five years has grown by 29%. The yield is now 1.76% with a payout ratio of 23%. The average ROA of the last five years has been positive, 7.44%, as has the ROE with an average performance of 9.43%.

The company has a current ROE of 12.40% that is outperforming 66% of other companies in the Global Home Furnishings & Fixtures industry, and the ROA is 9.76%, above the industry median that is 3.72%. Financial strength has a rating of 9/10 and it shows no debt and an equity-to-asset ratio of 0.84 that is a few above the industry median of 0.59.

The company manufactures, imports and markets residential and commercial upholstered and wood furniture products in the U.S. Its products include sofas, loveseats and rocker-reclining chairs.

The company's main investor among the gurus is Royce who holds 12.11% of the company's outstanding shares.

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