(GuruFocus, September 24, 2009) These are companies that are owned by Investment Guru Bruce Berkowitz and that are paying the highest percentage of dividends:
1. Penn West Energy Trust Trust Units (PWE, Financial) -- Yield = 12.1
Bruce actually sold down dramatically to only 15,129 shares from the peak time of 12,405,120 shares in 1Q07.
PENN WEST ENERGY TRUST is a senior oil and natural gas energy trust based in Calgary Alberta. Penn West trust units and debentures are listed on the Toronto Stock Exchange under the symbols PWT.UN PWT.DB.A PWT.DB.B PWT.DB.C PWT.DB.D PWT.DB.E and PWT.DB.F and Penn West trust units are listed on the New York Stock Exchange under the symbol PWE. Penn West Energy Trust Trust Units has a market cap of $6.21 billion; its shares were traded at around $14.84 with a P/E ratio of 18.1 and P/S ratio of 1.6. The dividend yield of Penn West Energy Trust Trust Units stocks is 12.1%.
2. WINTHROP REALTY TRUST (FUR, Financial) -- Yield = 10.2
Berkowitz bought 1.25 million shares in 4Q08 and still held 1.15 million shares in 2Q09.
Winthrop Realty Trust is a Boston-based real estate investment trust. Its principal business activity is investing in and making loans secured by real estate assets. Its management team is composed of individuals whose careers have been devoted to value-oriented opportunistic real estate investing. Management seeks to earn high risk-adjusted returns by targeting for acquisition significantly undervalued assets. In many cases these assets are underperforming at the time of acquisition and we perceive that through an infusion of capital and improved management an appropriate return on investment can be realized. Consequently with certain limitations they are willing to invest in most any type of real estate asset or security. Winthrop Realty Trust has a market cap of $155.7 million; its shares were traded at around $9.82 with a P/E ratio of 6.3 and P/S ratio of 3.4. The dividend yield of Winthrop Realty Trust stocks is 10.2%.
3, BristolMyers Squibb Company (BMY, Financial) -- Yield = 5.6
This is a long time Berkowitz holding. He had it since 1999. At times he held much more shares but now he is down to only 19,100 shares.
Bristol-Myers Squibb Company is a global leader in the research and development of innovative lifesaving and life-enhancing treatments for heart disease; high blood pressure; stroke; diabetes; cancer; HIV/AIDS and other infectious diseases; depression schizophrenia and other mental disorders; pain; and other conditions. Bristolmyers Squibb Company has a market cap of $44.43 billion; its shares were traded at around $22.43 with a P/E ratio of 11.4 and P/S ratio of 2.2. The dividend yield of Bristolmyers Squibb Company stocks is 5.6%.
4. Pfizer Inc (PFE, Financial) -- Yield = 3.9
Berkowitz has 87 million shares. This is his largest holding.
Pfizer Inc is a research-based global pharmaceutical company that discovers and develops innovative value-added products that improve the quality of life of people around the world and help them enjoy longer healthier and more productive lives. Pfizer has three business segments: health care animal health and consumer health care. Its products are available in numerous countries. (Company Press Release) Pfizer Inc has a market cap of $110.96 billion; its shares were traded at around $16.44 with a P/E ratio of 7.2 and P/S ratio of 2.2. The dividend yield of Pfizer Inc stocks is 3.9%. Pfizer Inc had an annual average earning growth of 11% over the past 10 years. GuruFocus rated Pfizer Inc the business predictability rank of 2.5-star.
5. Northrop Grumman Corp. (NOC, Financial) -- Yield = 3.4
Berkowitz holds 5.6 million shares of NOC as of 2Q09, down from 7.3 million shares in 1Q09.
Northrop Grumman Corporation is a high technology company providing innovative solutions in systems integration defense electronics and information technology for its U.S. and international military government and commercial customers as a prime contractor principal subcontractor team member or preferred supplier. (Company Press Release) Northrop Grumman Corp. has a market cap of $16.23 billion; its shares were traded at around $51.03 with a P/E ratio of 9.3 and P/S ratio of 0.5. The dividend yield of Northrop Grumman Corp. stocks is 3.4%. Northrop Grumman Corp. had an annual average earning growth of 1.3% over the past 10 years.
6. The Boeing Company (BA, Financial) -- Yield = 3.2
Berkowitz held 5.6 million shares, down from 8.7 million shares from 1Q09.
The Boeing Company is one of the world's major aerospace firms. The company operates in three principal segments: commercial airplanes; military aircraft and missiles; and space and communications. The Boeing Company has a market cap of $37.62 billion; its shares were traded at around $51.79 with a P/E ratio of 13.5 and P/S ratio of 0.6. The dividend yield of The Boeing Company stocks is 3.2%. The Boeing Company had an annual average earning growth of 10.9% over the past 10 years. GuruFocus rated The Boeing Company the business predictability rank of 2.5-star.
Conclusion
Back in May, Berkowitz talked in Morningstar Conference that he favors Healthcare and Defense sector of the market. The high yield of these companies reflects their financial strengths. Berkowitz select stocks based on free cash flow, and healthy dividend reflects the confidence in management towards their future free cash flow.
GuruFocus provides real time information and insights of Investment Gurus such as W arren Buffett and Bruce Berkowitz for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
1. Penn West Energy Trust Trust Units (PWE, Financial) -- Yield = 12.1
Bruce actually sold down dramatically to only 15,129 shares from the peak time of 12,405,120 shares in 1Q07.
PENN WEST ENERGY TRUST is a senior oil and natural gas energy trust based in Calgary Alberta. Penn West trust units and debentures are listed on the Toronto Stock Exchange under the symbols PWT.UN PWT.DB.A PWT.DB.B PWT.DB.C PWT.DB.D PWT.DB.E and PWT.DB.F and Penn West trust units are listed on the New York Stock Exchange under the symbol PWE. Penn West Energy Trust Trust Units has a market cap of $6.21 billion; its shares were traded at around $14.84 with a P/E ratio of 18.1 and P/S ratio of 1.6. The dividend yield of Penn West Energy Trust Trust Units stocks is 12.1%.
2. WINTHROP REALTY TRUST (FUR, Financial) -- Yield = 10.2
Berkowitz bought 1.25 million shares in 4Q08 and still held 1.15 million shares in 2Q09.
Winthrop Realty Trust is a Boston-based real estate investment trust. Its principal business activity is investing in and making loans secured by real estate assets. Its management team is composed of individuals whose careers have been devoted to value-oriented opportunistic real estate investing. Management seeks to earn high risk-adjusted returns by targeting for acquisition significantly undervalued assets. In many cases these assets are underperforming at the time of acquisition and we perceive that through an infusion of capital and improved management an appropriate return on investment can be realized. Consequently with certain limitations they are willing to invest in most any type of real estate asset or security. Winthrop Realty Trust has a market cap of $155.7 million; its shares were traded at around $9.82 with a P/E ratio of 6.3 and P/S ratio of 3.4. The dividend yield of Winthrop Realty Trust stocks is 10.2%.
3, BristolMyers Squibb Company (BMY, Financial) -- Yield = 5.6
This is a long time Berkowitz holding. He had it since 1999. At times he held much more shares but now he is down to only 19,100 shares.
Bristol-Myers Squibb Company is a global leader in the research and development of innovative lifesaving and life-enhancing treatments for heart disease; high blood pressure; stroke; diabetes; cancer; HIV/AIDS and other infectious diseases; depression schizophrenia and other mental disorders; pain; and other conditions. Bristolmyers Squibb Company has a market cap of $44.43 billion; its shares were traded at around $22.43 with a P/E ratio of 11.4 and P/S ratio of 2.2. The dividend yield of Bristolmyers Squibb Company stocks is 5.6%.
4. Pfizer Inc (PFE, Financial) -- Yield = 3.9
Berkowitz has 87 million shares. This is his largest holding.
Pfizer Inc is a research-based global pharmaceutical company that discovers and develops innovative value-added products that improve the quality of life of people around the world and help them enjoy longer healthier and more productive lives. Pfizer has three business segments: health care animal health and consumer health care. Its products are available in numerous countries. (Company Press Release) Pfizer Inc has a market cap of $110.96 billion; its shares were traded at around $16.44 with a P/E ratio of 7.2 and P/S ratio of 2.2. The dividend yield of Pfizer Inc stocks is 3.9%. Pfizer Inc had an annual average earning growth of 11% over the past 10 years. GuruFocus rated Pfizer Inc the business predictability rank of 2.5-star.
5. Northrop Grumman Corp. (NOC, Financial) -- Yield = 3.4
Berkowitz holds 5.6 million shares of NOC as of 2Q09, down from 7.3 million shares in 1Q09.
Northrop Grumman Corporation is a high technology company providing innovative solutions in systems integration defense electronics and information technology for its U.S. and international military government and commercial customers as a prime contractor principal subcontractor team member or preferred supplier. (Company Press Release) Northrop Grumman Corp. has a market cap of $16.23 billion; its shares were traded at around $51.03 with a P/E ratio of 9.3 and P/S ratio of 0.5. The dividend yield of Northrop Grumman Corp. stocks is 3.4%. Northrop Grumman Corp. had an annual average earning growth of 1.3% over the past 10 years.
6. The Boeing Company (BA, Financial) -- Yield = 3.2
Berkowitz held 5.6 million shares, down from 8.7 million shares from 1Q09.
The Boeing Company is one of the world's major aerospace firms. The company operates in three principal segments: commercial airplanes; military aircraft and missiles; and space and communications. The Boeing Company has a market cap of $37.62 billion; its shares were traded at around $51.79 with a P/E ratio of 13.5 and P/S ratio of 0.6. The dividend yield of The Boeing Company stocks is 3.2%. The Boeing Company had an annual average earning growth of 10.9% over the past 10 years. GuruFocus rated The Boeing Company the business predictability rank of 2.5-star.
Conclusion
Back in May, Berkowitz talked in Morningstar Conference that he favors Healthcare and Defense sector of the market. The high yield of these companies reflects their financial strengths. Berkowitz select stocks based on free cash flow, and healthy dividend reflects the confidence in management towards their future free cash flow.
GuruFocus provides real time information and insights of Investment Gurus such as W arren Buffett and Bruce Berkowitz for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
