The Buffett-Munger Screener, one of several predefined GuruFocus value screens offered to Premium members, seeks stocks that meet Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)'s four-criterion investing approach. Among these stocks, the five stocks with high dividend yields are Extra Space Storage Inc. (EXR, Financial), Amgen Inc. (AMGN, Financial), AmerisourceBergen Corp. (ABC, Financial), CDW Corp. (CDW, Financial) and Group 1 Automotive Inc. (GPI, Financial).
Buffett-Munger Screener seeks good stocks using four key criteria
Buffett said that Berkshire looks for four key characteristics of good companies: understandable business, favorable long-term prospects, honest and competent management and attractive price valuations. Two key criteria are a GuruFocus business predictability rank of at least four stars and a price-earnings-to-growth ratio less than 2.
GuruFocus has started displaying the number of new stocks for each of the value screens. For example, the Buffett-Munger Screener had one new stock since the last update, which is Extra Space Storage.
The Salt Lake City-based real estate investment trust owns, operates and manages over 1,800 self-storage properties in over 38 states. GuruFocus ranks Extra Space Storage's profitability 9 out of 10, driven by a five-star business predictability rank and an operating margin that has increased approximately 1.80% per year on average over the past five years.
Extra Space Storage offers a dividend yield of 3.41%. Even though it underperforms 86.6% of global REITs, the current dividend yield is larger than the historical median of 3.01%.
Gurus with large holdings in Extra Space Storage include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Pioneer Investments (Trades, Portfolio).
Amgen
Amgen produces therapies for renal disease and cancer-supportive care products. GuruFocus ranks the Thousand Oaks, California-based company's profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank, a return on assets that outperforms 88.57% of global competitors and an operating margin that has increased approximately 5.30% per year on average over the past five years.
AmerisourceBergen
AmerisourceBergen engages in wholesale distribution of specialty, generic and brand name pharmaceutical products to acute-care hospitals and health systems. GuruFocus ranks the Chesterbrook, Pennsylvania-based company's financial strength 7 out of 10, driven by a high Piotroski F-score of 8 and a strong Altman Z-score of 5.
Other positive investing signs include a four-star predictability rank, expanding operating margins and returns that are outperforming over 70% of global competitors. Based on these metrics, GuruFocus ranks AmerisourceBergen's profitability 8 out of 10.
CDW
CDW resells value-added projects that range from notebooks to data center software. GuruFocus ranks the Chicago-based company's profitability 8 out of 10 on several positive investing signs, which include a four-star business predictability rank, a return on assets that outperforms 81.50% of global competitors and an operating margin that has increased approximately 2.20% per year on average over the past five years.
Group 1 Automotive
Group 1 Automotive owns and operates a network of automotive dealerships and collision centers in the U.S. and the U.K. GuruFocus ranks the Houston-based company's profitability 8 out of 10 on several positive investing signs, which include a five-star business predictability rank and a return on equity that outperforms 84.72% of global competitors.
Disclosure: Author is long Amgen.
Read more here:
- 4 Stocks With Strong Earnings Growth Over the Past 5 Years
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- 4 Russell 2000 Companies With High Financial Strength
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