5 Cheap Companies With High Dividend Yields

Philip Morris tops the list

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Sep 30, 2020
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According to the GuruFocus All-in-One Screener as of Sept. 30, the following guru-held companies have high dividend yields and are trading with low price-earnings ratios.

Philip Morris

Philip Morris International Inc.'s (PM, Financial) dividend yield is 6.34% and the payout ratio is 1. Over the past 52 weeks, the stock has risen 5.22%. Shares are trading with a price-earnings ratio of 15.88. The company's average yield was 4.33% over the past 10 years.

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The tobacco company has a market cap of $115.77 billion. GuruFocus rated its profitability 8 out of 10. The return on assets of 18.13% is outperforming 70% of companies in the tobacco products industry. The cash-debt ratio of 0.14 is below the industry median of 0.48.

First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder with 0.83% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.53% and John Rogers (Trades, Portfolio) with 0.28%.

Anthem

Anthem Inc.'s (ANTM, Financial) dividend yield is 1.40% with a payout ratio of 0.15. The stock has gained 10.83% compared to a year ago. Shares are trading with a price-earnings ratio of 11.29 and a price-book ratio of 1.90. The company's average yield was 1.39% over the past 10 years.

The private health insurance organization has a $65.34 billion market cap. GuruFocus rated its profitability 7 out of 10. The return on equity of 18.49% and return on assets of 7.37% are outperforming 57% of companies in the health care plans industry. The cash-debt ratio of 0.28 is below the industry median of 0.65.

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The Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder with 1.86% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.86% and Hotchkis & Wiley with 0.66%.

T. Rowe Price

T. Rowe Price Group Inc.'s (TROW, Financial) dividend yield 2.71% with a payout ratio of 0.39. Over the past 52 weeks, the stock has gained 15.85%. Shares are trading with a price-book ratio of 4.29 and a price-earnings ratio of 15.12.

The company, which provides asset management services, has a market cap of $28.94 billion. GuruFocus rated its profitability 9 out of 10. The return on equity of 29.41% and return on assets of 22.26% are outperforming 95% of competitors in the asset management industry. Its financial strength is rated 8 out of 10. The equity-asset ratio of 12.37 is below the industry median of 17.78.

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With 0.35% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Ron Baron (Trades, Portfolio) with 0.15% and Tom Gayner (Trades, Portfolio) with 0.14%.

HP

HP Inc.'s (HPQ, Financial) dividend yield is 3.73% with a payout ratio of 0.39. Over the past 52 weeks, the stock has increased 5.91% and shares are trading with a price-earnings ratio of 10.69. The company's average yield was 3.42% over the past 10 years.

The company, which provides computers, printers and printer supplies, has a market cap of $25.99 billion and a GuruFocus profitability rating of 7 out of 10. The return on assets of 7.74% is outperforming 81% of competitors in the hardware industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.63.

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Dodge & Cox is the company's largest guru shareholder with 12.79% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 2.41% and Seth Klarman (Trades, Portfolio) with 1.26%.

Archer-Daniels Midland

Archer-Daniels Midland Co.'s (ADM, Financial) dividend yield is 3.11% and the payout ratio is 0.45. Over the past 52 weeks, the stock has increased 15.80%. Shares are trading with a price-earnings ratio of 14.60 and a price-book ratio of 1.33. The company's average yield was 2.68% over the past 10 years.

The company, which provides oilseeds, corn, wheat and other agricultural commodities, has a market cap of $25.55 billion. GuruFocus rated its profitability 6 out of 10. The return on equity of 9.29% and return on assets of 4% are outperforming 60% of competitors. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.13 is below the industry median of 0.46.

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With 0.99% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 0.41%.

Disclosure: I do not own any stocks mentioned.

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