As the U.S. markets continue their volatile first month of 2022, five stocks with high dividend growth, solid business quality and are trading at fair GF Values are Cisco Systems Inc. (CSCO, Financial), Texas Instruments Inc. (TXN, Financial), T. Rowe Price Group Inc. (TROW, Financial), Marine Products Group (MPX, Financial) and MiX Telematics Ltd. (MIXT, Financial) according to the All-in-One Screener, a Premium feature of GuruFocus.
On Friday, the Dow Jones Industrial Average closed at 34,725.47, up 564.69 points from Thursday’s close of 34,160.78, yet still down over 1,800 points from the Jan. 3 reading of 36,585.06.
Shares of Apple Inc. (AAPL, Financial), the largest holding of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), increased nearly 7% on the back of the company reporting new record sales for the quarter ending Christmas Day 2021 despite ongoing supply chain issues stemming from the Omicron variant of the Covid-19 virus.
The U.S. market gyrated throughout January as investors continued monitoring news surrounding the Federal Reserve and the number of interest rate hikes expected over the next several years. The CBOE Volatility Index stood at 31.16 on Jan. 25, its highest level since December 2021.
As investors continue monitoring market volatility, GuruFocus’ All-in-one Screener listed several stocks that have high profitability, dividend growth and fair valuations based on the GF Value measure. Patterned by Peter Lynch’s earnings line, GuruFocus’ exclusive valuation method considers a company’s historical price multiples and internally adjusts for past performance and future growth estimates.
Cisco Systems
Shares of Cisco Systems (CSCO, Financial) traded around $54.64, showing the stock is fairly valued based on Friday’s price-to-GF Value ratio of 1.08.
Cisco’s dividend has increased approximately 9.10% per year on average over the past five years. The company’s dividend yield of 2.72% outperforms approximately 64% of global competitors.
GuruFocus ranks the San Jose, California-based communication hardware company’s profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that are outperforming more than 90% of global competitors.
Gurus with holdings in Cisco include Dodge & Cox, Ken Fisher (Trades, Portfolio)’s Fisher Investments and Al Gore (Trades, Portfolio)’s Generation Investment Management.
Texas Instruments
Shares of Texas Instruments (TXN, Financial) traded around $173.83, showing the stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.98.
The Dallas-based semiconductor company’s dividend has increased approximately 20.8% per year on average over the past five years. The company’s dividend yield of 2.45% outperforms approximately 71% of global competitors.
GuruFocus ranks Texas Instruments’ profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that outperform more than 96% of global competitors.
Gurus with holdings in Texas Instruments include PRIMECAP Management (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio).
T. Rowe Price Group
Shares of T. Rowe Price Group (TROW, Financial) traded around $147.16, showing the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.82.
T. Rowe Price’s dividend has increased approximately 12% per year on average over the past five years. The company’s dividend yield of 2.93% is near a one-year high, yet underperforms more than 70% of global competitors.
The Baltimore-based asset management company manages a wide range of funds, including the T Rowe Price Equity Income Fund (Trades, Portfolio) and T. Rowe Price Japan Fund (Trades, Portfolio). GuruFocus ranks the company’s profitability 10 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 8 and returns outperforming more than 83% of global competitors.
Marine Products
Shares of Marine Products (MPX, Financial) traded around $12.18, showing the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.84.
Marine Products’ dividend has increased approximately 20.4% per year on average over the past five years. The company’s dividend yield of 3.76% outperforms approximately 81% of global competitors.
GuruFocus ranks the Atlanta-based motorized boat manufacturing company’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins and returns that are outperforming more than 81% of global competitors.
MiX Telematics
Shares of MiX Telematics (MIXT, Financial) traded around $11.47, showing the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.87.
MiX Telematics’ dividend has increased by approximately 8.9% per year on average over the past five years. The company’s dividend yield of 2.32% outperforms approximately 70% of global competitors.
GuruFocus ranks the Boca Raton, Florida-based software company’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a 3.5-star business predictability rank and profit margins and returns that are outperforming more than 65% of global competitors.
