6 Most Promising Dividend Stocks that Big Investment Gurus Bought

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May 01, 2012
Investment gurus are asset or fund managers with big amounts of cash under management. They became popular by big returns and spectacular investment strategies. I talk about investors like George Soros and Warren Buffett. They all have one thing in common: The average return beats the market and if they invest, the market follows.


I made a screen of the biggest stock buys from 49 super investors over the recent six-month and ranked them in my 100 best guru buy list.


The top stocks are Oracle (ORCL) and Hewlett Packard (HPQ). Both companies were bought by ten investment gurus. Forty percent of the ten best buys were made within the technology sector. Below is a detailed overview of the best yielding dividend stocks (over 3 percent yields) that were bought by at least two stock market gurus and have a low P/E ratio of less than 15.



Here are the results:



Vodafone Group (VOD, Financial) has a market capitalization of $139.44 billion. The company employs 83,862 people, generates revenues of $74,474.92 million and has a net income of $12,773.90 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,655.25 million. Because of these figures, the EBITDA margin is 18.34 percent (operating margin 12.20 percent and the net profit margin finally 17.15 percent). VOD was bought by 3 investment guru's.


Financial Analysis: The total debt representing 25.31 percent of the company’s assets and the total debt in relation to the equity amounts to 43.72 percent. Due to the financial situation, a return on equity of 8.96 percent was realized. Twelve trailing months earnings per share reached a value of $2.24. Last fiscal year, the company paid $1.44 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.56, P/S ratio 1.84 and P/B ratio 1.01. Dividend Yield: 5.25 percent. The beta ratio is 0.78.


Entergy Corporation (ETR, Financial) has a market capitalization of $11.71 billion. The company employs 14,682 people, generates revenues of $11,229.07 million and has a net income of $1,367.37 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,115.30 million. Because of these figures, the EBITDA margin is 27.74 percent (operating margin 17.93 percent and the net profit margin finally 12.18 percent). ETR was bought by 3 investment guru's.


Financial Analysis: The total debt representing 30.43 percent of the company’s assets and the total debt in relation to the equity amounts to 134.03 percent. Due to the financial situation, a return on equity of 15.43 percent was realized. Twelve trailing months earnings per share reached a value of $5.28. Last fiscal year, the company paid $3.32 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.52, P/S ratio 1.03 and P/B ratio 1.29. Dividend Yield: 5.06 percent. The beta ratio is 0.53.


Sanofi SA (ADR) (SNY, Financial) has a market capitalization of $101.40 billion. The company employs 113,719 people, generates revenues of $46,416.61 million and has a net income of $6,439.91 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,548.44 million. Because of these figures, the EBITDA margin is 29.19 percent (operating margin 16.18 percent and the net profit margin finally 13.87 percent). SNY was bought by 3 investment guru's.


Financial Analysis: The total debt representing 15.41 percent of the company’s assets and the total debt in relation to the equity amounts to 27.46 percent. Due to the financial situation, a return on equity of 10.42 percent was realized. Twelve trailing months earnings per share reached a value of $2.84. Last fiscal year, the company paid $1.75 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.48, P/S ratio 2.21 and P/B ratio 1.36. Dividend Yield: 4.60 percent. The beta ratio is 0.87.


CA (CA, Financial) has a market capitalization of $13.10 billion. The company employs 13,400 people, generates revenues of $4,429.00 million and has a net income of $823.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,640.00 million. Because of these figures, the EBITDA margin is 37.03 percent (operating margin 28.31 percent and the net profit margin finally 18.58 percent). CA was bought by 3 investment guru's.


Financial Analysis: The total debt representing 12.49 percent of the company’s assets and the total debt in relation to the equity amounts to 27.60 percent. Due to the financial situation, a return on equity of 15.31 percent was realized. Twelve trailing months earnings per share reached a value of $1.82. Last fiscal year, the company paid $0.16 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.57, P/S ratio 2.81 and P/B ratio 2.36. Dividend Yield: 3.79 percent. The beta ratio is 1.02.


SYSCO Corporation (SYY, Financial) has a market capitalization of $16.99 billion. The company employs 46,000 people, generates revenues of $39,323.49 million and has a net income of $1,152.03 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,355.99 million. Because of these figures, the EBITDA margin is 5.99 percent (operating margin 4.91 percent and the net profit margin finally 2.93 percent). SYY was bought by 4 investment guru's.


Financial Analysis: The total debt representing 23.44 percent of the company’s assets and the total debt in relation to the equity amounts to 56.71 percent. Due to the financial situation, a return on equity of 27.00 percent was realized. Twelve trailing months earnings per share reached a value of $1.95. Last fiscal year, the company paid $1.03 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.93, P/S ratio 0.43 and P/B ratio 3.63. Dividend Yield: 3.74 percent. The beta ratio is 0.71.


ConocoPhillips (COP, Financial) has a market capitalization of $71.79 billion. The company employs 29,800 people, generates revenues of $251,226.00 million and has a net income of $12,502.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31,891.00 million. Because of these figures, the EBITDA margin is 12.69 percent (operating margin 9.16 percent and the net profit margin finally 4.98 percent). COP was bought by 3 investment guru's.


Financial Analysis: The total debt representing 14.76 percent of the company’s assets and the total debt in relation to the equity amounts to 34.69 percent. Due to the financial situation, a return on equity of 18.59 percent was realized. Twelve trailing months earnings per share reached a value of $9.15. Last fiscal year, the company paid $2.64 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.16, P/S ratio 0.36 and P/B ratio 1.41. Dividend Yield: 3.69 percent. The beta ratio is 1.14.


Take a closer look at the full table of stocks with biggest guru buys over the past six months. The average P/E ratio amounts to 21.72. Exactly 70 companies pay dividends. The average dividend yield amounts to 2.37 percent. P/S ratio is 2.63 and P/B ratio 3.33.


Related stock ticker symbols sales:

COP, SYY, CA, SNY, ETR, VOD