According to the High Dividend Yield Screen, a Premium feature of GuruFocus, five stocks with high dividend yields that have high guru ownership based on third-quarter 13F equity portfolio filings include Citigroup Inc. (C, Financial), Intel Corp. (INTC, Financial), U.S. Bancorp (USB, Financial), Philip Morris International Inc. (PM, Financial) and Verizon Communications Inc. (VZ, Financial).
GuruFocus’ High Dividend Yield screen looks for stocks that have a dividend yield of at least 4% and multiple gurus owning shares.
The guru ownership statistics are based on third-quarter 13F equity portfolio filings. Investors should be aware that the 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Citigroup
Twenty-eight gurus owned shares of Citigroup (C, Financial) as of the third quarter's end with a combined weighting of 48.34%.
Shares of Citigroup traded around $44.14, approximately 31% below its GF Value as of Friday. The stock’s dividend yield of 4.64% is near a two-year high and outperforms approximately 68% of global competitors.
GuruFocus’ GF Value line labeled the New York-based bank a possible value trap due to its low financial strength rank of 3 out of 10 and growth rank of 4 out of 10. Warning signs include a low Piotroski F-score of 3 out of 9 and a debt-to-equity ratio that underperforms more than 76% of global competitors.
Citigroup has a GF Score of 72 out of 100 on the back of low financial strength and growth, a modest profitability rank of 5 out of 10, a momentum rank of 8 out of 10 and a GF Value rank of 10 out of 10.
Gurus with holdings in Citigroup include Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) and Hotchkis & Wiley.
Intel
Twenty-five gurus own shares of Intel (INTC, Financial) with a combined weighting of 31.64%.
Shares of Intel traded around $25.89, showing that the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.58 as of Friday. The stock’s dividend yield of 5.62% is near a 10-year high and outperforms approximately 80% of global competitors.
The Santa Clara, California-based semiconductor giant has a GF Score of 84 out of 100 based on a profitability rank of 9 out of 10, a rank of 8 out of 10 for growth and GF Value, a financial strength rank of 6 out of 10 and a momentum rank of 2 out of 10.
Intel’s profitability ranks 9 out of 10 on several positive investing signs, which include 10 years of positive operating income over the past 10 years and an operating margin that has increased by approximately 1.8% per year on average over the past five years.
Gurus with holdings in Intel include PRIMECAP Management (Trades, Portfolio) and Chris Davis (Trades, Portfolio)’ Davis Selected Advisors.
U.S. Bancorp
Twenty-five gurus own shares of U.S. Bancorp (USB, Financial) with a combined weight of 26.97%.
Shares of U.S. Bancorp traded around $43.04, showing that the stock is modestly undervalued based on its price-to-GF-Value ratio of 0.81 as of Friday. The stock’s dividend yield of 4.32% is near a two-year high and outperforms approximately 62% of global competitors.
The Minneapolis-based bank has a GF Score of 79 out of 100 based on a GF Value rank of 9 out of 10, a growth rank of 7 out of 10, a profitability rank of 6 out of 10, a momentum rank of 5 out of 10 and a financial strength rank of 4 out of 10.
Gurus with holdings in U.S. Bancorp include Buffett’s Berkshire, Davis Selected Advisors and First Eagle Investment (Trades, Portfolio).
Phillip Morris
Twenty-one gurus own shares of Phillip Morris (PM, Financial) with a combined weight of 29.6%.
Shares of Phillip Morris traded around $101.52, showing that the stock is modestly overvalued based on its price-to-GF-Value ratio of 1.11 as of Friday. The stock has a dividend yield of 4.97%.
The New York-based tobacco company has a GF Score of 77 out of 100 based on a GF Value rank of 3 out of 10, a rank of 8 out of 10 for momentum and profitability and a rank of 5 out of 10 for growth and financial strength.
Verizon
Twenty-one gurus own shares of Verizon (VZ, Financial) with a combined weighting of 10.84%.
Shares of Verizon traded around $38.41, approximately 33% below its GF Value as of Friday. The stock’s dividend yield of 6.69% is near a 10-year high and outperforms more than 76% of global competitors.
GuruFocus’ GF Value Line labeled the New York-based wireless cable company a possible value trap due to the stock’s low financial strength rank of 4 out of 10 and momentum rank of 1 out of 10. Warning signs include a low Altman Z-score of 1.2 and a debt-to-equity ratio that underperforms more than 83% of global competitors.
Verizon has a GF Score of 69 out of 100 on the heels of the low scores for financial strength and momentum despite GF Value ranking 10 out of 10, profitability ranking 7 out of 10 and growth ranking 5 out of 10.
