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Dianne Tordillo
Dianne Tordillo
Articles (179)  | Author's Website |

The Top-Yielding Stocks on Brian Rogers’ Equity Income Fund

January 29, 2013 | About:

Now that Guru Brian Rogers has submitted his fourth quarter update for the T. Rowe Price Equity Income Fund, it’s time to see which of his current stock holdings have the highest yields.

The fund, which primarily targets stocks of established firms that are “expected to pay above-average dividends,” made 17.25 percent in total returns in 2012, according to its Fund Overview.

A publicly traded investment company, T. Rowe Price (TROW) increased its assets under management by $87.3 billion in 2012 compared to the previous year, reaching $576.8 billion. Additionally, 74 percent of T. Rowe Price’s mutual funds across share classes outperformed the Lipper Index in the last year on a total return basis; 78 percent outperformed it in the last three years, while 84 percent outperformed it in the last five years.

In 2012’s third quarter, it was reported that the highest yielding stocks on the Equity Income Fund were Nokia Corp., CenturyLink, Telefonica and Sun Life Financial; while Telefonica and CenturyLink remained on the list some quarters later, Nokia and Sun Life have been bumped down and replaced by companies, Cliffs Natural Resources and FirstEnergy Corp.

Telefonica (NYSE:TEF) and CenturyLink Inc. (NYSE:CTL)

As of the fourth quarter, Rogers has continued to hold both top-dividend paying companies, Telefonica and CenturyLink Inc. Both companies have increased their yields since the third quarter.

Sitting with a 10.4 percent yield compared to 6.8 percent in the previous quarter, Spain-based Telefonica is a large telecommunications company that focuses on the key areas of mobile broadband and telephone lines. It has presence in 26 countries and has a customer base of more than 312 million.

In May 2012, Telefonica paid a dividend of 0.53 euros per share, its latest listed payout in its remuneration history.

Fellow telecommunications company, CenturyLink currently has a 7.2 percent dividend yield, up slightly from its 7.1 percent yield in the previous quarter.

CenturyLink is the third largest telecommunications company in the U.S. Some of its services include cloud infrastructure, IT solutions for enterprise customers, as well as data and voice management services.

In November 2012, CenturyLink declared a quarterly cash dividend of $0.725 per share, which was paid on Dec. 21.

Stocks of both Telefonica, priced at $14.40, and CenturyLink, priced at $40.72, were both up today after market close.

Cliffs Natural Resources Inc. (NYSE:CLF) and FirstEnergy Corp. (NYSE:FE)

Taking rein as the third and fourth highest dividend yield stocks on the Rogers’ Equity Income Fund, Cliffs Natural Resources and FirstEnergy Corp. have a dividend yield of 6 percent and 5.4 percent, respectively.

An international mining and natural resources company, Cliffs Natural Resources is a large producer of global iron ore, as well as high- and low-volatility metallurgical coal.

On Dec. 3, the company paid a cash dividend of $0.625 per share.

Diversified energy company, FirstEnergy generates a fleet consisting of non-emitting nuclear, coal, natural gas, hydro and other renewable. According to its site, it has more than 20,000 megawatts of generating capacity.

On March 1, the company plans to pay $0.55 per share in dividends to its shareholders.

In the last five years, both companies have decreased significantly in market value. Compared to its five-year high of $115 in July 2008, Cliffs Natural Resources trades at a discount at $36.03.

Similarly, FirstEnergy has shed about half of its market value since July 2008, from $82 to its current price of $40.58.

Brian Rogers’ full list of highest-dividend companies can be found on Brian Rogers’ High-Yield Companies. See the rest of the stocks in Brian Rogers’ portfolio here. Also check out his Undervalued Stocks and Top Growth Companies

About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website

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