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Tiziano Frateschi
Tiziano Frateschi
Articles (2803)  | Author's Website |

Greenlight Capital Reaps 5% Yield From Vodafone

Garmin and GM also among David Einhorn's highest-yielding stocks

David Einhorn (Trades, Portfolio) is president of Greenlight Capital (a value-oriented investment advisor). He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions.

His portfolio is composed of 42 stocks and the following are the ones that pay the highest dividend yield.

Vodafone Group PLC. (VOD) pays its shareholders an annual dividend yield of 5.3% with a payout ratio of 50%, but growth has declined by 1% over the last five years.

Its services include voice, data and fixed broadband. The geographic regions covered by the company include Europe and Africa, Middle East and Asia Pacific. The company has reached an important turning point for the group with a return to organic growth in service revenue and EBITDA in the first half of the financial year. It reported 1% increase for group service revenue and 1.9% increase for EBITDA.

It is trading with a P/E ratio of 10.13, and during the last 12 months, the price has dropped by 7%. It is now trading 15.81% below its 52-week high and 8.63% above its 52-week low.

The firm HOTCHKIS & WILEY is the largest shareholder of the company among the gurus since it holds 0.53% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.07% and First Pacific Advisors (Trades, Portfolio) with 0.05%.

Garmin Ltd. (GRMN) pays its shareholders an annual dividend yield of 5.2% with a payout ratio of 71%. The yield has a five-year growth rate of 16.20%.

The company designs and manufactures hand-held, wrist-based, portable and fixed-mount products positioning system enabled products and other navigation, communication and sensor-based products. 

The stock is trading at the price of $37.81. The DCF calculator gives a fair value of $31.21, so the company currently looks overpriced by 21%, while the Peter Lynch earnings line gives a fair value of $31.4. The stock is trading with a forward P/E ratio of 13.60, and during the last 12 months, the price has dropped by 33%, and is now trading 33.85% below its 52-week high and 20.72% above its 52-week low.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.69% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 0.33% and PRIMECAP Management (Trades, Portfolio) with 0.33%.

General Motors Co. (GM) pays its shareholders an annual dividend yield of 3.6% with a payout ratio of 48%.

The company designs, builds and sells cars, trucks and automobile parts. During the last quarter, General Motors reported 55% growth for EPS compared to the third quarter of 2014. These results reflect the hard work of company to capitalize on its strengths in the U.S. and China, while taking decisive, proactive steps to mitigate challenges elsewhere.

General Motors looks undervalued at the current price of $36.13 since the Peter Lynch earnings line gives a fair value of $40.1. The stock is trading with a P/E ratio of 13.25 and during the last 12 months, the price has risen by 11%. It is now trading 7.36% below its 52-week high and 46.75% above its 52-week low.

Warren Buffett (Trades, Portfolio) is largest shareholder of the company among the gurus with 3.21% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 1.05% and HOTCHKIS & WILEY with 0.97%.

UIL Holdings Corp. (UIL) pays its shareholders an annual dividend yield of 3.6% with a payout ratio of 82%.

The company's primary business is ownership of its operating regulated utility business. The utility businesses consist of the electric distribution and transmission operations of the United Illuminating Company and the natural gas transportation, distribution and sales operations of the Southern Connecticut Gas Company. Earnings for the third quarter, excluding non-recurring items, were relatively flat.

The stock is trading at the price of $48. The DCF calculator gives a fair value of $19.15, so the company currently looks highly overpriced by 151%, while the Peter Lynch earnings line gives a lower fair value of $31.4. It is trading with a P/E ratio of 22.63 and during the last 12 months the price has risen by 14%, trading now 8.57% below its 52-week high and 16.53% above its 52-week low.

Einhorn is the company’s largest shareholder among the gurus with 9.27% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.67% and Mario Gabelli (Trades, Portfolio) with 0.05%.

IAC/InterActiveCorp. (IACI) pays its shareholders an annual dividend yield of 2.2% with a payout ratio of 55%.

The company is a media and Internet company engaged in areas of search, applications, online dating, media and eCommerce. The company operates in segments such as Search and Applications, The Match Group, Media and eCommerce. During the last quarter, revenue grew by 7% and adjusted EBITDA grew by 5% year over year. Operating income had a negative rate of 14% and net income had negative income of 80% compared to the same quarter of a year before.

IAC/InterActiveCorp looks overpriced at the current price of $60.67. The Peter Lynch earnings line gives a fair value of $44.2. The stock is trading with a P/E ratio of 24.24 and during the last 12 months, the price has dropped by 8%. The company is now trading 28.34% below its 52-week high and 2.64% above its 52-week low.

Daniel Loeb (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.01% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 1.81%.

Consol Energy Inc. (CNX) pays its shareholders an annual dividend yield of 2.2% with a payout ratio of 46%. The yield has declined by 6% over the past five years.

Consol operates two divisions: oil and gas exploration and production (E&P) and coal mining. The oil and gas exploration and production division is engaged in the production, gathering, processing and acquisition of natural gas properties. 

It is trading with a forward P/E ratio of 370.37 and during the last 12 months, the price has dropped by 81%. It is now trading 82.02% below its 52-week high and 2.82% above its 52-week low.

The company's largest shareholder among the gurus is Mason Hawkins (Trades, Portfolio) with 20.26% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 12.93% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 2.66%.

Applied Materials Inc. (AMAT) pays its shareholders an annual dividend yield of 2.1% with a payout ratio of 38% and a growth rate of 11.60% over the last five years.

The company provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic and related industries. During the third quarter, net sales grew by 10% year over year, while orders grew by 17%. Non-GAAP adjusted EPS was up by 18% year over year.

Applied Materials looks slightly overpriced at the current price of $18.91. The Peter Lynch earnings line gives a fair value of $16.3. The stock is trading with a P/E ratio of 18.09 and during the last 12 months, the price has dropped by 23%. The stock is now trading 26.45% below its 52-week high and 32.70% above its 52-week low.

Larry Robbins (Trades, Portfolio) is the largest shareholder among the gurus, with 1.6% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.05% and Bill Nygren (Trades, Portfolio) with 0.6%.

Time Warner Inc. (TWX) pays its shareholders an annual dividend yield of 2% with a payout ratio of 31%. The yield has a five-year growth rate of 11%.

The media and entertainment company is trading at the price of $70.36, but the DCF calculator gives a fair value of $46.66, so the company currently looks overpriced by 51%. The Peter Lynch earnings line gives a fair value of $64.1. It is trading with a forward P/E ratio of 15.94 and during the last 12 months, the price has dropped by 16%. It is now trading 22.97% below its 52-week high and 7.83% above its 52-week low.

Dodge & Cox is the largest guru shareholder with 4.72% of outstanding shares, followed by Manning & Napier Advisors with 0.85% and Jana Partners (Trades, Portfolio) with 0.5%.

About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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Comments

batbeer2
Batbeer2 premium member - 5 years ago

Hi Tiziano,

About Vodafone, you say:

The geographic regions covered by the company include Europe and Africa, Middle East and Asia Pacific.

Off the top of my head, Vodafone has more subscribers in India than in their other markets combined. That has been the case since they divested their stake in Verizon (US).

Tiziano Frateschi
Tiziano Frateschi premium member - 5 years ago

Hi Batbeer, yes I wrote "include" but is not limited to. I personally checked Vodafone in India ;)

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