Guru Stocks With High, Growing Dividend Yields

Western Union and Microsoft are popular among the gurus and have strong growth

Author's Avatar
Feb 24, 2016
Article's Main Image

The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

The Western Union Co. (WU) has a trailing dividend yield of 3.44% with a three-year growth rate of 13.40% and a five-year growth rate of 19.20%. The stock is now trading with a trailing 12-month P/E multiple of 11.10 and an estimated forward P/E multiple of 10.29. During the last 12 months, the stock price has dropped by 7%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports positive returns such as ROA of 11.40% and ROE of 3.81% that are ranked higher than 85% of other companies in the Global Credit Services industry. Operating margin of 20.23% and net-margin of 15.25% are over performing 51% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.77 and the equity to asset ratio is 0.15.

Western Union is engaged in global money transfer and payment services, providing people with fast, reliable and convenient ways to send money around the world.

The company is held by seven gurus:Â David Abrams (Trades, Portfolio) is the main shareholder among the gurus with a stake of 4.31% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 1.8%, Mairs and Power (Trades, Portfolio) with 0.97%, Joel Greenblatt (Trades, Portfolio) with 0.62%, Jim Simons (Trades, Portfolio) with 0.24%, Ray Dalio (Trades, Portfolio) with 0.16%, Steven Cohen (Trades, Portfolio) with 0.04% and Jeff Auxier (Trades, Portfolio) 0.04%.

Microsoft Corp. (MSFT) has a trailing dividend yield of 2.61% with a three-year growth rate of 16.80% and a five-year growth rate of 18.90%. The stock is now trading with a trailing 12-month P/E multiple of 36.06 and an estimated forward P/E multiple of 16.58. During the last 12 months, the stock price has risen by 16%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports strong returns such as ROA of 42.29% and ROE of 5.22% that are ranked higher than 67% of other companies in the industry. Operating margin of 18.57% and net-margin of 12.95% are over performing 81% of its competitors. Financial strength has a rating of 7/10 with a strong cash to debt ratio of 2.31 and an equity to asset ratio of 0.43.

It generates revenue by developing, manufacturing, licensing, and supporting software products and services for different types of computing devices.

The company is held by 18 gurus. The largest shareholder among the gurus is Dodge & Cox with a stake of 0.84% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.75%, Jeff Ubben (Trades, Portfolio) with 0.72%, First Eagle Investment (Trades, Portfolio) with 0.38%, James Barrow (Trades, Portfolio) with 037% and Steve Mandel (Trades, Portfolio) with 0.34%.

Schlumberger Ltd. (SLB) has a trailing dividend yield of 2.69% with a three-year growth rate of 22.10% and a five-year growth rate of 18.30%. The stock is now trading with a trailing 12-month P/E multiple of 27.30 and an estimated forward P/E multiple of 25.80. During the last 12 months, the stock price has dropped by 16%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports positive returns ROA of 3.15% and ROE of 5.54% that are ranked higher than 69% of other companies in the Global Oil & Gas Equipment & Services industry. Operating margin of 17.47% and net-margin of 5.80% are over performing 71% of its competitors. Financial strength has a rating of 8/10, the cash to debt ratio is 0.69 and the equity to asset ratio is 0.52.

Schlumberger is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry.

The company is held by six gurus. Dodge & Cox is the main shareholder among the gurus with a stake of 5.04% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.66%, Manning & Napier Advisors with 0.54%, David Rolfe (Trades, Portfolio) with 0.38%, PRIMECAP Management (Trades, Portfolio) with 0.35%, Ken Fisher (Trades, Portfolio) with 0.34% and Pioneer Investments (Trades, Portfolio) with 0.25%.

Boeing Co. (BA) has a trailing dividend yield of 3.26% with a three-year growth rate of 27.40% and a five-year growth rate of 17.40%. The stock is now trading with a trailing 12-month P/E multiple of 15.74 and an estimated forward P/E multiple of 12.38. During the last 12 months, the stock price has dropped by 24%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports strong returns such as ROA of 5.37% and ROE of 72.01% that are ranked higher than 73% of other companies in the Global Aerospace & Defense industry. Operating margin of 7.74% and net-margin of 5.39% are over performing 64% of its competitors. Financial strength has a rating of 7/10 with a cash to debt ratio of 1.21 and an equity to asset ratio of 0.07.

The company is the leading manufacturer of commercial jetliners and defense, space and security systems. As America’s biggest manufacturing exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries.

Six gurus are holding shares of the compan. T Rowe Price Equity Income Fund (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.47% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.31%, HOTCHKIS & WILEY with 0.18%, Joel Greenblatt (Trades, Portfolio) with 0.06%, Ken Fisher (Trades, Portfolio) with 0.03% and Mario Gabelli (Trades, Portfolio) with 0.03%.

Parker Hannifin Corp. (PH) has a trailing dividend yield of 2.50% with a three-year growth rate of 15.50% and a five-year growth rate of 17.20%. The stock is now trading with a P/E ratio of 15.52 and an estimated forward P/E multiple of 15.60. During the last 12 months, the stock price has dropped by 18%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports strong returns such as ROA of 6.91% and ROE of 16.42% that are ranked higher than 75% of other companies in the Global Diversified Industrials industry. Operating margin of 10.92% and net-margin of 7.09% are over performing 68% of its competitors. Financial strength has a rating of 8/10, the cash to debt ratio is 0.57 and the equity to asset ratio is 0.41.

Parker Hannifin is a diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for mobile, industrial and aerospace markets.

The company is held by five gurus. Richard Pzena (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 2.82% of outstanding shares, followed by HOTCHKIS & WILEY with 2.01%, Diamond Hill Capital (Trades, Portfolio) with 1.72%, Bill Nygren (Trades, Portfolio) with 1.64% and Steven Cohen (Trades, Portfolio) with 0.05%.

Harris Corporation (HRS) has a trailing dividend yield of 2.56% with a three-year growth rate of 15.50% and a five-year growth rate of 17.20%. The stock is now trading with a trailing 12-month P/E multiple of 24.19 and an estimated forward P/E multiple of 13.11. During the last 12 months, the stock price has dropped by 4%.

GuruFocus gives the company a profitability and growth rating of 6/10 since it reports weak returns such as ROA of 2.85% and ROE of 9.63% that are ranked lower than 57% of other companies in the Global Communication Equipment industry. Operating margin of 8.19% is over performing and net-margin of 1.03% is under performing competitors. Financial strength has a rating of 5/10, the cash to debt ratio is 0.11 and the equity to asset ratio is 0.27.

The company develops, manufactures and sells technology-based solutions that serve government and commercial customers' mission-critical challenges.

The company is held by five gurus. T Rowe Price Equity Income Fund (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.57% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.41%, Mario Gabelli (Trades, Portfolio) with 0.3%, Steven Cohen (Trades, Portfolio) with 0.21%, Pioneer Investments (Trades, Portfolio) with 0.16% and Louis Moore Bacon (Trades, Portfolio) with 0.08%.

CSX Corp. (CSX) has a trailing dividend yield of 2.88% with a three-year growth rate of 9% and a five-year growth rate of 17.10%. The stock is now trading with a trailing 12-month P/E multiple of 12.16 and an estimated forward P/E multiple of 12.33. During the last 12 months, the stock price has dropped by 31%.

GuruFocus gives the company a profitability and growth rating of 9/10 since it reports positive returns such as ROA of 5.82% and ROE of 17.16% that are ranked higher than 72% of other companies in the Global Railroads industry. Operating margin of 30.34% and net-margin of 16.66% are under performing 79% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.13 and the equity to asset ratio is 0.33.

The company is engaged in transportation supplier, which provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers.

It is held by six gurus:Â PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.47% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.19%, Steven Cohen (Trades, Portfolio) with 0.17%, George Soros (Trades, Portfolio) with 0.08%, Steve Mandel (Trades, Portfolio) with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

Halliburton Co. (HAL) has a trailing dividend yield of 2.25% with a three-year growth rate of 26.00% and a five-year growth rate of 17.10%. The stock is now trading with an estimated forward P/E multiple of 20.49. During the last 12 months, the stock price has dropped by 27%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports negative returns such as ROA of 4.28% and ROE of 2.09% that are ranked lower than 57% of other companies in the Global Oil & Gas Equipment & Services industry. Operating margin of -0.70% and net-margin of -2.84% are under performing 59% of the competitors. Financial strength has a rating of 6/10, the cash to debt ratio is 0.66 and the equity to asset ratio is 0.42.

The company is a provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas. It serves national and independent oil and natural gas companies.

The company is held by five gurus. Jeff Ubben (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.92% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.79%, Andreas Halvorsen (Trades, Portfolio) with 0.78%, Glenn Greenberg (Trades, Portfolio) with 0.76%, Tweedy Browne (Trades, Portfolio) with 0.62% and First Pacific Advisors (Trades, Portfolio) with 0.38%.