High Yield and Profitability: Sturm Ruger, Infosys

Strong returns over the past 5 years and a high yield

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Jun 15, 2016
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Thanks to Gurufocus’ All-In-One Screener, I want to highlight stocks that have a growing dividend yield with sustainable payout ratio. This sustainability is confirmed to long-term company profitability and a very strong financial situation:

Novo Nordisk A/SĂ‚ (NVO) has a dividend yield that during the last five years has grown by 38%. The yield is 1.74% with a payout ratio of 47%. The average ROA of the last five years has been positive, 35.93%, and so has the ROE with an average performance of 60.54%.

The company has a current ROE of 86.71% that is outperforming 99% of other companies in the Global Biotechnology industry, and the ROA is 41.18%, above the industry median that is -27.15%. Financial strength has a rating of 7/10, and it shows a cash-to-debt ratio of 21.80 that is underperforming 53% of its competitors and an equity-to-asset ratio of 0.45 that is below the industry median of 0.69.

It is a health care company that is engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The company has two business segments: diabetes care and biopharmaceuticals.

The company's main investors among the gurus are Jim Simons (Trades, Portfolio), who holds 0.49% of outstanding shares, Ken Fisher (Trades, Portfolio) with 0.43%, Spiros Segalas (Trades, Portfolio) with 0.24% and Tom Gayner (Trades, Portfolio) with 0.04%.

Sturm Ruger & Co. Inc. (RGR) has a dividend yield that during the last five years has grown by 35%. The yield is now 2.29% with a payout ratio of 35%. The average ROA of the last five years has been positive, 21.97%, and so has the ROE with an average performance of 31.77%.

The company has a current ROE of 32.21% that is outperforming 90% of other companies in the Global Aerospace & Defense industry, and the ROA is 23.40%, above the industry median that is 2.24%. Financial strength has a rating of 9/10 with no debt and an equity-to-asset ratio of 0.74.

The company is engaged in the design, manufacture and sale of firearms to domestic customers. It also manufactures and sells investment castings made from steel alloys for internal use in the firearms segment.

Simons, who holds 1.87% of the company's outstanding shares, is the main investor among the gurus followed by Paul Tudor Jones (Trades, Portfolio) with 0.07% and Mairs and Power (Trades, Portfolio) with 0.02%.

Graham Corp. (GHM) has a dividend yield that during the last five years has grown by 34%. The yield is now 1.86% with a payout ratio of 54%. The average ROA of the last five years has been positive, 9.06%, and so has the ROE with an average performance of 12.77%.

The company has a current ROE of 5.32% that is underperforming 55% of the companies in the Global Metal Fabrication industry, and the ROA is 4.08%, a few above the industry median that is 3.25%. Financial strength has a rating of 9/10, and it shows a cash-to-debt ratio of 306.94 that is outperforming 80% of its competitors and an equity-to-asset ratio of 0.76 that is a few above the industry median of 0.53.

The company designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. It also designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems.

The company's main investors among the gurus are Chuck Royce (Trades, Portfolio), who holds 3.73% of outstanding shares, and Simons with 1.8%.

Wipro Ltd. (WIT) has a dividend yield that during the last five years has grown by 26%. The yield is now 1.52% with a payout ratio of 33%. The average ROA of the last five years has been positive, 15.16%, and so has the ROE with an average performance of 23.32%.

The company has a current ROE of 20.27% that is outperforming 85% of other companies in the Global Information Technology Services industry, and the ROA is 13.52%, above the industry median that is 2.66%. Financial strength has a rating of 7/10, and it shows cash to debt of 1.85 that is underperforming 66% of its competitors and equity-to-asset ratio of 0.64 that is a few above the industry median of 0.60.

It is an IT services company. Its IT Services businesses provide IT and IT-enabled services that include IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation and others.

Fisher, who holds 0.05% of the company's outstanding shares, is the main investor among the gurus followed by Simons with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.02%.

Randgold Resources Ltd. (GOLD) has a dividend yield that during the last five years has grown by 26%. The yield is now 0.69% with a payout ratio of 32%. The average ROA of the last five years has been positive, 8.67%, and so has the ROE with an average performance of 10.06%.

The company has a current ROE of 6.02% that is underperforming 85% of other companies in the Global Gold industry, and the ROA is 5.27%, above the industry median that is -9.16%. Financial strength has a rating of 9/10 with no debt and an equity-to-asset ratio of 92.33 that is above the industry median of 8.79 and an equity-to-asset ratio of 0.88 that is above the industry median of 0.58.

The company is engaged in the exploration and development of gold deposits in Sub-Saharan Africa.

The company's main investors among the gurus are First Eagle Investment (Trades, Portfolio), who holds 1.53% of the company's outstanding shares, followed by John Paulson (Trades, Portfolio) with 0.53%, Simons with 0.39%, Ray Dalio (Trades, Portfolio) with 0.09%, John Hussman (Trades, Portfolio) with 0.07%, Louis Moore Bacon (Trades, Portfolio) with 0.04% and Mario Gabelli (Trades, Portfolio) with 0.03%.

Nu Skin Enterprises Inc. (NUS) has a dividend yield that during the last five years has grown by 26%. The yield is now 3.49% with a payout ratio of 82%. The average ROA of the last five years has been positive, 16.28%, and so has the ROE with an average performance of 29.33%.

The company has a current ROE of 11.60% that is outperforming 66% of the companies in the Global Household & Personal Products industry, and the ROA is 6.43%, above the industry median of 3.22%. Financial strength has a rating of 6/10 with cash to debt of 1.01 that is outperforming 55% of its competitors and an equity-to-asset ratio of 0.53 that is a few above the industry median of 0.52.

The company is a direct selling company that develops and distributes anti-aging personal care products and nutritional supplements that are sold under the Nu Skin and Pharmanex category brands.

Royce, who holds 2.2% of outstanding shares, is the company's main investor among the gurus.

Infosys Ltd. (INFY) has a dividend yield that during the last five years has grown by 26%. The yield is now 2.01% with a payout ratio of 43%. The average ROA of the last five years has been positive, 22.25%, and so has the ROE with an average performance of 25.72%.

The company has a current ROE of 23.53% that is outperforming 88% of the companies in the Global Information Technology Services industry, and the ROA is 19.15%, above the industry median that is 2.66%. Financial strength has a rating of 7/10 and it shows no debt and an equity-to-asset ratio of 0.82 that is a few above the industry median of 0.60.

The company provides end-to-end business solutions, including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation and implementation and infrastructure management services.

The company's main investors among the gurus are Fisher, who holds 0.98% of the company's outstanding shares, followed by Grantham with 0.17%, Sarah Ketterer (Trades, Portfolio) with 0.13%, Simons with 0.01%, Bernard Horn (Trades, Portfolio) with 0.01% and Howard Marks (Trades, Portfolio) with 0.01%.

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