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High Yield, Strong Returns: Sturm Ruger, Nu Skin Enterprises

Companies with high, growing yields and steady returns

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Jun 23, 2016
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Thanks to GuruFocus’ All-In-One Screener, I highlight stocks that have growing dividend yields with sustainable payout ratios. This sustainability is confirmed by long-term company profitability and a strong financial situation:

Westlake Chemical Corp. (WLK) has a dividend yield that during the last five years has grown by 47%. The yield is 1.67% with a payout ratio of 15%. The average ROA of the last five years has been positive, 11.98%, as has the ROE with an average performance of 21.25%.

The company has a current ROE of 19.37% that is outperforming 83% of other companies in the Global Specialty Chemicals industry and the ROA is 11.36%, above the industry median of 3.87%. Financial strength has a rating of 7/10 and shows a cash-to-debt ratio of 1.50 that is outperforming 59% of its competitors and an equity-to-asset ratio of 0.60 that is a few above the industry median of 0.53.

The company is a manufacturer and marketer of basic chemicals, vinyls, polymers and fabricated products. It operates in two principal business segments, Olefins and Vinyls.

The company's main investors among the gurus are

Chuck Royce (Trades, Portfolio) who holds 0.69% of outstanding shares of the company, Jim Simons (Trades, Portfolio) with 0.38%, Louis Moore Bacon (Trades, Portfolio) with 0.29%, Joel Greenblatt (Trades, Portfolio) with 0.13%, T Boone Pickens (Trades, Portfolio) with 0.09% and Michael Price (Trades, Portfolio) with 0.08%.

CA Inc. (CA) has a dividend yield that during the last five years has grown by 41%. The yield is now 3.03% with a payout ratio of 56%. The average ROA of the last five years has been positive, 7.67%, as has the ROE with an average performance of 16.59%.

The company has a current ROE of 14.15% that is outperforming 74% of other companies iin the Global Software - Infrastructure industry, and the ROA is 7.17%, far above the industry median of 2.71%. Financial strength has a rating of 6/10 with cash to debt of 1.44 that is underperforming 69% of its competitors and an equity-to-asset ratio of 0.48 that is below the industry median of 0.60.

The company is a provider of enterprise information technology software and solutions. It develops and delivers software and services that help organizations manage and secure their IT infrastructures and deliver more flexible IT services.

T Rowe Price Equity Income Fund (Trades, Portfolio), which holds 0.81% of outstanding shares, is the company's main investor among the gurus followed by Barrow, Hanley, Mewhinney & Strauss with 0.61%, Greenblatt with 0.22%, Private Capital (Trades, Portfolio) with 0.12%, Jeremy Grantham (Trades, Portfolio) with 0.1%, Ken Fisher (Trades, Portfolio) with 0.07% and John Buckingham (Trades, Portfolio) with 0.05%.

Novo Nordisk A/S (NVO) has a dividend yield that during the last five years has grown by 38%. The yield is now 1.84% with a payout ratio of 47%. The average ROA of the last five years has been positive, 35.93%, as has the ROE with an average performance of 60.54%.

The company has a current ROE of 86.71% that is outperforming 99% of the companies in the Global Biotechnology industry, and the ROA is 41.18%, above the industry median of -27.48%. Financial strength has a rating of 7/10; it shows cash to debt of 21.80 that is underperforming 58% of its competitors and an equity-to-asset ratio of 0.45.

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

The company's main investors among the gurus are Simons, who holds 0.49% of outstanding shares, followed by Fisher 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 2.39% with a payout ratio of 35%. The average ROA of the last five years has been positive, 21.97%, as 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 of 2.18%. Financial strength has a rating of 9/10; it shows no debt and equity-to-asset ratio of 0.74 that is above the industry median of 0.39.

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 outstanding shares, is the company's main investor among the gurus followed by

Paul Tudor Jones (Trades, Portfolio) with 0.07% and Mairs and Power (Trades, Portfolio) with 0.02%.

Nu Skin Enterprises Inc. (NUS) has a dividend yield that during the last five years has grown by 26%. The yield is now 3.11% with a payout ratio of 82%. The average ROA of the last five years has been positive, 16.28%, as has the ROE with an average performance of 29.33%.

The company has a current ROE of 11.60% that is outperforming 66% of other companies in the Global Household & Personal Products industry, and the ROA is 6.43%, above the industry median of 3.24%. Financial strength has a rating of 6/10 with cash to debt of 1.01 that is overperforming 55% of its competitors and an equity-to-asset ratio of 0.53 that is a few above the industry median of 0.52.

It 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.

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

ARM Holdings PLC (ARMH) has a dividend yield that during the last five years has grown by 24%. The yield is now 0.86% with a payout ratio of 31%. The average ROA of the last five years has been positive, 11.62%, as has the ROE with an average performance of 14.18%.

The company has a current ROE of 19.94% that is outperforming 84% of other companies in the Global Semiconductors industry, and the ROA is 17.06%, above the industry median of 2.48%. Financial strength has a rating of 8/10 with cash to debt of 20.44 that is outperforming 71% of its competitors and an equity-to-asset ratio of 0.86 that is a few above the industry median of 0.64.

The company designs microprocessors, physical IP and related technology and software and sells development tools to enhance the performance and energy efficiency of high-volume embedded applications.

Segalas, who holds 1.05% of outstanding shares, is the main investor among the gurus followed by Fisher with 0.27%, 

Frank Sands (Trades, Portfolio) with 0.11%, John Burbank (Trades, Portfolio) with 0.02% and Simons with 0.01%.

Ituran Location and Control Ltd. (ITRN) has a dividend yield that during the last five years has grown by 23%. The yield is now 3.49% with a payout ratio of 50%. The average ROA of the last five years has been positive, 15.44%, as has the ROE with an average performance of 26.30%.

The company has a current ROE of 29.24% that is outperforming 95% of other companies in the Global Communication Equipment industry, and the ROA is 16.96%, above the industry median that is 2.05%. Financial strength has a rating of 9/10; it shows cash to debt of 9,053.33 that is out performing 76% of its competitors and an equity-to-asset ratio of 0.56 that is few below the industry median of 0.59.

The company offers location-based services, such as stolen vehicle recovery and tracking services. It also provides wireless communication products in connection to location-based services and fleet management, among others.

The company's main investor among the gurus is Simons, who holds 4.03% of outstanding shares.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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