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James Li
James Li
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5 High-Yield Dividend Stocks With Strong Business Predictability

Stocks that have high dividend yields and predictable earnings growth

According to the High Dividend Yield Screen, five stocks with a dividend yield of at least 4% and a GuruFocus business predictability rank of at least 4.5 stars are Telecom Argentina SA (NYSE:TEO), Cogent Communications Holdings Inc. (NASDAQ:CCOI), Big Lots Inc. (NYSE:BIG), National Health Investors Inc. (NYSE:NHI) and Cedar Fair LP (NYSE:FUN).

Recap of our screeners

GuruFocus provides a wide range of value screeners for our Premium members, which include the Ben Graham Net-Net Screener, the Undervalued-Predictable Screener, the Buffett-Munger Screener and the Historical Low Price-Sales Screener. We also have the All-in-One Screener, which allows Premium members to customize their own value investing strategy.

The High-Yield Dividend Screener lists the companies that have a dividend yield of at least 4%. To ensure the companys dividend remains stable, we will also apply Berkshire Hathaway Inc. (BRK.A)(BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)s key criterion of predictable revenue and earnings growth. Companies with a predictability rank of at least four or 4.5 stars are more likely to have shown strong and predictable earnings growth than companies with a predictability rank less than three stars.

Figures 1 and 2 illustrate the predictability chart for Walmart Inc. (NYSE:WMT) and Apple Inc. (NASDAQ:AAPL), two companies that have a business predictability rank of 4.5 stars as of Monday.


Figure 1


Figure 2

Telecom Argentina

Telecom Argentina provides fixed-line telecommunication, international long-distance, data transmission, information technology and internet services throughout the Latin American country. GuruFocus ranks the companys profitability 9 out of 10: Even though the operating margin has contracted over the past five years, Telecom Argentinas business predictability ranks five stars. Additionally, the companys three-year revenue growth rate of 23.1% outperforms 90.16% of global competitors.


Telecom Argentina has a dividend yield of 6.29% and a three-year dividend growth rate that outperforms 97.61% of global communication service companies. Gurus with holdings in Telecom Argentina include Pioneer Investments (Trades, Portfolio) and Howard Marks (Trades, Portfolio) Oaktree Capital Management.


Cogent Communications

Washington, D.C.-based Cogent Communications provides internet access and data transport through its fiber-optic network in North America, Europe and Asia. GuruFocus ranks the companys profitability 8 out of 10 on several positive indicators, which include a strong Piotroski F-score of 7, a five-star business predictability rank, expanding profit marginsand a three-year earnings growth rate that outperforms 96.19% of global competitors.


Cogents dividend yield of 4.15% outperforms 60.63% of global competitors.

Big Lots

Columbus-based Big Lots provides a broad range of merchandise, including food, consumables, soft home products, hard home products, furniture and seasonal products. GuruFocus ranks the companys profitability 7 out of 10: Even though operating margins outperform just 54.43% of global competitors, Big Lots return on equity outperforms 84.05% of global defensive retailers. Additionally, the companys business predictability ranks a perfect five stars out of five.


Big Lots dividend yield of 4.97% outperforms 90.30% of global peers, while its three-year dividend growth rate outperforms 80.33% of global competitors. Gurus with holdings in Big Lots include Bestinfond (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio).


National Health Investors

Murfreesboro, Tennessee-based National Health Investors invests in various health care facilities, including independent living facilities, senior living campuses and medical office buildings. GuruFocus ranks the health care real estate investment trusts profitability 7 out of 10: Even though the company has a weak Piotroski F-score of 3, National Health Investors has a 4.5-star business predictability rank and operating margins that are outperforming 81.25% of global competitors.


Despite strong profitability, National Health Investors has increased its long-term debt by $363.153 million, a warning sign of declining financial strength. The REITs dividend yield of 4.9% underperforms 55% of global competitors.

Cedar Fair

Sandusky, Ohio-based Cedar Fair operates amusement park-resorts located in various states across the U.S. and Canada. GuruFocus ranks the companys profitability 7 out of 10: Operating margins are outperforming 22.73% of global competitors despite contracting approximately 2.8% per year over the past five years. Additionally, the companys business predictability ranks 4.5 stars out of five even though the three-year revenue growth rate underperforms 51.72% of global competitors.


Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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