5 High Dividend Yield Stocks Broadly Bought by Gurus
- By James Li
According to the High Dividend Yield Stocks page, a Premium feature of GuruFocus, five stocks with a dividend yield of at least 4% and double-digit guru buys over the past few months are AbbVie Inc. (NYSE:ABBV), Gilead Sciences Inc. (NASDAQ:GILD), Exxon Mobil Corp. (NYSE:XOM), Chevron Corp. (NYSE:CVX) and GlaxoSmithKline PLC (NYSE:GSK).
Dow tumbles as Fed terminates pandemic-era break for banks
On Friday, the Dow Jones Industrial Average closed at 32,627.97, down 234.33 points from Thursday's close of 32,862.30 and snapping a two-week win streak. The 30-stock index tumbled earlier this morning to an intraday low of 32,505.07, down 357.23 points from the previous close on the Federal Reserve's decision to terminate a Covid-19 pandemic-crisis rule that allowed banks to exclude Treasuries and deposits with the Fed in the leverage ratio calculation. Major bank stocks like JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp. (NYSE:BAC) tumbled on the Fed's decision.
To combat potential stock market volatility as bond yields climb, investors may find good opportunities in stocks that have high dividend yields and a high number of gurus buying shares. GuruFocus' High Dividend Yield Screener identified five stocks with a dividend yield of at least 4% and at least 10 gurus buying shares as of the December 2020 filing date.
AbbVie
Shares of AbbVie (NYSE:ABBV) traded around $103.50, showing that the stock is fairly valued based on Friday's price-to-GF Value ratio of 0.92. The stock's dividend yield of 4.67% outperforms over 92% of global competitors.
GuruFocus ranks the North Chicago, Illinois-based drug manufacturer's profitability 8 out of 10 on several positive investing signs, which include operating margins and returns on equity outperforming over 92% of global competitors despite net profit margins outperforming just over 69% of global drug manufacturers.
Fourteen gurus purchased shares of AbbVie during the fourth quarter of 2020. Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) purchased 4,268,766 shares, increasing its stake 20.07%.
Gilead Sciences
Shares of Gilead Sciences (NASDAQ:GILD) traded around $64.38, showing that the stock is modestly undervalued based on Friday's price-to-GF Value ratio of 0.86. The stock's dividend yield of 4.27% is near a 10-year high and outperforms over 90% of global competitors.
GuruFocus ranks the Foster, California-based drug manufacturer's profitability 7 out of 10: Operating margins are outperforming over 97% of global competitors even though returns and three-year revenue and earnings growth rates underperform more than 60% of global drug manufacturers.
Fourteen gurus purchased shares of Gilead during the fourth quarter. Gurus with large holdings in Gilead include Dodge & Cox and Pioneer Investments (Trades, Portfolio).
Exxon Mobil
Shares of Exxon Mobil (NYSE:XOM) traded around $57.27, showing that the stock is modestly overvalued based on Friday's price-to-GF Value ratio of 1.14. The stock's dividend yield of 6.09% outperforms over 73% of global competitors.
Twelve gurus purchased shares of Exxon Mobil during the fourth quarter. First Eagle Investment (Trades, Portfolio) owns over 26 million shares as of December 2020.
Chevron
Shares of Chevron (NYSE:CVX) traded around $104.49, showing that the stock is significantly overvalued based on Friday's price-to-GF Value ratio of 1.31. The stock's dividend yield of 4.94% underperforms approximately 60% of global competitors.
GuruFocus ranks Chevron's profitability 5 out of 10 on the back of profit margins and returns outperforming just over half of global competitors.
Eleven gurus purchased shares of Chevron during the fourth quarter. Berkshire boosted its holding to 48,498,965 shares, up approximately 9.55% from the third-quarter 2020 position.
GlaxoSmithKline
Shares of GlaxoSmithKline (NYSE:GSK) traded around $36.56, showing that the stock is modestly undervalued based on Friday's price-to-GF Value ratio of 0.78. The stock's dividend yield of 5.76% is near a 10-year high and outperforms more than 95% of global competitors.
GuruFocus ranks the U.K.-based drug manufacturer's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and profit margins that outperform over 70% of global competitors.
Ten gurus purchased shares of GlaxoSmithKline during the fourth quarter.
Disclosure: The author has no positions in the stocks mentioned as of this writing but may consider purchasing shares of AbbVie over the next few days. The mention of guru trades and holdings in this article reflect information as of the December 2020 filing date and do not consider any trades made during January to March 2021.
Read more here:
3 Companies With Upcoming Special Dividends as of March
4 Good Companies With High Piotroski F-Scores
4 Stocks With High Insider Cluster Buys During February and March
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This article first appeared on GuruFocus.
