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Stocks With High Yield: Oracle, Cal-Maine, Infosys

- By Tiziano Frateschi

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 :

CA Inc.

CA Inc. (CA) has a dividend yield that during the past five years has grown by 41%. The yield is 2.92%, with a payout ratio of 56%. The average ROA over the past five years has been positive, 7.67% and the ROE with an average performance of 16.59%.


The company has a current ROE of 14.15%, which is outperforming 74% of other companies in the global software - infrastructure industry and the ROA is 7.17%, above the industry median of 2.73%. Financial strength has a rating of 6 of10 and it shows a cash to debt ratio of 1.44, which is underperforming 69% of its competitors and an equity to asset ratio of 0.48, which 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.

The main investors of the company among the gurus are Barrow, Hanley, Mewhinney and Strauss who hold 0.61% of outstanding shares of the company, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%, Joel Greenblatt (Trades, Portfolio) with 0.22%, Private Capital (Trades, Portfolio) with 0.12%, Jeremy Grantham (Trades, Portfolio) with 0.1% and Ken Fisher (Trades, Portfolio) with 0.07%.

Infosys Ltd ADR.

Infosys Ltd ADR. (INFY) has a dividend yield that has grown by 40% over the past five years. The yield is now 2.17%, with a payout ratio of 39%. The average ROA over the past five years has been positive, 20.41 % and the ROE with an average performance of 24.62%.

The company has a current ROE of 23.68%, which is outperforming 89% of other companies in the global Information technology services industry and the ROA is 19.15%, far above the industry median of 2.73%. Financial strength has a rating of 8 of 10, with no debt and an equity to asset ratio of 0.80, which is 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.

Ken Fisher (Trades, Portfolio) who holds 0.99% of outstanding shares of the company is the main investor among the gurus, followed by Jeremy Grantham (Trades, Portfolio) with 0.17%, Sarah Ketterer (Trades, Portfolio) with 0.13%, Jim Simons (Trades, Portfolio) with 0.01%, Bernard Horn (Trades, Portfolio) with 0.01%, Howard Marks (Trades, Portfolio) with 0.01% and Richard Pzena (Trades, Portfolio) with 0.01%.

National American University Holdings Inc.

National American University Holdings Inc. (NAUH) has a dividend yield that has grown by 39% over the past five years. The yield is now 9.38% . The average ROA over the past five years has been positive, 6.36% and the ROE with an average performance of 10.70%.

The company has a current ROE of -8.43%, which is underperforming 78% of other companies in the global education and training services industry and the ROA is -5.05%, below the industry median of 3.55%. Financial strength has a rating of 5 of 10 and it shows a cash to debt ratio of 2.24, which is underperforming 56% of its competitors and an equity to asset ratio of 0.58, which is below the industry median of 0.60.

The company is a provider of postsecondary education for the needs of working adults and other non-traditional students. It also operates a real estate business known as Fairway Hills Developments, or Fairway Hills.

Novo Nordisk A/S ADR

Novo Nordisk A/S ADR. (NVO) has a dividend yield that has grown by 38% over the past five years. The yield is now 1.73% with a payout ratio of 47%. The average ROA over the past five years has been positive, 35.93% and the ROE with an average performance of 60.54%.

The company has a current ROE of 86.71%, which is outperforming 99% of other companies in the global biotechnology industry and the ROA is 41.18%, above the industry median of -28.03%. Financial strength has a rating of 7 of 10 and it shows a cash to debt ratio of 21.80, which is underperforming 54% and an equity to asset ratio of 0.45, which is below the industry median of 0.69.

It is a healthcare 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 main investors of the company 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%.

Cal-Maine Foods Inc.

Cal-Maine Foods Inc. (CALM) has a dividend yield that has grown by 34% over the past five years. The yield is now 6.08%, with a payout ratio of 38%. The average ROA over the past five years has been positive, 14.03% and the ROE with an average performance of 19.98%.

The company has a current ROE of 37.58%, which is outperforming 54% of other companies in the global packaged foods industry, and the ROA is 28.77%, above the industry median of 3.24%. Financial strength has a rating of 7 of10, with a cash to debt ratio of 15.23, which is overperforming 74% of its competitors and an equity to asset ratio of 0.82, which is above the industry median of 0.52.

The company is a producer and marketer of eggs in the United States. Its main business is the production, grading, packaging, marketing and distribution of eggs.

Chuck Royce (Trades, Portfolio), who holds 0.85% of outstanding shares of the company, is the main investor among the gurus, followed by John Hussman (Trades, Portfolio) with 0.52%, Jim Simons (Trades, Portfolio) with 0.27% and Chase Coleman (Trades, Portfolio) with 0.15%.

Oracle Corp.

Oracle Corp. (ORCL) has a dividend yield that has grown by 29% over the past five years. The yield is now 1.46%, with a payout ratio of 29%. The average ROA over the past five years has been positive, 12.73% and the ROE with an average performance of 23.92%.

The company has a current ROE of 18.95%, which is outperforming 83% of other companies in the global software - infrastructure industry and the ROA is 8.18%, above the industry median of 2.73%. Financial strength has a rating of 6 of 10 with a cash to debt ratio of 1.28, which is underperforming 70% of its competitors and an equity to asset ratio of 0.42, which is below the industry median of 0.60.

The main investors of the company among the gurus are First Eagle Investment (Trades, Portfolio) who hold 0.97% of outstanding shares, followed by Barrow, Hanley, Mewhinney and Strauss with 0.88%, First Pacific Advisors (Trades, Portfolio) with 0.61%, Donald Yacktman (Trades, Portfolio) with 0.49% and Steven Romick (Trades, Portfolio) with 0.48%.

Power Integrations Inc.

Power Integrations Inc. (POWI) has a dividend yield that has grown by 23% over the past five years. The yield is now 0.90%, with a payout ratio of 35%. The average ROA over the last five years has been positive, 7.98% and the ROE with an average performance of 9.54%.

The company has a current ROE of 9.72%, which is outperforming 70% of other companies in the global semiconductors industry and the ROA is 8.46%, above the industry median of 2.45%. Financial strength has a rating of 8 of10 and it shows no debt, but has an equity to asset ratio of 0.88, which is above the industry median of 0.64.

The company designs, develops and markets analog and mixed-signal integrated circuits and other electronic components and circuitry used in power conversion.

Meridian Funds (Trades, Portfolio) holds 1.12% of outstanding shares of the company and is the main investor among the gurus, followed by Jim Simons (Trades, Portfolio) with 0.61% and Chuck Royce (Trades, Portfolio) with 0.08%.

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

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This article first appeared on GuruFocus.