Five Dividend Stocks the Top Investors are Buying
Karin is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
I like to see what the gurus, the successful investors, are buying. I like companies with high dividend yields. And, to combine the two, I like to see dividend stocks that are being purchased by a lot of experts.
I found five companies with juicy dividends, which have been purchased at a far greater rate this last quarter than they have been sold. My criteria is that the company has to be owned by at least 10 experts, and the ratio of experts buying to selling in the last quarter has to be 2:1.
The experts are buying these companies; shouldn’t you be considering them for your own portfolio?
The first company on the list is Intel (NASDAQ: INTC). It is currently selling at approximately $19 and yields 4.4%. It is trading at the bottom of its 52-week range, and has a one-year analyst target price of $23.63, for a 24% potential gain. The 52 analysts who cover it rank it a 2.6 (1.0 = Strong Buy, 5.0 = Sell) with 11 Strong Buys, 11 Buys, 27 Holds, 5 Underperforms, and 1 Sell.
In terms of the experts tracked by GuruFocus, 27 have positions in the company, with 15 buying in the quarter ended Sept. 30, and 7 selling. Significant positions (over 1 million shares) are held by Michael Price (MFP Investors), Charles Brandes (Brandes Investment), Arnold Van Den Berg (Century Management), Ken Fisher (Fisher Asset Management), James Barrow (Barrow, Hanley, Mewhinney & Strauss), Ronald Muhlencamp (Muhlencamp Fund), Donald Yacktman (Yacktman Asset Management), Chris Davis (Davis Selected Advisors), PRIMECAP Management, Jean-Marie Eveillard (First Eagle Investment Management), John Hussman (Hussman Econometrics Advisors), and Bill Nygren (Oak Mark).
Hewlett-Packard (NYSE: HPQ) is currently selling at $12 per share and yields 4.0%. HP is trading at the bottom of its 52-week range, and has a one-year analyst target price of $15.70, for a potential gain of 31%. The 33 analysts who cover it rank it a 3.1 with 2 Strong Buys, 4 Buys, 19 Holds, 6 Underperforms, and 2 Sells.
In terms of the experts tracked by GuruFocus, 20 have positions in the company, with 13 buying in the quarter ended Sept. 30, and 5 selling. Significant positions (over 1 million shares) are held by Richard Pzena (Pzena Investment Management), Wallace Weitz (Wallace Weitz R & Co.), Hotchkis & Wiley, Ray Dalio (Bridgewater Associates), NWQ Managers, Charles Brandes, Dodge & Cox, Donald Yacktman, Primecap Management, Chris Davis, Brian Rogers (T Rowe Price Equity Income Fund), Seth Klarman (The Baupost Group), and James Barrow.
BP (NYSE: BP) is a repeat on the list from last quarter. It is currently selling at approximately $42 per share, and is yielding 5.2%. The stock price is right in the middle of its 52-week high and low, and its one-year analyst target price is $50.88, for a potential 21% gain. The 15 analysts who cover the company rank it a 2.1, with 4 Strong Buy ratings, 6 Buys and 5 Holds.
In terms of the experts who are tracked by Gurufocus, 18 currently own the stock. 9 experts bought into the company in the last quarter, and two sold. Significant positions (over 1 million shares) are held by Richard Perry, Richard Pzena, Brian Rogers, Bill Gates (Bill & Melinda Gates Foundation), James Barrow, and Seth Klarman.
Royal Dutch Shell (NYSE: RDS-A) is currently selling at approximately $66 per share, and is yielding 4.7%. The stock price is right in the middle of its 52-week range.
18 experts own this stock; 11 bought into the company during the last quarter, and three sold. Significant positions are owned by Richard Pzena, Dodge & Cox, and Brian Rogers.
Verizon (NYSE: VZ) is currently selling at $43 per share, yielding 4.8%. Again, this stock is in the middle of its 52-week range, and its analyst target price of $46.50 offers only an 8% potential increase. The 38 analysts who cover the company currently rank it a 2.6, with 6 Strong Buys, 9 Buys, 21 Holds, 2 Underperforms and 1 Sell.
17 gurus currently own the company, with 9 buying in the last quarter and 4 selling. Significant positions are held by James Barrow and Brian Rogers.
For four additional dividend stocks that have experienced guru buying in the last quarter, check out this article.
khern0203 has no positions in the stocks mentioned above. The Motley Fool owns shares of Intel. Motley Fool newsletter services recommend Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!