Four High-Yield 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 and 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 experts.
I found four companies with juicy dividends that 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?
CA Technologies (NASDAQ: CA) is selling at $22 per share and yields 4.5%. The share price is on the low end of its 52-week range, and the analyst target price is $26.40, for a 20% potential gain. The 13 analysts who cover the company currently rate it a 2.8, with 1 Strong Buy, 2 Buys, 9 Holds, and 1 Sell.
12 experts own the stock, with 8 buys and 2 sells in the previous quarter. Significant positions are held by James Barrow, NWQ Managers, Private Capital Management and Hotchkis & Wiley.
HSBC Holdings (NYSE: HBC) is selling at $49 per share and yielding 3.7%. The share price is at the high end of its 52-week range, and the analyst target price offers 4% potential upside. Its 3 analysts rate it a 2.7, with 1 Strong Buy, 1 Hold and 1 Underperform.
11 gurus own the company, with 7 purchases and 3 sales in the last quarter. Significant positions are held by Ken Fisher and Dodge & Cox.
H & R Block (NYSE: HRB) is selling at $18 per share and yields 4.4%. It is trading at the high end of its 52-week range, and its analyst target price offers a 23% potential gain. Its analysts rate the company a 1.8, with 5 Strong Buys and 3 Holds.
The company is owned by 11 gurus, with 8 buying in the last quarter and 2 selling. Significant positions are held by Jean-Marie Eveillard, Hotchkis & Wiley, Andreas Halvorsen (Viking Global Investors), John Hussman, Donald Yacktman, and Private Capital.
Excelon (NYSE: EXC) is on this list for the second quarter in a row. It is currently selling at $29 per share and yields 7.2%. The stock is on the low end of its 52-week range, and its analyst 1-year target price offers 15% potential upside. The 23 analysts currently rate it a 2.8, with 1 Strong Buy, 2 Buys, and 20 Holds.
10 experts own the stock, with 7 buys and one sell in the last quarter. Significant positions are held by Hotchkis & Wiley, Brian Rogers and Donald Smith (Donald Smith & Co.).
For five additional companies that experienced guru buying in the last quarter, check out this article.
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