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7 High-Yield Companies With High Profitability

- By Tiziano Frateschi

The Gurufocus All-In-One Screener highlights stocks that have a five-year growing dividend yield with strong profitability and a long-term track record of solid returns and growing asset value.


Cisco Systems Inc.'s (CSCO) dividend yield has grown 47.50% over the last five years. The yield is now 3.47% with a payout ratio of 47%. The company has a 10-year asset growth rate of 8%, supported by an average return on assets (ROA) of 9.41%.

The company is engaged in designing, manufacturing and selling Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.

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The profitability rating of 8 of 10 is confirmed by a current return on equity (ROE) of 17.14%. The ROE and ROA are outperforming the industry and are ranked higher than 84% of competitors. Financial strength has a rating of 6 of 10. The cash-debt ratio of 2.04 is outperforming 50% of competitors and the equity to asset ratio of 0.50 is below the industry median of 0.59.

The largest investors in the company among the gurus are Dodge & Cox with 1.33% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.55%, Donald Yacktman (Trades, Portfolio) with 0.51%, Jeremy Grantham (Trades, Portfolio) with 0.47%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Ken Fisher (Trades, Portfolio) with 0.31% and the Yacktman Fund (Trades, Portfolio) with 0.27%.

Tractor Supply Co.'s (TSCO) dividend yield has grown 40.50% over the last five years. The yield is now 1.21% with a payout ratio of 28%. The company has a 10-year asset growth rate of 10%, supported by an average ROA of 13.42%.

The company is an operator of retail farm and ranch supply stores in the U.S. It serves recreational farmers and ranchers as well as tradesmen and small businesses.

The profitability rating of 8 of 10 is confirmed by a current ROE of 30.16%. The ROE and ROA are outperforming the industry and are ranked higher than 92% of competitors. Financial strength has a rating of 7 of 10. The cash-debt ratio of 0.17 is underperforming 75% of its competitors and the equity to asset ratio of 0.56 is above the industry median of 0.49.

Steven Cohen (Trades, Portfolio), with 0.58% of outstanding shares, is the largest investor among the gurus followed by Ron Baron (Trades, Portfolio) with 0.23%, Jim Simons (Trades, Portfolio) with 0.17%, Joel Greenblatt (Trades, Portfolio) with 0.16%, Pioneer Investments (Trades, Portfolio) with 0.13%, Mario Gabelli (Trades, Portfolio) with 0.08% and Chuck Royce (Trades, Portfolio) with 0.03%.

Church & Dwight Co. Inc.'s (CHD) dividend yield has grown 31.80% over the last five years. The yield is now 1.59% with a payout ratio of 40%. The company has a 10-year asset growth rate of 8%, supported by an average ROA of 9.19%.

The profitability rating of 8 of 10 is confirmed by a current return on equity of 22.60%. The ROE and ROA are outperforming the industry and are ranked higher than 84% of competitors. Financial strength has a rating of 6 of 10. The cash-debt ratio of 0.25 is underperforming 62% of its competitors and the equity to asset ratio of 0.50 is below the industry median of 0.52.

The company develops, manufactures and markets household, personal care and specialty products. The company has eight power brands: Arm & Hammer, Trojan, Oxiclean, Spinbrush, First Response, Nair, Orajel and XTRA.

Baron is the company's largest guru shareholder with 1.25% of outstanding shares followed by Grantham with 0.29%, Simons with 0.16%, Gabelli with 0.15%, Greenblatt with 0.07%, John Hussman (Trades, Portfolio) with 0.01% and Cohen with 0.01%.

Visa Inc.'s (NYSE:V) dividend yield has grown 29.80% over the last five years. The yield is now 0.72% with a payout ratio of 23%. The company has a 10-year asset growth rate of 8%, supported by an average ROA of 9.87.

The company is a payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. The company operates a processing network - VisaNet.

The profitability rating of 8 of 10 is confirmed by a current ROE of 19.43%. The ROE and ROA are outperforming the industry and are ranked higher than 84% of competitors. Financial strength has a rating of 6 of 10. The cash-debt ratio of 0.56 is outperforming 50% of its competitors and the equity to asset ratio of 0.51 is below the industry median of 0.46.

Frank Sands (Trades, Portfolio) with 1.71% of outstanding shares is the largest investor among the gurus followed by Fisher with 0.73%, Spiros Segalas (Trades, Portfolio) with 0.56%, Warren Buffett (Trades, Portfolio) with 0.52%, PRIMECAP Management with 0.3%, Bill Nygren (Trades, Portfolio) with 0.22%, Chris Davis (Trades, Portfolio) with 0.22%, Chuck Akre (Trades, Portfolio) with 0.18% and David Rolfe (Trades, Portfolio) with 0.16%.

Allied World Assurance Co. Holdings AG's (AWH) dividend yield has grown 29.40% over the last five years. The yield is now 1.97% with a payout ratio of 31%. The company has a 10-year asset growth rate of 7%, supported by an average ROA of 4.14%.

It is a Swiss insurance and reinsurance holding company whose subsidiaries underwrite a diverse portfolio of property and casualty lines of business.

The profitability rating of 8 of 10 is confirmed by a current ROE of 8.35%. The ROE and ROA are outperforming the industry median and are ranked lower than 55% of competitors. Financial strength has a rating of 6 of 10. The cash-debt ratio of 0.95 is underperforming 62% of its competitors and it has an equity to asset ratio of 0.27.

The largest investors among the gurus are Columbia Wanger (Trades, Portfolio) with 1.26% of outstanding shares followed by Simons with 0.77%, Keeley Asset Management Corp (Trades, Portfolio) with 0.29%, Cohen with 0.11% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Packaging Corp. of America's (PKG) dividend yield has grown 29.30% over the last five years. The yield is now 2.72% with a payout ratio of 49%. The company has a 10-year asset growth rate of 12%, supported by an average ROA of 7.88%.

The company produces container board and corrugated products in the U.S. The company also produces multicolor boxes and displays as well as meat boxes and wax-coated boxes for the agricultural industry.

The profitability rating of 9 of 10 is confirmed by a current ROE of 26.64%. The ROE and ROA are outperforming the industry and are ranked higher than 77% of competitors. Financial strength has a rating of 6 of 10. The cash-debt ratio of 0.11 is underperforming 71% of its competitors and the equity to asset ratio of 0.30 is below the industry median of 0.51.

First Eagle Investment (Trades, Portfolio) with 1.53% of outstanding shares is the largest investor among the gurus followed by Hotchkis & Wiley with 0.73%, Greenblatt with 0.36%, Pioneer Investments with 0.15%, Robert Olstein (Trades, Portfolio) with 0.04% and Tudor Jones with 0.01%.

NewMarket Corp.'s (NEU) dividend yield has grown 28.60% over the last five years. The yield is now 1.51% with a payout ratio of 30%. The company has a 10-year asset growth rate of 7%, supported by an average ROA of 17.95%.

The company manufactures and sells petroleum additives used in lubricating oils and fuels to enhance their performance in machinery, vehicles and other equipment. The petroleum additives market has two products: lubricant additives and fuel additives.

The profitability rating of 8 of 10 is confirmed by a current ROE of 61%. The ROE and ROA are outperforming the industry and are ranked higher than 95% of competitors. Financial strength has a rating of 7 of 10. The cash-debt ratio of 0.35 is underperforming 62% of its competitors and the equity to asset ratio of 0.34 is below the industry median of 0.55.

The largest investors in the company among the gurus are Simons with 0.42% of outstanding shares followed by Gabelli with 0.14% and Murray Stahl (Trades, Portfolio) with 0.01%.

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

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This article first appeared on GuruFocus.