Guru Favorites Make Up For Top Dividend Growers of the Week
GuruFocus.com
During the past week, GuruFocus recognized four companies as dividend growers. In order to be qualified for this list, the company had to:
Have a dividend of greater than 3%.
Have a strong history of stable and increasing dividends.
Maintain Guru ownership.
Have a market cap of greater than $10 billion.
The following four companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.
A comparison of the companies' historical dividend growth:
On Sept. 26, AT&T declared a dividend of $0.46 per share, representing 5.20% dividend yield for the company. This dividend is payable on Nov. 3 to shareholders of the record at the close of business on Oct. 10, 2014.
The company's historical dividend growth is as follows:
- 10-year: 4.40%
- 5-year: 2.30%
- 3-year: 2.30%
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AT&T, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the US and internationally. The company has three reportable segments: Wireless, Wireline, and Other.
AT&T's historical revenue and net income:
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The analysis on AT&T reports that the company's Piotroski F-Score is high, its P/E, P/S and P/B ratios are near historical lows and its dividend yield is near a 5-year low. The analysis also notes that the company's price is near a 5-year high and that the company has issued $17.7 billion over the past five years.
As of our most recent quarterly information, there are 22 gurus with a position in AT&T.
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">Check out their holdings here.
The Peter Lynch Chart suggests that the company is currently undervalued:
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AT&T has a market cap of $183.69 billion. Its shares are currently trading at around $35.36 with a P/E ratio of 10.40, a P/S ratio of 4.10% and a P/B ratio of 2.00. The company had an annual average earnings growth of 4.10% over the past ten years.
Freeport-McMoRan (FCX)
On Sept. 24, Freeport-McMoRan declared a dividend of $0.313 per share, representing 3.90% dividend yield for the company. This dividend is payable on Nov. 3 to shareholders of the record at the close of business on Oct. 15, 2014.
The company's historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 2.30%
- 3-year: 2.30%
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Freeport-McMoRan deals in the mining of copper, gold and molybdenum. . Its portfolio of assets includes the Grasberg minerals district in Indonesia, significant mining operations in North and South America, and the Tenke Fungurume minerals district in the Democratic Republic of Congo.
Freeport-McMoRan's historical revenue and net income:
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The analysis on Freeport reports that the company's asset growth is faster than its revenue growth, its P/B ratio is near a 5-year low and its P/S ratio is close to a 3-year low.
As of the close of the second quarter there were fifteen gurus holding a position in Freeport-McMoRan. Check out those gurus' holding histories here.
The Peter Lynch Chart suggests that the company is currently undervalued:
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Freeport-McMoRan Copper & Gold has a market cap of $33.44 billion. Its shares are currently trading at around $32.48 with a P/E ratio of 13.40 and a P/S ratio of 1.50.
General Mills (GIS)
On Sept. 23, General Mills declared a dividend of $0.410 per share, representing 3.10% dividend yield for the company. This dividend is payable on Nov. 3 to shareholders of the record at the close of business on Oct. 10, 2014.
The company's historical dividend growth is as follows:
- 10-year: 10.70%
- 5-year: 11.90%
- 3-year: 11.40%
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General Mills is a manufacturer and marketer of branded consumer foods sold through retail stores. It is also a supplier of branded and unbranded food products to the foodservice and commercial baking industries.
General Mills' historical revenue and net income:
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The analysis on General Mills reports that the company's revenue per share has slowed down over the past year, its price is near a 10-year high and over the past three years the company has issued $1.2 billion of debt. The analysis also notes that the company's P/E ratio is near a 1-year low and its P/B ratio is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
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General Mills has a market cap of $30.62 billion. Its shares are currently trading at around $50.52 with a P/E ratio of 18.90 and a P/S ratio of 1.81. The company had an annual average earnings growth of 6.50% over the past ten years.
GuruFocus named General Mills the business predictability rank of 5-star.
McDonald's (MCD)
On Sept. 18, McDonald's declared a dividend of $0.850 per share, representing 3.30% dividend yield for the company. This dividend is payable on Dec. 15 to shareholders of the record at the close of business on Dec. 1, 2014.
The company's historical dividend growth is as follows:
- 10-year: 21.30%
- 5-year: 11.40%
- 3-year: 11.30%
McDonald's franchises and operates McDonald's restaurants in the food service industry. The company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers.
McDonald's historical revenue and net income:
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The analysis on McDonald's reports that the company's operating margin is expanding, its dividend yield is near a 5-year high and its revenue per share has slowed down over the past year. The analysis also notes that the company's price is near a 10-year high and over the past three years the company issued $2.5 billion of debt.
There were 22 gurus with holdings in McDonald's as of the close of the second quarter. Check out their holdings here.
The Peter Lynch Chart suggests that the company is currently overvalued:
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McDonald's has a market cap of $95.61 billion. Its shares are currently trading at around $95.38 with a P/E ratio of 17.30 and a P/S ratio of 3.39. The company had an annual average earnings growth of 13.40% over the past ten years.
GuruFocus rated McDonald's the business predictability rank of 4.5-star.
To view a complete list of high yielding dividend stocks found among the gurus' portfolios, click here.
