CME Group Among Guru Stocks With Growing Yield

Investment ideas with high dividend yields

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Mar 03, 2016
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The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

CME Group Inc. (CME) has a trailing dividend yield of 2.15% with a three-year growth rate of 3.70% and a five-year growth rate of 16.80%. The stock is now trading with a trailing 12-month P/E multiple of 25.30 and an estimated forward P/E multiple of 19.38. During the last 12 months, the stock price has dropped by 4%.

GuruFocus gives the company a profitability and growth rating of 7/10, but it reports easy returns such as ROA of 1.68% that is ranked lower and ROE of 5.93% that is ranked higher than 52% of other companies in the Global Financial Exchanges industry. Operating margin of 59.78% and net-margin of 37.48% are over performing 77% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.79 and the equity to asset ratio is 0.31.

The company, through its futures exchanges and clearing houses, serves the risk management and investment needs of customers by offering products like futures and options, foreign exchange, energy, agricultural commodities, metals, weather derivatives and real estate.

The company is held by five gurus. PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 0.54% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.03%, Louis Moore Bacon (Trades, Portfolio) with 0.03%,Tom Gayner (Trades, Portfolio) with 0.03% and Steven Cohen (Trades, Portfolio) with 0.01%.

Rockwell Automation Inc. (ROK) has a trailing dividend yield of 2.57% with a three-year growth rate of 14.20% and a five-year growth rate of 16.20%. The stock is now trading with a trailing 12-month P/E multiple of 18.10 and an estimated forward P/E multiple of 16.72. During the last 12 months, the stock price has dropped by 7%.

GuruFocus gives the company a profitability and growth rating of 8/10 since it reports strong returns such as ROA of 12.60% and ROE of 32.75% that are ranked higher than 93% of other companies in the industry. Operating margin of 18.65% and net-margin of 12.97% are over performing 87% of its competitors. Financial strength has a rating of 8/10, the cash to debt ratio is 1.34 and the equity to asset ratio is 0.35.

It operates in two segments: Architecture & Software and Control Products & Solutions. Both operating segments conduct business in North America, Europe, Middle East and Africa, Asia Pacific and Latin America.

The company is held by five gurus; the largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with a stake of 1.18 % of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.44%, Chris Davis (Trades, Portfolio) with 0.37%, Mario Gabelli (Trades, Portfolio) with 0.25% and Jim Simons (Trades, Portfolio) with 0.21%.

NorthStar Realty Finance Corp. (NRF) has a trailing dividend yield of 24.70% with a three-year growth rate of 24.90% but a negative five-year growth rate of -7.30%. The stock is now trading with an estimated forward P/E multiple of 2.92. During the last 12 months, the stock price has dropped by 57%.

GuruFocus gives the company a profitability and growth rating of 5/10 since it reports negative returns as ROA of -1.85% and ROE of -8.39% that are ranked lower than 94% of other companies in the industry. Operating margin of -16.44% and net-margin of -14.62% are under performing 93% of its competitors. Financial strength has a rating of 3/10, the cash to debt ratio is 0.09 and the equity to asset ratio is 0.26.

The company is an internally managed REIT, and is a diversified commercial real estate investment and asset management company. NorthStar Realty Finance Limited Partnership holds all of the company's assets and conducts its operation directly or indirectly.

The company is held by five gurus. Lee Ainslie (Trades, Portfolio) is the main shareholder among the gurus with a stake of 1.98% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.43%, Louis Moore Bacon (Trades, Portfolio) with 0.33%, Arnold Schneider (Trades, Portfolio) with 0.37% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Carnival Corp. (CCL) has a trailing dividend yield of 2.35% with a three-year growth rate of 3.20% and a five-year growth rate of 15.60%. The stock is now trading with a trailing 12-month P/E multiple of 21.30 and an estimated forward P/E multiple of 12.74. During the last 12 months, the stock price has risen by 8%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports easy returns such as ROA of 4.51% and ROE of 72.01% that are ranked higher than 58% of other companies in the Global Leisure industry. Operating margin of 7.39% and net-margin of 5.39% are over performing 64% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.16 and the equity to asset ratio is 0.61.

The company is a global cruise company and one of the largest vacation companies in the world. The company operates 100 cruise ships within a portfolio of 10 leading cruise brands that sell cruise products and services in all the world's major vacation markets.

The company is held by seven gurus; PRIMECAP Management (Trades, Portfolio) is the main shareholder among the gurus with a stake of 2.82% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.85%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.48%, Sarah Ketterer (Trades, Portfolio) with 0.26%, Jim Simons (Trades, Portfolio) with 0.2% and Joel Greenblatt (Trades, Portfolio) with 0.1%.

Teva Pharmaceutical Industries Ltd. (TEVA) has a trailing dividend yield of 2.41% with a three-year growth rate of 9.80% and a five-year growth rate of 15.50%. The stock is now trading with a P/E ratio of 15.52 and an estimated forward P/E multiple of 15.60. During the last 12 months, the stock price has not changed.

GuruFocus gives the company a profitability and growth rating of 7/10 but it reports weak returns such as ROA of 3.22% and ROE of 6.47% that are ranked lower than 52% of other companies in the industry. Operating margin of 22.20% and net-margin of 8.08% are over performing 57% of its competitors. Financial strength has a rating of 7/10, the cash to debt ratio is 0.70 and the equity to asset ratio is 0.55.

The company manufactures generic pharmaceutical products. It operates in business in two segments such as generic products, which includes chemical and therapeutic equivalents of originator pharmaceuticals in a variety of dosage forms.

The company is held by 12 gurus. Andreas Halvorsen (Trades, Portfolio) is the largest shareholder among the gurus with a stake of 2.76% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 2.25%, James Barrow (Trades, Portfolio) with 1.06%, Larry Robbins (Trades, Portfolio) with 0.66%, Vanguard Health Care Fund (Trades, Portfolio) with 0.64%, First Eagle Investment (Trades, Portfolio) with 0.48%, John Griffin (Trades, Portfolio) with 0.44% and NWQ Managers (Trades, Portfolio) with 0.15%.

Whirlpool Corp. (WHR) has a trailing dividend yield of 2.28% with a three-year growth rate of 19.90% and a five-year growth rate of 14.90%. The stock is now trading with a trailing 12-month P/E multiple of 24.19 and an estimated forward P/E multiple of 13.11. During the last 12 months, the stock price has dropped by 26%.

GuruFocus gives the company a profitability and growth rating of 6/10 since it reports positive returns such as ROA of 4.02% and ROE of 16.14% that are ranked higher than 57% of other companies in the Global Consumer Electronics industry. Operating margin is 6.15% and net-margin is 3.75%. Financial strength has a rating of 7/10, the cash to debt ratio is 0.19 and the equity to asset ratio is 0.25.

The company is a manufacturer and marketer of home appliances and related products. Its products are laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers and other portable household appliances.

The company is held by seven gurus; James Barrow (Trades, Portfolio) is the main shareholder among the gurus with a stake of 3.24% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 2.68%, Bill Nygren (Trades, Portfolio) with 2.59%, David Tepper (Trades, Portfolio) with 2.09%, Steven Cohen (Trades, Portfolio) with 0.98%, Ken Heebner (Trades, Portfolio) with 0.79%, Pioneer Investments (Trades, Portfolio) with 0.53% and PRIMECAP Management (Trades, Portfolio) with 0.43%.

International Business Machines Corp. (IBM) has a trailing dividend yield of 3.81% with a three-year growth rate of 14.90% and a five-year growth rate of 9.17%. The stock is now trading with a trailing 12-month P/E multiple of 10.10 and an estimated forward P/E multiple of 12.33. During the last 12 months, the stock price has dropped by 15%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports strong returns such as ROA of 11.75% and ROE of 101.07% that are ranked higher than 84% of other companies in the Global Information Technology Services industry. Operating margin of 18.36% and net-margin of 16.14% are under performing 85% of its competitors. Financial strength has a rating of 8/10, the cash to debt ratio is 0.21 and the equity to asset ratio is 0.13

The company creates business value for clients and solves business problems through integrated solutions that leverage information technology and knowledge of business processes.

The company is held by nine gurus; Warren Buffett (Trades, Portfolio) is the main shareholder among the gurus with a stake of 8.43% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 0.14%, Prem Watsa (Trades, Portfolio) with 0.14%, Ruane Cunniff (Trades, Portfolio) with 0.13%, Jeremy Grantham (Trades, Portfolio) with 0.11%, James Barrow (Trades, Portfolio) with 0.08%, Edward Lampert (Trades, Portfolio) with 0.07% and Joel Greenblatt (Trades, Portfolio) with 0.03%.