Now that Guru
has submitted his
fourth quarter update
for the T. Rowe Price Equity Income Fund, it's time to see which
of his current stock holdings have the highest yields.
The fund, which primarily targets stocks of established firms
that are "expected to pay above-average dividends," made 17.25
percent in total returns in 2012, according to its Fund Overview.
A publicly traded investment company, T. Rowe Price (
) increased its assets under management by $87.3 billion in 2012
compared to the previous year, reaching $576.8 billion.
Additionally, 74 percent of T. Rowe Price's mutual funds across
share classes outperformed the Lipper Index in the last year on a
total return basis; 78 percent outperformed it in the last three
years, while 84 percent outperformed it in the last five years.
In 2012's third quarter,
it was reported
that the highest yielding stocks on the Equity Income Fund were
Nokia Corp., CenturyLink, Telefonica and Sun Life Financial;
while Telefonica and CenturyLink remained on the list some
quarters later, Nokia and Sun Life have been bumped down and
replaced by companies, Cliffs Natural Resources and FirstEnergy
) and CenturyLink Inc. (
As of the fourth quarter, Rogers has continued to hold both
top-dividend paying companies, Telefonica and CenturyLink Inc.
Both companies have increased their yields since the third
Sitting with a 10.4 percent yield compared to 6.8 percent in the
previous quarter, Spain-based Telefonica is a large
telecommunications company that focuses on the key areas of
mobile broadband and telephone lines. It has presence in 26
countries and has a customer base of more than 312 million.
In May 2012, Telefonica paid a dividend of 0.53 euros per share,
its latest listed payout in its remuneration history.
Fellow telecommunications company, CenturyLink currently has a
7.2 percent dividend yield, up slightly from its 7.1 percent
yield in the previous quarter.
CenturyLink is the third largest telecommunications company in
the U.S. Some of its services include cloud infrastructure, IT
solutions for enterprise customers, as well as data and voice
In November 2012, CenturyLink declared a quarterly cash dividend
of $0.725 per share, which was paid on Dec. 21.
Stocks of both Telefonica, priced at $14.40, and CenturyLink,
priced at $40.72, were both up today after market close.
Cliffs Natural Resources Inc. (
) and FirstEnergy Corp. (
Taking rein as the third and fourth highest dividend yield stocks
on the Rogers' Equity Income Fund, Cliffs Natural Resources and
FirstEnergy Corp. have a dividend yield of 6 percent and 5.4
An international mining and natural resources company, Cliffs
Natural Resources is a large producer of global iron ore, as well
as high- and low-volatility metallurgical coal.
On Dec. 3, the company paid a cash dividend of $0.625 per share.
Diversified energy company, FirstEnergy generates a fleet
consisting of non-emitting nuclear, coal, natural gas, hydro and
other renewable. According to its site, it has more than 20,000
megawatts of generating capacity.
On March 1, the company plans to pay $0.55 per share in dividends
to its shareholders.
In the last five years, both companies have decreased
significantly in market value. Compared to its five-year high of
$115 in July 2008, Cliffs Natural Resources trades at a discount
Similarly, FirstEnergy has shed about half of its market value
since July 2008, from $82 to its current price of $40.58.
' full list of highest-dividend companies can be found on Brian
Rogers' High-Yield Companies. See the rest of the stocks in Brian
Rogers' portfolio here. Also check out his Undervalued Stocks and
Top Growth CompaniesAbout GuruFocus: GuruFocus.com tracks the
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