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Gurus Are Buying High-Yield Stocks Like WestRock, Target

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

WestRock Co. ( WRK ) has a trailing dividend yield of 3.77% with a three-year growth rate of 38.90% and a five-year growth rate of 26%. The stock is now trading with a trailing 12-month P/E multiple of 10.50 and an estimated forward P/E multiple of 8.86. During the last 12 months, the stock price has dropped by 48%.

GuruFocus gives the company a profitability and growth rating of 7/10, but it reports negative returns such as ROA of -0.43% and ROE of -0.99% that are ranked lower than 89% of other companies in the Global Packaging & Containers industry. Operating margin of 2.35% and net-margin of -0.57% are underperforming 79% of its competitors. Financial strength has a rating of 5/10, the cash to debt ratio is 0.04 and the equity to asset ratio is 0.44.

The company provides paper and packaging solutions in consumer and corrugated markets. It offers corrugated container, paperboard, partitions & protective packaging, containerboard and beverage multipacks.

The company is held by seven gurus: Larry Robbins ( Trades , Portfolio ) is the main shareholder among the gurus with a stake of 1.71% of outstanding shares, followed by Steven Cohen ( Trades , Portfolio ) with 0.36%, T Rowe Price Equity Income Fund ( Trades , Portfolio ) with 0.29%, Howard Marks ( Trades , Portfolio ) with 0.11%, RS Investment Management ( Trades , Portfolio ) with 0.1%, Jim Simons ( Trades , Portfolio ) with 0.05% and Ray Dalio ( Trades , Portfolio ) with 0.02%.

Valero Energy Corp. ( VLO ) has a trailing dividend yield of 3.33% with a three-year growth rate of 51.80% and a five-year growth rate of 25.40%. The stock is now trading with a trailing 12-month P/E multiple of 5.60 and an estimated forward P/E multiple of 7.28. During the last 12 months the stock price has risen by 5%.

GuruFocus gives the company a profitability and growth rating of 7/10 since it reports strong returns such as ROA of 10.27% and ROE of 20.69% that are ranked higher than 77% of other companies in the Global Oil & Gas Refining & Marketing industry. Operating margin of 7.24% and net-margin of 4.54% are outperforming 74% of its competitors. Financial strength has a rating of 6/10, the cash to debt ratio is 0.56 and the equity to asset ratio is 0.47.

Its refineries produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products.

The largest shareholder among the gurus is Jeremy Grantham ( Trades , Portfolio ) with a stake of 0.32% of outstanding shares, followed by Pioneer Investments ( Trades , Portfolio ) with 0.24%, Jim Simons ( Trades , Portfolio ) with 0.14%, Steven Cohen ( Trades , Portfolio ) with 0.1% and Caxton Associates ( Trades , Portfolio ) with 0.1%.

Donaldson Co. Inc. ( DCI ) has a trailing dividend yield of 2.27%

About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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