Campbell Soup Company (CPB), Ryder System, Inc. (R): 5 Market-Beating Dividend Picks from This Top Performing Income Fund

Page 1 of 2

The KEELEY Mid Cap Dividend Value Fund is one of this year’s best performing equity income mutual funds. With a total return of 13.45% so far this year, the fund ranks third best in its category, according to Wall Street Journal’s “Mutual Fund Scorecards” application. The fund owes its top performance to a select group of dividend stocks of undervalued mid-cap companies with market capitalization between $1.5 billion and $15 billion. The fund’s current strong performance fits the fund’s investment approach that seeks to accomplish “above average long-term results with less volatility due to the application of a value-oriented investment style.” All stocks are picked following a bottom-up, fundamental approach. More information about the fund’s profile can be found here.

Campbell Soup Company (NYSE:CPB)

With focus on KEELEY Mid Cap Dividend Value Fund’s top performers, here is a closer look at five value stocks with dividend yields above 2.0% and a strong price momentum from the beginning of the year. These stocks boast attractive fundamentals and could see additional gains in the future.

Campbell Soup Company (NYSE:CPB) is a convenience food products company selling a diverse mix of products, from soups, broth and stocks, to canned poultry, juices and beverages, bakery products, and frozen foods. The company has a dividend yield of 2.8%, s payout ratio of 45%, and a five-year annualized dividend growth of 6.7%. Due to the higher dividend taxation in 2013, the company paid an accelerated dividend in December of last year in lieu of the quarterly dividend that would have been paid in April 2013.

The company has beaten analysts’ estimates in the past eight quarters. In its latest quarter, Campbell Soup Company (NYSE:CPB) saw its revenue grow by 10% year-over-year, driven mainly by growth in sales from its acquisition of Bolthouse Farms. Campbell projects a 10%-to-12% increase in sales this fiscal year, which exceeds the company’s long-term net sales target CAGR of 3%-to-4%.

Fiscal 2013 adjusted EPS is guided to a range of $2.51-to-$2.57 per share, an increase of between 3% and 5% from the year earlier. Campbell Soup Company (NYSE:CPB) aims to achieve growth through brand building and innovation as well as by boosting performance through cost cutting and margin expansion. The stock is up 22.4% year-to-date, and it is trading at a forward P/E of 15.9x, below the food industry’s forward multiple of 17.8x. Last quarter, RenTech’s Jim Simons was bullish about this stock.

Ryder System, Inc. (NYSE:R) the largest U.S. truck rental, supply chain management and fleet management services company, has a dividend yield of 2.0%, a payout ratio of 26%, and a five-year annualized dividend growth of 7.2%. The company has been a strong performer this year, with its stock price rising 16.6% year-to-date.

The increase in stock price is a result of a better-than-expected 2013 financial guidance, buoyed by a recovering U.S. economy that will support lease renewals. Improved rates and reduced maintenance costs will also bode well for the company’s growth. Interestingly, Ryder System, Inc. (NYSE:R) sees potential in natural gas-fueled vehicles, expanding the availability of environmentally friendly vehicles running on natural gas in several markets. Given the trends in the natural gas market, with ample supplies of cheap natural gas, Ryder’s bet looks promising.

The company expects its revenues to grow 3.9% this year, with EPS projected to expand between 7% and 10% to a range of $4.70-$4.85. The stock is good value, as it trades at 12.8 times forward earnings. Ryder’s peer Con-way Inc (NYSE:CNW) is trading at 16.1 times forward earnings, below the trucking industry’s forward multiple of 19.3x. Last quarter, Ryder System, Inc. (NYSE:R) was a holding in value investor Chuck Royce’s portfolio.

BOK Financial Corporation (NASDAQ:BOKF), a regional Southwestern bank with operations in Oklahoma, Texas, New Mexico, Arkansas, Colorado, Arizona, Kansas, and Missouri, has a dividend yield of 2.4% and a payout ratio of 33%. Its five-year annualized dividend growth is 25.8%.

BOK Financial has a diverse revenue base and boasts strong liquidity and adequate capitalization. It has greatly benefited from the expanding local economies in its region, driven by the flourishing energy sector. The company’s earnings hit record levels last year, boosted by especially commercial loans, strong mortgage banking and brokerage revenues. Loan growth last year was about 9.0% year-over-year.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!