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 Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!