Microsoft Corporation (MSFT), Cisco Systems, Inc. (CSCO): First Eagle Investment Management’s +3% Yielders

Page 1 of 2

Related Tickers: Microsoft Corporation (NASDAQ:MSFT), FirstEnergy Corp. (NYSE:FE), Intel Corporation (NASDAQ:INTC), Cisco Systems, Inc. (NASDAQ:CSCO), SYSCO Corporation (NYSE:SYY), Apple Inc. (NASDAQ:AAPL)

Several weeks after the end of each quarter, major investors including many hedge funds are required to file 13Fs with the SEC, disclosing many of their long equity positions in U.S. stocks as of the end of that quarter. We process these filings and use them to develop investing strategies; we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year (learn more about our small cap strategy). We can also look for individual managers’ top picks in a number of areas, including those with high yields going from current prices and recent dividend payments. Using that criteria, here are First Eagle Investment Management’s five largest positions as of the end of December in stocks with dividend yields of 3% or higher (or see the full list of stocks the fund reported owning):

First Eagle’s largest holding by market value was its more than 46 million shares of Cisco Systems, Inc. (NASDAQ:CSCO). The networking and communications devices company pays a yield of 3.2%, and also looks to be trading in value territory: its trailing and forward P/Es are 12 and 10, respectively. At that pricing Cisco would require very little growth to be a good value, and revenue and earnings have indeed been up. Billionaire Ken Fisher’s Fisher Asset Management had a little over 33 million shares of Cisco Systems, Inc. (NASDAQ:CSCO) in its portfolio at the end of the fourth quarter of 2012 (find Fisher’s favorite stocks).

Ken Fisher - FISHER ASSET MANAGEMENT

The similarly named SYSCO Corporation (NYSE:SYY), a $20 billion market cap wholesaler and distributor of food and hospitality products, was another of the fund’s high yield picks. In its most recent quarterly report, sales were up 5% compared to the same period in the previous fiscal year though earnings fell by 12%. The stock is not particularly cheap, and so it’s probably best avoided for value investors, though the dividend yield is a bit above 3%. Ric Dillon’s Diamond Hill Capital disclosed ownership of 4.2 million shares of SYSCO Corporation (NYSE:SYY) in its own 13F filing (research more stocks that Diamond Hill owned).

According to the 13F, First Eagle increased the size of its position in Microsoft Corporation (NASDAQ:MSFT) by 9% between October and December, to a total of more than 27 million shares. Microsoft had just missed being in the top five list of our most popular stocks among hedge funds for the fourth quarter of 2012 (here are more stocks hedge funds loved). The personal and business software company topped analyst expectations last quarter. Its forward P/E is 10, which is of some interest, though projections likely include a temporary bump to earnings from new versions of Windows and Office and Apple Inc. (NASDAQ:AAPL) is actually cheaper in terms of forward earnings.

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

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

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 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!