Raytheon Company (RTN), Cisco Systems, Inc. (CSCO): Value Investor Joel Greenblatt’s +3% Yielders

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GameStop Corp. (NYSE:GME) was another of Greenblatt’s high yield picks. The $4.1 billion market cap gaming software and hardware retailer is up 51% in the last year; even as digital distribution has become more common, GameStop Corp. (NYSE:GME)’s revenue numbers have been down only slightly. 51% of the float is held short despite the company’s success (at least so far; we’d be very skeptical of its prospects going forward) and the yield of 3.4%. AQR Capital Management, managed by Cliff Asness, had 4.3 million shares of GameStop Corp. (NYSE:GME) in its portfolio at the end of December (check out Asness’s stock picks).

Gotham reported a position of about 260,000 shares in KLA-Tencor Corporation (NASDAQ:KLAC), a semiconductor materials company with a market capitalization of $8.5 billion. The dividend yield here comes out to 3% going by current prices and recent dividend levels. In addition, KLA-Tencor Corporation (NASDAQ:KLAC) at least qualifies as a potential value play with trailing and forward P/Es of 13 and 11 respectively and with a business that seems fairly stable at this point. Renaissance Technologies, founded by billionaire Jim Simons, owned 2.3 million shares according to its own filing (see Renaissance’s favorite stocks).

According to the 13F, Greenblatt slightly increased his stake in SAIC, Inc. (NYSE:SAI) between October and December to 1.1 million shares. SAIC, Inc. (NYSE:SAI) provides services and solutions to the U.S. national defense establishment including the military, intelligence agencies, and the Department of Homeland Security. We imagine it’s also at risk from federal spending cuts, even though the company is coming off a quarter in which revenue at least increased versus a year earlier, and the sell-side does expect earnings per share to fall over the next couple years placing the current price at 12 times forward earnings estimates. SAIC, Inc. (NYSE:SAI) pays a dividend yield of 3.4%.

Disclosure: I own no shares of any stocks mentioned in this article.

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