Stocks 

5 High Dividend Yield Stocks Broadly Bought by Gurus

According to the High Dividend Yield Stocks page, a Premium feature of GuruFocus, five stocks with a dividend yield of at least 4% and double-digit guru buys over the past few months are AbbVie Inc. (NYSE:ABBV), Gilead Sciences Inc. (NASDAQ:GILD), Exxon Mobil Corp. (NYSE:XOM), Chevron Corp. (NYSE:CVX) and GlaxoSmithKline PLC (NYSE:GSK).

Dow tumbles as Fed terminates pandemic-era break for banks

On Friday, the Dow Jones Industrial Average closed at 32,627.97, down 234.33 points from Thursday’s close of 32,862.30 and snapping a two-week win streak. The 30-stock index tumbled earlier this morning to an intraday low of 32,505.07, down 357.23 points from the previous close on the Federal Reserve’s decision to terminate a Covid-19 pandemic-crisis rule that allowed banks to exclude Treasuries and deposits with the Fed in the leverage ratio calculation. Major bank stocks like JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp. (NYSE:BAC) tumbled on the Fed’s decision.

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To combat potential stock market volatility as bond yields climb, investors may find good opportunities in stocks that have high dividend yields and a high number of gurus buying shares. GuruFocus’ High Dividend Yield Screener identified five stocks with a dividend yield of at least 4% and at least 10 gurus buying shares as of the December 2020 filing date.

AbbVie

Shares of AbbVie (NYSE:ABBV) traded around $103.50, showing that the stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.92. The stock’s dividend yield of 4.67% outperforms over 92% of global competitors.

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GuruFocus ranks the North Chicago, Illinois-based drug manufacturer’s profitability 8 out of 10 on several positive investing signs, which include operating margins and returns on equity outperforming over 92% of global competitors despite net profit margins outperforming just over 69% of global drug manufacturers.

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Fourteen gurus purchased shares of AbbVie during the fourth quarter of 2020. Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) purchased 4,268,766 shares, increasing its stake 20.07%.

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Gilead Sciences

Shares of Gilead Sciences (NASDAQ:GILD) traded around $64.38, showing that the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.86. The stock’s dividend yield of 4.27% is near a 10-year high and outperforms over 90% of global competitors.

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GuruFocus ranks the Foster, California-based drug manufacturer’s profitability 7 out of 10: Operating margins are outperforming over 97% of global competitors even though returns and three-year revenue and earnings growth rates underperform more than 60% of global drug manufacturers.

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Fourteen gurus purchased shares of Gilead during the fourth quarter. Gurus with large holdings in Gilead include Dodge & Cox and Pioneer Investments (Trades, Portfolio).

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Exxon Mobil

Shares of Exxon Mobil (NYSE:XOM) traded around $57.27, showing that the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.14. The stock’s dividend yield of 6.09% outperforms over 73% of global competitors.

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Twelve gurus purchased shares of Exxon Mobil during the fourth quarter. First Eagle Investment (Trades, Portfolio) owns over 26 million shares as of December 2020.

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Chevron

Shares of Chevron (NYSE:CVX) traded around $104.49, showing that the stock is significantly