7 Stocks Value Gurus Dodge & Cox Think Are Undervalued Now

 |  Includes: AON, DVN, JEC, LNC, MSI, SPGI, WHR
by: Investment Underground

By Elizabeth Jia, Guest Editor

Investment Underground examined the top holdings at Dodge & Cox. Their portfolio is devoted to healthcare, technology, consumer and financial services. Here are their latest buys from the period ending 12/31/2010.

Motorola, Inc (NYSE:MSI): Dodge & Cox owns 219,623,573 shares of the stock valued at $1,991,990,000. As of 12-31-2010 it is 2.37% weighting on the entire portfolio. In January the mobile telecommunications and technology giant had broken up into Motorola Solutions and Motorola Mobility. IU’s information is dedicated to Motorola Solutions (MSI), a company with 51,000 employees. Its market cap stands at 14.02B with a return on assets at 2.54%. The revenue is 19.28B. Its trailing annual dividend yield is 3.78.

McGraw-Hill Companies, Inc (MHP): Dodge & Cox owns 3,162,027 shares valued at $115,129,000. Percentage weighting is 0.14. The media, financial services and education publishing conglomerate posts 11.64B for its market caps with a 13.42% in profit margin. Total revenue stands at 6.17B. Its dividend yield is 2.6%. This company is also owned by value investing guru Joel Greenblatt.

Jacobs Engineering Group (NYSE:JEC): Dodge & Cox has 8,005 shares valued at $367,000. It is less than 0.01% weighting within the portfolio. This is one of the leading construction and engineering firms worldwide with heavy emphasis on the oil and gas industries. It generates 9.79B in revenue. Market cap stands at 6.15B. There is no dividend yield posted.

Devon Energy Corp. (NYSE:DVN): Dodge & Cox commands 4,000 shares valued at $314,000. It makes up less than 0.01% weighting. The energy company recently increased its quarterly cash dividend to common stock holders by nearly six percent. Its market cap is 38.49B. It reports 9.13B in revenue and has a 0.80% dividend yield. If Saudi Arabia falls next, we think you should consider this stock.

Lincoln National Corp. (NYSE:LNC): Dodge & Cox bought 10,861 shares valued at $302,000. It is less than 0.01% weighting within the portfolio. The company offers a variety of insurance and retirement financial services. It also owns 15 O&O radio stations. Market cap stands at 9.33B. The company operates with over 8,000 full-time employees and leverages 10.41B in revenue. Dividend yield is 0.68%.

AON Corp. (NYSE:AON): Dodge & Cox owns 5,077 shares at $234,000. Percentage weighting is less than 0.01%. The company offers risk and insurance brokerage services in over 120 countries. It has recently published an extensive risk assessment on Japan after the massive earthquake and tsunami. Its market cap is 17.31B. Revenue stands at 8.51B with a 1.20% dividend yield.

Whirlpool Corp. (NYSE:WHR): Dodge & Cox bought 2,450 shares at $218,000. Percentage weighting is less than 0.01%. It is a leading international manufacturer of home appliances. The producer of household brands like KitchenAid, MayTag and Speed Queen, has a market cap of 6.09B. It commands 18.37B in revenues with 3.37% in profit margin. Dividend yield is 2.10%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.