24 Top Value Stocks Fund Manager Donald Yacktman Is Buying

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 |  Includes: APOL, AVP, BCR, BK, CL, CLX, CMCSA, COP, CSCO, GLW, HPQ, HRB, JNJ, KO, MSFT, NWSA, PEP, PFE, PG, SYK, SYY, USB, WMT, XOM
by: Hedgefund Manager

Donald Yacktman is a value investor who manages the $6 Billion Yacktman Fund (YACKX). Yacktman is a well-respected investor with 10-year annualized returns exceeding 10%. Morningstar named Yacktman one of the five best managers for 2011. The Yacktman fund has a top-tier long-term performance rating, ranking in the top 1% over the past 3, 5, 10, and 15 year periods.

Yacktman is a professional investor known for his exhaustive research. He and his team of analysts leverage their broad networks to conduct interviews with management teams, sell-side analysts, and other industry contacts. Additionally, they attend industry conferences and purchase unique industry data to test and validate their investment theses.

Let's examine the output of Yacktman's to get a sense for his best ideas. Are any of these securities promising to you? In the table below, we highlight the companies with low P/E, double-digit earnings growth, or high dividend yield.

TICKER

COMPANY NAME

% ASSETS

Position Change

P/E

LTG

Dividend Yield (%)

PEP

PepsiCo Inc

11.2%

Increase

16.0

8.9%

3.1

NWSA

News Corp A

10.7%

Increase

16.6

20.5%

PG

The Procter & Gamble Co

5.1%

Increase

16.4

8.8%

3.2

MSFT

Microsoft Corporation

4.9%

Decrease

9.3

9.8%

2.7

CSCO

Cisco Systems Inc

4.6%

Increase

16.1

8.5%

1.0

JNJ

Johnson & Johnson

4.2%

Increase

15.8

6.1%

3.5

KO

The Coca-Cola Co

4.1%

New

12.4

5.6%

2.8

SYY

Sysco Corporation

3.5%

Increase

14.6

7.3%

3.6

USB

U.S. Bancorp

2.9%

Increase

11.5

11.6%

1.7

PFE

Pfizer Inc

2.6%

New

13.9

3.3%

3.8

COP

ConocoPhillips

2.6%

New

9.2

0.3%

3.9

BCR

C.R. Bard, Inc.

2.5%

Increase

22.4

10.6%

0.9

HPQ

Hewlett-Packard Co

2.2%

Increase

8.4

4.5%

1.7

SYK

Stryker Corporation

1.9%

Increase

15.5

10.7%

1.5

CMCSK

Comcast Corp

1.8%

New

16.6

13.4%

CLX

Clorox Company

1.7%

New

18.7

8.3%

3.5

WMT

Wal-Mart Stores Inc

1.7%

Increase

12.5

9.6%

2.5

HRB

H&R Block Inc

1.6%

New

13.4

10.0%

2.9

XOM

Exxon Mobil Corporation

1.6%

Increase

9.7

9.1%

2.3

APOL

Apollo Group Inc A

1.5%

New

12.0

3.1%

BK

Bank of New York Mellon

1.4%

Increase

9.0

11.0%

2.6

GLW

Corning Inc

1.2%

Increase

6.3

11.0%

1.7

CL

Colgate-Palmolive Company

1.1%

New

16.2

9.0%

AVP

Avon Products Inc

1.1%

Increase

10.0

7.4%

5.5

Click to enlarge

Financial data sourced from Yahoo Finance

Two of the fund's buys, Pepsi and News Corp, are high conviction investments that comprise more than 10% of the portfolio. Other top picks include Procter & Gamble, Microsoft, Cisco, Johnson & Johnson, and Coca-Cola. These blue-chip companies have good valuations and long-term growth rates.

These stock ideas should be used to identify potential candidates for your portfolio. Remember to perform your own due diligence before purchasing or selling any security for your portfolio.

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