There are many impressive, award-winning mutual funds that focus on dividend stocks. The Prudential Jennison Equity Income Fund offers impressive dividend yields ranging from 3.18% to 3.49%, depending on whether investors purchase shares of AGOAX, AGOBX, AGOCX, JEIBX, or AXGOX. This fund has been awarded the maximum rating of five Morningstars and is rated as a five by Lipper for total return and consistent return.
Unfortunately, the Prudential Jennison Equity Income Fund charges expenses that range from 0.89% to 1.97%, depending on share class. These fees are charged every year and drain portfolio returns.
Luckily, investors can use this award-winning fund's stock selection while avoiding recurring fees by purchasing its stock holdings directly rather than buying the fund. Many of the fund's stock holdings are described below:
Bristol-Myers Squibb (BMY) recently traded at $32.26 per share. At this price level, the stock has a 4.2% dividend yield. For 10 out of the past 10 fiscal years, a share of BMY paid a total of $11.64 in dividends.
BMY shareholders have endured a -7.6% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 3.3, a price-to-earnings multiple of 14.9, and a price-to-sales multiple of 2.6 (trailing twelve months). Over the past decade shareholders saw a 32.8% average annual return on equity.
Frontier Communications (FTR) recently traded at $4.51 per share. At this price level, the stock has a 16.6% dividend yield. For 7 out of the past 10 fiscal years, a share of FTR paid a total of $6.38 in dividends. Of these dividend payments, a total of $4.88 was paid in the last five years.
FTR shareholders have seen a -12.4% change in share price over the past year. Shares of this mid-cap stock trade at a price-to-book ratio of 0.9, a price-to-earnings multiple of 30.1, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders enjoyed an 8.2% average annual return on equity.
Intel Corporation (INTC) recently traded at $26.74 per share. At this price level, the stock has a 3.1% dividend yield. For 10 out of the past 10 fiscal years, a share of INTC paid a total of $3.31 in dividends. Of these dividend payments, a total of $2.59 was paid in the last five years.
INTC shareholders have enjoyed a 10.3% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 3.0, a price-to-earnings multiple of 11.1, and a price-to-sales multiple of 2.5 (trailing twelve months). Over the past decade shareholders saw a 14.9% average annual return on equity.
Johnson & Johnson (JNJ) recently traded at $65.64 per share. At this price level, the stock has a 3.5% dividend yield. For 10 out of the past 10 fiscal years, a share of JNJ paid a total of $13.73 in dividends.
JNJ shareholders have seen a 0.1% change in share price over the past year.Shares of this large-cap stock trade at a price-to-book ratio of 2.9, a price-to-earnings multiple of 18.9, and a price-to-sales multiple of 2.8 (trailing twelve months). Over the past decade shareholders saw a 27.8% average annual return on equity.
Monsanto Co. (MON) recently traded at $82.15 per share. At this price level, the stock has a 1.5% dividend yield. For 10 out of the past 10 fiscal years, a share of MON paid a total of $5.92 in dividends. Of these dividend payments, a total of $4.44 was paid in the last five years.
MON shareholders have seen a 17.7% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 4.0, a price-to-earnings multiple of 25.8, and a price-to-sales multiple of 3.5 (trailing twelve months). Over the past decade shareholders enjoyed a 7.0% average annual return on equity.
Pfizer (PFE) recently traded at $21.2 per share. At this price level, the stock has a 4.2% dividend yield. For 10 out of the past 10 fiscal years, a share of PFE paid a total of $7.87 in dividends. Of these dividend payments, a total of $4.92 was paid in the last five years.
PFE shareholders have seen a -1.0% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 1.8, a price-to-earnings multiple of 16.7, and a price-to-sales multiple of 2.4 (trailing twelve months). Over the past decade shareholders saw a 19.8% average annual return on equity.
Sara Lee (SLE) recently traded at $20 per share. At this price level, the stock has a 2.3% dividend yield. For 10 out of the past 10 fiscal years, a share of SLE paid a total of $5.67 in dividends. Of these dividend payments, a total of $2.16 was paid in the last five years.
SLE shareholders have seen a 5.7% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 7.4, a price-to-earnings multiple of 54.1, and a price-to-sales multiple of 1.3 (trailing twelve months). Over the past decade shareholders saw a 34.2% average annual return on equity.
Xilinx (XLNX) recently traded at $36.92 per share. At this price level, the stock has a 2.1% dividend yield. For 7 out of the past 10 fiscal years, a share of XLNX paid a total of $3.12 in dividends. Of these dividend payments, a total of $2.64 was paid in the last five years.
XLNX shareholders have seen a 15.2% change in share price over the past year. Shares of this mid-cap stock trade at a price-to-book ratio of 3.8, a price-to-earnings multiple of 17.7, and a price-to-sales multiple of 4.3 (trailing twelve months). Over the past decade shareholders saw a 14.2% average annual return on equity.
The track records of these holdings are impressive and confirm them as sensible picks. The Prudential Jennison Equity Income Fund believes in these companies enough to make them 16% of the portfolio:
Ticker | Company | Fund Weight (%) | Dividend Yield |
BMY | Bristol-Myers Squibb | 2.28 | 4.2% |
FTR | Frontier Communications | 1.94 | 16.6% |
INTC | Intel Corporation | 2.21 | 3.1% |
JNJ | Johnson & Johnson | 1.84 | 3.5% |
MON | Monsanto Co. | 1.76 | 1.5% |
PFE | Pfizer Inc. | 2.06 | 4.2% |
SLE | Sara Lee Corp. | 2.37 | 2.3% |
XLNX | Xilinx Inc. | 1.66 | 2.1% |
Income investors ought to consider investing directly in these stocks rather than investing in the fund. Direct investment in the stocks gains the advantage of the Prudential Jennison selection process without losing over 1% each year to fund-level fees.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
