Intel Corporation (INTC), Vodafone Group Plc (ADR) (VOD), and Novartis AG (ADR) (NVS): Three Misunderstood Large Cap Value Finds

Management notes that “Vodafone’s stake in Verizon Wireless began paying special dividends, which has enabled Vodafone Group Plc (ADR) (NASDAQ:VOD) to increase its dividend yield from 5% to nearly 8%. The market has not viewed these payouts as recurring yet, but we think the dividends are sustainable.” Most quote services get the company’s dividend wrong because it pays semi-annually. So that’s an added benefit for investors willing to do a little more research.

A global cell phone giant, Vodafone has some important assets and one crown jewel. If it can maintain those dividends, it is well worth the risk of a weakened Europe. There’s also the chance that Verizon Communications Inc. (NYSE:VZ) tries to buy it out of the Verizon Wireless partnership.

Getting Better all the Time

Novartis AG (ADR) (NYSE:NVS) was a big contributor to the fund in 2012. The company is a European pharmaceutical giant. Like most of its peers, it has had to deal with patent expirations over the last few years. That had been a drag on results. Adding to that were notable manufacturing issues in The United States, including the closure of one U.S. plant.

However, the fund managers note that “in the second half of 2012, Novartis AG (ADR) (NYSE:NVS) reported solid sales and margins in each of its main business lines, good progress in its late-stage research pipeline, and began to direct investors’ attention to mid to late-2013, when management anticipates the company will return to a multi-year period of organic growth.”

Although the shares have had a nice advance, if performance starts to accelerate as 2013 progresses, there could be more room to run. Growth minded investors might find this drug company of interest.

Unique Features

Investors in value stocks should always be looking for that unique feature that will support improved performance. The three stocks above all possess such traits and that makes them worth the effort to dig a little deeper.

The article 3 Misunderstood Large Cap Value Finds originally appeared on Fool.com and is written by Reuben Brewer.

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