Johnson Controls, Inc. (JCI), Halliburton Company (HAL), Las Vegas Sands Corp. (LVS): Three Big Value Stocks From Delaware Dividend Income Fund

Macau is the growth market as Chinese residents increasingly go there to gamble. Sands owns two hotels there. Zenouzi describes the company as a great cash flow generator. Its regular dividend payment leads to a yield of around 2.6%, but it also paid a special dividend last year and looks on track for another this year. So, management is clearly focused on returning value to shareholders.

Zenouzi believes that Sands is trading at a 20% to 25% discount to the properties it owns, which means the gambling operation is kind of being bought for “free.” In addition, the company may be considering a sale of the Pennsylvania property, so it can focus on gambling regions with better growth prospects. Any proceeds could be used to return value to shareholders via stock buybacks or a special dividend, too.

Sands’ business is recovering from the recession, with earnings now above where they were in the year or so before the economic soft patch. Growth and income investors with a more aggressive bent should take a look.

Compromise

Zenouzi explains that Delaware Dividend Income Fund’s goal is to provide a yield that is competitive with fixed income with more upside, and to provide a better yield than equities with more downside protection; thus the balanced approach. The overall shift toward large value is a statement of the company’s focus on downside protection. Investors looking for a one-fund portfolio solution should take a look.

Do-it-yourselfers, however, should like the turnaround potential at Johnson Controls, Inc. (NYSE:JCI) and Halliburton Company (NYSE:HAL). While viewing Las Vegas Sands Corp. (NYSE:LVS) as a real estate company suggests that the gambling operation is a free add on for more aggressive types willing to own a sin stock.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Halliburton.

The article 3 Big Value Stocks From Delaware Dividend Income Fund originally appeared on Fool.com.

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