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3/20/2012

7 Low Volatility Stocks With Double-Digit Yields

Safe Stocks With Over 10% Dividend Yield Researched By Dividend Yield - Stock, Capital, Investment. Stocks with a yield over ten percent are often mocked as not sustainable. Sure, some companies pay such dividends only for a few quarters until they cut dividends. But if the company pays the double-digit yield for a few years, you have earned at least enough to overcompensate expected share price losses. However, I screened the capital market by stocks with a double-digit yield and a beta ratio below one (less volatile than the market). In order to exclude the risks of low capitalized and hidden stocks, I decided to screen only those companies with a capitalization over USD 2 billion. Seven stocks met the mentioned criteria of which five have a buy or better rating.

Here are my favorite stocks:
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Annaly Capital Management (NYSE:NLY) has a market capitalization of $15.65 billion. The company employs 147 people, generates revenues of $3,579.62 million and has a net income of $343.32 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,981.85 million. Because of these figures, the EBITDA margin is 55.36 percent (operating margin 11.24 percent and the net profit margin finally 9.59 percent).


Financial Analysis:
The total debt representing 77.94 percent of the company’s assets and the total debt in relation to the equity amounts to 541.02 percent. Due to the financial situation, a return on equity of 2.59 percent was realized. Twelve trailing months earnings per share reached a value of $0.49. Last fiscal year, the company paid $2.44 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 32.95, P/S ratio 4.45 and P/B ratio 1.02. Dividend Yield: 13.90 percent. The beta ratio is 0.30.


Long-Term Stock History Chart Of Annaly Capital Managem... (Click to enlarge)


Long-Term Dividends History of Annaly Capital Managem... (NLY) (Click to enlarge)


Long-Term Dividend Yield History of Annaly Capital Managem... (NYSE: NLY) (Click to enlarge)


YPF SA (ADR) (NYSE:YPF) has a market capitalization of $10.76 billion. The company employs 13,370 people, generates revenues of $10,168.08 million and has a net income of $1,333.12 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,395.65 million. Because of these figures, the EBITDA margin is 33.40 percent (operating margin 21.46 percent and the net profit margin finally 13.11 percent).


Financial Analysis:
The total debt representing 16.72 percent of the company’s assets and the total debt in relation to the equity amounts to 40.91 percent. Due to the financial situation, a return on equity of 25.51 percent was realized. Twelve trailing months earnings per share reached a value of $3.34. Last fiscal year, the company paid $2.60 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.18, P/S ratio 1.17 and P/B ratio 2.39. Dividend Yield: 12.73 percent. The beta ratio is 0.71.


Long-Term Stock History Chart Of YPF SA (ADR) (Click to enlarge)


Long-Term Dividends History of YPF SA (ADR) (YPF) (Click to enlarge)


Long-Term Dividend Yield History of YPF SA (ADR) (NYSE: YPF) (Click to enlarge)


MFA Financial (NYSE:MFA) has a market capitalization of $2.64 billion. The company employs 35 people, generates revenues of $496.75 million and has a net income of $316.41 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $308.25 million. Because of these figures, the EBITDA margin is 62.05 percent (operating margin 62.12 percent and the net profit margin finally 63.70 percent).


Financial Analysis:
The total debt representing 73.94 percent of the company’s assets and the total debt in relation to the equity amounts to 347.86 percent. Due to the financial situation, a return on equity of 12.91 percent was realized. Twelve trailing months earnings per share reached a value of $0.90. Last fiscal year, the company paid $0.98 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.17, P/S ratio 5.32 and P/B ratio 1.06. Dividend Yield: 13.51 percent. The beta ratio is 0.34.


Long-Term Stock History Chart Of MFA Financial, Inc. (Click to enlarge)


Long-Term Dividends History of MFA Financial, Inc. (MFA) (Click to enlarge)


Long-Term Dividend Yield History of MFA Financial, Inc. (NYSE: MFA) (Click to enlarge)


Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 11.39 and forward P/E ratio is 9.97. The dividend yield has a value of 13.61 percent. Price to book ratio is 1.31 and price to sales ratio 2.62. The operating margin amounts to 27.45 percent. Finally, the return on equity has a fantastic ratio of 13.28 percent and the return on investment follows with a value of 8.61 percent.

Here is the full table with some fundamentals (TTM):

7 Low Volatility Stocks With Double-Digit Yields (Click to enlarge)

Related stock ticker symbols:
NRGY, NLY, MFA, FTE, HTS, YPF, TEF

Selected Articles:

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

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