4/10/2012

8 Large Capitalized High Yield Stocks Below Book Value

Large Capitalized High Yield Stocks Under Book Value Researched By Dividend Yield - Stock, Capital, Investment. High yield stocks, companies with a dividend yield of more than five percent, are often an attractive investment class especially in times of low short-term interest rates. 927 stocks with a yield over five percent are available at the market. In order to find some opportunities, I screened the investment category by stocks with a P/B ratio below one and a market capitalization of more than USD 10 billion. If you buy a stock below the book value, you get for a dollar of your cash more than a dollar in assets.

Eight companies remained of which four have a double-digit yield. Four stocks are recommended to buy and two have a strong buy rating. All of the results are from the financial and telecom sector.

Here are my favorite stocks:
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Telefonica (NYSE:TEF) has a market capitalization of $22.90 billion. The company employs 291,027 people, generates revenues of $82,316.34 million and has a net income of $8,104.96 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,475.06 million. Because of these figures, the EBITDA margin is 32.16 percent (operating margin 16.02 percent and the net profit margin finally 9.85 percent).


Financial Analysis:
The total debt representing 51.16 percent of the company’s assets and the total debt in relation to the equity amounts to 306.48 percent. Due to the financial situation, a return on equity of 23.45 percent was realized. Twelve trailing months earnings per share reached a value of $4.71. Last fiscal year, the company paid $6.29 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 3.19, P/S ratio 0.87 and P/B ratio 0.82. Dividend Yield: 13.73 percent. The beta ratio is 0.97.


Long-Term Stock History Chart Of Telefonica S.A. (ADR) (Click to enlarge)


Long-Term Dividends History of Telefonica S.A. (ADR) (TEF) (Click to enlarge)


Long-Term Dividend Yield History of Telefonica S.A. (ADR) (NYSE: TEF) (Click to enlarge)


Annaly Capital Management (NYSE:NLY) has a market capitalization of $15.17 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 31.93, P/S ratio 4.27 and P/B ratio 0.98. Dividend Yield: 13.97 percent. The beta ratio is 0.29.


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)


Banco Santander (NYSE:STD) has a market capitalization of $58.00 billion. The company employs 193,349 people, generates revenues of $79,721.23 million and has a net income of $8,073.52 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,709.55 million. Because of these figures, the EBITDA margin is 33.50 percent (operating margin percent and the net profit margin finally 12.95 percent).


Financial Analysis:
The total debt representing 16.95 percent of the company’s assets and the total debt in relation to the equity amounts to 277.57 percent. Due to the financial situation, a return on equity of 7.10 percent was realized. Twelve trailing months earnings per share reached a value of $0.80. Last fiscal year, the company paid $0.79 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.09, P/S ratio 1.03 and P/B ratio 0.62. Dividend Yield: 11.70 percent. The beta ratio is 1.72.


Long-Term Stock History Chart Of Banco Santander, S.A. ... (Click to enlarge)


Long-Term Dividends History of Banco Santander, S.A. ... (STD) (Click to enlarge)


Long-Term Dividend Yield History of Banco Santander, S.A. ... (NYSE: STD) (Click to enlarge)


Take a closer look at the full table of high yield stocks below book value. The average price to earnings ratio (P/E ratio) amounts to 10.42 and forward P/E ratio is 6.74. The dividend yield has a value of 10.44 percent. Price to book ratio is 0.80 and price to sales ratio 1.56. The operating margin amounts to 15.64 percent.

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

8 Large Cap High Yields Below Book Value (Click to enlarge)

Related stock ticker symbols:
TEF, NLY, FTE, STD, BBVA, TI, HBC, SLF

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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