11/20/2012

11 Most Recommended Stocks With +10% Yields

The Most Recommended Higher Capitalized Stocks With Yields Over 10 Percent and Buy Rating Originally Published At “long-term-investments.blogspot.com”. Stocks with very high yields could boost your dividend income onto the next level. Especially if you have only a few thousand dollars of investment budget it makes these to take a look at the highest yields at the market. I know what I am talking about. In my first years of investing, I starred often at such stocks with unbelievable high yields. I talk about yields of over 10 percent. But the most of the results are not sustainable and databases are not well-kept. Especially in the case of lower capitalized stocks, the risk of a dividend cuts is very high. Some of you ask me which stock to buy or which are the best +10 percent yielding stocks to buy now. I made a little list of the highest yielding stocks, starting at 10 percent dividend yield. You won’t believe it but there are more than a hundred companies with such a high yield. In order to reduce my results, I selected only those with a market capitalization of more than USD 2 billion and a current buy or better recommendation. Eleven stocks remain. Five of the results come from the REIT industry.

Here are my favorite stocks:
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Portugal Telecom (NYSE:PT) has a market capitalization of $4.19 billion. The company employs 72,347 people, generates revenue of $7.874 billion and has a net income of $541.79 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.651 billion. The EBITDA margin is 33.67 percent (the operating margin is 12.10 percent and the net profit margin 6.88 percent).

Financial Analysis: The total debt represents 53.53 percent of the company’s assets and the total debt in relation to the equity amounts to 434.25 percent. Due to the financial situation, a return on equity of 9.39 percent was realized. Twelve trailing months earnings per share reached a value of $0.34. Last fiscal year, the company paid $1.67 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.74, the P/S ratio is 0.53 and the P/B ratio is finally 1.16. The dividend yield amounts to 17.47 percent and the beta ratio has a value of 0.83.


”Long-Term
Long-Term Stock History Chart Of Portugal Telecom (Click to enlarge)
”Long-Term
Long-Term Dividends History of Portugal Telecom (PT) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Portugal Telecom (NYSE: PT) (Click to enlarge)

France Telecom (NYSE:FTE) has a market capitalization of $27.63 billion. The company employs 170,338 people, generates revenue of $58.004 billion and has a net income of $4.904 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.934 billion. The EBITDA margin is 32.64 percent (the operating margin is 17.55 percent and the net profit margin 8.45 percent).

Financial Analysis: The total debt represents 43.35 percent of the company’s assets and the total debt in relation to the equity amounts to 151.06 percent. Due to the financial situation, a return on equity of 13.75 percent was realized. Twelve trailing months earnings per share reached a value of $1.73. Last fiscal year, the company paid $1.79 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.02, the P/S ratio is 0.47 and the P/B ratio is finally 0.78. The dividend yield amounts to 16.76 percent and the beta ratio has a value of 0.76.


”Long-Term
Long-Term Stock History Chart Of France Telecom (Click to enlarge)
”Long-Term
Long-Term Dividends History of France Telecom (FTE) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of France Telecom (NYSE: FTE) (Click to enlarge)

Windstream (NASDAQ:WIN) has a market capitalization of $4.92 billion. The company employs 14,638 people, generates revenue of $4.285 billion and has a net income of $172.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.679 billion. The EBITDA margin is 39.19 percent (the operating margin is 19.41 percent and the net profit margin 4.02 percent).

Financial Analysis: The total debt represents 63.58 percent of the company’s assets and the total debt in relation to the equity amounts to 610.80 percent. Due to the financial situation, a return on equity of 14.51 percent was realized. Twelve trailing months earnings per share reached a value of $0.23. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.11, the P/S ratio is 1.13 and the P/B ratio is finally 3.24. The dividend yield amounts to 12.09 percent and the beta ratio has a value of 0.90.


”Long-Term
Long-Term Stock History Chart Of Windstream (Click to enlarge)
”Long-Term
Long-Term Dividends History of Windstream (WIN) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Windstream (NASDAQ: WIN) (Click to enlarge)


Take a closer look at the full table of the best recommended stocks with very high yields. The average P/E ratio amounts to 12.59 and forward P/E ratio is 10.81. The dividend yield has a value of 13.80 percent. Price to book ratio is 2.70 and price to sales ratio 3.98. The operating margin amounts to 38.46 percent. The average stock has a debt to equity ratio of 6.25. The high value is reasonable to Pitney Bowes. The company has a ratio of 29.53. Excluded by the one-off, the ratio is at 3.92.

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

10 Most Recommended Stocks With +10% Yields (Click to enlartge)

Related stock ticker symbols:
PT, FTE, AGNC, ARR, CYS, PBI, IVR, HTS, WIN, MFA, PWE


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.

3 comments:

  1. Anonymous11/20/2012

    Dividend-paying stocks with high yields can seem like an outstanding investment at first glance. After all, who wouldn’t want to own a stock with a yield of 10 or 12%? However, the highest-yielding stocks can also carry the danger that the dividend is unsafe or may not be what it appears on the surface. But how can you tell the difference between a legitimate high yield and one that’s too good to be true?

    ReplyDelete
    Replies
    1. Anonymous12/09/2012

      The trigger point for a cut in dividends is when the current earnings fall below th projected dividend for the current qtr. Often the corp will keep the dividend for the current qtr incase earnings improve, or they will raise capital in the form of a stock or bond sale to maintain the dividend.

      Delete
    2. It does not mean that the dividend will be reduced if the company has enough cash, low or no debt and earnings will recover within the next quarters. But you are right. If earnings fall below the dividend rate or they are less than the twice amount, the company needs to reduce dividend payments or has not enough money to finance further growth.

      Delete

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