The highest yielding stock is now China Petroleum & Chemical. The company yields at 4.39 percent but long-term earnings are expected to fall by around one percent for the next five years. The best picks by mid-term growth are Mitsui and Honda.
Here are my favorite picks:
Ericsson (NASDAQ:ERIC) has a market capitalization of $29.78 billion. The company employs 109,214 people, generates revenue of $34.307 billion and has a net income of $1.900 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.608 billion. The EBITDA margin is 13.43 percent (the operating margin is 7.89 percent and the net profit margin 5.54 percent).
Financial Analysis: The total debt represents 11.07 percent of the company’s assets and the total debt in relation to the equity amounts to 21.68 percent. Due to the financial situation, a return on equity of 8.46 percent was realized. Twelve trailing months earnings per share reached a value of $0.62. Last fiscal year, the company paid $0.38 in the form of dividends to shareholders. The earnings per share are expected to grow by 29.41 for the next year and 9.62 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.42, the P/S ratio is 0.87 and the P/B ratio is finally 1.38. The dividend yield amounts to 3.85 percent and the beta ratio has a value of 1.02.
| Long-Term Stock History Chart Of Ericsson (Click to enlarge) |
| Long-Term Dividends History of Ericsson (ERIC) (Click to enlarge) |
| Long-Term Dividend Yield History of Ericsson (NASDAQ: ERIC) (Click to enlarge) |
Bunge Limited (NYSE:BG) has a market capitalization of $10.68 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.60 percent and the net profit margin 1.53 percent).
Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders. The earnings per share are expected to grow by 21.22 for the next year and 10.0 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.45, the P/S ratio is 0.18 and the P/B ratio is finally 0.97. The dividend yield amounts to 1.48 percent and the beta ratio has a value of 1.18.
| Long-Term Stock History Chart Of Bunge Limited (Click to enlarge) |
| Long-Term Dividends History of Bunge Limited (BG) (Click to enlarge) |
| Long-Term Dividend Yield History of Bunge Limited (NYSE: BG) (Click to enlarge) |
FedEx Corporation (NYSE:FDX) has a market capitalization of $27.56 billion. The company employs 101,000 people, generates revenue of $42.680 billion and has a net income of $2.032 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.304 billion. The EBITDA margin is 12.43 percent (the operating margin is 7.46 percent and the net profit margin 4.76 percent).
Financial Analysis: The total debt represents 5.57 percent of the company’s assets and the total debt in relation to the equity amounts to 11.32 percent. Due to the financial situation, a return on equity of 13.55 percent was realized. Twelve trailing months earnings per share reached a value of $6.40. Last fiscal year, the company paid $0.52 in the form of dividends to shareholders. The earnings per share are expected to grow by 21.17 for the next year and 12.41 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.71, the P/S ratio is 0.65 and the P/B ratio is finally 1.89. The dividend yield amounts to 0.64 percent and the beta ratio has a value of 1.24.
| Long-Term Stock History Chart Of FedEx Corporation (Click to enlarge) |
| Long-Term Dividends History of FedEx Corporation (FDX) (Click to enlarge) |
| Long-Term Dividend Yield History of FedEx Corporation (NYSE: FDX) (Click to enlarge) |
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| Cheapest Large Cap Stock List 11/2012 (Click to enlarge) |

As reported by Bloomberg, the earnings yield on the S&P 500 is 6.64% (meaning earnings are 6.64% of market cap on a trailing twelve month basis), whereas the yield on junk bonds is 6.61%. So theoretically you're getting paid more to buy equity, rather than take on risky credit, with limited upside. That hasn't happened before.
ReplyDeleteOne quarrel investors may have: Just because there's been a raging bull market in credit, it doesn't mean that stocks are cheap, and that's true. But they can still be a better deal, a point that even bond guy Bill Gross is making. It's also possible, of course, that if the economy were to go off the rails, both stocks and junk bonds would get decimated together, throwing any notion of relative cheapness out the window.