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12/24/2012

High-Yield S&P 500 List | 6 With A Buy Rating

High-Yield stocks from the S&P 500 originally published at "long-term-investments.blogspot.com". Investors like to make money with stocks. They want the best shares with a great possibility of a potential trading gain.

One strategy to follow is dividend investing. Dividend investors like me often sit on an asset and use the dividend payments as cash source for further investments. A stock with a 5 percent yield or more pays back your investment amount in 20 years.

Investing money into shares from the S&P could make it easier to reduce risks because the index has higher capitalized stocks with a normally broader diversified business model.

Today, I like to discover some of the highest yielding stocks from the S&P 500. The whole index has 500 companies compiled of which 21 have a yield over five percent. Six of the high yielding S&P 500 shares are currently recommended to buy.

Here are my favorite stocks:
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Altria Group (NYSE:MO) has a market capitalization of $64.50 billion. The company employs 9,900 people, generates revenue of $23.800 billion and has a net income of $3.393 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.321 billion. The EBITDA margin is 26.56 percent (the operating margin is 25.50 percent and the net profit margin 14.26 percent).

Financial Analysis: The total debt represents 37.04 percent of the company’s assets and the total debt in relation to the equity amounts to 371.98 percent. Due to the financial situation, a return on equity of 76.13 percent was realized. Twelve trailing months earnings per share reached a value of $1.92. Last fiscal year, the company paid $1.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.59, the P/S ratio is 2.71 and the P/B ratio is finally 17.69. The dividend yield amounts to 5.53 percent and the beta ratio has a value of 0.41.


”Long-Term
Long-Term Stock History Chart Of Altria Group (MO)
”Long-Term
Long-Term Dividends History of Altria Group (MO)
”Long-Term
Long-Term Dividend Yield History of Altria Group (MO)

CenturyLink (NYSE:CTL) has a market capitalization of $24.53 billion. The company employs 46,500 people, generates revenue of $15.351 billion and has a net income of $573.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.029 billion. The EBITDA margin is 39.27 percent (the operating margin is 13.05 percent and the net profit margin 3.73 percent).

Financial Analysis: The total debt represents 38.90 percent of the company’s assets and the total debt in relation to the equity amounts to 104.84 percent. Due to the financial situation, a return on equity of 3.76 percent was realized. Twelve trailing months earnings per share reached a value of $1.05. Last fiscal year, the company paid $2.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.44, the P/S ratio is 1.60 and the P/B ratio is finally 1.17. The dividend yield amounts to 7.38 percent and the beta ratio has a value of 0.69.


”Long-Term
Long-Term Stock History Chart Of CenturyLink (CTL)
”Long-Term
Long-Term Dividends History of CenturyLink (CTL)
”Long-Term
Long-Term Dividend Yield History of CenturyLink (CTL)

Paychex (NASDAQ:PAYX) has a market capitalization of $11.42 billion. The company employs 12,500 people, generates revenue of $2.229 billion and has a net income of $548.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $951.70 million. The EBITDA margin is 42.68 percent (the operating margin is 38.29 percent and the net profit margin 24.58 percent).

Financial Analysis: The total debt represents 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 35.35 percent was realized. Twelve trailing months earnings per share reached a value of $1.54. Last fiscal year, the company paid $1.27 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.40, the P/S ratio is 5.12 and the P/B ratio is finally 7.10. The dividend yield amounts to 4.20 percent and the beta ratio has a value of 0.85.


”Long-Term
Long-Term Stock History Chart Of Paychex (PAYX)
”Long-Term
Long-Term Dividends History of Paychex (PAYX)
”Long-Term
Long-Term Dividend Yield History of Paychex (PAYX)


Take a closer look at the full list of the highest yielding stocks from the S&P 500. The average P/E ratio amounts to 24.70 and forward P/E ratio is 14.38. The dividend yield has a value of 6.94 percent. Price to book ratio is 3.44 and price to sales ratio 1.85. The operating margin amounts to 16.76 percent and the beta ratio is 0.83. The average stock from the screening results has a debt to equity ratio of 2.95. If I exclude PBI, the ratio is 1.55.

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

High-Yield S&P 500 List 2012/2013 (Click to enlarge)

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Related stock ticker symbols:
PBI, WIN, RRD, FTR, PAYX, CTL, CLF, EXC, BBY, RAI, MO, POM, EQR, T, LO, FE, PBCT, TE, AEE, ETR, TEG

Selected Articles:

*I am long MO. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.

1 comment:

  1. Anonymous12/24/2012

    While many people simply look for dividend paying equities to provide a source of income, for the long-term investor it is imperative that income keep up with inflation. Dividends without growth can essentially result in an income stream that remains relatively static over time. In contrast, if dividends grow over time the effects of inflation may be mitigated. The best way for a company to grow dividends over time is by growing earnings.

    ReplyDelete

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