Bookmark and Share

12/20/2012

18 Stocks With Very High Yields (+10%) And Earnings Growth

+10% yielding shares with strong earnings per share growth originally published at "long-term-investments.blogspot.com" Some of my friends search regular for stocks with very high yield. I don’t talk about high-yields, stocks with yields between 5-10 percent. I mean stocks with annualized dividend yields of more than 10 percent.

It sounds a bit unserious and I personally would never buy such stocks but I can understand my friends because they have only a low net worth and they try to boost their passive income from dividends.

Let me say one thing: It could not sustainable for any kind of business to pay such a high amount of money to shareholders at a normal valuation. Something must be wrong. But if find an attractive investment, you can boost your dividend income and in ten years your investment paid-off.

Out there are 148 stocks with a yield over 10 percent. I’ve tried to figure out some interesting stocks.

These are my criteria:

- Dividend Yield above 10%
- Earnings per share growth for the next 5Y over 5%
- Market Capitalization over 300 million

Eighteen shares fulfilled these criteria. Seven of them have a current buy or better recommendation.

Here are the 3 most recommended stocks:
(Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook or Twitter)

Newcastle Investment (NYSE:NCT) has a market capitalization of $1.50 billion. The company generates revenue of $292.30 million and has a net income of $258.87 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $187.94 million. The EBITDA margin is 64.30 percent (the operating margin is 64.19 percent and the net profit margin 88.56 percent).

Financial Analysis: The total debt represents 90.36 percent of the company’s assets and the total debt in relation to the equity amounts to 1,717.79 percent. Due to the financial situation, a return on equity is not calculable. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 3.22, the P/S ratio is 5.14 and the P/B ratio is finally 7.02. The dividend yield amounts to 10.10 percent and the beta ratio has a value of 3.32.


”Long-Term
Long-Term Stock History Chart Of Newcastle Investment (NCT)
”Long-Term
Long-Term Dividends History of Newcastle Investment (NCT)
”Long-Term
Long-Term Dividend Yield History of Newcastle Investment (NCT)

PennantPark Investment (NASDAQ:PNNT) has a market capitalization of $723.29 million. The company generates revenue of $113.39 million and has a net income of $63.35 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $62.74 million. The EBITDA margin is 55.33 percent (the operating margin is 50.60 percent and the net profit margin 55.87 percent).

Financial Analysis: The total debt represents 28.90 percent of the company’s assets and the total debt in relation to the equity amounts to 43.97 percent. Due to the financial situation, a return on equity of 11.19 percent was realized. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, the company paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.96, the P/S ratio is 6.38 and the P/B ratio is finally 1.07. The dividend yield amounts to 10.28 percent and the beta ratio has a value of 1.67.


”Long-Term
Long-Term Stock History Chart Of PennantPark Investment (PNNT)
”Long-Term
Long-Term Dividends History of PennantPark Investment (PNNT)
”Long-Term
Long-Term Dividend Yield History of PennantPark Investment (PNNT)

TAL Education Group (NYSE:XRS) has a market capitalization of $728.30 million. The company employs 5,422 people, generates revenue of $177.52 million and has a net income of $24.31 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.48 million. The EBITDA margin is 14.92 percent (the operating margin is 11.71 percent and the net profit margin 13.70 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 14.09 percent was realized. Twelve trailing months earnings per share reached a value of $0.38. Last fiscal year, the company paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.47, the P/S ratio is 4.10 and the P/B ratio is finally 3.83. The dividend yield amounts to 21.28 percent and the beta ratio is not calculable.


”Long-Term
Long-Term Stock History Chart Of TAL Education Group (XRS)
”Long-Term
Long-Term Dividends History of TAL Education Group (XRS)
”Long-Term
Long-Term Dividend Yield History of TAL Education Group (XRS)

Take a closer look at the full list. The average P/E ratio amounts to 14.99 and forward P/E ratio is 9.96. The dividend yield has a value of 14.38 percent. Price to book ratio is 1.96 and price to sales ratio 2.90. The operating margin amounts to 30.02 percent and the beta ratio is 1.36. The average stock from the screening results has a debt to equity ratio of 2.46.

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

18 Stocks With Very High Yields (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment below!

Related stock ticker symbols:
NTI, XRS, CEL, SDT, ARR, OIBR, BGCP, NMM, MITT, BMA, STON, LOGI, MCGC, VGR, SAN, PNNT, EROC, NCT

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.

1 comment:

  1. Anonymous12/20/2012

    Stock prices have risen this year despite a lack of supporting economic data. The Dow Jones Industrial is up 7% YTD, while the US economy is bumping along with a substandard growth rate of 2% or less. Europe is in the middle of a recession while it tries to repair sovereign debt problems in weaker countries. China is changing leadership, done every 10 years, and has to cope with its slowest growth rate in years, hurt by sluggish and weak economies around the world. We need high yielding stocks to realize a good return. Thanks for the screen!

    ReplyDelete

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.

Free Dividend Yield Newsletter

Free Dividend Yield Newsletter

If you like to receive our Newsletter, please enter your email and verify your adress. Easily unsubscribe at any time, no spam, just content.