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Overview of the Safest High-Yield Large Caps on the Market
Posted by: Dividend (IP Logged)
Date: October 17, 2012 09:43AM

High-yields (stocks with a dividend yield over 5 percent) are often highly risky . Especially stocks with double-digit yield and low capitalization should be reviewed in fine detail.

In order to find some interesting stocks with high yield and low risk, I made a screen of high-yield stocks with a beta ratio below one. The beta ratio is a statistical measure which represents the performance in relation to the market. A ratio of less than one means that the stock is lower correlated with the market. In down markets, the stock falls less than the market. In order to reduce the risks from lower capitalized stocks, I selected only those with a market capitalization above USD10 billion. Twenty stocks remained of which three have a double-digit yield and eight a current "buy" or better rating.

Here are my favorite stocks:

AstraZeneca (AZN) has a market capitalization of $58.85 billion. The company employs 57,200 people, generates revenue of $33,591.00 million and has a net income of $10,016.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14,792.00 million. The EBITDA margin is 44.04 percent (operating margin 38.09 percent and net profit margin 29.82 percent).

Financial Analysis: The total debt represents 17.66 percent of the company’s assets and the total debt in relation to the equity amounts to 40.13 percent. Due to the financial situation, a return on equity of 42.98 percent was realized. Twelve trailing months earnings per share reached a value of $6.24. Last fiscal year, the company paid $2.80 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.58, P/S ratio 1.72 and P/B ratio 2.58. Dividend Yield: 6.13 percent. The beta ratio is 0.65.

National Grid (NGG) has a market capitalization of $41.18 billion. The company employs 25,645 people, generates revenue of $22,225.44 million and has a net income of $3,274.68 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,617.90 million. The EBITDA margin is 34.28 percent (operating margin 25.08 percent and net profit margin 14.73 percent).

Financial Analysis: The total debt represents 48.64 percent of the company’s assets and the total debt in relation to the equity amounts to 249.22 percent. Due to the financial situation, a return on equity of 22.25 percent was realized. Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, the company paid $3.16 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.40, P/S ratio 1.83 and P/B ratio 2.79. Dividend Yield: 5.56 percent. The beta ratio is 0.62.

Reynolds American (RAI) has a market capitalization of $24.14 billion. The company employs 5,400 people, generates revenue of $8,541.00 million and has a net income of $1,406.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,537.00 million. The EBITDA margin is 29.70 percent (operating margin 28.09 percent and net profit margin 16.46 percent).

Financial Analysis: The total debt represents 22.54 percent of the company’s assets and the total debt in relation to the equity amounts to 58.60 percent. Due to the financial situation, a return on equity of 22.04 percent was realized. Twelve trailing months earnings per share reached a value of $2.52. Last fiscal year, the company paid $2.15 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.91, P/S ratio 2.81 and P/B ratio 3.91. Dividend Yield: 5.56 percent. The beta ratio is 0.55.

Altria Group (MO) has a market capitalization of $67.61 billion. The company employs 9,900 people, generates revenue of $23,800.00 million and has a net income of $3,393.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,321.00 million. The EBITDA margin is 26.56 percent (operating margin 25.50 percent and 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 $2.16. Last fiscal year, the company paid $1.58 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.36, P/S ratio 2.83 and P/B ratio 18.43. Dividend Yield: 5.31 percent. The beta ratio is 0.39.

Take a closer look at the full table of high yields stocks with the lowest beta ratio. The average price to earnings ratio (P/E ratio) amounts to 19.25 and forward P/E ratio is 14.57. The dividend yield has a value of 7.11 percent. Price to book ratio is 3.12 and price to sales ratio 2.52. The operating margin amounts to 21.44 percent and the beta ratio is 0.63. The average stock has a debt to equity ratio of 2.20.

Related stock ticker symbols:
NLY, KMP, MO, CHT, LO, AGNC, EXC, RAI, NGG, AZN, ETP, CTL, FTE, VOD, BCE, CIG, ETE, CPL, SKM, EC

Selected Articles:
· 18 High Yield Stocks From The S&P 500 (A Quick Overview)
· 13 Of The Best Dividend Paying High Yields
· 11 Most Profitable High Yields Within The S&P 500
· 13 High Yield Stocks At New 52-Week Highs
· 18 High Yield Stocks At New 52-Week Low

Low Beta High-Yield Stocks with a Large Capitalization Researched by “long-term-investments.blogspot.com.”


Stocks Discussed: NLY, KMP, MO, CHT, LO, AGNC, EXC, RAI, NGG, AZN, ETP, CTL, FTE,
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