New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Income Investors' Forum
Ideas for Income Investors. High Dividend Stocks, Mutual Funds etc.
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
4 High-Yielding Stocks with Safe Haven Characteristics and 9 Additional to Consider
Posted by: Dividend (IP Logged)
Date: September 30, 2013 09:48AM

On my blog I’ve published over 100 stocks with safe haven characteristics. For sure no stock is safe and no dividend is guaranteed, but there are some shares with a higher risk and bigger volatility which I don’t like. I’m looking for low yielding stocks with solid debt ratios and modest growth perspectives with a proven business model and a long-term dividend growth history.

Today, I produced a screen with the following core criteria:

- Market Capitalization over USD 10 billion
- Debt-to-Equity Ratio below 0.5
- Beta Ratio Below one

In order to get the top yielding results with cheap expected P/Es, I selected only those stocks with a forward P/E of less than 15 as well as a dividend yield of more than 3 percent. Only 13 stocks fulfilled my safe haven characteristics of which two are high-yields and seven are recommended to buy. Many telecoms are part of the results.

The sector is definitely low priced and there is a huge rumor about takeovers. I also have shares of AT&T and Rogers in my Dividend Yield Passive Income Portfolio.

Here are the top yielding stocks from the screening results:

Telefonica Brasil (VIV)
has a market capitalization of $25.08 billion. The company employs 19,614 people, generates revenue of $15.201 billion and has a net income of $1.994 billion. Telefonica Brasil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.198 billion. The EBITDA margin is 34.20 percent (the operating margin is 21.26 percent and the net profit margin 13.12 percent).

Financial Analysis: The total debt represents 11.39 percent of Telefonica Brasil’s assets and the total debt in relation to the equity amounts to 17.91 percent. Due to the financial situation, a return on equity of 10.12 percent was realized by Telefonica Brasil. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, Telefonica Brasil paid $1.27 in the form of dividends to shareholders. Forward P/E: 12.88.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.54, the P/S ratio is 1.61 and the P/B ratio is finally 1.27. The dividend yield amounts to 9.37 percent and the beta ratio has a value of 0.62.

Ecopetrol (EC) has a market capitalization of $94.96 billion. The company employs 8,087 people, generates revenue of $35.317 billion and has a net income of $7.863 billion. Ecopetrol’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15.070 billion. The EBITDA margin is 42.67 percent (the operating margin is 35.23 percent and the net profit margin 22.26 percent).

Financial Analysis: The total debt represents 17.73 percent of Ecopetrol’s assets and the total debt in relation to the equity amounts to 38.40 percent. Due to the financial situation, a return on equity of 39.88 percent was realized by Ecopetrol. Twelve trailing months earnings per share reached a value of $3.46. Last fiscal year, Ecopetrol paid $3.17 in the form of dividends to shareholders. Forward P/E: 12.83.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.36, the P/S ratio is 2.73 and the P/B ratio is finally 4.82. The dividend yield amounts to 5.90 percent and the beta ratio has a value of 0.94.

Total (TOT) has a market capitalization of $133.63 billion. The company employs 97,126 people, generates revenue of $246.559 billion and has a net income of $14.662 billion. Total’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $44.973 billion. The EBITDA margin is 18.24 percent (the operating margin is 12.29 percent and the net profit margin 5.95 percent).

Financial Analysis: The total debt represents 19.37 percent of Total’s assets and the total debt in relation to the equity amounts to 45.66 percent. Due to the financial situation, a return on equity of 15.17 percent was realized by Total. Twelve trailing months earnings per share reached a value of $5.65. Last fiscal year, Total paid $3.16 in the form of dividends to shareholders. Forward P/E: 8.35.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.43, the P/S ratio is 0.56 and the P/B ratio is finally 1.33. The dividend yield amounts to 5.32 percent and the beta ratio has a value of 0.99.

Intel (INTC) has a market capitalization of $114.49 billion. The company employs 106,000 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. Intel’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of Intel’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized by Intel. Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, Intel paid $0.64 in the form of dividends to shareholders. Forward P/E: 11.65.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.42, the P/S ratio is 2.21 and the P/B ratio is finally 2.29. The dividend yield amounts to 3.80 percent and the beta ratio has a value of 0.97.

Take a closer look at the full list of safe haven stocks with chap P/E's and adequade dividend yields. The average P/E ratio amounts to 14.29 and forward P/E ratio is 11.88. The dividend yield has a value of 3.96 percent. Price to book ratio is 2.33 and price to sales ratio 2.38. The operating margin amounts to 23.78 percent and the beta ratio is 0.78. Stocks from the list have an average debt to equity ratio of 0.24.

Do you like this article? If yes, please support us and hit the button for a Facebook Like, make a tweet or post a comment in the Dividend Yield community! Thank you so much, we really appreciate it.

Related Stock Ticker Symbols:
VIV, EC, TOT, INTC, CHL, AZN, MSFT, CA, PFE, CAJ, NVS, CVX, JNJ

Selected Articles:
· Cheapest Dividend Paying Large Caps As of September 2013
· 20 Of The Safest Dividend Challengers On The Market
· 20 Of The Safest Dividend Aristocrats
· The Safest Consumer Dividend Stocks | Article Serial

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.


Stocks Discussed: VIV, EC, TOT, INTC, CHL, AZN, MSFT, CA, PFE, CAJ, NVS, CVX, JN,
Rate this post:

Rating: 3.0/5 (2 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide