3 Promising Semiconductor Equipment and Materials Stocks

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Sep 11, 2011
Dividend stocks should be a part of everybody’s long-term stock portfolio. Let’s take a look into the semiconductor equipment and materials industry, an industry that I have analyzed by the best yielding dividend stocks. Stocks from the industry have a total market capitalization of $177 billion, the average industry P/E ratio is 11.0, P/B ratio 2.3 and the average dividend yield amounts to 2.9 percent. An average company from the industry has a net profit margin of 16 percent.

I screened the industry by stocks with a dividend yield more than 2 percent, a current P/E ratio of less than 10 as well a long-term debt to equity ratio of under 0.5. Below are three major dividend paying players from industry that met these criteria:

Here are my three most promising results:

1. United Microelectronics Corporation (UMC, Financial) hasa market capitalization of $5.0 billion, generates revenues in an amount of $4.3 billion and a net income of $787.7 million. It follows P/E ratio is 6.1 and forward price to earnings ratio 15.8, Price/Sales 1.7 and Price/Book ratio 0.7. Dividend Yield: 10.1 percent. The expected EPS growth for next year amounts to 3.3 and 81.4 percent for the upcoming 5 years. The long-term debt to equity is 0.1.

2. Applied Materials (AMAT, Financial) hasa market capitalization of $14.1 billion, generates revenues in an amount of $11.2 billion and a net income of $1.9 billion. It follows P/E ratio is 7.4 and forward price to earnings ratio 10.5, Price/Sales 1.3 and Price/Book ratio 1.7. Dividend Yield: 3.0 percent. The expected EPS growth for next year amounts to -23.7 and 12.4 percent for the upcoming 5 years. The long-term debt to equity is 0.2.

3. Advanced Semiconductor Engineering (ASX, Financial) hasa market capitalization of $6.1 billion, generates revenues in an amount of $6.2 billion and a net income of $619.5 million. It follows P/E ratio is 9.7 and forward price to earnings ratio 10.4, Price/Sales 1.0 and Price/Book ratio 1.9. Dividend Yield: 2.3 percent. The expected EPS growth for next year amounts to 13.2 and 20.0 percent for the upcoming 5 years. The long-term debt to equity is 0.4.

Take also a look at my screening results of 10 best yielding semiconductor equipment and materials stocks. The average price to earnings ratio amounts to 13.1 while the average dividend yield amounts to 3.6 percent. Price to book ratio is 1.6 and price to sales ratio 1.2.