Telefonica SA (TEF) is a provider of telephony services. Shares of the company are currently trading around $17 per share. Over the last 52 weeks, its shares have traded between $16.53 and $27.31. Telefonica has a gross margin of 52% and an operating margin of 10.5%. It has a payout ratio of 283%. The company reported a dividend yield of 9.9% and a 15% return on equity. Over the last five years, its dividend has shown a growth rate of 29.28%, and these dividends have been increasing over the past eight years. Telefonica was the second-highest dividend yielding stock among ten European-based companies on the NYSE. It has given a target dividend distribution of $2.5 per share in 2013, which should be a good sign for investors.
Alerian MLP ETF (AMEX: AMLP) is an investment fund that invests in the Alerian MLP Infrastructure Index. Shares of the company are currently trading at $16.60 per share and have traded between $13.10 and $17.18 over the last 52 weeks. Alerian MLP has a dividend yield of 6.02% and its last net dividend was $0.25 per share. This sector is expected to outperform, so despite the 0.85% annual expense ratio, investment in it seems sensible.
Old Republic International Corporation (ORI) is an insurance and mortgage provider in North America. Shares of the company are currently trading around $9 per share. Over the last 52-week period, its shares have traded between $7.15 and $13.28 per share. Analysts' average share price estimate for the company is $17 per share by the end of 2012. Old Republic is currently generating negative returns on equity and its profit margin is also negative. On the other hand, it reported a high dividend yield of 7.8%.
Its beta of 0.88 indicates that the stock is not quite volatile, which is a good sign. Old Republic’s quarterly revenue growth was around 13%, which was significantly higher than the industry average at 0.3%. This low industry average was mainly due to the relatively bad performance of its peers. Old Republic has a five-year average dividend growth rate of 3.51% and the company has been paying dividends since 1942. Over the last 30 years, the company’s dividends have been increasing, despite its recent performance.
CBL & Associates Properties (CBL) is a real estate investment trust (REIT). Shares of the company are currently trading around $16 per share, and have traded between $10.41 and $19.35 over the last 52 weeks. It reported a relatively high beta of 3.66, indicating that the stock is highly volatile. The company has a dividend yield of 5.4%, and a profit margin of 7%. CBL managed to generate a return-on-equity of 3%, and both its operating and gross margins, at 39% and 71% respectively, were slightly higher than the industry averages.
With its $380 million worth of financing activities, CBL managed to generate more than $160 million in cash. Also, the company traded higher than their 200 day moving average of $15.91. Stocks of certain REITs, including CBL, have been seeing an increase over the last three months due to a number of reasons. This makes CBL an attractive stock, in the near future.
Seadrill Limited (SDRL) is an offshore drilling contractor. Shares of the company are currently trading at $36 per share. Over the last 52 weeks, its shares have traded between $24.68 and $38.49 per share. The company reported a high dividend yield of 8.6%. Seadrill has a high beta of 1.72, indicating volatility in the stock. The company managed to generate a return on equity of 31% and a profit margin of 41%. It also reported a gross margin of 58%, and an operating margin of 41%.
Seadrill’s lower-than-industry price-to-equity ratio of 9x is good news for investors. The company has a robust three-year dividend growth rate of 115% and has been paying dividends since 2008. Growth opportunities in the oil sector will be a positive catalyst for Seadrill’s future valuations. Its high operating margin and dividend growth rate are indicative of constant future dividends.
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