Stocks with More Than 10% Dividend Yield and a 'Buy' Rating

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Jan 31, 2012
I researched the capital market by stocks with a market capitalization of more than USD2 billion, a dividend yield of more than 10 percent as well as a "buy" or better recommendation. Ten stocks fulfilled my criteria, of which two have a "strong buy" rating.


Stocks with very high yields are very interesting because in the cause of a double digit yield, your investment amounts paid off in less than 10 years. Take care that your stocks is healthy enough to pay dividends in the same amount all the time.


Here are my favorite stocks:


1. Frontier Communications (FTR, Financial)
has a market capitalization of $4.21 billion. The company employs 15,250 people, generates revenues of $3,797.68 million and has a net income of $155.72 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,678.51 million. Because of these figures, the EBITDA margin is 44.20 percent (operating margin 20.66 percent and the net profit margin finally 4.10 percent).


The total debt representing 46.19 percent of the company’s assets and the total debt in relation to the equity amounts to 159.02 percent. Due to the financial situation, a return on equity of 5.42 percent was realized. Twelve trailing months earnings per share reached a value of $0.15. Last fiscal year, the company paid $0.88 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 27.99, Price/Sales 1.13 and Price/Book ratio 0.82. Dividend Yield: 17.40 percent. The beta ratio is 0.71.


2. Banco Santander (STD, Financial) has a market capitalization of $66.59 billion. The company employs 191,350 people, generates revenues of $69,963.97 million and has a net income of $12,071.78 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27,262.75 million. Because of these figures, the EBITDA margin is percent (operating margin percent and the net profit margin finally 20.89 percent).


The total debt representing 17.96 percent of the company’s assets and the total debt in relation to the equity amounts to 291.53 percent. Due to the financial situation, a return on equity of 11.42 percent was realized. Twelve trailing months earnings per share reached a value of $1.23. Last fiscal year, the company paid $0.79 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 6.39, Price/Sales 1.25 and Price/Book ratio 0.69. Dividend Yield: 10.67 percent. The beta ratio is 1.72.


3. Annaly Capital Management (NLY, Financial) has a market capitalization of $16.30 billion. The company employs 114 people, generates revenues of $2,683.13 million and has a net income of $1,267.28 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,349.56 million. Because of these figures, the EBITDA margin is 50.30 percent (operating margin 48.55 percent and the net profit margin finally 47.23 percent).


The total debt representing 79.92 percent of the company’s assets and the total debt in relation to the equity amounts to 669.88 percent. Due to the financial situation, a return on equity of 13.11 percent was realized. Twelve trailing months earnings per share reached a value of $1.92. Last fiscal year, the company paid $2.65 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 8.76, Price/Sales 6.08 and Price/Book ratio 1.10. Dividend Yield: 13.56 percent. The beta ratio is 0.31.


Take a closer look at the full table of stocks with very high yields and buy recommendation. The average price to earnings ratio (P/E ratio) amounts to 7.23. The dividend yield has a value of 12.28 percent. Price to book ratio is 2.43 and price to sales ratio 2.84. The operating margin amounts to 9.31 percent.


Related stock ticker symbols:

FTR, VE, NRGY, MFA, NLY, HTS, FTE, TEF, STD, OZM,


Selected Articles:

· 12 Stocks With Very High Yields (10+ Percent) And Additional Growth Potential

· 15 High Yield Large Caps With Best Margin

· High Yield Large Caps With Biggest ROE

· High Yield Stocks With Upside Potential