10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

10 High-Yield Growth Stocks with Gaining Earnings Momentum

Growth stocks are wonderful if they finance their growth without capital injunctions. Better they pay a high dividend and increase it over years. I screened the market by high yield stocks with a recent sales and earnings growth of more than ten percent (past five years). In order to catch only those stocks with a gaining earnings growth, I observed only stocks with quarter-on-quarter sales and earnings per share growth of more than 20 percent. Exactly ten companies fulfilled these criteria. Two of them have a double-digit yield and five are recommended to buy.

Here are my favorite stocks:

1. Terra Nitrogen (TNH)
has a market capitalization of $4.19 billion. The company employs people, generates revenues of $798.90 million and has a net income of $508.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $527.70 million. Because of these figures, the EBITDA margin is 66.05 percent (operating margin 63.57 percent and the net profit margin finally 63.59 percent).

Terra has no long-term debt. Due to the financial situation, a return on equity of 127.46 percent was realized. Twelve trailing months earnings per share reached a value of $15.33. Last fiscal year, the company paid $13.91 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 14.64, P/S ratio 5.29 and P/B ratio 18.10. Dividend Yield: 7.48 percent. The beta ratio is 0.75.

2. Williams Partners (WPZ) has a market capitalization of $18.00 billion. The company employs people, generates revenues of $6,729.00 million and has a net income of $1,378.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,250.00 million. Because of these figures, the EBITDA margin is 33.44 percent (operating margin 24.40 percent and the net profit margin finally 20.48 percent).

The total debt representing 50.33 percent of the company’s assets and the total debt in relation to the equity amounts to 138.43 percent. Due to the financial situation, a return on equity of 20.77 percent was realized. Twelve trailing months earnings per share reached a value of $3.69. Last fiscal year, the company paid $2.96 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.01, P/S ratio 2.66 and P/B ratio 3.33. Dividend Yield: 5.08 percent. The beta ratio is 1.11.

3. Holly Energy Partners (HEP) has a market capitalization of $1.71 billion. The company employs 148 people, generates revenues of $213.55 million and has a net income of $78.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $144.72 million. Because of these figures, the EBITDA margin is 67.77 percent (operating margin 52.27 percent and the net profit margin finally 36.52 percent).

The total debt representing 62.66 percent of the company’s assets and the total debt in relation to the equity amounts to 183.95 percent. Due to the financial situation, a return on equity of 16.84 percent was realized. Twelve trailing months earnings per share reached a value of $2.76. Last fiscal year, the company paid $3.48 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 22.58, P/S ratio 7.78 and P/B ratio 3.49. Dividend Yield: 5.83 percent. The beta ratio is 0.67.

Take a closer look at the full table of high yield stocks with gaining earnings momentum. The average price to earnings ratio (P/E ratio) amounts to 14.06 and forward P/E ratio is 13.40. The dividend yield has a value of 7.68 percent. Price to book ratio is 3.66 and price to sales ratio 5.08. The operating margin amounts to 42.02 percent. Sales increased 62.40 percent compared to the figures from the same quarter last year (33.34 percent 5-year average) and the earnings per share grew 119.6 percent quarter on quarter (31.12 percent 5-year average).

Related stock ticker symbols:

CYS, BMA, UAN, TNH, CMLP, MAIN, FPO, APL, HEP, WPZ

Selected Articles:

· Five S&P 500 High Yield Stocks With Double Digit Earnings Growth

· Cheapest Large Caps With Highest Expected Growth As Of February 2012

· 15 Most Impressive Dividend Growth Stocks

· 14 High Yield Stocks With Low Debt Ratios That Are Still Cheap In Terms Of Coming Growth

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 4.0/5 (2 votes)

Comments

Please leave your comment:


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