10% Yielding Dividend Stocks with Strongest Expected Earnings Growth

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Apr 20, 2012
One hundred thirty-four stocks and funds are listed at the capital markets with dividend yields over 10% and 84 of them are classical equity investments. Stocks with very high yields are interesting because of the high quarter cash payments you could receive but they are also very dangerous and should be treated with a special attention.


In order to find some great opportunities, I screened all 10%-yielding stocks with an earnings per share growth of more than 10% yearly for the upcoming five years. Fifteen stocks remained of which ten are currently recommended to buy.


Here are my favorite stocks:


Banco Santander (STD, Financial) has a market capitalization of $54.35 billion. The company employs 193,349 people, generates revenues of $79,842.56 million and has a net income of $8,085.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,750.20 million. Because of these figures, the EBITDA margin is 33.50% and the net profit margin amounts to 12.95%.


The total debt representing 16.95% of the company’s assets and the total debt in relation to the equity amounts to 277.57%. Due to the financial situation, a return on equity of 7.10% was realized. Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, the company paid $0.79 in form of dividends to shareholders. Earnings are expected to grow by 12.40% for the next five years.


Here are the price ratios of the company: The P/E ratio is 7.57, P/S ratio 0.92 and P/B ratio 0.56. Dividend Yield: 12.91%. The beta ratio is 1.72.


Veolia Environnement (VE, Financial) has a market capitalization of $7.03 billion. The company employs 287,043 people, generates revenues of $38,897.01 million and has a net income of $-428.37 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,367.49 million. Because of these figures, the EBITDA margin is 8.66% (operating margin 3.43% and the net profit margin finally -1.10%).


The total debt representing 41.84% of the company’s assets and the total debt in relation to the equity amounts to 298.30%. Due to the financial situation, a return on equity of -6.52% was realized. Twelve trailing months earnings per share reached a value of $-1.31. Last fiscal year, the company paid $0.92 in form of dividends to shareholders. Earnings are expected to grow by 15.70% for the next five years.


Here are the price ratios of the company: The P/E ratio is not calculable, P/S ratio 0.19 and P/B ratio 0.77. Dividend Yield: 12.26%. The beta ratio is 1.76.


Kohlberg Capital (KCAP, Financial) has a market capitalization of $144.96 million. The company employs 26 people, generates revenues of $28.01 million and has a net income of $7.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20.61 million. Because of these figures, the EBITDA margin is 73.58% (operating margin 57.20% and the net profit margin finally 27.31%).


The total debt representing 24.18% of the company’s assets and the total debt in relation to the equity amounts to 33.24%. Due to the financial situation, a return on equity of 4.16% was realized. Twelve trailing months earnings per share reached a value of $0.33. Last fiscal year, the company paid $0.70 in form of dividends to shareholders. Earnings are expected to grow by 15.00% for the next five years.


Here are the price ratios of the company: The P/E ratio is 19.07, P/S ratio 5.31 and P/B ratio 0.82. Dividend Yield: 11.15%. The beta ratio is 1.98.


Take a closer look at the full table of stocks with very high yields and fast earnings growth. The average price to earnings ratio (P/E ratio) amounts to 16.24 and forward P/E ratio is 8.26. The dividend yield has a value of 12.33%. Price to book ratio is 4.01 and price to sales ratio 2.68. The operating margin amounts to 34.28%. Earnings are expected to grow 18.82% for the next half decade.


Related stock ticker symbols:

YPF, TEU, STD, BMA, VE, PZN, TICC, KCAP, PMT, SFUN, SDT, ARI, BGCP, DCIX, IRS


Selected Articles:


• The Best Growing Dividend Stocks From The Dow Jones

• 10 High Yield Growth Stocks With Gaining Earnings Momentum

• 12 Stocks With Very High Yields (10+%) And Additional Growth Potential

• The Best Yielding Stocks From The S&P 500