GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

The Cheapest High-Yield Stocks from the S&P 500

S&P 500 Stocks with Best Dividends by Dividend Yield - Stock, Capital, Investment. The S&P 500 index is a popular tool for investors. Professionals like big insurance players or pension funds allocate their portfolio weighting on indices like the Dow Jones Index and Standard & Poor’s 500. The S&P 500 is a free-float capitalization-weighted index published since 1957 by Standard & Poor's, a division of McGraw-Hill Companies.

I screened the index with its 500 companies by the best dividend yields. The index has 28 high yields and the highest yield amounts to 11.11 percent, paid by Pitney Bowes (PBI). In order to focus on the cheapest high yields, I decided to select only those stocks with a current P/E ratio of less than 15. Exactly 13 companies remained of which 7 have a buy or better recommendation.

Here are my favorite stocks:

Exelon Corporation (EXC) has a market capitalization of $31.28 billion. The company employs 19,267 people, generates revenues of $18,924.00 million and has a net income of $2,495.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,815.00 million. Because of these figures, the EBITDA margin is 30.73 percent (operating margin 23.67 percent and the net profit margin finally 13.18 percent).

Financial Analysis: The total debt representing 24.49 percent of the company’s assets and the total debt in relation to the equity amounts to 93.79 percent. Due to the financial situation, a return on equity of 17.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.03. Last fiscal year, the company paid $2.10 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.12, P/S ratio 1.65 and P/B ratio 1.69. Dividend Yield: 5.72 percent. The beta ratio is 0.54.

ConocoPhillips (COP) has a market capitalization of $64.73 billion. The company employs 29,700 people, generates revenues of $251,226.00 million and has a net income of $12,502.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31,891.00 million. Because of these figures, the EBITDA margin is 12.69 percent (operating margin 9.16 percent and the net profit margin finally 4.98 percent).

Financial Analysis: The total debt representing 14.76 percent of the company’s assets and the total debt in relation to the equity amounts to 34.69 percent. Due to the financial situation, a return on equity of 18.59 percent was realized. Twelve trailing months earnings per share reached a value of $9.15. Last fiscal year, the company paid $2.64 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.59, P/S ratio 0.26 and P/B ratio 1.01. Dividend Yield: 5.16 percent. The beta ratio is 1.12.

NYSE Euronext (NYX) has a market capitalization of $6.02 billion. The company employs 3,079 people, generates revenues of $4,552.00 million and has a net income of $603.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,130.00 million. Because of these figures, the EBITDA margin is 24.82 percent (operating margin 18.67 percent and the net profit margin finally 13.25 percent).

Financial Analysis: The total debt representing 15.87 percent of the company’s assets and the total debt in relation to the equity amounts to 31.53 percent. Due to the financial situation, a return on equity of 9.25 percent was realized. Twelve trailing months earnings per share reached a value of $2.10. Last fiscal year, the company paid $1.20 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.29, P/S ratio 1.32 and P/B ratio 0.93. Dividend Yield: 5.06 percent. The beta ratio is 1.63.

Take a closer look at the full table of cheap S&P 500 High Yields. The average P/E ratio amounts to 10.35 and forward P/E ratio is 9.58. The dividend yield has a value of 5.81 percent. Price to book ratio is 4.45 and price to sales ratio 1.16. The operating margin amounts to 19.35 percent.

Related stock ticker symbols:

PBI, GCI, EXC, CVC, CLF, HRB, PPL, LO, ETR, COP, TE, FII, NYX

Additional Yield Lists:

- Yields of the Dow Jones

- NASDAQ 100

- Yields Dividend Aristocrats

About the author:

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

Visit Dividend's Website


Rating: 3.3/5 (3 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