6 Most Profitable Stocks with Double-Digit Yields

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Jun 20, 2012
Stocks With Highest Return On Investment And Biggest Dividend Yields Researched By Dividend Yield - Stock, Capital, Investment. High Yields are good but stocks with very high yields (dividend yield over 10 percent) are even better. At the capital markets are unbelievable 160 stocks with a double-digit yield but most of the companies have hidden business models with a small market capitalization.


I screened all stocks with very high yields by the highest return on investment (yields over 10 percent). In order to reduce the risk of dividend cuts, I decided to select only those stocks with a market capitalization of more than USD2 billion. Six companies remained.


Here are my favorite stocks:


Chimera Investment (CIM, Financial) has a market capitalization of $2.99 billion. The company employs people, generates revenues of $755.44 million and has a net income of $532.85 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $540.90 million. Because of these figures, the EBITDA margin is 71.60 percent (operating margin 70.64 percent and the net profit margin finally 70.54 percent).


Financial Analysis: The total debt representing 50.34 percent of the company’s assets and the total debt in relation to the equity amounts to 110.35 percent. Due to the financial situation, a return on equity of 18.34 percent was realized. Twelve trailing months earnings per share reached a value of $0.52. Last fiscal year, the company paid $0.69 in form of dividends to shareholders. The current ROI amounts to 10.05 percent.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.56, P/S ratio 3.92 and P/B ratio 0.80. Dividend Yield: 15.28 percent. The beta ratio is 1.24.


American Capital (AGNC, Financial) has a market capitalization of $9.75 billion. The company employs people, generates revenues of $1,108.87 million and has a net income of $770.48 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $750.34 million. Because of these figures, the EBITDA margin is 67.67 percent (operating margin 70.04 percent and the net profit margin finally 69.48 percent).


Financial Analysis: The total debt representing 83.81 percent of the company’s assets and the total debt in relation to the equity amounts to 782.19 percent. Due to the financial situation, a return on equity of 19.80 percent was realized. Twelve trailing months earnings per share reached a value of $6.40. Last fiscal year, the company paid $5.60 in form of dividends to shareholders. The current ROI amounts to 16.10 percent.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.08, P/S ratio 9.09 and P/B ratio 1.21. Dividend Yield: 14.88 percent. The beta ratio is 0.42.


Hatteras Financial (HTS, Financial) has a market capitalization of $2.87 billion. The company employs people, generates revenues of $426.12 million and has a net income of $284.37 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $263.80 million. Because of these figures, the EBITDA margin is 61.91 percent (operating margin 66.74 percent and the net profit margin finally 66.74 percent).


Financial Analysis: The total debt representing 88.14 percent of the company’s assets and the total debt in relation to the equity amounts to 787.50 percent. Due to the financial situation, a return on equity of 17.63 percent was realized. Twelve trailing months earnings per share reached a value of $3.89. Last fiscal year, the company paid $3.90 in form of dividends to shareholders. The current ROI amounts to 12.99 percent.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.54, P/S ratio 6.69 and P/B ratio 1.08. Dividend Yield: 12.35 percent. The beta ratio is 0.27.


Take a closer look at the full table of the most profitable stocks with double-digit dividend yields. The average price to earnings ratio (P/E ratio) amounts to 6.36 and forward P/E ratio is 8.87. The dividend yield has a value of 17.60 percent. Price to book ratio is 5.49 and price to sales ratio 4.69. The operating margin amounts to 49.21 percent and the beta ratio is 0.91. The average stock has a ROI of 16.87 percent.


Related stock ticker symbols:

YPF, JHX, AGNC, CIM, TWO, HTS


Selected Articles:

· The Cheapest Double-Digit Yielding Stocks

· 15 Most Profitable Dividend Aristocrats

· 7 Low Volatility Stocks With Double Digit Yields

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