11 Most Profitable High Yields Within the S&P 500

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Aug 24, 2012
High Yield Stocks From The S&P 500 With Very High Margins Researched By “long-term-investments.blogspot.com.” Profitability is very important. The higher the profit margins, the better the market position and market strength of a company.


However, I screened the popular S&P 500 index by high yield stocks with an operating margin of more than 10 percent. Eleven firms have such a high margin of which one yield at double-digit rates. Five have a current buy or better recommendation by brokerage firms.


Here are my favorite stocks:


Exelon Corporation (EXC, Financial) has a market capitalization of $31.46 billion. The company employs 19,267 people, generates revenue 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. The EBITDA margin is 30.73 percent (operating margin 23.67 percent and net profit margin 13.18 percent).


Financial Analysis: The total debt represents 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 $2.43. 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 15.17, P/S ratio 1.67 and P/B ratio 1.71. Dividend Yield: 5.66 percent. The beta ratio is 0.53.


Gannett Co. (GCI, Financial) has a market capitalization of $3.55 billion. The company employs 31,000 people, generates revenue of $5,239.99 million and has a net income of $500.13 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,012.42 million. The EBITDA margin is 19.32 percent (operating margin 15.55 percent and net profit margin 9.54 percent).


Financial Analysis: The total debt represents 26.61 percent of the company’s assets and the total debt in relation to the equity amounts to 75.62 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.69. Last fiscal year, the company paid $0.24 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.11, P/S ratio 0.68 and P/B ratio 1.56. Dividend Yield: 5.22 percent. The beta ratio is 2.45.


Reynolds American (RAI, Financial) has a market capitalization of $25.47 billion. The company employs 5,400 people, generates revenue of $8,541.00 million and has a net income of $1,406.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,537.00 million. The EBITDA margin is 29.70 percent (operating margin 28.09 percent and net profit margin 16.46 percent).


Financial Analysis: The total debt represents 22.54 percent of the company’s assets and the total debt in relation to the equity amounts to 58.60 percent. Due to the financial situation, a return on equity of 22.04 percent was realized. Twelve trailing months earnings per share reached a value of $2.52. Last fiscal year, the company paid $2.15 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.85, P/S ratio 3.01 and P/B ratio 4.19. Dividend Yield: 5.19 percent. The beta ratio is 0.54.


Take a closer look at the full table of the most profitable high-yields from the S&P 500. The average price to earnings ratio (P/E ratio) amounts to 22.10 and forward P/E ratio is 16.00. The dividend yield has a value of 6.35 percent. Price to book ratio is 1.79 and price to sales ratio 2.11. The operating margin amounts to 18.00 percent and the beta ratio is 0.97.


Related stock ticker symbols:


WIN, FTR, CTL, CLF, EXC, POM, PBCT, RAI, GCI, HCN, TE,


Selected Articles:

· 13 High Yield Stocks At New 52-Week Highs

· A Brief Overview Of High Yield Stocks From The S&P 500

· 12 High Yield Stocks With Additional Payout Potential

· 19 Most Recommended High Yield Large Caps