1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Dividend
Dividend
Articles (980)  | Author's Website |

My 3 Favorite 10% or Higher-Yielding Stocks with Buy or Better Rating

Stocks with very high yields could boost your dividend income onto the next level. Especially if you have only a few thousand dollars of investment budget it makes these to take a look at the highest yields at the market.

I know what I am talking about. In my first years of investing, I starred often at such stocks with unbelievable high yields. I talk about yields of over 10 percent. But the most of the results are not sustainable and databases are not well-kept. Especially in the case of lower capitalized stocks, the risk of a dividend cuts is very high.

Some of you ask me which stock to buy or which are the best 10 percent or higher yielding stocks to buy now. I made a little list of the highest yielding stocks, starting at 10 percent dividend yield. You won’t believe it but there are more than 100 companies with such a high yield. In order to reduce my results, I selected only those with a market capitalization of more than USD2 billion and a current buy or better recommendation. Eleven stocks remain. Five of the results come from the REIT industry.

Here are my favorite stocks:

Portugal Telecom (PT) has a market capitalization of $4.19 billion. The company employs 72,347 people, generates revenue of $7.874 billion and has a net income of $541.79 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.651 billion. The EBITDA margin is 33.67 percent (the operating margin is 12.10 percent and the net profit margin 6.88 percent).

Financial Analysis: The total debt represents 53.53 percent of the company’s assets and the total debt in relation to the equity amounts to 434.25 percent. Due to the financial situation, a return on equity of 9.39 percent was realized. Twelve trailing months earnings per share reached a value of $0.34. Last fiscal year, the company paid $1.67 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.74, the P/S ratio is 0.53 and the P/B ratio is finally 1.16. The dividend yield amounts to 17.47 percent and the beta ratio has a value of 0.83.

France Telecom (FTE) has a market capitalization of $27.63 billion. The company employs 170,338 people, generates revenue of $58.004 billion and has a net income of $4.904 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.934 billion. The EBITDA margin is 32.64 percent (the operating margin is 17.55 percent and the net profit margin 8.45 percent).

Financial Analysis: The total debt represents 43.35 percent of the company’s assets and the total debt in relation to the equity amounts to 151.06 percent. Due to the financial situation, a return on equity of 13.75 percent was realized. Twelve trailing months earnings per share reached a value of $1.73. Last fiscal year, the company paid $1.79 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.02, the P/S ratio is 0.47 and the P/B ratio is finally 0.78. The dividend yield amounts to 16.76 percent and the beta ratio has a value of 0.76.

Windstream (WIN) has a market capitalization of $4.92 billion. The company employs 14,638 people, generates revenue of $4.285 billion and has a net income of $172.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.679 billion. The EBITDA margin is 39.19 percent (the operating margin is 19.41 percent and the net profit margin 4.02 percent).

Financial Analysis: The total debt represents 63.58 percent of the company’s assets and the total debt in relation to the equity amounts to 610.80 percent. Due to the financial situation, a return on equity of 14.51 percent was realized. Twelve trailing months earnings per share reached a value of $0.23. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.11, the P/S ratio is 1.13 and the P/B ratio is finally 3.24. The dividend yield amounts to 12.09 percent and the beta ratio has a value of 0.90.

Take a closer look at the full table of the best recommended stocks with very high yields. The average P/E ratio amounts to 12.59 and forward P/E ratio is 10.81. The dividend yield has a value of 13.80 percent. Price to book ratio is 2.70 and price to sales ratio 3.98. The operating margin amounts to 38.46 percent. The average stock has a debt to equity ratio of 6.25. The high value is reasonable to Pitney Bowes. The company has a ratio of 29.53. Excluded by the one-off, the ratio is at 3.92.

Related stock ticker symbols:

PT, FTE, AGNC, ARR, CYS, PBI, IVR, HTS, WIN, MFA, PWE

Selected Articles:

· These 14 Stocks With Very High Yields (Over 10%) Are Close To 52-Week Highs

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

· 17 Higher Capitalized Stocks With Really Huge Dividend Yields (Over 10%)

· 10% Yielding Dividend Stocks With Strongest Expected Earnings Growth

About the author:

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

Visit Dividend's Website


Rating: 3.5/5 (6 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


pawankumarGrowth
oconneds16Screen 3
paulyew2003FQA Sorts
rael2222A3
carlos.g.alvesAcquirers Multiple
rael2222AA2
rael2222AA1
jb10ybookGrowth
rael2222AA
rael2222A

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
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)
FEEDBACK