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My 3 Favorites from the Cheapest High-Yielding Stocks with Lowest Volatility

I often look for higher capitalized stocks which give me a margin of safety. I don’t talk about a discount to fair value or cheap prices. I mean low-volatility stocks. Stocks with a low beta ratio have lower volatility than the whole market, but they also have a lower upside potential if the market goes up. I love low-volatility stocks because I am like everybody else, an anxious investor when I invest big money on a single bet.

If the low beta stocks also have a low valuation, it could be interesting for me. You can find a full list of higher capitalized high-yield stocks with low beta ratios below. In total, there are 13 companies with a market capitalization over USD2 billion and a yield above the 5 percent mark that have beta ratios of less than 0.5 and a forward P/E of less than 15.

The results are dominated by residential REITS. I don’t like this investment category. Sure, you can make money with it, but growth is very capital expensive. You sit on your investment and wait for rental price increases or decreasing vacancy rates. That’s not very funny for a long-term growth investor like me. As you see, there is also a huge debt burden on the stocks which exceeds the amount of equity by a few factors. Gas utilities and my favorites from the cigarettes industry are much more interesting.

Five of the results have a very high yield of more than 10 percent and seven have a current buy or better recommendation. What do you think about the screening results? Do you own some of the mentioned stocks? Let me know and discuss the pro and cons in the box below.

Here are my favorite stocks:

AmeriGas Partners (APU) has a market capitalization of $3.65 billion. The company employs 8,660 people, generates revenue of $2.921 billion and has a net income of $12.67 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $307.52 million. The EBITDA margin is 10.53 percent (the operating margin is 5.38 percent and the net profit margin 0.43 percent). Financial Analysis: The total debt represents 52.64 percent of the company’s assets and the total debt in relation to the equity amounts to 166.40 percent. Due to the financial situation, a return on equity of -1.05 percent was realized. Twelve trailing months earnings per share reached a value of $0.75. Last fiscal year, the company paid $3.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 52.43, the P/S ratio is 1.25 and the P/B ratio is finally 2.59. The dividend yield amounts to 8.13 percent and the beta ratio has a value of 0.33.

Altria Group (MO) has a market capitalization of $66.38 billion. The company employs 9,900 people, generates revenue of $23.800 billion and has a net income of $3.393 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.321 billion. The EBITDA margin is 26.56 percent (the operating margin is 25.50 percent and the net profit margin 14.26 percent).

Financial Analysis: The total debt represents 37.04 percent of the company’s assets and the total debt in relation to the equity amounts to 371.98 percent. Due to the financial situation, a return on equity of 76.13 percent was realized. Twelve trailing months earnings per share reached a value of $1.92. Last fiscal year, the company paid $1.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.08, the P/S ratio is 2.79 and the P/B ratio is finally 18.21. The dividend yield amounts to 5.37 percent and the beta ratio has a value of 0.42.

Entergy Corporation (ETR) has a market capitalization of $11.26 billion. The company employs 14,682 people, generates revenue of $11.229 billion and has a net income of $1.367 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.115 billion. The EBITDA margin is 27.74 percent (the operating margin is 17.93 percent and the net profit margin 12.18 percent).

Financial Analysis: The total debt represents 30.43 percent of the company’s assets and the total debt in relation to the equity amounts to 134.03 percent. Due to the financial situation, a return on equity of 15.43 percent was realized. Twelve trailing months earnings per share reached a value of $3.96. Last fiscal year, the company paid $3.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.99, the P/S ratio is 1.00 and the P/B ratio is finally 1.25. The dividend yield amounts to 5.24 percent and the beta ratio has a value of 0.48.

Take a closer look at the full list of the safest high-yield stocks at the market. The average P/E ratio amounts to 19.98 and forward P/E ratio is 10.69. The dividend yield has a value of 9.25 percent. Price to book ratio is 2.65 and price to sales ratio 3.97. The operating margin amounts to 34.33 percent and the beta ratio is 0.37. Stocks from the list have an average debt to equity ratio of 3.51.

Related stock ticker symbols:

AGNC, ARR, CYS, NLY, HTS, MFA, SPH, APU, CLMT, FE, MO, LO, ETR

Selected Articles:

· High Yielding S&P 500 Dividend Aristocrats List

· An Overview Of The Safest High Yield Large Caps At The Market

· 18 High Yield Stocks From The S&P 500 (A Quick Overview)

· Best Yielding Low Beta Dividend Challengers

· The 20 Safest Dividend Growth Stocks – A Summary

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High-yielding, large-capitalized stocks with low beta and cheap price ratios originally published at "long-term-investments.blogspot.com."

About the author:

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

Visit Dividend's Website


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