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My Three Favorite High-Yield Stocks With Low Beta Ratios

Investors always look for opportunities on the market. They try to realize a bigger return by excluding additional risks. Risk-free stocks don’t exist but some stocks have a higher volatility than others. A ratio that measures the volatility is the beta ratio.

Linked is a sheet of the “safest” high-yielding stocks. Those stocks have a beta ratio below 0.5 as well as a higher market capitalization. In my case, I screen for stocks with a market valuation over $2 billion (USD).

Only 20 companies fulfilled the mentioned criteria of which six have a double-digit yield. Eight of the results are recommended to buy. REITs and oil and gas pipeline stocks dominate the screen.

Here are my favorite stocks:

Annaly Capital Management (NLY) has a market capitalization of $15.05 billion. The company employs 147 people, generates revenue of $3.259 billion and has a net income of $1.735 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.198 billion. The EBITDA margin is 67.45% (the operating margin is 54.36% and the net profit margin is 53.26%).

Financial Analysis: The total debt represents 78.99% of the company’s assets and the total debt in relation to the equity amounts to 662%. Due to the financial situation, a return on equity of 11.09% was realized. Twelve trailing months earnings per share reached a value of $1.70. Last fiscal year, the company paid $2.05 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.34, the P/S ratio is 4.62 and the P/B ratio is 1.0. The dividend yield amounts to 11.33% and the beta ratio has a value of 0.31.

Kinder Morgan Energy (KMP) has a market capitalization of $33.50 billion. The company employs 10,685 people, generates revenue of $8.642 billion and has a net income of $2.025 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.428 billion. The EBITDA margin is 39.67% (the operating margin is 27.08% and the net profit margin is 23.43%).

Financial Analysis: The total debt represents 54.13% of the company’s assets and the total debt in relation to the equity amounts to 153.43%. Due to the financial situation, a return on equity of 7.34% was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $4.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 54.54, the P/S ratio is 3.94 and the P/B ratio is 3.96. The dividend yield amounts to 5.75% and the beta ratio has a value of 0.41.

Altria Group (MO) has a market capitalization of $69.12 billion. The company employs 9,100 people, generates revenue of $24.618 billion and has a net income of $4.183 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.624 billion. The EBITDA margin is 26.91% (the operating margin is 25.91% and the net profit margin is 16.99%).

Financial Analysis: The total debt represents 39.28% of the company’s assets and the total debt in relation to the equity amounts to 438.07%. Due to the financial situation, a return on equity of 121.70% was realized. Twelve trailing months earnings per share reached a value of $2.06. Last fiscal year, the company paid $1.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.71, the P/S ratio is 2.81 and the P/B ratio is 21.82. The dividend yield amounts to 5.12% and the beta ratio has a value of 0.42.

Take a closer look at the full list of the safest High-Yields. The average P/E ratio amounts to 19.71 and the forward P/E ratio is 14.30. The dividend yield has a value of 8.25%. The price to book ratio is 2.85 and the price to sales ratio 4.75. The operating margin amounts to 37.15% and the beta ratio is 0.36. Stocks from the list have an average debt to equity ratio of 3.0.

Related stock ticker symbols:

TWO, AGNC, ARR, NLY, CYS, HTS, MFA, SPH, BWP, APU, CLMT, BPL, KMP, EPB, LO, ETR, FE, MO, POM, SEP

Selected Articles:

· 20 Safest Early Stage Dividend Growth Stocks

· 11 Cheap Stocks With Unbelievable High Dividends

· 17 High-Yield Oil And Gas Pipeline Stocks

· Best Dividend Paying Stock List

If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free E-Mail list. Alternative, you can follow me onFacebookor Twitter.High-Yield MidCap stocks with low beta 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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