Free 7-day Trial
All Articles and Columns »

The 4 Highest-Yielding Low-Debt Stocks from the S&P 500 Low-Volatility High-Dividend Index

I love high yielding stocks but most of them have a high debt burden or they grow too slow or they are not really diversified for my approach.

Every investor wants to make profits on the stock market and tries to minimize the risk of a stock loss. An index that covers stocks with a low volatility and great dividends is the S&P 500 Low Volatility High Dividend index. The index is designed to serve as a benchmark for income-seeking investors in the U.S. equity market. Fifty constituents are part of the index.

Today I show you which of the index members have the lowest debt ratios. I observe only stocks with a debt to equity ratio of less than 0.5. Only 14 companies fulfilled these criteria of which eight are currently recommended to buy. Drug stocks and major integrated oil and gas companies are the biggest groups of the results.

Here are the highest yielding results from the stock screen:

People's United Financial (PBCT) has a market capitalization of $4.78 billion. The company employs 4,847 people, generates revenue of $1.034 billion and has a net income of $245.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $483.10 million. The EBITDA margin is 46.68 percent (the operating margin is 29.19 percent and the net profit margin 19.74 percent).

Financial Analysis: The total debt represents 6.16 percent of the company’s assets and the total debt in relation to the equity amounts to 37.06 percent. Due to the financial situation, a return on equity of 4.76 percent was realized. Twelve trailing months earnings per share reached a value of $0.72. Last fiscal year, the company paid $0.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.04, the P/S ratio is 3.66 and the P/B ratio is finally 0.90. The dividend yield amounts to 4.72 percent and the beta ratio has a value of 0.32.

ConocoPhillips (COP) has a market capitalization of $73.80 billion. The company employs 17,100 people, generates revenue of $62.004 billion and has a net income of $7.481 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.309 billion. The EBITDA margin is 35.98 percent (the operating margin is 24.87 percent and the net profit margin 12.07 percent).

Financial Analysis: The total debt represents 18.55 percent of the company’s assets and the total debt in relation to the equity amounts to 45.27 percent. Due to the financial situation, a return on equity of 13.09 percent was realized. Twelve trailing months earnings per share reached a value of $5.86. Last fiscal year, the company paid $2.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.30, the P/S ratio is 1.20 and the P/B ratio is finally 1.55. The dividend yield amounts to 4.33 percent and the beta ratio has a value of 1.16.

Eli Lilly & Co. (LLY) has a market capitalization of $56.23 billion. The company employs 38,100 people, generates revenue of $22.603 billion and has a net income of $4.088 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.079 billion. The EBITDA margin is 31.32 percent (the operating margin is 23.93 percent and the net profit margin 18.09 percent).

Financial Analysis: The total debt represents 16.08 percent of the company’s assets and the total debt in relation to the equity amounts to 37.46 percent. Due to the financial situation, a return on equity of 28.89 percent was realized. Twelve trailing months earnings per share reached a value of $4.17. Last fiscal year, the company paid $1.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.97, the P/S ratio is 2.59 and the P/B ratio is finally 4.03. The dividend yield amounts to 3.77 percent and the beta ratio has a value of 0.73.

Intel Corporation (INTC) has a market capitalization of $120.27 billion. The company employs 105,400 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of the company’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized. Twelve trailing months earnings per share reached a value of $2.00. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.09, the P/S ratio is 2.32 and the P/B ratio is finally 2.41. The dividend yield amounts to 3.61 percent and the beta ratio has a value of 1.03.

Take a closer look at the full list of stocks from the S&P 500 Low Volatility index with low debt ratios. The average P/E ratio amounts to 22.58 and forward P/E ratio is 14.64. The dividend yield has a value of 3.23 percent. Price to book ratio is 2.57 and price to sales ratio 3.18. The operating margin amounts to 27.82 percent and the beta ratio is 0.79. Stocks from the list have an average debt to equity ratio of 0.27.

Related stock ticker symbols:

PBCT, COP, LLY, INTC, MRK, CINF, PAYX, PFE, CVX, NUE JNJ, CME, ABT, DO

Selected Articles:

· Ken Fishers Biggest Dividend Stock Buys

· 100 Stocks At All-Time-Highs

· High Yields From The S&P 500 And Which Are Highly Recommended

· 50 Fastest Growing Dividend Stocks In May 2013

· Best Dividend Paying Stock List As Of June 2013

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.Low leveraged stocks from the S&P 500 Low Volatility High Dividend index originally published at long-term-investments.blogspot.com.

Rating: 3.3/5 (4 votes)

Comments

Please leave your comment:


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)
Free 7-day Trial
FEEDBACK
Hide