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9 Stocks with Double-Digit Yields and Buy or Better Recommendations

Boost your dividend income wisely. The easiest way is to look for stocks with extraordinary high yields but there is still a huge risk to receive the dividend one time and no more further.

There is no solution for this problem because no return exists without a risk. Today I’ve screened stocks with very high dividend yields (over 10 percent). Around 100 companies have a current yield over 10 percent but most of them are low capitalized or they will pay no high dividends in the future. In order to eliminate the real big risks from the screening results, I observed only those companies with a market capitalization over USD2 billion. In addition, the stock should have a buy or better rating. Only nine stocks fulfilled these criteria with a dividend yield between 10 percent and 20 percent.

Here are the biggest results:

VimpelCom (VIP)
has a market capitalization of $21.35 billion. The company employs 58,184 people, generates revenue of $23.061 billion and has a net income of $1.982 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.768 billion. The EBITDA margin is 42.36 percent (the operating margin is 18.09 percent and the net profit margin 8.59 percent).

Financial Analysis: The total debt represents 46.94 percent of the company’s assets and the total debt in relation to the equity amounts to 180.35 percent. Due to the financial situation, a return on equity of 15.17 percent was realized. Twelve trailing months earnings per share reached a value of $1.37. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. On April 25, 2013, VIP distributed $1.14 in dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.59, the P/S ratio is 0.80 and the P/B ratio is finally 1.19. The dividend yield amounts to 13.46 percent and the beta ratio is not calculable.

Oaktree Capital Group (OAK) has a market capitalization of $9.79 billion. The company employs 700 people, generates revenue of $144.98 million and has a net income of $6.672 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-638.22 million. The EBITDA margin is -440.21 percent (the operating margin is -445.31 percent and the net profit margin 4,602.21 percent).

Financial Analysis: The total debt represents 2.52 percent of the company’s assets and the total debt in relation to the equity amounts to 361.23 percent. Due to the financial situation, a return on equity of 43.60 percent was realized. Twelve trailing months earnings per share reached a value of $0.97. Last fiscal year, the company paid $2.31 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 54.71, the P/S ratio is 55.84 and the P/B ratio is finally 26.14. The dividend yield amounts to 10.59 percent and the beta ratio is not calculable.

American Capital Agency (AGNC) has a market capitalization of $8.79 billion. The company generates revenue of $2.109 billion and has a net income of $1.277 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.453 billion. The EBITDA margin is 68.90 percent (the operating margin is 61.45 percent and the net profit margin 60.55 percent).

Financial Analysis: The total debt represents 76.33 percent of the company’s assets and the total debt in relation to the equity amounts to 703.74 percent. Due to the financial situation, a return on equity of 14.96 percent was realized. Twelve trailing months earnings per share reached a value of $2.38. Last fiscal year, the company paid $5.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.30, the P/S ratio is 4.22 and the P/B ratio is finally 0.71. The dividend yield amounts to 18.70 percent and the beta ratio has a value of 0.34.

Take a closer look at the full list of stocks with very high yields (over 10 percent). The average P/E ratio amounts to 13.55 and forward P/E ratio is 9.15. The dividend yield has a value of 14.30 percent. Price to book ratio is 4.29 and price to sales ratio 8.68. The operating margin amounts to 39.80 percent and the beta ratio is 0.62. Stocks from the list have an average debt to equity ratio of 2.18.

Related stock ticker symbols:

NTI, AGNC, CIG, IVR, VIP, LINE, MFA, OAK, NRP

Selected Articles:

· 17 High Yields With Additional Potential To Grow Dividends

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

· 9 High-Yield Stocks With Strong Buy Rating

· 10 Highest Yielding Dividend Contenders | High-Yield Growth Investing

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About the author:

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

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