Last month the bull market that began seven years ago began a correction; since then, the Standard & Poor's 500 dropped by about 12% as did the prices of some of the stocks that pay the highest yields to their shareholders.
Thanks to GuruFocus' All-In-One Screener, the following is a selection of six of them that are worth putting on a watchlist.
The first company is CNOOC Ltd. (CEO), which is engaged in the exploration, development, production and sale of crude oil, natural gas and other petroleum products. The group is involved in the upstream operating activities of conventional oil and gas, shale oil and gas, oil sands and other unconventional oil and gas business.
The company looks undervalued at the current price of $100. The DCF calculator gives a fair value of $323.96 with a current margin of safety of 69%. The Peter Lynch earnings line gives a fair value of $318.8. It pays its shareholders an annual dividend yield of 7.23% with a payout ratio of 47%. The yield has a five-year growth rate of 7.60%.
CNOOC Ltd. is trading with a P/E ratio of 4.80; in the last 12 months the price has dropped by 42%, trading now 43.47% below its 52-week high and 3.72% above its 52-week low.
Recently its parent company, China National Offshore Oil Corporation (CNOOC), signed two production-sharing contracts with Roc Oil (China) Company for Blocks 16/07 and 03/33 in the South China Sea.
Jim Simons (Trades, Portfolio) is the main shareholder of the company with 0.03% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.02% and the hedge fund Manning & Napier Advisors Inc. with 0.01%.
Another high-yield company is Terra Nitrogen Co. LPÂ (TNH) that produces and distributes nitrogen fertilizer products. The company's main products are anhydrous ammonia and urea ammonium nitrate solutions "UAN," manufactured at its facility in Verdigris, Okla.
The company looks undervalued at the current price of $103.37. The DCF calculator gives a fair value of $312.02 with a current margin of safety of 67%, and the Peter Lynch earnings line gives a fair value of $163.3. It pays its shareholders an annual dividend yield of 8.44% with a payout ratio of 86%. The yield has a five-year growth rate of 11.90%.
Terra Nitrogen is trading with a P/E ratio of 9.50; during the last 12 months the price has dropped by 28%, trading now 34.86% below its 52-week high and 4.16% above its 52-week low.
UAN's sales volume in the 2015 second quarter decreased 25% compared to the 2014 second quarter, and this caused a decrease of $0.8 million in net earnings compared to the same quarter of a year before.
Jim Simons (Trades, Portfolio) is the only shareholder of the company with an easy stake of 0.02% of outstanding shares of the company.
Another undervalued company with high-yield is Credicorp Ltd. (BAP) that, through its banking and nonbanking subsidiaries, provides financial and health services and products mainly throughout Peru and in certain other countries. The company operates in four segments –Â banking, insurance, pension fund and investment banking.
The company looks undervalued at the current price of $101.8. The DCF calculator gives a fair value of $254.4 with a current margin of safety of 60%, and the Peter Lynch earnings line gives a fair value of $158.5. It pays its shareholders an annual dividend yield of 2.15% with a payout ratio of 21%. The yield has a five-year growth rate of 6.40% and on the longer frame of 10 years, the growth rate is 12.70%.
Credicorp is trading with a P/E ratio of 9.90 and in the last 12 months the price has dropped by 33%, trading now 40.42% below its 52-week high and 24.48% above its 52-week low.
During the last quarter its net profit rose 28% from the same period in 2014.
Ken Fisher (Trades, Portfolio) is the main shareholder of the company with 1.39% of outstanding shares, followed by Jim Simons (Trades, Portfolio) and Frank Sands (Trades, Portfolio) with 0.12%.
Southern Missouri Bancorp Inc. (SMBC) whose main business consists of attracting retail deposits from the general public and using such deposits along with wholesale funding from the Federal Home Loan Bank of Des Moines and, to a lesser extent, brokered deposits to invest in one- to four-family residential mortgage loans, mortgage loans secured by commercial real estate, commercial nonmortgage business loans and consumer loans.
The company looks undervalued at the current price of $20.88. The DCF calculator gives a fair value of $51.24 with a current margin of safety of 59%, and the Peter Lynch earnings line gives a fair value of $26.5. It pays its shareholders an annual dividend yield of 1.65% with a payout ratio of 19%. The yield has a five-year growth rate of 8.40%; on the longer frame of 10 years, the growth rate is 7.20%.
Southern Missouri Bancorp is trading with a P/E ratio of 11.60. In the last 12 months the price has risen by 17%, trading now 5.09% below its 52-week high and 19.08% above its 52-week low.
Fiscal year 2015 fourth-quarter earnings per common share (diluted) were 8 cents, up compared to the year ago period and net income available to common shareholders increased by $0.8 million, as compared to the same quarter of a year before.
The main shareholder of the company is Scott Black (Trades, Portfolio) with 0.15% of outstanding shares
BanColombia SA(CIB) is a private commercial bank incorporated under Colombian law.
The company looks undervalued at the current price of $31.79. The DCF calculator gives a fair value of $74 with a current margin of safety of 57%, and the Peter Lynch earnings line gives a fair value of $71.9. It pays its shareholders an annual dividend yield of 4.11% with a payout ratio of 42%. The yield has a five-year growth rate of 8.40% and on the longer frame of 10 years, the growth rate is 12.20%.
BanColombia is trading with a P/E ratio of 6.80; during the last 12 months the price has dropped by 44%, trading now 45.33% below its 52-week high and 10.84% above its 52-week low.
During the last quarter net interest income margins were 1.72% more compared to the same quarter last year and net loan assets changed -7.65% compared to same period last year and 0.74% from the first quarter of 2015.
Jim Simons (Trades, Portfolio) is the only shareholder of the company with an easy stake of 0.01% of outstanding shares of the company that has been reduced by 87.70% during the second quarter.
Waddell & Reed Financial Inc.(WDR) operates as a mutual fund and asset management firm. It provides investment management, investment product underwriting and distribution and shareholder services administration to mutual funds and institutional and separately managed accounts.
The company looks undervalued at the current price of $34.66. The DCF calculator gives a fair value of $75.62 with a current margin of safety of 54%; the Peter Lynch earnings line gives a fair value of $53.3. It pays its shareholders an annual dividend yield of 4.70% with a payout ratio of 45%. The yield has a five-year growth rate of 11.80% and on the longer frame of 10 years, the growth rate is 7.30%.
Waddell & Reed is trading with a P/E ratio of 10.00; in the last 12 months the price has dropped by 34%, trading now 34.60% below its 52-week high and 1.64% above its 52-week low.
For the second quarter of the year operating revenues rose 2% sequentially, while operating income rose 6%. Waddell & Reed won two new accounts in the Institutional channel, which contributed more than $550 million to sales, resulting in net inflows of $200 million.
Chuck Royce (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) are the main shareholders of the company with 2.49% of outstanding shares each one, followed by Mario Gabelli (Trades, Portfolio) with 0.48% and Joel Greenblatt (Trades, Portfolio) with 0.36% of outstanding shares.
Summary :
| Ticker | Yield | 5-year growth rate | Margin of safety (DCF) |
| CEO | 7.23% | 7.60% | 69% |
| TNH | 8.44% | 11.90% | 67% |
| BAP | 2.15% | 6.40% | 60% |
| SMBC | 1.65% | 8.40% | 59% |
| CIB | 4.11% | 8.40% | 57% |
| WDR | 4.70% | 11.80% | 54% |
