As a forward-looking investor, I'll take a deeper look into the fundamentals of a company.
If I see that there are solid debt ratios and modest growth at high margins, then I should take a second look at the valuation of the company.
If I also get a high initial yield, it could be a perfect income stock for my passive income portfolio. That's the ideal theory.
The truth is that each stock can develop into another direction that is not of benefit to you.
But we don't want to assume this case and look at it in the normal way.
Today I would like to introduce those stocks with double-digit earnings growth forecast for the next five years that offer a fantastic 3% plus dividend yield for your portfolio.
I've selected only stocks with a debt-to-equity ratio below 1 and return on assets over 5%. In addition, each of the attached stocks has a low forward P/E of less than 15.
Exactly nine companies fulfilled these tight criteria of which three are high yields.
Here are the results.
No. 1 Siliconware Precision Industries Ltd. – Yield: 7.69%
Siliconware Precision Industries Ltd. (SPIL, Financial)Â employs 23,611 people, generates revenue of $2.60 billion and has a net income of $274.58 million. The current market capitalization stands at $4.83 billion.
Siliconware Precision Industries' earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $838.82 million. The EBITDA margin is 32.31% (the operating margin is 13.84%, and the net profit margin 10.58%).
Financials: The total debt represents 25.21% of Siliconware Precision Industries assets and the total debt in relation to the equity amounts to 44.00%. Due to the financial situation, a return on equity of 12.28% was realized by Siliconware Precision Industries.
Twelve trailing months earnings per share reached a value of 37 cents. Last fiscal year, Siliconware Precision Industries paid $N/A in the form of dividends to shareholders.
Market valuation: Here are the price ratios of the company: The P/E ratio is 20.69, the P/S ratio is 1.83 and the P/B ratio is finally 2.15. The dividend yield amounts to 7.69%.
No. 2 Advanced Semiconductor – Yield: 5.59%
Advanced Semiconductor (ASX, Financial)Â employs 57,259 people, generates revenue of $8.88 billion and has a net income of $640.79 million. The current market capitalization stands at $8.81 billion.
Advanced Semiconductor's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,704.79 million. The EBITDA margin is 19.20% (the operating margin is 8.69% and the net profit margin 7.22%).
Financials: The total debt represents 32.84% of Advanced Semiconductor assets and the total debt in relation to the equity amounts to 76.45%. Due to the financial situation, a return on equity of 12.68% was realized by Advanced Semiconductor.
Twelve trailing months earnings per share reached a value of 36 cents. Last fiscal year, Advanced Semiconductor paid $N/A in the form of dividends to shareholders.
Market valuation: Here are the price ratios of the company: The P/E ratio is 15.37, the P/S ratio is 1.00, and the P/B ratio is finally 1.73. The dividend yield amounts to 5.59%.
No. 3 HollyFrontier – Yield: 5.32%
HollyFrontier (HFC, Financial)Â employs 2,704 people, generates revenue of $13.28 billion and has a net income of $802.51 million. The current market capitalization stands at $4.35 billion.
HollyFrontier's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.63 billion. The EBITDA margin is 12.34% (the operating margin is 9.39% and the net profit margin 6.06%).
Financials: The total debt represents 12.40% of HollyFrontier's assets and the total debt in relation to the equity amounts to 19.80%. Due to the financial situation, a return on equity of 13.69% was realized by HollyFrontier.
Twelve trailing months earnings per share reached a value of $2.80. Last fiscal year, HollyFrontier paid $1.31 in the form of dividends to shareholders.
Market valuation: Here are the price ratios of the company: The P/E ratio is 8.86, the P/S ratio is 0.33, and the P/B ratio is finally 0.85. The dividend yield amounts to 5.32%.
There are a few more high dividend paying results. Just take a closer look at the full table of the screening results at my blog. The average price to earnings ratio (P/E ratio) amounts to 14.46, and forward P/E ratio is 11.66. The dividend yield has a value of 4.6%, and the payout ratio stands at 35.31%. Price-to-book ratio is 2.24, and price-to-sales ratio is 2.37. The operating margin amounts to 17.83%, and the beta ratio is 1.10.
Sales of the selected group of stocks grew by 8.04% over the past five years. The latest Return on Assets stands at 8.72%. Earnings for the next five years are expected to grow by 12.74%.
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