5 High-Yield Stocks Trading With Low Price-Earnings Ratios

Fortis makes the list

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Apr 23, 2020
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According to the GuruFocus All-in-One Screener as of April 23, the following guru-held companies have high dividend yields and are trading with reasonable price-earnings ratios.

Alico

Alico Inc.'s (ALCO, Financial) dividend yield is 1.11% and the payout ratio is 0.05. Over the past 52 weeks, the stock was almost flat. Shares are trading with a price-book ratio of 1.03 and a price-earnings ratio of 4.9.

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The agribusiness company has a market cap of $201 million. The return on equity of 23.15% and return on assets of 10.08% are outperforming 86% of companies in the consumer packaged goods industry. The cash-debt ratio of 0.04 is below the industry median of 0.41.

Third Avenue Management (Trades, Portfolio) is the company's largest guru shareholder with 1.88% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.65%.

Commerce Bancshares

Commerce Bancshares Inc.’s (CBSH, Financial) dividend yield is 1.85%. The stock was flat compared to a year ago and the shares are trading with a price-earnings ratio of 15.26 and a price-book ratio of 2.06.

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The U.S. regional bank has a $6.14 billion market cap. The return on equity of 13.28% and return on assets of 1.64% are outperforming 80% of competitors. The cash-debt ratio of 367.02 is outperforming 91% of competitors. The equity-asset ratio of 0.12 is above the industry median of 0.11.

Ray Dalio (Trades, Portfolio)’s Bridgewater Associates is the company's largest guru shareholder with 0.02% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.01%.

Quest Diagnostics

Quest Diagnostics Inc.'s (DGX, Financial) dividend yield is 2.16% with a payout ratio of 0.35. Over the past 52 weeks, the stock has increased 19.43%. Shares are trading with a price-book ratio of 2.39 and a price-earnings ratio of 15.86.

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The provider of diagnostic testing services has a market cap of $13.31 billion. GuruFocus rated its profitability 8 out of 10. The return on equity of 15.69% and return on assets of 7.2% are outperforming 78% of competitors. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.22 is below the industry median of 1.28.

Chris Davis (Trades, Portfolio) is the company's largest guru shareholder with 2.93% of outstanding shares, followed by Pioneer Investments with 1.11% and John Rogers (Trades, Portfolio) with 0.30%.

Cia Paranaense De Energia Copel

Cia Paranaense De Energia Copel’s (ELP, Financial) dividend yield is 6.32% with a payout ratio of 0.38. Over the past 52 weeks, the stock has climbed 20.89% and the shares are trading with a price-book ratio of 0.89 and a price-earnings ratio of 7.9.

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The Brazilian utility company has a market cap of $3.02 billion and a GuruFocus profitability rating of 7 out of 10. The return on equity of 11.82% and return on assets of 5.42% are outperforming 66% of competitors. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.28 and an equity-asset ratio of 0.45.

With 0.61% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Pioneer Investments with 0.07% and Jeremy Grantham (Trades, Portfolio)’s GMO with a small holding of 10,200 shares.

Fortis

Fortis Inc.'s (FTS, Financial) dividend yield is 3.62% and the payout ratio is 0.48. Over the past 52 weeks, the stock has gained 6.55%. The shares are trading with a price-earnings ratio of 14.4.

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The Canadian and American operator of utility transmission assets has a market cap of $17.83 billion. GuruFocus rated its profitability 7 out of 10. The return on equity of 9.6% and return on assets of 3.26% are outperforming 52% of competitors. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.25.

With 0.93% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Pioneer Investments with 0.10% and Dalio’s firm with 0.03%.

Disclosure: I do not own any stocks mentioned.

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