7 Low Volatility Stocks with Double-Digit Yields

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Mar 20, 2012
Stocks with a yield over 10 percent are often mocked as not sustainable. Sure, some companies pay such dividends only for a few quarters until they cut dividends. But if the company pays the double-digit yield for a few years, you have earned at least enough to overcompensate expected share price losses. However, I screened the capital market by stocks with a double-digit yield and a beta ratio below one (less volatile than the market). In order to exclude the risks of low-capitalized and hidden stocks, I decided to screen only those companies with a capitalization over USD2 billion. Seven stocks met the mentioned criteria of which five have a buy or better rating.


Here are my favorite stocks:



1. Annaly Capital Management (NLY, Financial)
has a market capitalization of $15.65 billion. The company employs 147 people, generates revenues of $3,579.62 million and has a net income of $343.32 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,981.85 million. Because of these figures, the EBITDA margin is 55.36 percent (operating margin 11.24 percent and the net profit margin finally 9.59 percent).


The total debt representing 77.94 percent of the company’s assets and the total debt in relation to the equity amounts to 541.02 percent. Due to the financial situation, a return on equity of 2.59 percent was realized. Twelve trailing months earnings per share reached a value of $0.49. Last fiscal year, the company paid $2.44 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 32.95, P/S ratio 4.45 and P/B ratio 1.02. Dividend Yield: 13.90 percent. The beta ratio is 0.30.


2. YPF (YPF, Financial) has a market capitalization of $10.76 billion. The company employs 13,370 people, generates revenues of $10,168.08 million and has a net income of $1,333.12 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,395.65 million. Because of these figures, the EBITDA margin is 33.40 percent (operating margin 21.46 percent and the net profit margin finally 13.11 percent).


The total debt representing 16.72 percent of the company’s assets and the total debt in relation to the equity amounts to 40.91 percent. Due to the financial situation, a return on equity of 25.51 percent was realized. Twelve trailing months earnings per share reached a value of $3.34. Last fiscal year, the company paid $2.60 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 8.18, P/S ratio 1.17 and P/B ratio 2.39. Dividend Yield: 12.73 percent. The beta ratio is 0.71.


3. MFA Financial (MFA, Financial) has a market capitalization of $2.64 billion. The company employs 35 people, generates revenues of $496.75 million and has a net income of $316.41 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $308.25 million. Because of these figures, the EBITDA margin is 62.05 percent (operating margin 62.12 percent and the net profit margin finally 63.70 percent).


The total debt representing 73.94 percent of the company’s assets and the total debt in relation to the equity amounts to 347.86 percent. Due to the financial situation, a return on equity of 12.91 percent was realized. Twelve trailing months earnings per share reached a value of $0.90. Last fiscal year, the company paid $0.98 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 8.17, P/S ratio 5.32 and P/B ratio 1.06. Dividend Yield: 13.51 percent. The beta ratio is 0.34.


Take a closer look at the full table of low volatility stocks with double digit yields. The average price to earnings ratio (P/E ratio) amounts to 11.39 and forward P/E ratio is 9.97. The dividend yield has a value of 13.61 percent. Price to book ratio is 1.31 and price to sales ratio 2.62. The operating margin amounts to 27.45 percent. Finally, the return on equity has a fantastic ratio of 13.28 percent and the return on investment follows with a value of 8.61 percent.


Related stock ticker symbols:

NRGY, NLY, MFA, FTE, HTS, YPF, TEF


Selected Articles:

· 12 Stocks With Double Digit Dividend Yield

· Stocks With Very High Yields (10+ Percent) And Additional Growth Potential

· 19 High Yields From The S&P 500

· High Yields With Safe Dividends