12 S&P 500 High Yields with Highest Earnings Growth

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May 25, 2012
The S&P 500 is of huge importance for the asset allocation of investors. The index has over USD5.58 trillion benchmarked, with index assets comprising approximately US1.31 trillion of this total. The index includes 500 leading companies in leading industries of the U.S. economy, capturing 75 percent coverage of U.S. equities.


I screened the index by stocks with high yields and fastest (over 5 percent) earnings per share growth for the upcoming five years. Twenty-four companies within the index have a yield over five percent but only twelve stocks have an estimated earnings per share growth of more than 5 percent yearly.


Here are my favorite stocks:



Reynolds American (RAI, Financial) has a market capitalization of $23.94 billion. The company employs 5,400 people, generates revenues of $8,541.00 million and has a net income of $1,406.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,537.00 million. Because of these figures, the EBITDA margin is 29.70 percent (operating margin 28.09 percent and the net profit margin finally 16.46 percent).


Financial Analysis: The total debt representing 22.54 percent of the company’s assets and the total debt in relation to the equity amounts to 58.60 percent. Due to the financial situation, a return on equity of 22.04 percent was realized. Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, the company paid $2.15 in form of dividends to shareholders. Earnings are expected to grow by 6.97 percent for the next five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.48, P/S ratio 2.77 and P/B ratio 3.81. Dividend Yield: 5.71 percent. The beta ratio is 0.56.


Avon Products (AVP, Financial) has a market capitalization of $7.22 billion. The company employs 40,600 people, generates revenues of $11,291.60 million and has a net income of $526.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,094.20 million. Because of these figures, the EBITDA margin is 9.69 percent (operating margin 7.57 percent and the net profit margin finally 4.66 percent).


Financial Analysis: The total debt representing 42.77 percent of the company’s assets and the total debt in relation to the equity amounts to 210.67 percent. Due to the financial situation, a return on equity of 32.08 percent was realized. Twelve trailing months earnings per share reached a value of $0.90. Last fiscal year, the company paid $0.92 in form of dividends to shareholders. Earnings are expected to grow by 8.77 percent for the next five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.48, P/S ratio 0.63 and P/B ratio 4.55. Dividend Yield: 5.55 percent. The beta ratio is 1.45.


Altria Group (MO, Financial) has a market capitalization of $65.64 billion. The company employs 9,900 people, generates revenues of $23,800.00 million and has a net income of $3,393.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,321.00 million. Because of these figures, the EBITDA margin is 26.56 percent (operating margin 25.50 percent and the net profit margin finally 14.26 percent).


Financial Analysis: The total debt representing 37.04 percent of the company’s assets and the total debt in relation to the equity amounts to 371.98 percent. Due to the financial situation, a return on equity of 76.13 percent was realized. Twelve trailing months earnings per share reached a value of $1.67. Last fiscal year, the company paid $1.58 in the form of dividends to shareholders. Earnings are expected to grow by 7.27 percent for the next five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.35, P/S ratio 2.71 and P/B ratio 17.62. Dividend Yield: 5.17 percent. The beta ratio is 0.41.


Take a closer look at the full table of S&P 500 high yields with fastest earnings per share growth. The average P/E ratio amounts to 26.04 and forward P/E ratio is 12.73. The dividend yield has a value of 5.76 percent. Price to book ratio is 8.38 and price to sales ratio 1.98. The operating margin amounts to 14.44 percent and the beta ratio is 0.97.


Related stock ticker symbols:

SVU, CTL, GCI, RAI, AVP, LEG, PBCT, HRB, HCN, T, CVC, MO


Selected Articles:


· 6 High Yield Stocks With Low Debt And Payout Ratio

· The Safest S&P 500 High Yield Dividend Stocks

· The Cheapest High-Yield Stocks Within The S&P 500

· 8 Large Cap High Yields Below Book Value

· 10 High Yield Growth Stocks With Gaining Earnings Momentum