15 Stocks with Double-Digit Yields and Double-Digit Growth

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Aug 20, 2012
Best Growing Stocks With Double-Digit Yields Researched By “long-term-investments.blogspot.com.” Stocks with very high yields (over ten percent) are very good for investors with small money and high need for dividend income. The risks for dividend cuts are also very high within this investment class. One important item for a stable dividend is the income growth over the mid-term.


I screened stocks with double-digit yields and growth rates of more than 10 percent in earnings per share for the upcoming five years. Fifteen stocks remained of which nine are currently recommended to buy.


Here are my favorite stocks:


Banco Macro (BMA, Financial) has a market capitalization of $804.34 million. The company employs 8,470 people, generates revenue of $1,018.35 million and has a net income of $254.90 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $534.75 million. The EBITDA margin is 52.51 percent (operating margin 35.68 percent and net profit margin 22.88 percent).


Financial Analysis: The total debt represents 3.14 percent of the company’s assets and the total debt in relation to the equity amounts to 27.60 percent. Due to the financial situation, a return on equity of 26.83 percent was realized. Twelve trailing months earnings per share reached a value of $4.83. Last fiscal year, the company paid $0.00 in form of dividends to shareholders. Earnings are expected to grow by 13.38 percent for the upcoming five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 2.80, P/S ratio 1.02 and P/B ratio 0.77. Dividend Yield: 15.38 percent. The beta ratio is 1.29.


SouFun Holdings (SFUN, Financial) has a market capitalization of $1.15 billion. The company employs 7,600 people, generates revenue of $343.83 million and has a net income of $101.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $143.26 million. The EBITDA margin is 41.67 percent (operating margin 40.47 percent and net profit margin 29.55 percent).


Financial Analysis: The total debt represents 44.04 percent of the company’s assets and the total debt in relation to the equity amounts to 278.07 percent. Due to the financial situation, a return on equity of 94.77 percent was realized. Twelve trailing months earnings per share reached a value of $1.47. Last fiscal year, the company paid $1.98 in form of dividends to shareholders. Earnings are expected to grow by 22.40 percent for the upcoming five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.86, P/S ratio 3.33 and P/B ratio 12.33. Dividend Yield: 13.79 percent. The beta ratio is not calculable.


KCAP Financial (KCAP) has a market capitalization of $231.59 million. The company employs 26 people, generates revenue of $28.01 million and has a net income of $7.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20.61 million. The EBITDA margin is 73.58 percent (operating margin 57.20 percent and net profit margin 27.31 percent).


Financial Analysis: The total debt represents 24.18 percent of the company’s assets and the total debt in relation to the equity amounts to 33.24 percent. Due to the financial situation, a return on equity of 4.16 percent was realized. Twelve trailing months earnings per share reached a value of $-0.04. Last fiscal year, the company paid $0.70 in form of dividends to shareholders. Earnings are expected to grow by 15.00 percent for the upcoming five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, P/S ratio 8.27 and P/B ratio 1.11. Dividend Yield: 11.06 percent. The beta ratio is 2.01.


PennyMac Mortgage (PMT) has a market capitalization of $872.45 million. The company employs 429 people, generates revenue of $128.61 million and has a net income of $64.44 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $89.44 million. The EBITDA margin is 69.54 percent (operating margin 56.37 percent and net profit margin 50.10 percent).


Financial Analysis: The total debt represents 13.06 percent of the company’s assets and the total debt in relation to the equity amounts to 33.16 percent. Due to the financial situation, a return on equity of 14.72 percent was realized. Twelve trailing months earnings per share reached a value of $2.87. Last fiscal year, the company paid $1.42 in form of dividends to shareholders. Earnings are expected to grow by 25.00 percent for the upcoming five years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.34, P/S ratio 6.78 and P/B ratio 1.09. Dividend Yield: 10.46 percent. The beta ratio is not calculable.


Take a closer look at the full table of the best growing stocks with double-digit yields. The average price to earnings ratio (P/E ratio) amounts to 12.29 and forward P/E ratio is 10.46. The dividend yield has a value of 14.86 percent. Price to book ratio is 2.04 and price to sales ratio 2.10. The operating margin amounts to 25.47 percent and the beta ratio is 1.31.


Related stock ticker symbols:

YPF, DCIX, CTEL, TEU, BMA, OIBR, BGCP, SFUN, RNF, IRS, BALT, SAN, SDT, KCAP, PMT


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