My 3 Favorite High-Yields With Low Debt And Payout Ratios

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May 25, 2013
Yesterday, I made a screen of Dividend Contenders with low long-term debt to equity ratios as well as slim payouts. Today I'd like to widen the latest screen to High-Yields with a market capitalization over $300 million USD. Most of the high-yielding stocks are full of debt. The only companies with fewer loans are such with a lower capitalization. The risks are much higher for those shares. I also needed to lower my screening guidance because of the small amount of results. These are my new criteria:

- Market Capitalization over $300 million USD

- Dividend Yield over 5%

- Long-term debt to equity above 0.6

- Payout ratio under 50%

Now, 12 stocks fulfill these criteria. Six of the results have a current buy or better rating.

Here are my favorite stocks:

KKR Financial Holdings (KFN) has a market capitalization of $2.16 billion. The company employs people, generates revenue of $555.47 million and has a net income of $348.23 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $214.98 million. The EBITDA margin is 38.70% (the operating margin is 62.07% and the net profit margin is 62.69%).

Financial Analysis: The total debt represents 77.23% of the company’s assets and the total debt in relation to the equity amounts to 351.02%. Due to the financial situation, a return on equity of 19.75% was realized. Twelve trailing months earnings per share reached a value of $1.84. Last fiscal year, the company paid $0.86 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.74, the P/S ratio is 3.90 and the P/B ratio is 1.03. The dividend yield amounts to 7.95% and the beta ratio has a value of 2.59.

Central North Airport Group (OMAB) has a market capitalization of $1.42 billion. The company employs 1,011 people, generates revenue of $222.63 million and has a net income of $49.17 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $86.25 million. The EBITDA margin is 38.74%(the operating margin is 32.95% and the net profit margin is 22.08%).

Financial Analysis: The total debt represents 16.76% of the company’s assets and the total debt in relation to the equity amounts to 25.64%. Due to the financial situation, a return on equity of 10.31% was realized. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, the company paid $0.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.30, the P/S ratio is 5.46 and the P/B ratio is 2.89. The dividend yield amounts to 4.76% and the beta ratio has a value of 1.54.

China Petroleum & Chemical Corporation (SNP) has a market capitalization of $92.11 billion. The company employs 376,201 people, generates revenue of $454.411 billion and has a net income of $10.894 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27.767 billion. The EBITDA margin is 6.11% (the operating margin is 3.54% and the net profit margin is 2.40%).

Financial Analysis: The total debt represents 21.95% of the company’s assets and the total debt in relation to the equity amounts to 54.43%. Due to the financial situation, a return on equity of 12.99% was realized. Twelve trailing months earnings per share reached a value of $11.54. Last fiscal year, the company paid $4.89 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.19, the P/S ratio is 0.21 and the P/B ratio is 1.11. The dividend yield amounts to 4.53% and the beta ratio has a value of 0.87.

Take a closer look at the full list of High-Yields with additional potential to hike future payouts. The average P/E ratio amounts to 8.55 and the forward P/E ratio is 11.04. The dividend yield has a value of 8.16%. Price to book ratio is 1.33 and the price to sales ratio is 3.90. The operating margin amounts to 38.76% and the beta ratio is 1.35. Stocks from the list have an average debt to equity ratio of 1.33.

High yielding stocks with low payout and debt ratios originally published at "long-term-investments.blogspot.com."

Related stock ticker symbols:

AMTG, AI, OMAB, NDRO, AT, KFN, NTE, PRIM, MAIN, TEO, SNP, FLY

Selected Articles:

· 12 Really Cheap Stocks With Extraordinary High Yields (+10%)

· 19 High Yielding Income Growth Stocks With Low Debt Ratios

· 10 Stocks With Very High Yields And Expected Earnings Growth

· An Overview Of The Safest High Yield Large Caps At The Market

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