I'm a big fan of large capitalized stocks because most of them offer a huge diversification. But the great lack of bigger companies is that they do not grow at a fast pace. I'm not talking about Apple, those are exceptions.
The reason is simple: a company with a market cap of $500 million will simply have more room to grow than a company with a market cap of $50 billion. If it makes it to $1 billion, and you've invested, you double your money; if the large cap company adds $500 million to its market cap, you've only made 1%.
Today I would like to introduce 10 stocks with a yield higher than 3% and P/E valuations in an acceptable area while the market capitalization doesn’t reach the 2 billion levels.
These are my results:
Seadrill Partners -- Yield: 17.73%
Seadrill Partners (SDLP) employs people, generates revenue of $1,064.30 million and has a net income of $415.40 million. The current market capitalization stands at $1.18 billion.
Seadrill Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $628.90 million. The EBITDA margin is 59.09% (the operating margin is 45.82% and the net profit margin 39.03%).
Financials: The total debt represents 50.60% of Seadrill Partners assets and the total debt in relation to the equity amounts to 689.16%. Due to the financial situation, a return on equity of 35.07% was realized by Seadrill Partners.
Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, Seadrill Partners paid $1.68 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.75, the P/S ratio is 1.10 and the P/B ratio is finally 2.61. The dividend yield amounts to 17.73%.
Check out the rest stocks here: 10 High-Yielding Small Caps For A Portfolio Return Boost”‹
