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Alberto Abaterusso
Alberto Abaterusso
Articles (1923) 

3 High-Yield Stocks for the Dividend Investor

Annaly Capital Management tops the list

December 11, 2019 | About:

As of Tuesday, the following long-term dividend payers grant a dividend yield that is much higher than the S&P 500's yield of 1.83%. Therefore, dividend investors may want to consider increasing ownership in these companies.

Annaly Capital

The first company under consideration is Annaly Capital Management Inc. (NYSE:NLY). Headquartered in New York, Annaly Capital operates as a large mortgage real estate investment trust company.

Based on a share price of $9.38 at close on Tuesday for a market capitalization of $13.41 billion, the stock offers an 11.73% trailing 12-month dividend yield and a 10.66% forward dividend yield. Currently, Annaly Capital pays a 25 cents quarterly cash dividend per common share.

The current dividend yield of Annaly Capital is moderately high compared to its historical values, indicating the stock as a profitable investment.

The share price declined 4% so far this year, but it is still above the 30-, 70- and 120-day simple moving average lines.

The 52-week range is $8.07 to $10.51. The 14-day relative strength index of 66 suggests that shares of Annaly Capital Management are neither overbought nor oversold.

The stock has a forward price-earnings ratio of 8.9 versus the industry median of 20.7 and a price-book ratio of 1.02 compared to the industry median of 1.19.

GuruFocus assigned a moderate rating of 4.6 out of 10 for the company's financial strength, but the lowest rating of 1 out of 10 for its profitability.

Wall Street issued an overweight recommendation rating for Annaly Capital Management Shares with an average price target of $9.42 per unit. 

Seaspan

The second company investors may want to consider is Seaspan Corp. (NYSE:SSW). Headquartered in Hong Kong, Seaspan owns charters and manages container ships.

Based on Tuesday’s closing share price of $13.77, which determines a market capitalization of roughly $2.97 billion, Seaspan Corporation grants a 3.63% yield for both the trailing 12-month dividend and the forward dividend. The company currently distributes 12.5 cents quarterly cash dividend per common share.

As you can see from the chart below, the dividend yield of Seaspan Corporation isn’t high when it is compared to its historical value, but is not the lowest either, which makes the stock still appear as a profitable investment.

The share price has risen 76% so far this year to place substantially above the 120-, 70- and 30-day simple moving average lines.

The 52-week range is $7.35 to $13.83. The 14-day relative strength index of 83 suggests the stock is near overbought levels.

The stock has a price-earnings ratio of 8.05 versus the industry median of 14.79 and a price-sales ratio of 2.49 versus the industry median of 0.75.

GuruFocus assigned a low financial strength rating of 3 out of 10 and a positive profitability rating of 6 out of 10.

Wall Street issued a hold recommendation rating for shares of Seaspan Corporation with an average target price of $11.38.

TPG Specialty Lending

The third company investors should look at is TPG Specialty Lending Inc. (NYSE:TSLX).

TGP is headquartered in San Francisco and operates as an investment company that focuses on the development of businesses, pursued through the adoption of private equity investment strategies of leveraged buyouts and growth capital.

Based on Tuesday’s closing share price of $21.76 which results in a market capitalization of about $1.45 billion, TPG offers a yield of 7.17% for both the forward dividend and the trailing 12-month dividend. Currently, TPG pays a quarterly cash dividend of 39 cents per common share. The next payment will be sent out to its shareholders on Jan. 15, 2020.

The dividend yield of TPG is high when compared to its historical values.


The share price has increased by 20% so far this year to above the 120-, 70- and 30-day simple moving average lines.

The 52-week range is $17.75 to $22.23 per share. The 14-day relative strength index of 59 suggests the stock is neither overbought nor oversold.

The stock has a price-earnings ratio of 10.99 versus the industry median of 13.98 and a price-sales ratio of 9.68 compared to the industry median of 4.54.

GuruFocus assigned a low rating of 3 out of 10 for the company's financial strength, but a moderate rating of 4 out of 10 for its profitability.

Wall Street issued a buy recommendation rating for shares of TPG Specialty Lending with an average target price of $22.17 per share.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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