The 10 Highest Yielding Dividend Contenders

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Feb 15, 2012
Dividend Contenders are stocks that have raised their dividend payments for more than five years in a row but not more than nine years. One hundred ninety-six companies have achieved this goal of which 33 are yielding above five percent. Here is a brief overview of the 10 best yielding Dividend Contenders. Huge dividends also include a bigger risk of dividend cuts due to the low diversification level. Nearly 60 percent of the results have a market capitalization of less than USD1 billion. Despite the risk, 90 percent have a buy or better rating outstanding.


Here are my favorite stocks:


1. Crestwood Midstream Partners (CMLP, Financial) has a market capitalization of $1.09 billion. The company generates revenues of $113.59 million and has a net income of $34.87 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $70.23 million. Because of these figures, the EBITDA margin is 61.83 percent (operating margin 42.14 percent and the net profit margin finally 30.70 percent).


The total debt representing 49.68 percent of the company’s assets and the total debt in relation to the equity amounts to 109.57 percent. Due to the financial situation, a return on equity of 11.93 percent was realized. Twelve trailing months earnings per share reached a value of $0.94. Last fiscal year, the company paid $1.66 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 29.23, Price/Sales 10.55 and Price/Book ratio 3.36. Dividend Yield: 7.05 percent. The beta ratio is 0.91.


2. TransMontaigne Partners (TLP, Financial) has a market capitalization of $511.35 million. The company employs 565 people, generates revenues of $150.90 million and has a net income of $27.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.07 million. Because of these figures, the EBITDA margin is 39.14 percent (operating margin 20.68 percent and the net profit margin finally 18.05 percent).


The total debt representing 23.72 percent of the company’s assets and the total debt in relation to the equity amounts to 35.38 percent. Due to the financial situation, a return on equity of 9.01 percent was realized. Twelve trailing months earnings per share reached a value of $2.03. Last fiscal year, the company paid $2.42 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 17.42, Price/Sales 3.40 and Price/Book ratio 1.78. Dividend Yield: 7.09 percent. The beta ratio is 0.60.


3. Natural Resource Partners (NRP, Financial) has a market capitalization of $2.75 billion. The company employs 77 people, generates revenues of $301.40 million and has a net income of $154.46 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $253.03 million. Because of these figures, the EBITDA margin is 83.95 percent (operating margin 65.05 percent and the net profit margin finally 51.25 percent).


The total debt representing 41.62 percent of the company’s assets and the total debt in relation to the equity amounts to 84.45 percent. Due to the financial situation, a return on equity of 16.22 percent was realized. Twelve trailing months earnings per share reached a value of $1.02. Last fiscal year, the company paid $2.16 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 25.33, Price/Sales 9.29 and Price/Book ratio 3.47. Dividend Yield: 8.33 percent. The beta ratio is 0.79.


Take a closer look at the full table of the best yielding Dividend Challengers. The average price to earnings ratio (P/E ratio) amounts to 17.65 and forward P/E ratio is 19.81. The dividend yield has a value of 7.94 percent. Price to book ratio is 2.29 and price to sales ratio 5.05. The operating margin amounts to 29.42 percent.


Related stock ticker symbols:

DX, PNNT, TCAP, STON, VNR, NRP, EXLP, BWP, TLP, CMLP


Selected Articles:

· 14 Dividend Challengers For Less Than Book Value

· 12 Dividend Challengers With Low PEG Ratios

· Best Yielding Low Beta Dividend Challengers