The Cheapest Mid-Capitalized Dividend Stocks with Highest Yield

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Apr 18, 2012
Midcap stocks, stocks with a market capitalization of more than USD2 billion but less than USD10 billion, are not in focus of mainstream investors. In comparison to large cap stocks, they are cheaper and they offer a higher yield. The price for this bargain is also a higher risk.


I screened all mid-capitalized stocks with a dividend yield over five percent (high yield) and a single P/E ratio of less than ten. Thirteen stocks fulfilled these criteria of which five have a double digit yield; five are recommended to buy. The highest yield comes from YPF S.A. (YPF, Financial), an Argentina oil and gas refining and marketing company. The company is in process to be taken over by the government and lost half of its worth over the past year.


Here are my favorite stocks:


Telecom Argentina (TEO, Financial) has a market capitalization of $2.87 billion. The company employs 16,237 people, generates revenues of $4,225.23 million and has a net income of $578.91 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,369.85 million. Because of these figures, the EBITDA margin is 32.42 percent (operating margin 20.79 percent and the net profit margin finally 13.70 percent).


The company has USD 2.8 billion in cash and short-term investments and USD 115 million in long-term debt. The total balance sheet value amounts to USD 14.83 billion as of Q4/2011. Twelve trailing months earnings per share reached a value of $2.81. Last fiscal year, the company paid $1.06 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 5.20, P/S ratio 0.93 and P/B ratio is not calculable. Dividend Yield: 9.90 percent. The beta ratio is 1.08.


Pitney Bowes (PBI, Financial) has a market capitalization of $3.45 billion. The company employs 28,700 people, generates revenues of $5,277.97 million and has a net income of $369.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $795.85 million. Because of these figures, the EBITDA margin is 15.08 percent (operating margin 7.85 percent and the net profit margin finally 7.00 percent).


The total debt representing 51.97 percent of the company’s assets. PBI has USD 869 million in cash and short-term investments and USD 3.68 billion in long-term debt. Total balance sheet value amounts to USD 8.15 billion as of Q4/2011. Twelve trailing months earnings per share reached a value of $1.73. Last fiscal year, the company paid $1.48 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 9.96, P/S ratio 0.63 and P/B ratio is not calculable due to a negative equity. Dividend Yield: 9.01 percent. The beta ratio is 1.00.


SK Telecom (SKM, Financial) has a market capitalization of $8.71 billion. The company employs 15,490 people, generates revenues of $13,593.46 million and has a net income of $1,117.91 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,166.03 million. Because of these figures, the EBITDA margin is 30.65 percent (operating margin 12.05 percent and the net profit margin finally 8.22 percent).


The total debt representing 26.46 percent of the company’s assets and the total debt in relation to the equity amounts to 52.91 percent. Due to the financial situation, a return on equity of 13.53 percent was realized. Twelve trailing months earnings per share reached a value of $2.05. Last fiscal year, the company paid $0.92 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 6.65, P/S ratio 0.73 and P/B ratio 0.88. Dividend Yield: 7.00 percent. The beta ratio is 0.90.


Take a closer look at the full table of the cheapest mid-capitalized dividend stocks. The average price to earnings ratio (P/E ratio) amounts to 7.13 and forward P/E ratio is 6.85. The dividend yield has a value of 9.57 percent. Price to book ratio is 1.39 and price to sales ratio 2.00. The operating margin amounts to 25.46 percent.


Related stock ticker symbols:

YPF, CIM, TWO, MFA, TEO, PBI, AT, ARLP, SKM, STM, GCI, PT, DEG


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