The Cheapest High-Yield Stocks within the S&P 500

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May 17, 2012
High yielding dividend stocks are wonderful if you are looking for a fast cash payback. At the capital markets are 417 high yield stocks traded, but not all have a sustainable dividend history, or they are too expensive.


In order to find some attractive high yield stocks, I screened the popular S&P 500 by stocks with a dividend yield over 5 percent as well as a low P/E ratio of less than 15. The index has 24 high yields but only 10 companies have a low P/E ratio. Below the results is one stock with a double digit yield; four stocks are recommend to buy.


Here are my favorite stocks:


Gannett (GCI, Financial) has a market capitalization of $3.14 billion. The company employs 31,000 people, generates revenues of $5,239.99 million and has a net income of $500.13 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,012.42 million. Because of these figures, the EBITDA margin is 19.32 percent (operating margin 15.55 percent and the net profit margin finally 9.54 percent).


Financial Analysis: The total debt representing 26.61 percent of the company’s assets and the total debt in relation to the equity amounts to 75.62 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.80. Last fiscal year, the company paid $0.24 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.41, P/S ratio 0.60 and P/B ratio 1.36. Dividend Yield: 5.98 percent. The beta ratio is 2.46.


Exelon Corporation (EXC, Financial) has a market capitalization of $25.47 billion. The company employs 19,267 people, generates revenues of $18,924.00 million and has a net income of $2,495.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,815.00 million. Because of these figures, the EBITDA margin is 30.73 percent (operating margin 23.67 percent and the net profit margin finally 13.18 percent).


Financial Analysis: The total debt representing 24.49 percent of the company’s assets and the total debt in relation to the equity amounts to 93.79 percent. Due to the financial situation, a return on equity of 17.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.03. Last fiscal year, the company paid $2.10 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.67, P/S ratio 1.73 and P/B ratio 1.77. Dividend Yield: 5.46 percent. The beta ratio is 0.53.


ConocoPhillips (COP, Financial) has a market capitalization of $66.16 billion. The company employs 29,700 people, generates revenues of $251,226.00 million and has a net income of $12,502.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31,891.00 million. Because of these figures, the EBITDA margin is 12.69 percent (operating margin 9.16 percent and the net profit margin finally 4.98 percent).


Financial Analysis: The total debt representing 14.76 percent of the company’s assets and the total debt in relation to the equity amounts to 34.69 percent. Due to the financial situation, a return on equity of 18.59 percent was realized. Twelve trailing months earnings per share reached a value of $9.15. Last fiscal year, the company paid $2.64 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.72, P/S ratio 0.26 and P/B ratio 1.04. Dividend Yield: 5.03 percent. The beta ratio is 1.12.


American Electric Power (AEP, Financial) has a market capitalization of $18.21 billion. The company employs 18,710 people, generates revenues of $15,116.00 million and has a net income of $1,549.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,437.00 million. Because of these figures, the EBITDA margin is 29.35 percent (operating margin 18.40 percent and the net profit margin finally 10.25 percent).


Financial Analysis: The total debt representing 34.79 percent of the company’s assets and the total debt in relation to the equity amounts to 123.88 percent. Due to the financial situation, a return on equity of 11.09 percent was realized. Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, the company paid $1.85 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.32, P/S ratio 1.21 and P/B ratio 1.24. Dividend Yield: 5.00 percent. The beta ratio is 0.50.


Take a closer look at the full table of the cheapest S&P 500 high yield stocks. The average price to earnings ratio (P/E ratio) amounts to 10.49 and forward P/E ratio is 10.19. The dividend yield has a value of 5.88 percent. Price to book ratio is 4.93 and price to sales ratio 5.88. The operating margin amounts to 16.28 percent.


Related stock ticker symbols:

PBI, GCI, EXC, HRB, PPL, CVC, ETR, COP, TE, AEP


Selected Articles:

· 6 High Yield Stocks With Low Debt And Payout Ratio

· The Safest S&P 500 High Yield Dividend Stocks

· 8 Large Cap High Yields Below Book Value

· 11 High Yield Stocks With Cheap Free Cash Flow Ratios