12 High Yield Stocks With Additional Payout Potential

Author's Avatar
Jun 22, 2012
Stocks With High Yields And Low Payout Ratios Researched By Dividend Yield - Stock, Capital, Investment. Big dividends are a wonderful instrument to increase your private income. Better if the dividends and at least your income grow above the inflation rate.

I screened the capital markets by high yields stocks with a low payout ratio of less than 40 percent of the current total earnings per share amount. If the company doesn’t need much money to finance growth or repay debt, the dividends should be increased by the company in the mid-term. In order to eliminate such stocks with a low capitalization and trading volume, I decided to list only those stocks with a higher market capitalization of more than USD 2 billion. Twelve companies fulfilled the mentioned criteria of which three have a double-digit yield.

Here are my favorite stocks:

Gannett (GCI) has a market capitalization of $3.16 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 7.48, P/S ratio 0.59 and P/B ratio 1.33. Dividend Yield: 6.13 percent. The beta ratio is 2.43.

ConocoPhillips (COP) has a market capitalization of $66.72 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 5.76, P/S ratio 0.27 and P/B ratio 1.07. Dividend Yield: 4.85 percent. The beta ratio is 1.12.

BP plc (ADR) (BP) has a market capitalization of $120.21 billion. The company employs 83,400 people, generates revenues of $386,463.00 million and has a net income of $26,097.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51,908.00 million. Because of these figures, the EBITDA margin is 13.43 percent (operating margin 10.30 percent and the net profit margin finally 6.75 percent).

Financial Analysis: The total debt representing 15.09 percent of the company’s assets and the total debt in relation to the equity amounts to 39.67 percent. Due to the financial situation, a return on equity of 24.89 percent was realized. Twelve trailing months earnings per share reached a value of $7.63. Last fiscal year, the company paid $1.68 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.97, P/S ratio 0.33 and P/B ratio 1.13. Dividend Yield: 4.80 percent. The beta ratio is 1.25.

James Hardie Industries (JHX) has a market capitalization of $3.32 billion. The company employs 2,540 people, generates revenues of $1,237.50 million and has a net income of $604.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $220.70 million. Because of these figures, the EBITDA margin is 17.83 percent (operating margin 12.57 percent and the net profit margin finally 48.83 percent).

Financial Analysis: The total debt representing 1.34 percent of the company’s assets and the total debt in relation to the equity amounts to 24.45 percent. Due to the financial situation, a return on equity of percent was realized. Twelve trailing months earnings per share reached a value of $6.89. Last fiscal year, the company paid $0.20 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.52, P/S ratio 2.78 and P/B ratio 27.30. Dividend Yield: 19.26 percent. The beta ratio is 1.86.

Take a closer look at the full table of high yield stocks with additional payout potential. The average price to earnings ratio (P/E ratio) amounts to 6.45 and forward P/E ratio is 13.81. The dividend yield has a value of 7.96 percent. Price to book ratio is 3.18 and price to sales ratio 1.02. The operating margin amounts to 17.98 percent and the beta ratio is 1.62. The average stock has a payout ratio of 24.63 percent.

Related stock ticker symbols:

JHX, SAN, BBVA, AT, SBS, GCI, YZC, SNP, GSH, CLF, BP, COP

Selected Articles:

· 19 Most Recommended High Yield Large Caps

· The Cheapest High Yield Stocks From The S&P 500

· 6 High Yield Stocks With Low Debt And Payout Ratio

· The Safest S&P 500 High Yield Dividend Stocks