My 3 Favorites from Higher Capitalized Dividend Stocks Close to New 52-Week Lows

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Nov 29, 2012
Sometimes it makes sense to observe stocks with an ongoing sell-off. The background is to find stocks with a possible turnaround story and to bet on a strong bull race. Oversold stocks are often traded at new lows but they could recover in a fast way. If the company pays stable dividends, it should increase the expected total return for an investor. However, here is a current screen of best-yielding stocks that are close to their 52-week lows (up to 3 percent). In order to eliminate stocks with higher risk, I screened only companies with a market capitalization over USD2 billion. As a result, 12 stocks are near to their 52-week lows of which six have a yield over three percent and five are recommended to buy.

Here is the table with some fundamentals to compare:

TECO Energy (TE) has a market capitalization of $3.59 billion. The company employs 4,290 people, generates revenue of $3.343 billion and has a net income of $272.90 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $928.30 million. The EBITDA margin is 27.77 percent (the operating margin is 18.59 percent and the net profit margin 8.16 percent).

Financial Analysis: The total debt represents 41.97 percent of the company’s assets and the total debt in relation to the equity amounts to 135.60 percent. Due to the financial situation, a return on equity of 12.23 percent was realized. Twelve trailing months earnings per share reached a value of $1.17. Last fiscal year, the company paid $0.85 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.12, the P/S ratio is 1.07 and the P/B ratio is finally 1.58. The dividend yield amounts to 5.31 percent and the beta ratio has a value of 0.79.

Avon Products (AVP) has a market capitalization of $5.98 billion. The company employs 40,600 people, generates revenue of $11.291 billion and has a net income of $526.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.094 billion. The EBITDA margin is 9.69 percent (the operating margin is 7.57 percent and the net profit margin 4.66 percent).

Financial Analysis: The total debt represents 42.77 percent of the company’s assets and the total debt in relation to the equity amounts to 210.67 percent. Due to the financial situation, a return on equity of 32.08 percent was realized. Twelve trailing months earnings per share reached a value of $0.27. Last fiscal year, the company paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 51.42, the P/S ratio is 0.53 and the P/B ratio is finally 3.80. The dividend yield amounts to 1.73 percent and the beta ratio has a value of 1.44.

Devon Energy (DVN) has a market capitalization of $21.51 billion. The company employs 5,200 people, generates revenue of $11.454 billion and has a net income of $2.134 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.788 billion. The EBITDA margin is 59.26 percent (the operating margin is 39.54 percent and the net profit margin 18.63 percent).

Financial Analysis: The total debt represents 23.79 percent of the company’s assets and the total debt in relation to the equity amounts to 45.64 percent. Due to the financial situation, a return on equity of 10.38 percent was realized. Twelve trailing months earnings per share reached a value of $1.73. Last fiscal year, the company paid $0.67 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.65, the P/S ratio is 1.88 and the P/B ratio is finally 1.00. The dividend yield amounts to 1.51 percent and the beta ratio has a value of 1.13.

Take a closer look at the full table of dividend stocks near 52-Week lows. The average price to earnings ratio (P/E ratio) amounts to 19.99 and forward P/E ratio is 16.54. The dividend yield has a value of 4.96 percent. Price to book ratio is 1.63 and price to sales ratio 1.88. The operating margin amounts to 13.05 percent and the beta ratio is 0.92.

Related stock ticker symbols:

FTE, AT, PGH, TE, TFSL, SNE, CBSH, JW-A, LFL, AVP, DVN, AU

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· The Best Trading Ideas | 19 Dividend Stocks at All-Time-Highs

· A Quick Overview Of The Highest Yielding Stocks From The S&P 500

· 14 Dividend Stocks Marking New 52-Week Highs

· The Fastest Growing Dividend Stocks In The Dow Jones Index

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