11 More Potential Buys

Regular readers know I am running a series of screens to isolate securities that may be researched and included on a "buy" list when individuals speculate that a market bottom is at hand. Knowing that market timing is, at best, a hopeful guess, the stocks I list do not come with any elaborate raging buy scenarios. The list is intended only as a point of reference.

Yesterday I screened the following: Stocks with a market cap of at least $10 billion, listed on the NYSE, a Standard and Poors Rating of 4-Stars or 5-Stars and a dividend yield of 6% or higher as of the close Wednesday. Eleven stocks made the list:

Altria (MO) 6.55%
Banco Bilbao Vizcaya Argentaria ADR  (BBV) 6.63%
Bristol Myers Squibb (BMY) 6.63%
France Telecom ADR (FTE) 10.62%
ING Groep ADR (ING) 11.52%
KMP Kinder Morgan Energy MLP 8.20% (KMP) (note: earnings were light after hours Weds., buy on weakness)
National Grid ADR (NGG) 6.95%
Progress Energy (PGN) 6.36%
Sasol Limited ADR (SSL) 7.43%
Dow Chemical (DOW) 6.47%
Verizon (VZ) 6.36%

I believe that investors should look at historically exemplary companies that presently have a dividend of at least 5%. This will likely provide a floor for the stock and pay the investor a nice dividend until the markets head north.

Comments

[johngonole:]

NGG has more current liablities than current assets. I took a breif glance at this one because of the dividend and the low PE. Future PE is higher so I'm assuming earnings are going to drop. Furthermore Debt has been going up quickly. The've actually been using debt to buy back stock. I think this will stop now that borrowing money will be harder. Stock holder equity has also been dropping quickly. This probably has to do with buying debt to purchase stock. I don't know much about this company but it appears to be a young company that plays fast and loose. I'll look eleswhere.

2008 Oct 16 03:26 AM

[Shiv Kapoor:]

What about BP. It is near an 8% yield. The company has capacity and a long displayed ability to generate large free cash flows, it can deliver 4m bpd through 2010 from existing reserves, it has pretty exciting E&P prospects, it is a leader in alternative energy, it has a re-structure in place to improve HSE and cut costs, it has a good share buy-back program, it increased or maintained its dividend every year as far back as I have looked (Feb 1999) and today it delivers a yield of 8%. Today, you can lock in a return equaling the long term market return and look upon any capital gain as a bonus and as the dividends rise in future years, your yield relative to the price you paid continues to go upwards. I am not yet constructive on energy, but BP is certainly a stock I have my eye on.

2008 Oct 17 07:41 AM

[Dividends A...:]

BBV would be my top pick from that group. Well diversified global bank with solid operations in Latin America. It's very underfollowed, very high and safe yield and very well managed. They have avoided these financial WMD's very well in comparison to competitors both in Europe & North America.

2008 Oct 17 03:40 PM