If you are looking for the perfect stock, these days you might ignore the P/E ratios and the PEG ratios, and look for stocks with large amounts of cash, no debt, and pay a high dividend. These types of stocks are considered to be the best ones to weather a severe recession. According to WallStreetNewsNetwork.com, there are 35 stocks that are debt free, with plenty of cash, and dividend yields between 1% and 18.5%.
Biovail Corp (BVF) is a pharmaceutical company which develops treatments for central nervous system disorders, pain management, and cardiovascular diseases. They currently have 354.1 million in cash, giving them $2.23 in cash per share. The stock has a forward P/E of 7.1 and pays a yield of 18.%.
Terra Nitrogen Co. (TNH) produces and markets nitrogen fertilizer products. They currently have 190.1 million in cash, giving them $10.18 in cash per share. The stock has a P/E of 5.5 and pays a yield of 14.9%.
Mahanagar Telephone Nigam (MTE) is a provider of fixed-line and other telecommunications services in Delhi and Mumbai, India. They currently have 704.9 million in cash, giving them $2.24 in cash per share. The stock has a forward P/E of 10.17 and pays a yield of 9.4%.
Maxim Integrated Products (MXIM) makes and sells linear and mixed-signal integrated circuits. They currently have 1.218 billion in cash, giving them $3.80 in cash per share. The stock has a forward PE of 11.36 and pays a yield of 6.5 %.
Lorillard (LO) makes and markets cigarettes in the United States. They currently have 1.208 billion in cash, giving them $7.11 in cash per share. The stock has a forward P/E of 11.66 and pays a yield of 5.8%.
Grupo Aeroportuario Del Sureste (ASR) is an operator of airports in Mexico. They currently have 136.0 million in cash, giving them $4.54 in cash per share. The stock has a forward P/E of 9.31 and pays a yield of 5.8%.
Cohen & Steers (CNS) is a manager of high-income equity portfolios and provider of investment banking services. They currently have 200.4 million in cash, giving them $4.82 in cash per share. The stock has a forward P/E of 15.9 and pays a yield of 5.7%.
Gentex Cp (GNTX) makes and sells electro-optic products, automatic-dimming rearview mirrors, and fire protection products. They currently have 338.2 million in cash, giving them $2.41 in cash per share. The stock has a forward P/E of 17.98 and pays a yield of 5%.
Paychex Inc (PAYX) is a provider of payroll services, and integrated human resource and employee benefits outsourcing. They currently have 464.1 million in cash, giving them $1.29 in cash per share. The stock has a forward P/E of 15.77 and pays a yield of 4.7%.
Analog Devices (ADI) makes and sells analog, mixed-signal, and digital signal processing integrated circuits. They currently have 1.278 billion in cash, giving them $4.40 in cash per share. The stock has a forward P/E of 11.85 and pays a yield of 3.8%.
An Excel spreadsheet database of 35 high cash, no debt, high yield stocks can be found at WallStreetNewsNetwork.com. If you like high yield stocks, you should also consider Tax Free Income Stocks, and Top Yielding Electric Utilities.
Disclosure: Author owns ASR.
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This article has 5 comments:
A somewhat similar article appeared in a recent issue of Barron's - a very good idea to try in these trying times.
In my own blog I evaluate the 25 companies in the Barron's article and I evaluate them using my own proprietary methodology and come up with some very interesting results!
Great article and insightful!
Regards,
TVI Editor
There is nothing in your article indicating that the high-dividend good news is something we can take for granted that it will last long enough for any of the recommended stocks. What if the company board of directors reduce the dividend soon after I bought the stock?
Regarding Ted's concern, the only way around the unstable dividend dilemma that I've ever found is to buy discounted bonds which hopefully won't default and holding them to maturity and/or until you realize some capital appreciation, which can be sporadic.
What am I missing here? I did not see any Reverse splits on the historical data in Yahoo Finance, so what's going on here?