This article will focus on a stock screen that I ran looking for high paying dividend mid-cap stocks with yields that are 7% or more. It focused only on mid-cap stocks with current dividend yields of 7% or more and also on these same stocks that have earnings growth for the current fiscal year of 20% or more. This stock screen was designed to find companies with outsized dividends that are forecast to have large earnings growth in the current fiscal year. This would give me as an investor an indication that with growing earnings, the likelihood that these dividends can be maintained is greater than it would be if earnings were stagnant or in decline, all else equal.
Please note that on the following stocks, no further research other than what is being presented has been conducted. These stocks pay a high dividend yield and with that, comes risk that they will not be able to continue paying these dividends. Please conduct your own research and due diligence before deciding if you would like to invest in these stocks. This is just providing information on what I came across when looking for these type of stocks. With a stock screener like this, a lot of times one has to come across many stocks that are no good before finding one that is good. At least, that has been my experience. That being said, here are the stocks. This screener was run after the market close on 12/24/2012. It only produced three stocks.
AmeriGas Partners LP (APU) is the first stock. It has a market cap of $3.6 billion currently. Over the last 52 weeks, the stock is down 13.24%. Its dividend is currently at $3.20 per share annually, and this amount is paid quarterly. This amounts to an annual dividend yield of 8.20%. The dividend recently increased to $0.80 per quarter in May of 2012. Analyst estimates call for EPS of $2.55 for the fiscal year ending in September of 2013, up from $0.71 in the prior year.
The next stock is Omega Healthcare Investors Inc. (OHI). It has a market cap of $2.6 billion currently and is up 20.76% over the last 52 weeks. Its dividend currently sits at $1.76 annually per share, giving it a dividend yield of 7.50%. This dividend is paid quarterly at $0.44 per quarter. It was recently raised in October of 2012, up from $0.42 in the previous quarter. Analyst estimates call for EPS of $2.16 for the year ending December 2012, up from $1.89 a year ago. Based on the stock screener I ran, which was not on Yahoo Finance (it is at my broker's website, which I don't want to name publicly), it has earnings growing at least 20%. Per these estimates, the earnings growth is predicted to be 14.3%.
Finally, we have Suburban Propane Partners LP (SPH). Its market cap is currently $2.2 billion. It is down 18.33% over the last 52 weeks. It currently pays an annual dividend of $3.41, which gives it a dividend yield of 8.70%. This dividend is paid quarterly at $0.853 per quarter. It has had this quarterly payout since January 2011, and before that it was $0.85 in October of 2010. Analyst estimates call for EPS of $2.68 for the year ending September of 2013, up from $0.16 a year ago.
There you have it, three outsized dividend payers that are mid-cap stocks and that have high current year earnings growth. This is a great list to conduct further research on I would say.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.