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I have searched for profitable companies that pay rich dividends and that have a very low PEG ratio. I also looked for companies that are in short-term uptrend, in mid-term uptrend and in long-term uptrend. Stocks in an uptrend are performing well and are in a buying mode.

I have elaborated a screening method, which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research.

The screen's formula requires all stocks to comply with all following demands:

1. The stock is included in the Russell 3000 index. Russell Investment explanation:

The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000 Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected.

2. Dividend yield is greater than 4.1%.

3. The PEG ratio is less than 0.90.

4. Forward P/E is less than 15.

5. Average annual earnings growth estimates for the next five years is greater or equal 14%.

6. Stock price is above 20-day simple moving average (short-term uptrend).

7. Stock price is above 50-day simple moving average (mid-term uptrend).

8. Stock price is above 200-day simple moving average (long-term uptrend).

After running this screen on April 04, 2013, before the market open, I discovered the following three stocks:

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GFIG Dividend Chart

GFIG Dividend Yield Chart

GFI Group Inc (NYSE:GFIG)

GFI Group Inc. provides wholesale brokerage, clearing, and electronic execution and trading support products and services for financial markets in the United States, the United Kingdom, and internationally.

GFI Group has quite a low debt (total debt to equity is 0.59) and it has a very low forward P/E of 10.06; the PEG ratio is also very low at 0.81. The average annual earnings growth estimates for the next five years is very high at 20%, and the price-to sales ratio is very low at 0.44. The forward annual dividend yield is very high at 5.85%.

The GFIG stock price is 0.60% above its 20-day simple moving average, 0.33% above its 50-day simple moving average and 10.57% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

GFIG will report its latest quarterly financial results on April 22. GFIG is expected to post a profit of $0.06 a share, a 14.3% decline from the company's actual earnings for the same quarter a year ago. The reported results will probably affect the stock price in the short term.

The cheap valuation metrics, the very good earnings growth prospect, the very rich dividend, the fact that the stock is trading way below book value (price-to-book value is only 0.94) and the fact that the stock is in an uptrend are all factors that make GFIG stock quite attractive.

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Chart: finviz.com

Meredith Corporation (NYSE:MDP)

Meredith Corporation, a media and marketing company, engages in magazine publishing and related brand licensing, television broadcasting, digital and customer relationship marketing, digital and mobile media, and video creation operations in the United States.

Meredith Corporation has a low debt (total debt to equity is only 0.45) and it has a trailing P/E of 15.61 and a low forward P/E of 14.18; the PEG ratio is very low at 0.89. The average annual earnings growth estimates for the next five years is very high at 15%, and the price-to sales ratio is very low at 0.97 . The forward annual dividend yield is quite high at 4.21%, and the payout ratio is at 60%. The annual rate of dividend growth over the past five years was quite high at 15.2%.

The MDP stock price is 3.08% above its 20-day simple moving average, 1.83% above its 50-day simple moving average and 14.22% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Meredith Corporation will report its latest quarterly financial results on April 22. MDP is expected to post a profit of $0.68 a share, a 3% rise from the company's actual earnings for the same quarter a year ago. The reported results will probably affect the stock price in the short term.

All these factors -- the very low multiples, the rich dividend and the fact that the stock is in an uptrend -- make MDP stock quite attractive.

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Chart: finviz.com

Tower Group International, Ltd. (NASDAQ:TWGP)

Tower Group International, Ltd. through its subsidiaries offers commercial, personal and specialty insurance and reinsurance products.

Tower Group International has a low debt (total debt to equity is only 0.46) and it has a very low forward P/E of 6.46; the PEG ratio is also very low at 0.56. The average annual earnings growth estimates for the next five years is very high at 14%, and the price-to sales ratio is very low at 0.54 . The forward annual dividend yield is quite high at 4.15%. The annual rate of dividend growth over the past five years was very high at 38%.

The TWGP stock price is 1.89% above its 20-day simple moving average, 4.56% above its 50-day simple moving average and 9.30% above its 200-day simple moving average. That indicates a short-term, mid-term and long-term uptrend.

Tower Group International will report its latest quarterly financial results on May 6. TWGP is expected to post a profit of $0.56 a share, a 14.3% rise from the company's actual earnings for the same quarter a year ago. The reported results will probably affect the stock price in the short term.

The cheap valuation metrics, the good earnings growth prospect, the rich dividend, the fact that the stock is trading way below book value (price-to-book value is only 0.80) and the fact that the stock is in an uptrend are all factors that make TWGP stock quite attractive.

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Chart: finviz.com

GFIG Dividend Yield data by YCharts

Source: 3 Good-Yielding Dividend Stocks With A Very Low PEG Ratio That Are In Uptrend