5 High-Yielding Attractive Dividend Stocks

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 |  Includes: EC, GAIN, HTGC, PDH, SIR
by: Arie Goren

I have searched for high-yielding dividend stocks that their last dividend declared is greater than the last dividend paid. Those stocks would also have to show a very low P/E ratio and a low debt.

I used the Portfolio123's powerful screener to perform the search. The screen's formula requires all stocks to comply with all following demands:

  1. The stock does not trade over-the-counter (OTC).
  2. Price is greater than 1.00.
  3. Market cap is greater than $100 million.
  4. Dividend yield is greater than 6.5%.
  5. Last dividend declared is greater than the last dividend paid.
  6. Trailing P/E is less than 15.
  7. Forward P/E is less than 15.
  8. Total debt to equity is less than 1.00.

After running this screen on December 10, 2013, before the market open, only five stocks came out, as shown in the table below. In my opinion, these stocks can reward an investor a significant capital gain along with a gratifying income. I recommend readers to use this list of stocks as a basis for further research. All the data for this article were taken from Yahoo Finance, Portfolio123 and finviz.com.


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PetroLogistics LP (NYSE:PDH)

PetroLogistics LP owns and operates propane dehydrogenation facility that processes propane into propylene in North America.

PetroLogistics LP has a very low trailing P/E of 9.13 and a very low forward P/E of 8.73. The forward annual dividend yield is very high at 15.28%, and the payout ratio is at 109%.

On October 23, PetroLogistics reported its third-quarter financial results. The company reported that total sales in the third quarter were $198.4 million and net income was $55.1 million. The Partnership's reported results include certain items that impact comparability of financial results between reporting periods. Excluding the impact of these items, the Partnership's Adjusted EBITDA was $73.9 million and adjusted net income was $57.3 million. Cash available for distribution was $62.3 million for the third quarter of 2013.

In the report, Nathan Ticatch, President and Chief Executive Officer explained:

In the third quarter, the Partnership's results benefited from stable operating performance and healthy propane-to-propylene spreads. The first planned triennial turnaround commenced on September 28th and is progressing well. Included in the turnaround scope are numerous capital and maintenance projects designed to improve plant reliability. Accordingly, upon completion of the turnaround we look forward to continued improvement in plant performance.

PetroLogistics LP has good earnings growth prospects, and considering its low P/E ratio, PDH stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

Risks to the expected capital gain and to the dividend payment include; a downturn in the U.S. economy, and a decline in the price of propylene.

PDH Dividend Chart

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Chart: finviz.com

Gladstone Investment Corporation (NASDAQ:GAIN)

Gladstone Investment Corporation is a business development company specializing in buyouts recapitalizations, and changes in control investments.

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Source: company presentation

Gladstone Investment has a low debt (total debt to equity is 0.52), and it has a very low trailing P/E of 13.45 and a very low forward P/E of 10.83. The price to book value is very low at 0.86, and the average annual earnings growth estimates for the next five years is at 7%. The forward annual dividend yield is very high at 9.56%, and the payout ratio is at 109%

The GAIN stock price is 1.32% above its 20-day simple moving average, 5.05% above its 50-day simple moving average and 7.47% above its 200-day simple moving average. That indicates a short-term, a mid-term and a long-term uptrend.

Gladstone Investment has recorded strong revenue and EPS growth, during the last year, the last three years and the last five years, as shown in the charts below.

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Source: company presentation

Most of Gladstone's Investment's growth rates, margins and stock valuation parameters have been better than its industry median, sector median and the S&P 500 median, as shown in the tables below.

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Source: Portfolio123

On November 06, Gladstone Investment reported its second-quarter financial results, which beat EPS expectations by $0.06. Net Investment Income for the quarters ended September 30 and June 30, 2013 was $6.2 million, or $0.24 per share, and $4.0 million, or $0.15 per share, respectively, an increase of 54.4%.

Gladstone Investment has recorded strong revenue and EPS growth, and considering its compelling valuation metrics, its good earnings growth prospects, and the fact that the stock is in an uptrend, GAIN stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

GAIN Dividend Chart

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Chart: finviz.com

Hercules Technology Growth Capital Inc (NASDAQ:HTGC)

Hercules Technology Growth Capital, Inc. is a private equity, venture capital, and venture debt firm specializing in providing debt and equity to privately held venture capital and private equity backed companies and select publicly-traded companies.

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Source: company presentation

Hercules Technology has a very low trailing P/E of 9.80 and a very low forward P/E of 12.98. The average annual earnings growth estimates for the next five years is at 5%. The forward annual dividend yield is very high at 7.40%, and the payout ratio is at 66.5%.

The HTGC stock price is 6.15% above its 50-day simple moving average and 22.31% above its 200-day simple moving average. That indicates a mid-term and a long-term uptrend.

Hercules Technology has recorded strong revenue and EPS growth and negative dividend growth during the last three years, as shown in the charts below.

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Source: company presentation

Most of Hercules Technology's growth rates and margins parameters have been better than its industry median, sector median and the S&P 500 median, as shown in the tables below.

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On November 07, Hercules Technology reported its third-quarter financial results.

Third-quarter Highlights

  • Record high total investment income of $41.0 million, up 71.6% from Q3 2012
  • Q3 2013 net investment income, or "NII" of approximately $21.6 million, or $0.35 per share, up 89.5% from Q3 2012
  • Q3 distributable net operating income, or "DNOI" of $23.2 million, or $0.38 per share, up 85.6% from Q3 2012
  • Record number of announced or completed 18 liquidity events in Q3
  • Recorded net realized gains of $7.1 million in Q3
  • Total investment assets of approximately $983.4 million up 27.0% from Q3 2012
  • Year-to-date total closed commitments of approximately $579.3 million
  • Strong liquidity position with approximately $310.0 million available at quarter end
  • GAAP debt to equity leverage ratio of 88.6% and net leverage ratio of 56.7%, after taking into account cash of approximately $205.0 million as of September 30, 2013

Since HTGC valuation metrics are low, and the latest quarter financial results were very good, a capital gain can be expected along the very rich dividend.

Risks to the expected capital gain and to the high dividend payment include a downturn in the U.S. economy, and the company's debt of $570 million.

HTGC Dividend Chart

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Chart: finviz.com

Select Income REIT Common Share (NYSE:SIR)

Select Income REIT is a real estate investment trust, or REIT, which owns 273 properties, 229 of which are net leased lands in Hawaii, as well as 44 office and industrial properties located throughout the mainland United States.

Select Income REIT has a low debt (total debt to equity is 0.38), and it has a very low trailing P/E of 12.93 and a low forward P/E of 14.44. The price to book value is at 1.15, and the average annual earnings growth estimates for the next five years is at 6.5%. The forward annual dividend yield is very high at 6.62%, and the payout ratio is at 80%.

The SIR stock price is 1.29% above its 20-day simple moving average, 3.57% above its 50-day simple moving average and 5.68% above its 200-day simple moving average. That indicates a short-term, a mid-term and a long-term uptrend.

Select Income REIT has recorded strong revenue growth during the last year, the last three years and the last five years, as shown in the charts below.

On October 31, Select Income reported its third-quarter financial results.

Results for the Quarter Ended September 30, 2013:

  • Normalized funds from operations, or Normalized FFO, for the quarter ended September 30, 2013 were $32.9 million, or $0.66 per share, compared to Normalized FFO for the quarter ended September 30, 2012 of $20.2 million, or $0.65 per share.
  • Net income was $23.6 million, or $0.47 per share, for the quarter ended September 30, 2013, compared to $15.7 million, or $0.50 per share, for the same quarter last year.
  • SIR's weighted average number of common shares outstanding was 49,685,740 and 31,206,022 for the quarters ended September 30, 2013 and 2012, respectively.
  • A reconciliation of net income determined according to U.S. generally accepted accounting principles, or GAAP, to funds from operations, or FFO, and Normalized FFO for the quarters ended September 30, 2013 and 2012 appears later in this press release.

Select Income has recorded strong revenue growth, and considering its compelling valuation metrics, its good earnings growth prospects, and the fact that the stock is in an uptrend, SIR stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

SIR Dividend Chart
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Chart: finviz.com

Ecopetrol SA (NYSE:EC)

Ecopetrol S.A., an integrated oil company, engages in the exploration, development, and production of crude oil and natural gas Colombia.

Ecopetrol has a low debt (total debt to equity is 0.25), and it has a very low trailing P/E of 12.68 and a very low forward P/E of 12.38. The average annual earnings growth estimates for the next five years is at 1.41%. The forward annual dividend yield is very high at 6.54%, and the payout ratio is at 113%.

Ecopetrol has recorded strong revenue, EPS and dividend growth, during the last year, the last three years and the last five years, as shown in the table below.

Ecopetrol's margins and return on capital parameters have been better than its industry median, sector median and the S&P 500 median, as shown in the tables below.

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On October 30, Ecopetrol reported its third-quarter financial results.

Third-quarter Highlights

  • The financial results of the third quarter were the strongest of the past six quarters, driven by production growth, stable hydrocarbon prices and the devaluation of the Colombian peso.
  • Ecopetrol S.A.'s net income in the third quarter of 2013 was COP$ 3.97 trillion, rising 22.1% compared to the second quarter of 2013 and 22.4% compared to the third quarter of 2012. EBITDA margin was 50% both in the quarter and in the January-September period.
  • Average production for the third quarter 2013 (Ecopetrol S.A., including its interest in affiliates and subsidiaries) reached a record of 800.4 mboed, a 7.7% increase compared to the third quarter of 2012. For the January-September 2013 period, the average production was 790.7 mboed, growing 5.4% compared to the same period of 2012.

Ecopetrol has recorded strong revenue, EPS and dividend growth, and considering its compelling valuation metrics, EC stock can move higher. Furthermore, the very rich dividend represents a gratifying income.

EC Dividend Chart
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Chart: finviz.com

Disclosure: I am long GAIN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.