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Below are the top 5 Nasdaq 100 companies that are within 20% of their respective 52-week lows and ranked by highest dividend yield.
Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and considerable due diligence. The complete list of highest yielding Nasdaq 100 stocks within 20% of their lows can be found here.
Symbol
Name
Price
P/E
EPS
Yield
P/B
% from Low
Garmin Ltd.
$27.05
8.17
$3.31
5.40%
2.09
1.92%
Paychex, Inc.
$24.97
18.93
$1.32
5.00%
6.39
1.30%
Maxim Integrated Products
$16.75
68.93
$0.24
5.00%
2.12
6.01%
KLA-Tencor Corporation
$29.10
23.72
$1.23
3.40%
2.18
9.03%
Intel Corporation
$19.15
11.46
$1.67
3.20%
2.36
4.59%
Watch List Summary
The best performing stock from our July 30th Nasdaq 100 Watch List was Vertex Pharmceuticals (VRTX) which increased +7.52% . Much of Vertex's gain can be attributed to a study which indicated that the hepatitis C drug may allow for a shorter treatment time (Forbes article). Vertex's main competetitor in this area is Merck (MRK).
The worst performing stock from July 30th was Seagate Technology (STX). Seagate fell -10.92% on news of a downgrade from Barclays Capital (Barron's article). The expectation is that weak demand will impair profit margins at least until the end of 2010.
This week's list makes it challenging to ignore Paychex and Garmin. The arguments that are made for PAYX increase each day the price declines. According to Valueline, PAYX normally trades at fair value around 22 times the cash flow per share. If this were the case, PAXX would be trading around $35.20 or 29% higher than Friday August 13th closing price based on 2010 estimated cash flow. The primary concern with PAYX is the dividend payout ratio which is very high. GRMN wouldn't be so difficult of an investment if they paid a quarterly dividend. However, Valueline has GRMN priced at fair value around $44.10 or 63% above the current price.
Disclosure: No positions
Source: Top 5 Highest Yielding Nasdaq 100 Stocks