Top 10 Stock Dividend Yields, Lowest Price-to-Sales and Price-to-Book Ratios

|
 |  Includes: ABC, AGX, AHCI, AOL, ARRS, ASTX, CHKE, COCO, ELNK, EME, GME, GRMN, HRB, JGBO, KBR, LLY, LMT, LO, MCK, MPAA, OSK, PRSC, RAI, RTN, UIS, VALU, WDC
by: MagicDiligence

Every so often, MagicDiligence compiles a list of Magic Formula stocks sorted by their dividend yield, price-to-sales ratio, and price-to-book ratio for investors that like to use those metrics. The result is a list of attractive value stocks for additional research.

Dividend Yield

Dividend yield is a favorite metric for income investors, providing both steady, predictable returns and downside protection. With Magic Formula Investing, you are also buying dividend stocks that are both cheap against earnings and represent a company that efficiently invests capital. The Top 10 Magic Formula highest dividend yield stocks (forward yield) right now are:

Ticker Company Div Yield
CHKE Cherokee, Inc. 8.70%
ELNK EarthLink Inc 7.50%
RAI Reynolds American Inc 6.40%
VALU Value Line Inc 5.60%
GRMN Garmin Ltd 5.50%
LLY Eli Lilly and Co 5.50%
LO Lorillard Inc 5.30%
HRB Block (H&R) Inc. 4.20%
LMT Lockheed Martin Corp 3.50%
RTN Raytheon Co. 3.40%
Click to enlarge

Price-to-Sales Ratio

Using the price-to-sales ratio was a tactic shown to be highly successful by such guru investors as Ken Fisher in Super Stocks and by James O'Shaughnessy in What Works on Wall Street. The Top 10 Magic Formula stocks with lowest price-to-sales ratios are:

Ticker Company P/S Ratio
ABC AmerisourceBergen Corp 0.10
MCK McKesson Corp 0.15
UIS Unisys Corp 0.22
PRSC Providence Service Corp (The) 0.22
OSK Oshkosh Corp 0.27
COCO Corinthian Colleges Inc. 0.28
EME EMCOR Group Inc. 0.30
GME GameStop Corp. 0.33
KBR KBR Inc 0.33
AHCI Allied Healthcare International Inc. 0.35
Click to enlarge

Price-to-Book Ratio

Finally, the price-to-book ratio is often considered the "classic" test of value investing: are you buying a company at or less than the net value of its assets? Price-to-book ratio was a favorite of the "father" of value investing, Ben Graham. The top 10 Magic Formula stocks with lowest price-to-book ratio are:

Ticker Company P/B Ratio
AHCI Allied Healthcare International Inc. 0.66
COCO Corinthian Colleges Inc. 0.70
MPAA Motorcar Parts of America Inc 0.83
OTCPK:JGBO Jiangbo Pharmaceuticals Inc 0.86
SUPG SuperGen Inc 1.11
ARRS Arris Group Inc 1.11
GME GameStop Corp. 1.13
AOL AOL Inc 1.15
AGX Argan Inc 1.18
WDC Western Digital Corp 1.21
Click to enlarge