The markets continue to grind higher. The Dow and S&P 500 are pushing back toward their 52 week highs. As the markets push valuations higher, many investors are searching for deep value. One metric commonly used in this search is the price to book ratio. As I continue searching for deep value stocks, I decided to screen for stocks trading under book value. I also like stocks that pay dividends, so I screened further by looking for the names that have a 3% yield or higher. I narrowed the field even more by looking for companies that have annualized 5 year revenue growth of 15% or more. The following ten companies are the result. They all trade below book value, yield 3% or more, and have grown revenues for five years at an annualized rate of 15% or more.
DCT Industrial Trust (DCT)
DCT is a real estate investment trust (REIT) that specializes in the ownership, operation, and development of industrial properties, including warehouses and light industrial locations. The firm primarily invests in the U.S. and Mexico, as well as some other international markets.
|Market Cap||$1.3 B|
|5 Year Div. Growth Rate||-15.20%|
|5 Year Annual Rev. Growth Rate||15.40%|
BreitBurn Energy Partners L.P. (BBEP)
BreitBurn Energy Partners is a master limited partnership that engages in the acquisition, exploitation, and development of oil and gas properties in the U.S. At the end of 2009 its estimated proved oil equivalent reserves were approximately 111 million barrels.
|Market Cap||$1.3 B|
|5 Year Div. Growth Rate||-3.40%|
|5 Year Annual Rev. Growth Rate||28.40%|
Osage Bancshares Inc. (OSBK)
Osage Bancshares is the bank holding company for Osage Federal Bank. The bank operates a few retail locations in the state of Oklahoma. The company was founded in 1918.
|Market Cap||$21.4 M|
|5 Year Div. Growth Rate||29.20%|
|5 Year Annual Rev. Growth Rate||15.50%|
Hudson City Bancorp Inc. (HCBK)
Hudson City Bancorp is the bank holding company for Hudson City Savings Bank. The bank operates approximately 95 retail locations in New Jersey and Connecticut. Hudson recently announced that it had paid off $12.5 billion in structured quarterly putative borrowings, reducing higher cost borrowings.
|Market Cap||$5.2 B|
|5 Year Div. Growth Rate||17.50%|
|5 Year Annual Rev. Growth Rate||18.80%|
First Clover Leaf Financial Corp. (FCLF)
First Clover Leaf Financial is the bank holding company for First Clover Leaf Bank. First Clover Leaf operates four retail banking centers in the state of Illinois.
|Market Cap||$56.4 M|
|5 Year Annual Div. Growth Rate||27.90%|
|5 Year Annual Rev. Growth Rate||31.00%|
Walter Investment Management (WAC)
Walter Investment Management is a real estate investment trust (REIT). The trust operates as the mortgage owner and servicer of sub-prime, non-conforming, and other credit challenged residential mortgage loans. Walter Investment Management recently announced it would acquire GTCS Holdings for approximately $1.07 billion.
|Market Cap||$497.5 M|
|5 Year Div. Growth Rate||-48.50%|
|5 Year Annual Rev. Growth Rate||61.80%|
Ashford Hospitality Trust Inc. (AHT)
Ashford Hospitality Trust is a real estate investment trust. Ashford engages in the investment and management of upscale and mid-scale hotel properties in the U.S.
|Market Cap||$634.6 M|
|5 Year Div. Growth Rate||N/A|
|5 Year Annual Rev. Growth Rate||22.60%|
Aircastle Ltd (AYR)
Aircastle, through its subsidiaries, engages in the acquisition, sale, and lease of utility commercial aircraft to cargo and passenger airlines. The company also makes various other investments in aviation assets.
|Market Cap||$619.6 M|
|5 Year Div. Growth Rate||75.60%|
|5 Year Annual Rev. Growth Rate||-45.30%|
NorthStar Realty Finance (NRF)
NorthStar Realty Finance is a real estate investment trust. The company primarily acquires, originates, and structures debt investments.
|Market Cap||$395.3 M|
|5 Year Div. Growth Rate||-12.90%|
|5 Year Annual Rev. Growth Rate||47.40%|
PCCW Ltd ADR (OTCPK:PCCWY)
PCCW Ltd, with its subsidiaries, engages in the provision of telecommunications services in Hong Kong, Mainland China, and the Asia Pacific region. The company offers local, mobile, and international telecommunications services, as well as internet access and other services.
|Market Cap||$2.9 B|
|5 Year Div. Growth Rate||22.50%|
|5 Year Annual Rev. Growth Rate||25.30%|
Price to book ratios provide a good starting point for some investors searching for deep-value companies. Combined with other valuation metrics, investors should consider a company's price to book ratio. These ten stocks do not represent specific recommendations.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.