By Neal Goodwin, Guest Editor
These aren't your typical attractive dividend stocks; these stocks are top 10 dividend stocks that can be had for under $14 per share. The benefit of low priced stocks is the increased liquidity, as they give you much more flexibility in purchasing and selling the stock. Each of these stocks yield at least 5%, have a payout ratio of less than 50% and a P/E of less than 30%. Note that a stock with a P/E under 15 is considered a bargain. Here is our analysis of these dividend mini giants:
Keyuan Petrochemicals (OTC:KEYP): Keyuan Petrochemicals is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Trading at $4.88 at its last close (more about this in a second), and providing dividends of $.36 per year, they have a dividend yield of just under 7.4%. This is impressive, however KEYP is an interesting stock considering the oddity that the trading of any KEYP shares has been halted since April 1, 2011. In a statement from Keyuan Petrochemicals, the dilemma comes as a result of a tardy 10-k form. Meanwhile, the law firm of Robins Umeda LLP is currently investigating allegations that people within the company made false statements regarding the company's financials. Further detail on the issue is unavailable. I'm conflicted here…If this stock were currently selling, I would buy it based on the fact they have been growing consistently since they issued shares in May 2010 (aside from a dip in stock price in the first few months after issuance). Above all, they have a great dividend yield (which they did pay for the first quarter). I suggest jumping on this stock once they are back on the market, but it is unclear when that may be.
Siliconware Precision Industries (SPIL): Selling at $6.06 and providing a dividend of .304, SPIL is yielding just a shade north of 5%. Luckily, SPIL is actually available on the market. The stock has lost ground over the past 12 months, but this is misleading because it has actually improved by 33% since a sharp decline last October. The P/E is currently 19.55. This is a speculative buy because of the recent volatility of the stock, but has been getting great reviews for months. SPIL provides semiconductor packaging and testing services worldwide, and has a market cap of $21.38 Billion. Buy cheap, and expect great dividends.
Premier Financial Bancorp (PFBI): PFBI is another stock that took a hit at the back end of 2010 due to the financial crises and has been making a comeback since. PFBI has improved by 9.3% in just the last 3 months. Trading at $7.16 per share and giving a dividend of $.44, PFBI has a dividend yield of 6.2%. Their P/E is currently 7.31. Premier Financial Bancorp recently announced the formation of Premier Bank, a branch bank in the Virginia, Washington DC and Maryland area worth $820 million. For investors, this means room for improvement in performance of the company, stock prices, and dividends. That, combined with the financial upturn makes this a safe and attractive buy because of the favorable company history and room for improvement.
Telular Corporation (WRLS): Telular operates in the "cellular alarm communicator market". Their main product is the Telguard system, a security system on a wireless network. Management is committed to keeping costs to an absolute minimum, and their high dividend shows they have strong faith in the progression of their security system. With a P/E of 2.82, dividends of $.4 and a latest trade of 6.87, they are yielding dividends at a 5.4% clip. Considering the progression of wireless technology, I would assume this company is here for the long haul based on the up-and-coming market which they occupy, and should see consistent increases in trading price. Saddle up and buy with confidence because this stock will be a successful one for the foreseeable future.
Gladstone Investment Corporation (GAIN): A buyout fund that buys small and mid-sized United States businesses in partnership with the management of those businesses and other investors, GAIN also provides US stock market investors with high dividends at a low price. GAIN focuses mainly on higher-risk buyouts, and because of the higher rate they receive on these buyouts, they are able to reward a higher dividend to investors. GAIN closed on April 26th at $7.61 per share and yielded over 7% in dividends. GAIN recently increased its dividend by 12.5%, and has seen over 15.7% growth in stock price over the last year. P/E is 4.9. Personally, I am not a huge fan of this stock. My reasoning is that they are only able to award high dividends because of the high interest they receive. However, they are receiving interest on risky business ventures. This is not a terrible stock, but I believe there are equally rewarding stocks that have a more sound business plan.
Safe Bulkers (SB): Safe Bulkers is in the shipping industry. It has been a rough month for the shipping industry; the stock has dropped over a dollar in value, but the sharp decline has leveled, and SB is considered one of the most underrated stocks by investors, sitting a full $2 below projected value. The thing to know about SB and the shipping industry is that the industry has been incredibly volatile during the course of the recession, and it is difficult to predict the direction of the stock. It is also difficult to point to a specific reason for any dip or increase in stock value. Closing trade for yesterday was $8.30, dividend is $.60, and the subsequent yield is 7.30%. P/E is 4.79. All in all, this stock is going to go up because its projected value is much higher than its market value based on its attractive P/E and healthy market cap ($568.4 Million).
KKR Financial Holdings (KFN): KFN is a specialty finance company focusing mainly on investment grade debt that has gained over 15% in value in the last year. The beta is very high (2.97), making it an unpredictable stock solely based on the temperature of the rest of the market, but recent returns have been good as the financial market is beginning to see an upswing following the financial crisis. Companies such as KFN that do specialty finance on investment grade debt will be some of the first companies to benefit from an economic upturn. With a net profit margin of 75%, they are able to offer dividend yields of 6% (Trade value of $10.00, dividend of $.6). While the stock is volatile, it does pay great dividends, and = has been steadily increasing in value over the last two years as faith is being restored in the financial sectors of the country. P/E for KFN is 4.44.
TICC Capital Corp (TICC): TICC has tremendous yields of 8.7%. With a market price of $10.94 and dividends of .96, this is one of the better dividend yields on the market based on % returns. TICC has a P/E of 4.66 and has seen over a 50% increase in market value over the past 12 months as a result of being in the business of debt and the economy finally recovering from the financial crises. The company invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock of both private and public companies. TICC stock has historically proven to be one that carries momentum in stock prices based on a high market cap ($1.84 Billion) and high volume of trades (just under 500,000), and currently it is on the up and up meaning that it should continue an upward trend.
Banco Frances (BFR): With its recent, continued increase in value, BFR appears to be a safe buy in today's market. It yields 6.50% with yesterday's close at $10.60 and recent dividends of $0.72. There is a slight concern about their involvement in Greek debt, because they were among the banks that loaned a lot of money to Greece to ensure the entire country did not default, but that should not affect stock value too much because there is a lot of support surround the Greek financial system and it is unlikely that the lenders are not going to be paid back. The P/E for BFR is 6.46, meaning that BFR is undervalued based on its expected earnings and impressive market cap ($1.78 Billion). However, based on the uncertainty surrounding the Greek financial system, and considering BFR has direct involvement, I believe other stocks on this list are more attractive.
Banco Santander (STD): STD also yields an exceptionally high return. Trading at $12.19 at the market close and offering dividends of 1.01, this accounts for a superb yield of 8.50%. P/E for STD is 8.95. On March 5, 2017 these shares become callable at $25 a share, and per contract they must yield at least 4% annually. Although still a bit away, this is a large payout with considerable payments until the callable date. Buying this stock at $12.19 seems like a no brainer because even disregarding dividends, which the company does reward healthily as stated before, you would get at least double your investment back if you hold onto the stock for 6 years. The combination of dividends and the return of double the principal that was initially put down should make this a very lucrative stock for the present and the long run.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.