Are you a contrarian looking to boost your portfolio’s income? Then this may be an interesting list for you to begin your own research.
To construct this list we looked for stocks with the following characteristics:
- Dividend yield greater than 2%, payout ratio below 40%
- Reaching 52-week low
- Trailing Twelve Month (TTM) operating cash flow per share > annual dividend per share
- TTM levered free cash flow per share > annual dividend per share
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Which of these names do you think is most likely to outperform the market, if short sellers continue to buyback such stock?
1. Computer Sciences Corporation (CSC): Information Technology Services Industry. Market cap of $5.84B. This stock is trading 3.8% above its 52-week low. Dividend yield at 2.12%, with a payout ratio of 15.44%.
TTM operating cash flow at $1.56B, or $10.08 on a per-share basis (vs. annual dividend per share at $0.8, TTM Operating Cash Flow per share / annual dividend per share stands at 12.6).
TTM Levered Free Cash Flow at $623.38M, or $4.03 on a per-share basis (vs. annual dividend per share at $0.8, TTM Levered Free Cash Flow per share / dividend per share stands at 5.03).
The stock has performed poorly over the last month, losing 13.78%.
2. Gap Inc. (GPS): Apparel Stores Industry. Market cap of $10.19B. This stock is trading 6.8% above its 52-week low. Dividend yield at 2.57%, with a payout ratio of 21.94%.
TTM operating cash flow at $1.65B, or $2.83 on a per-share basis (vs. annual dividend per share at $0.45, TTM Operating Cash Flow per share / annual dividend per share stands at 6.29).
TTM Levered Free Cash Flow at $1.01B, or $1.73 on a per-share basis (vs. annual dividend per share at $0.45, TTM Levered Free Cash Flow per share / dividend per share stands at 3.85).
Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 12.46. It's been a rough couple of days for the stock, losing 7.46% over the last week.
3. Meredith Corp. (MDP): Publishing Industry. Market cap of $1.36B. This stock is trading 6.17% above its 52-week low. Dividend yield at 3.42%, with a payout ratio of 26.51%.
TTM operating cash flow at $192.12M, or $4.22 on a per-share basis (vs. annual dividend per share at $1.02, TTM Operating Cash Flow per share / annual dividend per share stands at 4.14).
TTM Levered Free Cash Flow at $131.13M, or $2.88 on a per-share basis (vs. annual dividend per share at $1.02, TTM Levered Free Cash Flow per share / dividend per share stands at 2.82).
The stock is a short squeeze candidate, with a short float at 21.56% (equivalent to 17.03 days of average volume). The stock has lost 6.61% over the last year.
4. Microsoft Corporation (MSFT): Application Software Industry. Market cap of $201.88B. This stock is trading 7.89% above its 52-week low. Dividend yield at 2.67%, with a payout ratio of 23.8%.
TTM operating cash flow at $26.66B, or $3.16 on a per-share basis (vs. annual dividend per share at $0.64, TTM Operating Cash Flow per share / annual dividend per share stands at 4.94).
TTM Levered Free Cash Flow at $15.77B, or $1.87 on a per-share basis (vs. annual dividend per share at $0.64, TTM Levered Free Cash Flow per share / dividend per share stands at 2.92).
Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 10.5. The stock has lost 1.12% over the last year.
5. Newell Rubbermaid Inc. (NWL): Housewares & Accessories Industry. Market cap of $4.44B. This stock is trading 2.85% above its 52-week low. Dividend yield at 2.23%, with a payout ratio of 18.54%.
TTM operating cash flow at $444.90M, or $1.53 on a per-share basis (vs. annual dividend per share at $0.32, TTM Operating Cash Flow per share / annual dividend per share stands at 4.77).
TTM Levered Free Cash Flow at $256.79M, or $0.88 on a per-share basis (vs. annual dividend per share at $0.32, TTM Levered Free Cash Flow per share / dividend per share stands at 2.76).
It's been a rough couple of days for the stock, losing 17.29% over the last week.
6. P.F. Chang's China Bistro, Inc. (PFCB): Restaurants Industry. Market cap of $858.28M. This stock is trading 3.31% above its 52-week low. Dividend yield at 2.22%, with a payout ratio of 39.77%.
TTM operating cash flow at $133.69M, or $5.88 on a per-share basis (vs. annual dividend per share at $0.84, TTM Operating Cash Flow per share / annual dividend per share stands at 7.0).
TTM Levered Free Cash Flow at $89.38M, or $3.93 on a per-share basis (vs. annual dividend per share at $0.84, TTM Levered Free Cash Flow per share / dividend per share stands at 4.68).
The stock is a short squeeze candidate, with a short float at 21.22% (equivalent to 9.26 days of average volume). It's been a rough couple of days for the stock, losing 5.24% over the last week.
7. Koninklijke Philips Electronics NV (PHG): Electronic Equipment Industry. Market cap of $26.57B. This stock is trading 2.49% above its 52-week low. Dividend yield at 4.23%, with a payout ratio of 4.08%.
TTM operating cash flow at $2.09B, or $2.21 on a per-share basis (vs. annual dividend per share at $0.86, TTM Operating Cash Flow per share / annual dividend per share stands at 2.57).
TTM Levered Free Cash Flow at $581.44M, or $0.61 on a per-share basis (vs. annual dividend per share at $0.86, TTM Levered Free Cash Flow per share / dividend per share stands at 0.71).
The stock has performed poorly over the last month, losing 10.08%.
8. Ternium S.A. (TX): Steel & Iron Industry. Market cap of $5.90B. This stock is trading 0.18% above its 52-week low. Dividend yield at 2.55%, with a payout ratio of 24.2%.
TTM operating cash flow at $742.29M, or $3.74 on a per-share basis (vs. annual dividend per share at $0.75, TTM Operating Cash Flow per share / annual dividend per share stands at 4.99).
TTM Levered Free Cash Flow at $954.61M, or $4.81 on a per-share basis (vs. annual dividend per share at $0.75, TTM Levered Free Cash Flow per share / dividend per share stands at 6.41).
This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has performed poorly over the last month, losing 10.11%.
9. Whirlpool Corp. (WHR): Appliances Industry. Market cap of $5.68B. This stock is trading 6.83% above its 52-week low. Dividend yield at 2.68%, with a payout ratio of 21.15%.
TTM operating cash flow at $783.00M, or $10.27 on a per-share basis (vs. annual dividend per share at $2.0, TTM Operating Cash Flow per share / annual dividend per share stands at 5.14).
TTM Levered Free Cash Flow at $199.00M, or $2.61 on a per-share basis (vs. annual dividend per share at $2.0, TTM Levered Free Cash Flow per share / dividend per share stands at 1.31).
It's been a rough couple of days for the stock, losing 9.24% over the last week.
*Operating cash flow, levered free cash flow, and annual dividend sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
