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It is indispensable for stocks to provide highly attractive technical indicators like a low P/E ratio, a high estimated EPS growth for the next five years, a high profit margin, a strong upside movement potential, a reasonably-priced valuation. I also prefer investing in stocks with high and consistent dividend yields. A portfolio composed on these criteria is likely to return large profits. I decided to make a list of top five fat-dividend yielders with excellent indicators, that are reasonably priced and have low P/E ratios. (Data obtained from Finviz/Morningstar and current as of the close July 18):

Ares Capital Corporation (ARCC): ARCC will announce its Q2 earnings on August 4. As of the July 18 close, the private equity firm has a market capitalization of $3.10 billion, a P/E of 3.77, and a forward P/E of 9.72. Analysts estimate an 8.17% EPS growth for the next five years, which sounds reasonable given the 17.05% EPS growth of the past 5 years. With a profit margin of 133.77%, and a dividend yield of 9.23%, Ares is a tremendous stock for dividend lovers.

Earnings increased by 96.95% this quarter. Target price implies a 21.5% upside potential in the near term. While ROA is 20.86%, ROE is 31.24%. Gross margin is 71.03%, and P/B is 0.98. The stock is trading 12.98% lower than 52-week high. Although debts are unstable, assets are increasing consistently. It is a marvelous stock to go long, and the current price offers a suitable entry point. It is likely to go $20s. Recent dividend payments of Ares per share are:

Jun 13, 2011

$0.35

Mar 11, 2011

$0.35

Dec 13, 2010

$0.35

Sep 13, 2010

$0.35

Annaly Capital Management (NLY): NLY reported its Q2 market results recently. As of the July 18 close, the NYC-based REIT owned a market cap of $11.06 billion. Annaly has an impressive P/E ratio of 7.67, and a forward P/E ratio of 7.41. Estimated EPS growth for the next five years is 3.00%, which is truly conservative given the 47.72% EPS growth of past 5 years. NLY pays an attractive dividend of 14.61%.

Target price indicates a 5% upside movement potential, and the stock is trading 4.25% lower than 52-week high. SMA50 is 0.48%, while SMA200 is 6.02%. Earnings increased by 82.19% this quarter. Although the company is in serious debt, debt-to assets ratio is going down for the last five years. FBR Capital suggests outperform for Annaly, while Wunderlich and Deutsche Bank recommend buying. Insiders have been exercising options for a while. Cramer is also bullish on NLY. Following is the recent dividend history of NLY:

Jun 28, 2011

$0.65

Mar 29, 2011

$0.62

Dec 23, 2010

$0.64

Sep 30, 2010

$0.68

New York Community Bancorp (NYB): NYB will release its Q2 results on July, 21. The New-York based company has a $6.49 billion market cap, and a 12.06 P/E. Forward P/E ratio is 11.32, as of July 18. Analysts expect the company to have a 6.00% EPS growth in the next 5 years. Profit margin is 35.29%, whereas the company yields a 6.74% dividend.

Debts and assets are unstable. Target price is $18.28, indicating an about 23.2% increase potential. The stock is trading 21.05% lower than 52-week high. Although it has been a rough year of NYB, it surely knows how to sail in this ocean. Current price is an advantageous entry point. I believe the stock will stroll around $17-18. Here are the recent dividend payments of NYB per share:

May 4, 2011

$0.25

Feb 3, 2011

$0.25

Nov 4, 2010

$0.25

Aug 4, 2010

$0.25

CenturyLink, Inc. (CTL): CenturyLink just bought Savvis Inc. The technology company has a market capitalization of $22.72 billion, a P/E ratio of 12.69, and a forward P/E of 13.76, as of the July 18 close. Analysts expect the company to have a 3.00% EPS growth in the next five years. With a profit margin of 13.08%, shareholders enjoyed a 7.67% dividend.

$1000 invested in CenturyLink in November 2008 is about $1720 now. Debt-to assets ratio is slightly going down for the last five quarters. Yields leapfrogged from 7 cents to 63 cents in Jul,2008. Operating margin is 28.5%, while gross margin is 65.6%. Target price indicates a 20.5% increase potential, whereas the stock is trading 16.50% lower than 52-week high. CTL has a strong momentum for three years. I guess the momentum will continue for a while. Recent dividend history is as follows:

Jun 2, 2011

$0.725

Feb 16, 2011

$0.725

Dec 3, 2010

$0.725

Sep 2, 2010

$0.725

Chimera Investment Corporation (CIM): Founded in 2007, Chimera is a REIT operating in the United States. As of the July 18 close, CIM has a market cap of $3.27 billion. It shows a P/E ratio of 5.05, and a forward P/E ratio of 5.39. Analysts estimate a 7.33% EPS growth for the next five years, which is quite reasonable when its 19.18% EPS growth of last 5 years is considered. It pays a whopping dividend yield of 16.35%, whereas profit margin is 71.03%.

Although debts are increasing, assets outrun them. Target price is $4.22, which implies a 32% upside potential. The stock is trading 21.29% lower than 52-week high. P/B is 0.9, and insider transactions for the last six months have increased by 22.33%. Insiders have been buying stocks for a while Although the stock is highly volatile - and although I am not that bullish on this stock - it can return large amounts of profits. Recent dividend payments are:

Jun 28, 2011

$0.13

Mar 29, 2011

$0.14

Dec 29, 2010

$0.17

Sep 30, 2010

$0.18

Source: 5 Low-Priced Companies Paying Substantial Dividends