With so much market volatility, and only three days into my Superyield Portfolio, I thought I'd try a stock screen on steroids to see if some bargains popped up. My screen used the following rules to look for bargains:
- no micro caps
- a -20% or lower price performance vs. the S&P 500 over the past 4 weeks
- Positive dividend growth for at least 5 years
- Yield of 4% or greater
The strategy is to find companies that are consistent dividend payers but got punished extra-hard over this recent storm of negativity. What I came up with are the following seven stocks:
- House (China) Holdings Limited (ADR) (NYSE:EJ)
- Veolia Environnement (ADR) (NYSE:VE)
- M.D.C. Holdings, Inc (NYSE:MDC)
- Getty Realty Corp. (NYSE:GTY)
- HNI Corporation (NYSE:HNI)
- Mesabi Trust (NYSE:MSB)
- Meridian Bioscience, Inc. (NASDAQ:VIVO)
To remind readers, I'm an architect and not a stock advisor, so I'm just going to eliminate a few of these seven on gut reaction:
- Chinese real estate? No thanks.
- VE: Cramer hates it. That might make it worth something.
- Iron Mines? That takes a real expert to understand.
- HNI and Meridian Biosciences appear to have strong and consitent earnings.
Let's get to the one stock that might fit well within the Superyield family: GTY. Getty Realty Corp.'s P/E is 10.2x, Price to Book is 1.4x with a 16.4% return on Equity. To me, quite solid. And at a yield of 11% and a price performance of -32.82% over the past 4 weeks, one has to take a look at the company seriously. Please, tell me what I'm missing?
From Getty's webisite:
Getty is the leading publicly-traded real estate investment trust in the United States specializing in ownership, leasing and financing of retail motor fuel and convenience store properties and petroleum distribution terminals. Our properties are located in 20 states across the United States with concentrations in the Northeast and the Mid-Atlantic regions. As of June 1, 2011, we owned 1,003 of our 1,170 properties and leased the remaining 167 properties from third-party landlords under long-term leases. Our properties are operated under a variety of brands including Getty, BP, Exxon, Mobil, Shell, Chevron, Valero, Fina and Aloha. Nearly all of our properties are leased or sublet to distributors and retailers who are responsible for managing the operations conducted at these properties including the payment of taxes, maintenance, repair, insurance and other operating expenses. We currently lease approximately 70% of our properties on a long-term basis to Getty Petroleum Marketing Inc., an unrelated entity. We own the Getty® trademark and trade name in connection with our real estate and the petroleum marketing business in the United States. We are a self-administered and self-managed real estate investment company led by a management team which has extensive experience in owning, leasing and managing retail motor fuel and convenience store properties. We are seeking to grow our portfolio of properties by providing competitively priced and innovatively structured financing to the retail motor fuel and convenience store industry.