10 Profitable, High-Dividend Stocks to Quell Market Fears

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Includes: AINV, ARCC, GOGL, GTY, LLTC, NMM, PT, SDRL, SEP, TSM
by: Follow My Alpha

When markets play the yo-yo game, investor confidence doesn’t have to follow suit. Of course that’s easier said than done. So what makes the difference between the investors like Warren Buffett -- who have nerves of steel -- and the ones who yell at the TV while watching CNBC? Simply stated, investors like Buffett don’t lose sleep at night, because they consistently focus on acquiring companies that hold strong fundamentals, and on doing so at opportunistic times. And that is something anyone can do.

The current ratio is a liquidity ratio that illustrates how easily a company can cover short-term obligations with current assets. A rule of thumb is that if a company has a current ratio of less than 1, then it can’t cover all its short-term obligations if they all come due at once.

The net margin illustrates how much is retained in terms of profit relative to dollars earned. Higher margins give a firm more pricing flexibility and allow it to better weather an economic storm.

To start, we screened for dividend stocks with a current ratio of at least 1. From this narrowed pool we screened for companies that had a net profit margin of at least 30%. We did not screen out any sectors or industries.

The list is ranked from highest to lowest by Net Profit Margin.

1. Portugal Telecom SA (NYSE:PT)

Sector

Communication ServicesCommun Svs

Industry

Telecom Services

Market Cap

$7710M

Beta

0.76

Analyst Sentiment

18/29 -List Hold/Neutral (Neutral)

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The company offers telecommunications services in Brazil, Portugal, and Africa. The firm’s net margin is 153.83%. The firm’s current ratio is 1.44. The current dividend yield is 11%. The short interest for the firm is NA as of 8/15/2011.

2. Ares Capital Corporation (NASDAQ:ARCC)

Sector

Financial ServicesFinancial Svs

Industry

Asset Management

Market Cap

$3022M

Beta

2.01

Analyst Sentiment

14/15 -List Buy/Outperform (Bullish)

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The company is a private equity firm specializing that in complex financing, leveraged out transactions, and more. The firm’s net margin is 77.52%. The firm’s current ratio is 1.21. The current dividend yield is 9.5%. The short interest for the firm is 2% as of 8/15/2011.

3. Spectra Energy Partners, LP (NYSE:SEP)

Sector

EnergyEnergy

Industry

Oil & Gas Midstream

Market Cap

$2742M

Beta

0.1

Analyst Sentiment

7/12 -List Hold/Neutral (Neutral)

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The company transports natural gas through interstate pipeline systems and stores it as well. The firm’s net margin is 75.82%. The firm’s current ratio is 7.34. The current dividend yield is 6.7%. The short interest for the firm is 1% as of 8/15/2011.

4. Apollo Investment Corp (NASDAQ:AINV)

Sector

Financial ServicesFinancial Svs

Industry

Asset Management

Market Cap

$1722M

Beta

1.87

Analyst Sentiment

10/15 -List Buy/Outperform (Bullish)

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The company operates as a closed-end management investment firm and does business development. The firm’s net margin is 70.58%. The firm’s current ratio is 1.38. The current dividend yield is 12.9%. The short interest for the firm is NA as of 8/15/2011.

5. Getty Realty Corporation (NYSE:GTY)

Sector

Real EstateReal Estate

Industry

REIT - Retail

Market Cap

$584M

Beta

0.78

Analyst Sentiment

2/2 -List Sell/Underperform (Bearish)

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The company is a Real Estate Investment Trust that owns and leases retail motor fuel convenience store properties along with petroleum distribution terminals.

The firm’s net margin is 53.83%. The firm’s current ratio is 1.41. The short interest for the firm is 11% as of 8/15/2011. The current dividend yield is 11%. Given the short interest, this could a short favorite or potentially a great short squeeze.

6. Seadrill Ltd (NYSE:SDRL)

Sector

EnergyEnergy

Industry

Oil & Gas Drilling

Market Cap

$13679M

Beta

2.16

Analyst Sentiment

NA

Click to enlarge

The company does offshore contract drilling and offers offshore drilling services worldwide. The firm’s net margin is 40.41%. The firm’s current ratio is 1.2. The current dividend yield is 9.9%. The short interest for the firm is 2% as of 8/15/2011.

7. Knightsbridge Tankers, Ltd. (VLCCF)

Sector

IndustrialsIndustrials

Industry

Shipping & Ports

Market Cap

$457M

Beta

1.01

Analyst Sentiment

3/6 -List Hold/Neutral (Neutral)

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The company engages in the seaborne transportation of dry bulk cargo and crude oil. The firm’s net margin is 39.22%. The firm’s current ratio is 6.79. The current dividend yield is 11%. The short interest for the firm is 9% as of 8/15/2011.

8. Navios Maritime Partners L.P. (NYSE:NMM)

Sector

IndustrialsIndustrials

Industry

Shipping & Ports

Market Cap

$878M

Beta

1.17

Analyst Sentiment

/3 6-List Buy/Outperform (Bullish)

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The company operates dry cargo vessels all over the world. The firm’s net margin is 38.37%. The firm’s current ratio is 1.21.The current dividend yield is 11.3%. The short interest for the firm is 0.05 as of 8/15/2011.

9. Taiwan Semiconductor Manufactu (NYSE:TSM)

Sector

TechnologyTechnology

Industry

Semiconductors

Market Cap

$59654M

Beta

1.03

Analyst Sentiment

19/29 -List Buy/Outperform (Bullish)

Click to enlarge

The company engages in computer-aided design, testing, and other services related to semiconductor devices and integrated circuits. The firm’s net margin is 37.95 %. The firm’s current ratio is 1.97. The current dividend yield is 3.6%. The short interest for the firm is as of 8/15/2011.

10. Linear Technology (NASDAQ:LLTC)

Sector

TechnologyTechnology

Industry

Semiconductors

Market Cap

$6235M

Beta

1

Analyst Sentiment

16/23 -List Hold/Neutral (Neutral)

Click to enlarge

The company designs and sells linear integrated circuits. The firm’s net margin is 36.68%. The firm’s current ratio is 7.24. The current dividend yield is 3.5%. The short interest for the firm is 0.06 as of 8/15/2011.

We hope this list aids investors as they do their own due diligence on dividend stocks with strong profitability.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.