The global financial markets have crashed in 2010-11, causing fears amongst various investors including consumers and suppliers. This causes the price of the assets to go down and also has pushed the price of stocks down. In order to overcome these inflations and lower the risk, one should use a hedging style such as buying high dividend stocks.
Annaly Capital Management, Inc. (NLY) is a real estate investment trust that engages in the ownership, management, and financing of a portfolio of investment securities. It has traded at $17.37 within a 52-week range of $14.05-18.79. It has made earnings of $2.69 per share with a price-earnings of 6.46 times. This stock offers a good dividend rate of 15.00%, which is $2.60 now, and it has a payout ratio of 87.00%. For the overall performance, it has made a net income of about $2.01 billion in the last 12 months. It has an operating margin of 91.22% with a return on the equity of 17.11%, which is fairly high. This may be a good opportunity to buy this stock while its current price-book ratio is only 1.05 times.
A competitive stock is Capstead Mortgage Corporation (CMO). This stock gives a higher dividend rate of 15.30%. This is a positive 0.30% deviation of the 15.00%. Moreover, it gives a payout ratio of 99.00% with a price-book ratio of only 1.00 times. However, this stock seems to be more expensive than NLY. It has a price-earnings of 7.99 times and this is higher than NLY.
It would be a good idea to buy these two high dividend paying stocks, but it could be better if a shareholder could purchase a cheaper stock while getting a quality stock. Both of them have showed good performances thus a buy would be a good idea.
Apollo Investment Corporation (AINV) is a business development company and operates as a closed-end management investment company. It has traded at $8.52 within a 52-week range of $7.32-12.46. The recent earnings per share was $1.35 and its current price-earnings is 6.32 times. It pays a dividend rate of 13.10% with a payout ratio of 83.00%. Its next ex-dividend date is September 13. It has an operating margin of 68.14% with a return on the equity of 14.11%. The quarterly revenue growth has increased by 20.90%.
Unlike American Capital, Ltd. (ACAS), it pays no dividend with a quarterly revenue growth downgraded by 6.00%. However, this stock has a current price-earnings of only 2.07 times and the quarterly earnings growth has also upgraded by 45.90%. The most attractive thing for this stock is that it has a profit margin of 234.47% with a price-book of only 0.61 times.
AINV could perform better for a shorter term trading while ACAS could be better to buy and hold.
The stock of KLA-Tencor Corporation (KLAC) has traded at $34.82 per share. It has traded within a 52-week range of $27.94-51.83. It pays a dividend yield of 3.80%, which is $1.40 with a payout ratio of 21.00%. The latest ex-dividend date was released on August 11. Its latest earnings per share was $4.66 with a current price-earnings of 7.47 times. Additionally, its quarterly earnings growth has upgraded by 116.70% and its quarterly revenue growth has also upgraded by 59.50%. The operating margin is also a positive rate of 36.63% with the return on the equity of 31.11%. This shows a really strong growth while maintaining its profitability at a good rate.
Applied Materials, Inc. (AMAT) is paying a dividend rate of 3.00%, which is 0.8% lower than KLAC. It has a price-earnings of 7.35 times and has a profit margin of 17.28%. Its quarterly earnings growth has upgraded by 287.00% and its quarterly revenue growth has also upgraded by10.70%.
Both of these stocks are showing good growth rates, but KLAC still beats the dividend yield of AMAT.
Ensco plc (ESV) has a market capital of $10.86 billion. It has traded at $47.18 within a 52-week range of $39.51-60.31 per share. It pays a dividend rate of $1.40 (3.00%) with a payout ratio of 49.00%, which is fairly high, and it had earnings per share of $2.86 with a current price-earnings of 16.47 times. The overall performance for a stock is also on a positive side with an operating margin of 29.97% and a return on the equity of 5.31%.
One of its competitors, Total S.A. (TOT), pays a dividend yield of 2.90%. Currently, it has a price-earnings of 6.26 times. This is much lower than ESV, which could mean it is trading at a much cheaper price. However, the operation margin of TOT is lower at a current rate of 15.01%, but a higher return on the equity of 19.03%.
This could mean that ESV is more profitable in both margin and dividend yield but it could be more expensive than TOT.
Nucor Corporation (NUE) engages in the manufacture and sale of steel and steel production in North America and internationally. It has traded at $33.28 per share within a 52-week range of $31.35-49.24. It pays an attractive dividend rate of 4.30% with a high payout ratio of 98.00%. It has generated earnings per share of $1.48 and its current price-earnings is 22.47 times. Its quarterly earnings growth has upgraded by 229.40% combined with an upgrade on quarterly revenue growth of 21.70%.
Both Commercial Metals Company (CMC) and United States Steel Corporation (X) have generated a negative earnings in the last announcement. CMC has had earnings per share of -$0.02 while X has had earnings per share of -$1.07. As a result, there is no doubt why the stock of NUE is better to buy than both of these stocks.