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Analysts speculate about potential takeover/leveraged buyout targets because when a firm announces that they are being taken over or acquired, the target’s stock often jumps in price to reflect the takeover premium paid by the acquirer.

We compiled a universe of rumored potential takeover/LBO targets from various sources including Wall St. Cheat Sheet and Seeking Alpha. We screened these stocks for those paying dividend yields above 3%.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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.

Do you think these are likely takeover/LBO targets? Use this list as a starting-off point for your own analysis. To access the complete list of takeover targets, click here.

List sorted by dividend yield.

1. Seagate Technology PLC (NASDAQ:STX): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. Market cap of $4.71B. Dividend yield at 6.32%, payout ratio at 15.07%. Takeover/LBO rumor sourced from Seeking Alpha. Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 11.19. The stock has gained 2.28% over the last year.

2. Molex Inc. (NASDAQ:MOLX): Manufactures and sells electronic components worldwide. Market cap of $3.53B. Dividend yield at 3.88%, payout ratio at 41.19%. Takeover/LBO rumor sourced from Seeking Alpha. The stock is a short squeeze candidate, with a short float at 5.75% (equivalent to 6.17 days of average volume). The stock has gained 8.46% over the last year.

3. Lincare Holdings Inc. (NASDAQ:LNCR): Provides oxygen and other respiratory therapy services to home health care market in the United States. Market cap of $1.92B. Dividend yield at 3.83%, payout ratio at 31.48%. Takeover/LBO rumor sourced from Seeking Alpha. Might be undervalued at current levels, with a PEG ratio at 0.7, and P/FCF ratio at 10.71. The stock has lost 8.2% over the last year.

4. Gannett Co., Inc. (NYSE:GCI): Operates as a media and marketing solutions company in the United States and internationally. Market cap of $2.29B. Dividend yield at 3.24%, payout ratio at 7.40%. Takeover/LBO rumor sourced from Wall St. Cheat Sheet. This is a risky stock that is significantly more volatile than the overall market (beta = 2.46). The stock is a short squeeze candidate, with a short float at 10.39% (equivalent to 5.15 days of average volume). It's been a rough couple of days for the stock, losing 8.11% over the last week.

5. Molson Coors Brewing Company (NYSE:TAP): Distributes beer brands. Market cap of $7.77B. Dividend yield at 3.06%, payout ratio at 27.82%. Takeover/LBO rumor sourced from Seeking Alpha. The stock has lost 3.98% over the last year.

6. J. C. Penney Company, Inc. (NYSE:JCP): Operates department stores in the United States and Puerto Rico. Market cap of $5.51B. Dividend yield at 3.05%, payout ratio at 47.91%. Takeover/LBO rumor sourced from Seeking Alpha. The stock has gained 18.49% over the last year.

*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.

Source: 6 Takeover/LBO Targets Paying Big Dividend Yields