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The Federal Reserve plans to keep interest rates at very low levels (near zero) for about two more years. With rates this low for the foreseeable future, it makes sense to be building a portfolio with dividend yields that pay more than what most bonds, certificates of deposits, and other common investments will pay. Thanks to a market correction these stocks have come down in price and that means there is a good chance they can rebound and offer investors a solid dividend plus the potential of capital gains in the future. The stocks below would create a fairly diversified portfolio. Also important is that these companies appear to have adequate cash flow and or earnings to continue paying the dividend. Here are the oversold dividend stocks to consider:

Apollo Investment Corporation (NASDAQ:AINV) is a business development company that invests in and loans money to a range of companies. This stock was trading around $10 per share in July and has since plunged about 25%. The sell-off appears overdone and the stock is trading below the book value of $9.76. It looks like a good time to start buying in stages.

Here are some key points for AINV:
Current share price: $7.41
The 52-week range is $6.80 to $12.46
Earnings estimates for 2011: 99 cents per share
Earnings estimates for 2012: $1.044 per share
Annual dividend: $1.12 per share, which yields 14.9%

Pitney Bowes, Inc. (NYSE:PBI) offers mail processing equipment and provides equipment, supplies, software, services, and solutions for mailing. This stock has dropped with the markets and now trades at bargain levels, near the 52-week low. Just a few weeks ago, PBI shares were regularly trading around $22, and they should rebound when the markets stabilize. Some investors are concerned that email is slowly eroding the need for postal services but that fear seems overblown.

Here are some key points for PBI:
Current share price: $19.28
The 52-week range is $17.95 to $26.36
Earnings estimates for 2011: $2.21 per share
Earnings estimates for 2012: $2.26 per share
Annual dividend: $1.48 per share which, yields 7.9%

PDLI BioPharma, Inc. (NASDAQ:PDLI) owns and manages patents that are licensed by biotech and pharmaceutical companies. This company receives revenues from the licensing agreements and uses some of that money to pay a very generous dividend to shareholders. The earnings estimates easily covers the dividend payout so it is possible that the dividend could rise in the future.

Here are some key points for PDLI:
Current share price: $5.65
The 52-week range is $4.66 to $6.75
Earnings estimates for 2011: $1.14 per share
Earnings estimates for 2012: $1.35 per share
Annual dividend: 60 cents per share, which yields 10.8%

Veolia Environnement (NYSE:VE) is based in France and is a leading provider of water, recycling, environmental services, waste collection and processing etc., with operations worldwide. Veolia stock has been hit very hard over the crisis in Europe, and now offers a very rich yield of about 10%. Many of the services Veolia provides are basic necessities and are less likely to be severely impacted by a downturn in Europe.

Here are some key points for VE:
Current share price: $13.99
The 52-week range is $13.02 to $33.86
Earnings estimates for 2011: $1.37 per share
Earnings estimates for 2012: $1.46 per share
Annual dividend: $1.47 per share, which yields about 10.1%

France Telecom (FTE) is a major telecommunications company, based in France. This company offers a wide range of services such as Internet, mobile phones, and more. Many European stocks have seen sharp corrections due to concerns over sovereign debt and a recession. This looks like a solid opportunity for long-term investors but this stock might still head lower in the short term.

Here are some key points for FTE:
Current share price: $16.24
The 52-week range is $15.16 to $24.60
Earnings estimates for 2011: $2.48 per share
Earnings estimates for 2012: $2.14 per share
Annual dividend: about $1.45 per share, which yields 8.4%

Ferrellgas Partners (NYSE:FGP) is a leading distributor of propane fuel nationwide. This stock has dropped almost 30% off the 52 week high and could be poised for a rebound. With the Winter season just around the corner, revenue should be increasing soon and the stock price could follow.

Here are some key points for FGP:
Current share price: $19.74
The 52-week range is $17.76 to $29
Earnings estimates for 2012: about 64 cents
Earnings estimates for 2013: about 85 cents
Annual dividend: $2 per share, which yields 10.1%

Chimera Investment Corporation (NYSE:CIM) is a real estate investment trust (REIT) that invests in residential mortgage-backed securities, and both commercial and residential mortgage loans. Book value is $3.35 per share. With a yield of almost 19%, and a share price below book value, this looks like a great opportunity to accumulate shares.

Here are some key points for CIM:
Current share price: $2.60
The 52-week range is $2.38 to $4.36
Earnings estimates for 2011: 56 cents per share
Earnings estimates for 2012: 50 cents per share
Annual dividend: 52 cents per share, which yields 18.8%

Annaly Capital Management, Inc., (NYSE:NLY)
is a mortgage real estate investment trust company, based in New York. Annaly pays a dividend of about $2.60 annually, which is equivalent to a yield of around 14.5%. This mortgage REIT is well managed and a favorite of many top investors.

Here are some key points for NLY:
Current share price: $15.66
The 52-week range is $14.05 to $18.79.
Earnings estimates for 2011: $2.62 per share
Earnings estimates for 2012: $2.55 per share
Annual dividend: $2.60 per share, which yields 14.5%

National Grid Transco (NYSE:NGG) operates an electricity transmission network in England, Scotland, Wales, and the Eastern United States. It also operates a gas national transmission system in Great Britain, and storage facilities for liquefied natural gas amongst other things. This company pays a very generous dividend and can raise prices as inflation rises in the future. Since this is a utility, it offers more stability when compared to most dividend stocks.

Here are some key points for NGG:
Current share price: $48.86
The 52-week range is $42.29 to $52.18
Earnings estimates for 2011: $4.08 per share
Earnings estimates for 2012: $4.22 per share
Annual dividend: $3.80 per share, which yields 7.7%

Data sourced from Yahoo Finance. No guarantees or representations are made.

Disclaimer: Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Source: 9 Dividend Stocks With Giant Yields Up To 18%