7 High-Yielding Stocks Trading Below Book Value

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 |  Includes: AHT, E, OLP, PEB, RAS, STWD, VE
by: Rougemont

The stock market correction has created many new bargains. It certainly looks like the economy is slowing down and consumer confidence has weakened, so a soft patch is probably coming. However, some of these stocks have fallen to levels that might have already priced that in. A recession is typically considered to be about two quarters of negative economic growth. If the economy does not decline that much in the next couple of quarters, many stocks are poised to see a significant rebound. The stocks below are particularly interesting because they pay high dividend yields. The dividends will pay you to wait for the shares to rebound in these stocks, plus they are exceptionally cheap, as the names below trade below book value:

RAIT Financial Trust (NYSE:RAS) shares are trading at $3.49. RAIT is a real estate investment trust based in Pennsylvania. These shares have traded in a range between $2.90 to $11.34 in the last 52 weeks. The 50-day moving average is $3.86 and the 200-day moving average is $6.46. RAIT focuses on commercial real estate, which is healthier than the residential market. A dividend of 24 cents per year is paid, which is equivalent to a 7.4% yield. This stock trades at a significant discount to the book value, which is currently stated at $24.57.

ENI SPA (NYSE:E) is trading around $37.33. ENI is a major integrated oil and gas company based in Italy. These shares have traded in a range between $32.44 to $53.80 in the last 52 weeks. The 50-day moving average is $36.70 and the 200-day moving average is $43.32. E is estimated to earn about $5.19 per share in 2011 and $5.58 for 2012. The P/E ratio is only around 8 times earnings, and E pays a strong dividend of about $2 per share, which is equivalent to a yield of about 6%. E shares have been hit lately with the concerns over European debt problems and falling oil. The book value is $37.52.

Ashford Hospitality Trust (NYSE:AHT) is trading around $7.37. Ashford is a real estate investment trust company based in Texas. These shares have traded in a range between $5.93 to $14.32 in the last 52 weeks. The 50-day moving average is $7.63 and the 200-day moving average is $10.22. AHT is estimated to earn about $2.01 per share in 2011, and $2.03 for 2012. The dividend payout is 40 cents per share, which is equivalent to a 5.8% yield. This REIT is primarily invested in hotels. The book value is stated at $14.35.

Starwood Property Trust (NYSE:STWD) is trading around $17.26. Starwood is a real estate investment trust company based in Connecticut. These shares have traded in a range between $15.89 to $23.67 in the last 52 weeks. The 50-day moving average is $17.61 and the 200-day moving average is $19.89. The dividend payout is $1.76 per share, which is equivalent to a 10.5% yield. This REIT invests in commercial mortgages. The book value is $19.13.

Pebblebrook Hotel Trust (NYSE:PEB) is trading around $15.41. Pebblebrook is based in Maryland and invests primarily in hotel properties. These shares have traded in a range between $14 to $22.47 in the last 52 weeks. The 50-day moving average is $15.53 and the 200-day moving average is $19.33. PEB pays a dividend of 48 cents per share, which is equivalent to a 3.2% yield. The CEO recently bought 10,000 shares. The book value is $17.66.

One Liberty Properties, (NYSE:OLP) is trading around $15. One Liberty is based in New York and invests primarily in commercial properties. These shares have traded in a range between $11.52 to $18.14 in the last 52 weeks. The 50-day moving average is $14.83 and the 200-day moving average is $14.88. OLP pays a solid dividend of $1.32 per share which is equivalent to a 8.5% yield. This stock looks like a solid buy on dips under $15. The book value is stated at $15.26.

Veolia Environnement SA (NYSE:VE) shares are trading around $14.85 per share. Veolia provides water, environmental, energy, and transportation services. These shares have traded in a range between $13.02 to $33.86 over the past 52 weeks. The 50-day moving average is $15.87 and the 200-day moving average is $26.56. VE earnings estimates are about $1.71 per share in 2011. The dividend is about $1.47 per share, which yields about 10%. However, some investors are concerned that the dividend could be cut, so I would only consider a small position for now. The book value is $19.58.

Data sourced from Yahoo Finance and Insidercow.com.

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

Disclaimer: The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.