19 Cheapest Stocks In The 10 Highest Yielding Industries

by: Plan B Economics

At the request of one of our readers at Plan B Economics, I put together the following rather complex stock screen to identify the cheapest stocks in the highest yielding sectors.

Part one: identify the highest yielding industries

The following chart illustrates the top 10 yielding industries, with dividend yields ranging from 4.38%-7.29%. Click to enlarge:

Part two: identify cheap stocks within each industry

Using the above industry data as the base, I then dug into each industry to pinpoint the 2 cheapest $2b+ market cap stocks. (In one case there was only one stock with a market cap over $2b.) The results are shown in the following table:

Industry / Company Ticker Dividend Yield P/E
REIT - Diversified
Chimera Investment Corp CIM 19.92% 4.50
MFA Financial Inc MFA 14.68% 7.09
Telecom Services
BCE Inc BCE 5.19% 14.84
AT&T T 5.85% 14.93
Telecom Services - Foreign
Telefonia S.A. TEF 10.98% 2.22
BT Group PLC BT 3.84% 9.25
Long Distance Carriers
Telefonos de Mexico SAB de CV TMX 5.49% 13.25
REIT - Residential
American Capital Agency Corp AGNC 19.92% 4.18
Hatteras Financial Corp HTS 15.33% 6.48
REIT - Healthcare Facilities
HCP Inc HCP 4.94% 25.40
Ventas Inc VTR 4.24% 48.02
Oil & Gas Pipelines
Sunoco Logistics Partners LP SXL 4.78% 14.35
TC Pipelines LP TCLP 6.71% 14.66
Lorillard Inc LO 4.75% 14.74
Philip Morris International Inc PM 4.30% 15.15
Gas Utilities
Sempra Energy SRE 3.56% 9.69
National Grid PLC NGG 5.79% 9.98
Surety & Title Insurance
Fidelity National Financial Inc FNF 3.10% 11.20
Assured Guaranty Ltd AGO 1.57% 71.44

Personally, I would strip out any of the above companies with a p/e above 10. This reduces my universe to the securities in the Gas Utilities, Residential REITs, Foreign Telecom Services and Diversified REITs industry categorizations.

Of course, as with any stock screen, this only provides a starting point for research and analysis. Please provide any comments you may have on the companies in this screen.

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

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