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This is part II of the dividend buster series. Part 1 dealt with stocks that offer yields as high as 19%.

Do your due diligence before deploying any money into the stocks listed below.This list should be used as a starting point in your hunt for candidates with high dividend yields.

Additional information is provided below on each of the stocks listed in the table.

Stock

Dividend

Debt to Equity ratio

Market Cap

ForwardPE

Total Cash

Operating margins

Revenue

Operating

Cash flow

KCAP

10.8

31

149

8.69

416K

72

26.6M

101M

PSEC

13.10

28

1.02

8.3

1.4M

65.9

169M

-581M

AINV

14.9

77

1.5B

7.7

7.7M

68

377M

43.7M

FSC

12

39

705M

8.4

17.6M

64.4

107.5M

-492M

WIN

8.5

920

6.1B

14.4

34.3M

28.7

4.06B

1.3B

ACAS**

29

38

2.49B

8.48

200M

67.4

574M

175M

**= currently not paying a dividend, K= Thousand M= Million B= Billion

Kohlberg Capital Corp (NASDAQ:KCAP)

  • Short percentage of float 4.6
  • Percentage held by institutions 28.57%
  • Percentage held by insiders 14.58%
  • ROE .14
  • Book value 8.52
  • Payout ratio 93
  • Dividend growth rate 5 year average -22.5
  • Dividend yield 5 year Average 18.5
  • Consecutive dividend increases 0 years
  • Paying dividends since 2007
  • Total return last 3 years 141%
  • Total cash flow from operating activities was 198 million in 2010; it is generating enough cash to pay out the dividends which amounted to 14 million in 2010.

Prospect Capital Corp (NASDAQ:PSEC)

  • Short percentage of float 9.4
  • Percentage held by institutions 29.5
  • ROE 13.66
  • Book value 10.41
  • Dividend growth rate 5 year average -0.55
  • Dividend yield 5 year Average 13.5
  • Consecutive dividend increases 0 years
  • Paying dividends since 2004
  • Total return last 3 years 39.10%

Apollo Investment Corp (NASDAQ:AINV)

  • Short percentage of float 5.5
  • Percentage held by institutions 56.5
  • ROE -4.09
  • Book value 8.12
  • Payout ratio 113
  • Dividend growth rate 5 year average -7.4
  • Dividend yield 5 year Average 14.50
  • Consecutive dividend increases 1 years
  • Paying dividends since 2004
  • Total return last 3 years 18.87%

Fifth Street Bank Copr (NASDAQ:FSC)

  • Short percentage of float 9.7%
  • Percentage held by institutions 62.9
  • ROE 8.82
  • Book value 10.72
  • Payout ratio 121
  • Dividend growth rate 3 year average 31.57
  • Dividend yield 5 year Average N/A
  • Consecutive dividend increases 0 years
  • Paying dividends since 2008
  • Total return last 3 years 110.54%

Windstream Copr (NASDAQ:WIN)

  • Short percentage of float 6.8
  • Enterprise value 13.52 billion
  • Percentage held by institutions 49.5
  • ROE 36.24%
  • Book value 1.60
  • Payout ratio 181
  • Dividend growth rate 5 year average -5.23
  • Dividend yield 5 year Average 9.10
  • Consecutive dividend increases 0 years
  • Paying dividends since 2005
  • Total return last 3 years 75.91

American Capital Ltd (NASDAQ:ACAS)

It has historically paid very high dividends, but has yet to reinstate these payments after stopping them in 2010. It could make for a good speculative play; speculative in the sense that it might resume its dividend, otherwise it makes for a decent investment as it is trading well below book value. There is no guarantee that they will resume paying the dividend. Bloomberg reported that as of Oct 31 American Capital was one of the stocks that experienced the largest decreases in short interest; the percent change was negative 39%. This could be construed as a positive development; perhaps the bears feel that the risk to reward ratio no longer lies in their favour. I spoke to someone from investor relations and they stated that until ACAS’s stock price matches its net current asset value they will use the money they have to repurchase shares rather than issue a dividend. If the stock prices trades at or above net current asset value then they would be willing to look into reinstating the dividend.

  • Short percentage of float 1.8
  • Percentage held by institutions 52.4
  • ROE 20.89%
  • Book value 11.92
  • Payout ratio 925
  • Dividend growth rate 5 year average -3.39
  • Dividend yield 5 year Average 29
  • Consecutive dividend increases 0 years
  • Paying dividends since 1997
  • Total return last 3 years 32.86

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

Source: Dividend Busters, Part II: 6 Stocks With Yields As High As 29%