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This is Part IV of the dividend buster series. In Part III, Chimera Investment Corporation (NYSE:CIM) was one of the 5 stocks we covered with a yield of 21%. In Part II we covered stocks with yields as high as 29%. The list of stocks below should be used as a starting point by investors and should not be construed to be a list of stocks to purchase without doing one's due diligence.

Stock Dividend Market Cap Forward PE Price/ book Total Cash Operating margins Revenue Operating Cash flow
AGNC 20 5.15B 4 1.04 402M 92.5 752M 509M
SBR 6.00 955M 16 169 5.05 96.48 60.77 N/A
TOO 7.2 1.74B 18 4.56 160.93M 20.02 937.08M 261.83
PT 14.6 5.76B 6.24 1..41 5.2B 16.18 7.22B N/A
PTNR 14.8 1.59B 1.58 9.9 134M 24.56 1.89B 471.34M

American Capital Agency Corp (NASDAQ:AGNC)

It has a market cap of roughly $5.15 billion, an enterprise value of $43.8 billion and a price/sales value of 6.78. It also had a debt/equity ratio of 1%. It is one of the highest yielding agency REITs out there. One should, however, keep in mind that operation twist could impact the earnings of REITs going forward. IN addition, REITs do not perform well in a rising rate environment. If the Fed decides to drop its stance towards low rates after 2013, then going forward earnings could take a big hit.

  • Short percentage of float 6.10
  • Percentage held by institutions 17.2
  • ROE 23.9
  • Qtrly Earnings Growth (yoy) 317%
  • Total debt 40.16B
  • 200 day moving average $28.77
  • Book value 26.91
  • Dividend yield 5 year Average N/A
  • Dividend rate $5.60
  • Pay out ratio 78%
  • Dividend growth rate 3 year average 97
  • Consecutive dividend increases 2 years
  • Paying dividends since 2008
  • Total return last 3 years 134
  • Total return last 5 years N/A

Sabine Royalty Trust (NYSE:SBR)

It has a market cap of roughly $955 million, an enterprise value of $950 million and a price/sales value of 15.68. Dividends are paid out on a monthly basis.

  • Short percentage of float 1
  • Percentage held by institutions 8.72
  • ROE 1,078.92%
  • Qtrly Earnings Growth (yoy) 22.10
  • Total debt - -
  • 200 day moving average $63.91
  • Book value 0.39
  • Dividend yield 5 year Average 8.1
  • Dividend rate $3.93
  • Pay out ratio 97
  • Dividend growth rate 5 year average 4.77
  • Consecutive dividend increases 0 years
  • Paying dividends since 1990
  • Total return last 3 years 68.7%
  • Total return last 5 years 73

Teekay Offshore Partners L.P (NYSE:TOO)

It has a market cap of roughly $1.74 billion, an enterprise value of $3.5 billion and a price/sales value of 15.68.

  • Short percentage of float 2.2
  • Percentage held by institutions N/A
  • ROE 8.6
  • Qtrly Earnings Growth (yoy) N/A
  • Total debt 1.93B
  • 200 day moving average $27.36
  • Book value 6.02
  • Dividend yield 5 year Average N/A
  • Dividend rate $1.96
  • Pay out ratio 167
  • Dividend growth rate 3 year average 6.2
  • Consecutive dividend increases 3 years
  • Paying dividends since 2007
  • Total return last 3 years 293%
  • Total return last 5 years N/A

Portugal Telecom SGPS SA (NYSE:PT)

It has a market cap of roughly $5.76 billion, an enterprise value of $17.26 billion and a price/sales value of 0.78.

  • Short percentage of float 6.00
  • Percentage held by institutions N/A
  • ROE 9.76
  • Qtrly Earnings Growth (yoy) -98%
  • Total debt 16.7B
  • 200 day moving average $8.87
  • Book value 4.58
  • Dividend yield 5 year Average 14.7
  • Dividend rate $0.94
  • Pay out ratio 33
  • Dividend growth rate 5 year average 102.68
  • Consecutive dividend increases 0 years
  • Paying dividends since 1996
  • Total return last 3 years 41.82
  • Total return last 5 years 8.76

Partner Communications Company Ltd. (NASDAQ:PTNR)

It has a market cap of roughly $1.59 billion, an enterprise value of $2.89 billion and a price/sales value of 0.83. Investors should be aware that Midroog an affiliate of Moody investor services cut its rating on PTNR to negative citing expectations of erosion in profitability due to increased competition in the telecom sector

  • Short percentage of float 1
  • Percentage held by institutions 6.82
  • ROE 181%
  • Qtrly Earnings Growth (yoy) -30
  • Total debt 906.77M
  • 200 day moving average $13.26
  • Book value 1.02
  • Dividend yield 5 year Average 9.5
  • Dividend rate $1.51
  • Pay out ratio 75
  • Dividend growth rate 5 year average 63.97
  • Consecutive dividend increases 0 years
  • Paying dividends since 2005
  • Total return last 3 years -5.07
  • Total return last 5 years 55

Conclusion

With the uncertainty that is facing the world (the euro crisis and a potential second crisis in the U.S.), and the odds that we are drawing closer to another recession, we presented evidence in our latest article, which indicates that the euro crisis could be spiralling out of control. Investors need to be cautious going forward. If one is going to take a risk then it might make more sense to invest in stocks that have a history of paying out healthy dividends rather than deploying all of one's money into stocks such as Amazon.com Inc (NASDAQ:AMZN) where one is solely depended on capital gains. AMZN failed to deliver this quarter and with 100X trailing earnings, if it fails to deliver next year it could take a real beating. Long Term AMZN is still probably a good play. For the record, I am not trying to discredit AMZN, in this instance, I am simply using it as an example to illustrate that in owning shares of a company that pays no dividends you are hoping that it will go up in order to make a profit. When you own stocks that pay healthy dividends you have two potential sources of income, capital gains and the dividend the company pays out. In this ultra-low rate environment, some companies are paying rather lucrative dividends. Investors who are open to taking on more risk can find some players paying upwards of 21%.

See also:

Disclaimer: While investing in royalty trust can yield steady and hefty returns, there is one potential drawback: depletion. These trusts own royalties on a finite amount of resources, and once those resources are gone, the trust is also gone. Do not treat this as a buying list. It is very important that you check the finer details (do your due diligence) in each of the mentioned plays before deploying even one penny into them. What might be good for one investor could be terrible for another investor.

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

Source: Dividend Busters With Yields As High As 20%, Part IV