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High Yield investing is very popular but also very risky when the dividend yield is over 10 percent. Many investors mistrust these dividend payments and expect they'll be short-lived, leading to a cut within the next quarters. I screened the capital market by stocks with a yield of more than 10 percent as well as double digit earnings per share growth rates for the upcoming five years. In addition, the company should not pay out more than the current net income (payout ratio under 100 percent). 6 stocks fulfilled these criteria. Here are the results:

1. PennyMac Mortgage Investment Trust (NYSE:PMT) has a market capitalization of $436.24 million. The company employs 232 people, generates revenues of $44.05 million and has a net income of $24.48 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27.85 million.

The total debt representing 0.00 percent of the company’s assets and the total debt in relation to equity amounts to 0.00 percent. Due to the financial situation, the return on equity amounts to 7.73 percent.

Here are the price ratios of the company: The P/E ratio is 7.45, Price/Sales 10.38 and Price/Book ratio 0.86. Dividend Yield: 12.19 percent. The beta ratio is not calculable. For the upcoming five years, EPS is expected to grow 25.0 percent.

2. China Nepstar Chain Drugstore (NYSE:NPD) has a market capitalization of $232.62 million. The company employs 15,974 people, generates revenues of $370.74 million and has a net income of $2.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13.85 million. Because of these figures, the EBITDA margin is 3.74 percent (operating margin 0.90 percent and the net profit margin finally 0.70 percent).

The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, the return on equity amounts to 0.99 percent

Here are the price ratios of the company: The P/E ratio is 33.45, Price/Sales 0.66 and Price/Book ratio 0.99. Dividend Yield: 11.86 percent. The beta ratio is 1.45. For the upcoming five years, EPS is expected to grow 10.2 percent.

3. Banco Santander (STD) has a market capitalization of $57.82 billion. The company employs 191,350 people, generates revenues of $71,471.47 million and has a net income of $12,331.89 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27,850.17 million.

The total debt representing 17.96 percent of the company’s assets and the total debt in relation to the equity amounts to 291.53 percent. Due to the financial situation, the return on equity amounts to 11.42 percent.

Here are the price ratios of the company: The P/E ratio is 5.43, Price/Sales 1.09 and Price/Book ratio 0.61. Dividend Yield: 11.66 percent. The beta ratio is 1.72. For the upcoming five years, EPS is expected to grow 12.4 percent.

4. Himax Techologies (NASDAQ:HIMX) has a market capitalization of $180.54 million. The company employs 1,341 people, generates revenues of $642.69 million and has a net income of $29.07 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $48.98 million.

The total debt representing 9.20 percent of the company’s assets and the total debt in relation to the equity amounts to 14.04 percent. Due to the financial situation, the return on equity amounts to 8.05 percent.

Here are the price ratios of the company: The P/E ratio is 9.72, Price/Sales 0.29 and Price/Book ratio 0.46. Dividend Yield: 11.32 percent. The beta ratio is 1.18. For the upcoming five years, EPS is expected to grow 15.0 percent.

5. Banco Macro (NYSE:BMA) has a market capitalization of $1.11 billion. The company employs 8,209 people, generates revenues of $876.56 million and has a net income of $237.55 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $406.30 million.

The total debt representing 1.79 percent of the company’s assets and the total debt in relation to the equity amounts to 14.41 percent. Due to the financial situation, the return on equity amounts to 22.88 percent.

Here are the price ratios of the company: The P/E ratio is 4.48, Price/Sales 1.39 and Price/Book ratio 1.19. Dividend Yield: 10.66 percent. The beta ratio is 1.29. For the upcoming five years, EPS is expected to grow 13.4 percent.

6. Hercules Technology Growth Capital (NYSE:HTGC) has a market capitalization of $379.41 million. The company employs 52 people, generates revenues of $59.47 million and has a net income of $4.98 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.77 million.

The total debt representing 28.75 percent of the company’s assets and the total debt in relation to the equity amounts to 41.21 percent. Due to the financial situation, the return on equity amounts to 1.28 percent.

Here are the price ratios of the company: The P/E ratio is 8.88, Price/Sales 6.78 and Price/Book ratio 0.97. Dividend Yield: 10.16 percent. The beta ratio is 1.46. For the upcoming five years, EPS is expected to grow 11.5 percent.

Source: 6 Monster Yield Stocks With Fat EPS Growth Expectations For The Next 5 Years