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Novice investors should pay attention to the following metrics, as they could prove to be useful during the selection process.

Turnover ratio lets you know the number of times a company's inventory is replaced in a given time period. It is calculated by dividing the cost of goods sold by average inventory during the time period studied. A high turn over ratio indicates that a company is producing and selling its good and services very quickly.

Current ratio is obtained by dividing the current assets by current liabilities. This ratio allows you to see if the company can pay its current debts without potentially jeopardizing future earnings. Ideally, the company should have a ratio of 1 or higher.

Operating cash flow is generally a better metric than earnings per share because a company can show positive net earnings and still not be able to properly service its debt; the cash flow is what pays the bills.

Levered free cash flow is the amount of cash available to stock holders after interest payments on debt are made. A company with a small amount of debt will only have to spend a modest amount of money on interest payments, which in turn means that there is more money to send to shareholders in the form of dividends. Individuals looking for stocks that more volatile but offer potentially higher rates of return might find this article to be of interest.

The payout ratio tells us what portion of the profit is being returned to investors. A payout ratio over 100% indicates that the company is paying out more money to shareholders than it is making; this situation cannot last forever. In general if the company has a high operating cash flow and access to capital markets, it can keep this going on for a while. As companies usually only pay the portion of the debt that is coming due, and not the whole debt, this technique/trick can technically be employed to maintain the dividend for some time.

Stock

Dividend Yield

Market Cap

Forward PE

EBITDA

Quarterly Revenue Growth

Beta

Revenue

Operating Cash flow

BFR

27.90%

1.07B

4.76

N/A

-30.00%

1.67

842.40M

1.12B

BRY

0.70%

2.32B

11.05

571.65M

43.80%

2.14

858.96M

420.61M

CGNX

0.90%

1.63B

22.89

96.59M

6.80%

1.41

322.79M

91.96M

AGD

13.00%

139.21M

N/A

N/A

-12.10%

1.53

19.68M

N/A

NUE

3.40%

13.26B

13.68

1.79B

26.90%

1.34

19.05B

1.33B

BBVA Banc Frances S.A. (NYSE:BFR)

Industry: Banking

Net income for the past three years

  1. 2008= it reported a net income of $ 265 million
  2. 2009 = net income dropped t $189 million
  3. 2010= it rose t $301 million

Potential warning

Total cash flow from operating activities took a hit in 2010; it dropped from $404 million in 2009 t $194 million. In 2008 total cash flow from operating activities came in at $449 million.

Key Ratios

  • Price to sales 7.5
  • Price to tangible book 0
  • Price to cash flow 17.3
  • Price to free cash flow N.A.
  • 5 year sales growth N.A.
  • Inventory turnover 0
  • Asset turnover 0

  • ROE 26.47%
  • Return on assets 2.62%
  • 200 day moving average 7.01
  • Total debt 456.64M
  • Book value 4.37
  • Dividend yield 5 year Average 9.10%
  • Dividend rate $ 0.87 %
  • Payout ratio 0.00%
  • Dividend growth rate 5 year 102%
  • Consecutive dividend increases 2 years
  • Paying dividends since 1994
  • Total return last 3 years 197.36%
  • Total return last 5 years -8.11%

Additional data

  • P/E High - Last 5 Yrs 27.4
  • P/E Low - Last 5 Yrs 1.4
  • LT Debt t Equity 0
  • Total Debt t Equity 0.09
  • EBITD Margin 8.9
  • EBITD - 5 Yr Average N.A.
  • Pre-Tax Margin 37.9
  • Pre-Tax Margin - 5 Yr Average 14.5
  • Net Profit Margin 0.29
  • Net Profit Margin - 5 Yr Average 10.8
  • Return on Assets - 5 Yr Average 2

Berry Petroleum Co (NYSE:BRY)

Industry: Production & Extraction

Net income for the past three years

  1. 2008= it reported a net income of $ 133 million
  2. 2009 = net income dropped to $54 million
  3. 2010= it dropped again to $82 million
  4. 2011= net income so far stands at $190 million. If net income matches that of the last quarter, then total net income for 2011 could top the $320 million mark.

Key Ratios

  • Price to sale 3.57
  • Price to tangible book 1.95
  • Price to cash flow 6
  • Price to free cash flow -5.3
  • 5 year sales growth 6.56
  • Inventory turnover N.A.
  • Asset turnover 0.2

  • ROE 14.49%
  • Return on assets 7.67%
  • 200 day moving average 44.97
  • Total debt 1.35B
  • Book value 23.19
  • Dividend yield 5 year Average 1.40%
  • Dividend rate $ 0.32 %
  • Payout ratio 10.00%
  • Dividend growth rate 5 0.67%
  • Consecutive dividend increases 1 years
  • Paying dividends since 1990
  • Total return last 3 years 472.46%
  • Total return last 5 years 62.40%

Cognex Corp. (NASDAQ:CGNX)

Industry: Electronic Instruments & Related Production

Net income for the past three years

  1. 2008= it reported a net income of $ 27million
  2. 2009 = net income dropped to -$4.8 million
  3. 2010= it dropped again to $61 million
  4. 2011= net income so far stands at $50 million. If net income matches that of the last quarter then total net income for 2011 could top the $ 68 million mark.

Key Ratios

  • Price to sale 5.26
  • Price to tangible book 3.87
  • Price to cash flow 19.7
  • Price to free cash flow 24.4
  • 5 year sales growth 4.38
  • Inventory turnover 2.5
  • Asset turnover 0.6

  • ROE 14.44%
  • Return on assets 9.87%
  • 200 day moving average 2.44M
  • Total debt 0
  • Book value 13.3
  • Dividend yield 5 year Average 1.80%
  • Dividend rate $ 0.40 %
  • Payout ratio 21.00%
  • Dividend growth rate 5 6.49%
  • Consecutive dividend increases 1 years
  • Paying dividends since 2003
  • Total return last 3 years 202.34%
  • Total return last 5 years 72.23%

Alpine Global Dynamic Dividend (NYSE:AGD)

Industry: Holding and other Investment Offices

Net income for the past three years

  1. 2008= it reported a net income of $ 34 million
  2. 2009 = net income rose to $129 million
  3. 2010= it dropped to -$291million

Key Ratios

  • Price to sale 0
  • Price to tangible book 0
  • Price to cash flow N.A.
  • Price to free cash flow N.A.
  • 5 year sales growth N.A.
  • Inventory turnover N.A.
  • Asset turnover 0

  • ROE -3.23%
  • Return on assets 6.46%
  • 200 day moving average 6.06
  • Total debt 8.26M
  • Book value 5.68
  • Dividend yield 5 year Average 16.50%
  • Dividend rate $ 0.72 %
  • Payout ratio 97.00%
  • Dividend growth rate 5Yr average 33.24%
  • Consecutive dividend increases 0 years
  • Paying dividends since 2006
  • Total return last 3 years 17.94%
  • Total return last 5 years -36.60%

Nucor Corp. (NYSE:NUE)

Industry: Non-Precious Metals

It has enterprise value of $15.1 billion, a ROE of 9.42%, a quarterly revenue growth rate of 29.6%, a massive quarterly earnings growth rate of 672% (year over year); a five dividend average of 3.6%, a total three-year return of 9.37% and it has been paying dividends since 1973. It has also increased its dividends consecutively for 39 years in a row. The dividend was increased from $0.3625 to 0.3650. Out of a possible five stars we would assign new Nucor Corp five stars.

Net income for the past three years

  1. 2008= it reported a net income of $ 1.83 billion
  2. 2009 = net income dropped to -$ 293 million
  3. 2010= it dropped again to 134 million
  4. 2011= net income so far stands at $640 million. If net income matches that of the last quarter then total net income for 2011 could top the $ 780 million mark.

Key Ratios

  • Price to sale 0.7
  • Price to tangible book 2.77
  • Price to cash flow 11
  • Price to free cash flow 51.6
  • 5 year sales growth 1.05
  • Inventory turnover 8.7
  • Asset turnover 1.4

  • ROE 9.42%
  • Return on assets 5.34%
  • 200 day moving average 37.16
  • Total debt 4.29B
  • Book value 23.56
  • Dividend yield 5 year Average 3.60%
  • Dividend rate $ 1.46 %
  • Payout ratio 73.00%
  • Dividend growth rate 5 -6.28%
  • Consecutive dividend increases 39 years
  • Paying dividends since 1973
  • Total return last 3 years 13.96%
  • Total return last 5 years -9.55%

Conclusion

Our favorite on the list is Nucor corp. It has enterprise value of $15.1 billion, a ROE of 9.42%, a quarterly revenue growth rate of 29.6%, a quarterly earnings growth rate of 672% (year over year); a five year dividend average of 3.6%, a total three-year return of 9.37% and it increased its dividends consecutively for 39 years in a row. The dividend was increased from $0.3625 to 0.3650. Out of a possible five stars, we would assign NUE five stars.

Speculators might be interested in BFR; it sports a lofty yield of 29%. The stock has taken a beating, so the worst maybe behind it. From a technical perspective, it's attempting to put in a bottom, and as long as it does not trade below 5 on a weekly basis the outlook will remain neutral. A weekly close above 7.30 will be a bullish development.

Two other notable plays are NuStar Energy L.P (NYSE:NS) and Linn Energy, LLC (NASDAQ:LINE), with yields of 7.9% and 7.7% respectively.

NS has an enterprise value of $6.09 billion, a quarterly revenue growth rate of 60%, a quarterly earnings growth rate of 2.7%, a ROE of 9.32%, a five-year distribution growth rate of 4.19%, a five-year dividend average of 7.4%, a total three-year return of 53%, and has been paying dividends/distributions since 2001. It has an operating cash flow of $283 million and a levered free cash flow rate of- $49.9 million. It has consecutively increased dividends for 10 years in a row. Net income for the past three years is as follows: In 2008, net income stood at $254 million; in 2009, it dropped to $224 million; in 2010, it moved up to $238 million. Net income for 2011 is roughly $191 million. Out of a possible 5 stars, we would assign NS 4 stars.

LINE increased production by 30% in 2011, and is set to increase production by another 40% in 2012. It also has a very impressive three-year total rate of return in excess of 281%, a 5 year dividend growth rate of 22.5%, five-year dividend average of 10.5%, a price to book of 12.72, a price to cash flow of 11.10 and a price to free cash flow of 21.60. LINE also has a quarterly revenue growth of 32.8% and levered free cash flow rate of $189 million. Net income for the past three years is as follows; in 2008, it came in at $999 million, in 2009 it dropped to -$299 million, and in 2010 it came in at $114 million. For 2011, net income so far stands at $831 million and net income for the year could soar past the $1 billion mark. LINE has a payout ratio of 168%. As LINE is an MLP the payout ratio is not as important; cash flow rates are more important and in that aspect LINE has a very strong cash flow rate.

The charts are indicating that the markets are ready to put in a short- to intermediate-term top; this top is projected to be in place around the 18-21st of this month. Long term dividend players would do well to wait for this correction to play out before committing fresh sums of money to this market.

All dividend charts were sourced from dividata.com.

Source: 7 Stocks With Yields As High As 27.9%

Additional disclosure: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is very important that you check the finer details in each of the mentioned plays before investing any capital in them. Some investors are happy with taking enormous amounts of risk, while others are bothered by the slightest degree of risk; it is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies -- let the buyer beware.