10 Mid Cap Stocks With Yields Over 5% And Cheap Forward P/Es

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Includes: HTS, KKR, MFA, OZM, PT, RNO, RRD, SKM, TEO, VEOEY
by: Dividend Screen

I like to invest in dividend stocks with big dividend yields. Unfortunately, high-yielding stocks with low volatility and safe dividends are very rare and highly priced. Real bargains are more likely to find with a lower market capitalization. The positive thing on stocks with a lower market capitalization is that they generate often a higher growth in comparison to large capitalized stocks.

In order to find some investment opportunities, I made a screen of mid capitalized stocks (stocks with market capitalization between $2 billion and $10 billion) that have a dividend yield of more than 5 percent as well as low forward P/E ratio (under 10). The screen produced 14 matches. I observed only those stocks with a current buy or better recommendation. The rating scale was created by Finviz.com, and has a point scale of 1 to 5, with 1 a strong buy rating and 2 a buy. These are the results:

1. Veolia Environnement (VE) has a market capitalization of $5.52 billion. The company employs 287,043 people, generates revenues of $44,307.93 million and has a net income of $1,116.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,941.35 million. Because of these figures, the EBITDA margin is 11.15 percent (operating margin 6.06 percent and the net profit margin 2.52 percent).

The total debt representing 40.98 percent of the company’s assets and the total debt in relation to the equity amounts to 265.00 percent. Due to the financial situation, a return on equity of 7.84 percent was realized. Twelve trailing months earnings per share reached a value of $-0.59. Last fiscal year, the company paid $1.54 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is not calculable, forward P/E ratio 8.28, Price/Sales 0.13 and Price/Book ratio 0.52. Dividend Yield: 15.88 percent. The beta ratio is 1.71. The company is recommended to buy with a 2.0 rating.

2. MFA Financial (NYSE:MFA) has a market capitalization of $2.48 billion. The company employs 29 people, generates revenues of $391.34 million and has a net income of $269.76 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $181.53 million. Because of these figures, the EBITDA margin is 46.39 percent (operating margin 59.94 percent and the net profit margin 68.93 percent).

The total debt representing 71.52 percent of the company’s assets, and the total debt in relation to the equity amounts to 276.09 percent. Due to the financial situation, a return on equity of 11.80 percent was realized. Twelve trailing months earnings per share reached a value of $0.92. Last fiscal year, the company paid $0.89 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 7.53, forward P/E ratio 7.16, Price/Sales 6.33 and Price/Book ratio 0.87. Dividend Yield: 14.39 percent. The beta ratio is 0.33. The company is recommended to buy with a 2.2 rating.

3. Hatteras Financial (NYSE:HTS) has a market capitalization of $2.08 billion. The company generates revenues of $265.02 million and has a net income of $169.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $251.87 million. Because of these figures, the EBITDA margin is 95.04 percent (operating margin 63.96 percent and the net profit margin 63.96 percent).

The total debt representing 87.47 percent of the company’s assets and the total debt in relation to the equity amounts to 764.11 percent. Due to the financial situation, a return on equity of 16.32 percent was realized. Twelve trailing months earnings per share reached a value of $4.03. Last fiscal year, the company paid $4.40 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 6.72, forward P/E ratio 7.29, Price/Sales 7.83 and Price/Book ratio 1.09. Dividend Yield: 13.28 percent. The beta ratio is 0.27. The company is recommended to buy with a 2.4 rating.

4. Och-Ziff Capital Management (NYSE:OZM) has a market capitalization of $3.51 billion. The company employs 405 people, generates revenues of $924.50 million and has a net income of $-1,198.95 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-1,157.18 million. Because of these figures, the EBITDA margin is -125.17 percent (operating margin -127.06 percent and the net profit margin -129.69 percent).

The total debt representing 30.54 percent of the company’s assets and the total debt in relation to the equity amounts to 149.54 percent. Due to the financial situation, a return on equity of -95.38 percent was realized. Twelve trailing months earnings per share reached a value of $-3.12. Last fiscal year, the company paid $0.88 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is not calculable, forward P/E ratio 7.87, Price/Sales 4.17 and Price/Book ratio 8.09. Dividend Yield: 11.42 percent. The beta ratio is 2.00. The company is recommended to strong buy with a 1.8 rating.

5. Rhino Resource Partners (NYSE:RNO) has a market capitalization of $3.44 billion. The company employs 897 people, generates revenues of $305.65 million and has a net income of $41.15 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $72.59 million. Because of these figures, the EBITDA margin is 23.75 percent (operating margin 13.66 percent and the net profit margin 13.46 percent).

The total debt representing 10.18 percent of the company’s assets and the total debt in relation to the equity amounts to 14.75 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $0.74. Last fiscal year, the company paid $1.82 in the form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 27.74, forward P/E ratio 9.34, Price/Sales 1.85 and Price/Book ratio 2.14. Dividend Yield: 9.39 percent. The beta ratio is not calculable. The company is recommended to buy with a 2.5 rating.

6. R.R. Donnelley & Sons Co. (NASDAQ:RRD) has a market capitalization of $2.28 billion. The company employs 58,700 people, generates revenues of $10,018.90 million and has a net income of $217.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,079.40 million. Because of these figures, the EBITDA margin is 10.77 percent (operating margin 5.54 percent and the net profit margin 2.17 percent).

The total debt representing 38.86 percent of the company’s assets, and the total debt in relation to the equity amounts to 158.70 percent. Due to the financial situation, a return on equity of 10.17 percent was realized. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, the company paid $1.04 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.29, forward P/E ratio 6.32, Price/Sales 0.23 and Price/Book ratio 1.13. Dividend Yield: 8.57 percent. The beta ratio is 1.92. The company is recommended to buy with a 2.2 rating.

7. Telecom Argentina (NYSE:TEO) has a market capitalization of $4.04 billion. The company employs 16,237 people, generates revenues of $3,400.37 million and has a net income of $452.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,130.60 million. Because of these figures, the EBITDA margin is 33.25 percent (operating margin 21.57 percent and the net profit margin 13.30 percent).

The total debt representing 1.31 percent of the company’s assets and the total debt in relation to the equity amounts to 2.51 percent. Due to the financial situation, a return on equity of 32.49 percent was realized. Twelve trailing months earnings per share reached a value of $2.89. Last fiscal year, the company paid $1.08 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 7.12, forward P/E ratio 6.15, Price/Sales 0.62 and Price/Book ratio 2.72. Dividend Yield: 7.85 percent. The beta ratio is 1.10. The company is recommended to buy with a 2.4 rating.

8. SK Telecom (NYSE:SKM) has a market capitalization of $9.55 billion. The company employs 15,490 people, generates revenues of $13,507.22 million and has a net income of $1,110.81 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,139.60 million. Because of these figures, the EBITDA margin is 30.65 percent (operating margin 12.05 percent and the net profit margin 8.22 percent).

The total debt representing 26.46 percent of the company’s assets and the total debt in relation to the equity amounts to 52.91 percent. Due to the financial situation, a return on equity of 13.53 percent was realized. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, the company paid $0.91 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 6.51, forward P/E ratio 6.99, Price/Sales 0.70 and Price/Book ratio 0.85. Dividend Yield: 7.30 percent. The beta ratio is 0.92. The company is recommended to buy with a 2.5 rating.

9. Portugal Telecom (NYSE:PT) has a market capitalization of $4.71 billion. The company employs 83,619 people, generates revenues of $4,766.53 million and has a net income of $324.34 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,168.81 million. Because of these figures, the EBITDA margin is 45.50 percent (operating margin 11.06 percent and the net profit margin 6.80 percent).

The total debt representing 47.50 percent of the company’s assets and the total debt in relation to the equity amounts to 164.06 percent. Due to the financial situation, a return on equity of 3.74 percent was realized. Twelve trailing months earnings per share reached a value of $0.53. Last fiscal year, the company paid $0.02 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.14, forward P/E ratio 5.12, Price/Sales 1.00 and Price/Book ratio 0.84. Dividend Yield: 5.09 percent. The beta ratio is 0.69. The company is recommended for a strong buy with a 1.5 rating.

10. KKR & Co. (NYSE:KKR) has a market capitalization of $3.11 billion. The company employs 698 people, generates revenues of $435.39 million and has a net income of $7,776.47 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-1,311.82 million. Because of these figures, the EBITDA margin is -301.30 percent (operating margin -304.85 percent and the net profit margin 1,786.11 percent).

The total debt representing 3.87 percent of the company’s assets and the total debt in relation to the equity amounts to 112.10 percent. Due to the financial situation, a return on equity of 28.47 percent was realized. Twelve trailing months earnings per share reached a value of $0.70. Last fiscal year, the company paid $0.23 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 20.01, forward P/E ratio 7.34, Price/Sales 21.88 and Price/Book ratio 2.24. Dividend Yield: 5.09 percent. The beta ratio is not calculable. The company is recommended to buy with a 2.2 rating.

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