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Today, we are going to examine several stocks with positive quarterly revenue growth rates, operating cash flows in excess of $400 million, with yields in excess of three percent, paying dividends for 5 or more years and either have a dividend growth rate in excess of 5 percent or have consecutively increased their dividends for at least four years in a row. The only exception being LHPI, and it has been included on this list as a speculative play; as the stock has a taken a beating, it has the potential to mount a strong relief rally. The clear winner and our favourite play on the list is Terra Nitrogen Co., L.P. (NYSE:TNH). It has a ROE of 100%, a quarterly revenue growth rate of 49.5%, quarterly earnings growth rate of 180%; a very healthy levered free cash flow rate of $228 million, a five-year dividend growth rate of 97%, a five dividend average of 8.10%, a total 5-year return of 600%, and it has been paying dividends since 1997. The dividend was increased from $3.75 to $3.96.

Here are some of the metrics we us; the full list can be accessed here.

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 and vice versa.

The payout ratio tells us what portion of the profit is being returned to investors. A pay out ratio over 100% indicates that the company is paying out more money to shareholders, then they are making; this situation cannot last forever. In general if the company has a high operating cash flow and access to capital markets, they 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 sometime.. Individuals searching for other ideas might find this article to be of interest 7 Stocks With Attractive Yields As High As 8.6%

Quick ratio or acid -test is obtained by adding cash and cash equivalents plus marketable securities and accounts receivable dividing them by current liabilities. It is a measure of a company's ability to use its quick assets (assets that can be sold of immediately at close to book value) to pay off its current liabilities immediately. A company with a quick ratio of less than 1 cannot pay back its current liabilities.

Price to tangible book is obtained by dividing share price by tangible book value per share. The ratio gives investors some idea of whether they are paying too much for what would be left over if the company were to declare bankruptcy immediately. In general stocks that trade at higher price to tangible book value could leave investors facing a great percentage per share loss than those that trade at lower ratios. The price to tangible book value is theoretically the lowest possible price the stock would trade to

One other play of interest is Ferrellgas Partners, L.P. (NYSE:FGP) It has yield of 11.5%, a quarterly revenue growth rate of 34.5%, a healthy five-year dividend average of 9.90%, a total rate of return for the last three years of 55% and has been paying dividends since 19948. It also has a positive levered free cash flow rate of $67.56 million. Ferrellgas Partners, L.P. also sports the following ratios: Price/sales of 0.55, price to tangible book of -3.22, price to cash flow of 40.60, price to free cash flow of -11.80, a five-year sales growth rate of .98 and a beta of 0.44.

Net income for the past three years

  1. 2008 = $ 52 million
  2. 2009 = $ 32 million
  3. 2010 = -$43 million

Positive developments

Insiders have been aggressively purchasing this stock in the past few months. FERRELL COMPANIES INCa beneficial owner purchased over 1.38 million shares on Jan 17, 2012 at a price $18 per share. The full list of transaction can be accessed here.

Stock

Dividend Yield

Market Cap

Forward PE

EBITDA

Quarterly Revenue Growth

Beta

Revenue

Operating Cash flow

TNH

8.40%

3.55B

N/A

459.10M

49.50%

0.30

740.80M

445.60M

BCE

5.30%

31.2B

12.84

7.46B

8.70%

0.56

18.77B

4.82B

EXC

5.40%

26.5B

12.97

6.66B

0.10%

0.5

19.43B

4.05B

ABB

3.20%

48.7B

12.36

5.44B

18.10%

1.37

36.60B

3.70B

DUK

4.70%

28.6B

14.87

4.97B

0.50%

0.31

14.31B

3.88B

LPHI **

17..50%

84.10M

N/A

2.53M

-66.90%

1.2

44.34M

3.17M

**Speculative play

Terra Nitrogen Co., L.P. (TNH)

Net income for the past three years

2008 = $422.3 million

2009 = $123 million

2010 = $201.6 million

2011= It far stands at $378 million and could top the $500 million mark.

Key Ratios

  1. Price to sale 4.56
  2. Price to tangible book 12.55
  3. Price to cash flow 8.2
  4. Price to free cash flow 43.9
  5. 5 year sales growth 6.02
  6. Inventory turnover 11.6
  7. Asset turnover 2.7
  8. ROE 197.82%

  1. Return on assets 100.93%
  2. 200 day moving average 161.14
  3. Total debt 0
  4. Book value 12.72
  5. Dividend yield 5 year Average 8.1 %
  6. Dividend rate $ 13.91
  7. Payout ratio 98%
  8. Dividend growth rate 5 year average 204 %
  9. Consecutive dividend increases 1 years
  10. Paying dividends since 1997
  11. Total return last 3 years 107.36%
  12. Total return last 5 years 646.41%

Positive developments

The dividend was increased from $3.75 to $3.96

BCE Inc. (NYSE:BCE)

IndustryServices

Net income for the past three years

  • 2008 = $.77 billion
  • 2009 = $1.66 billion
  • 2010 = $2.29 billion

Total cash flow from operating activities

  • 2008 = $4.9 billion
  • 2009 = $4.66 billion
  • 2010 = $4.75 billion

Key Ratios

  • P/E Ratio 14.3
  • P/E High - Last 5 Yrs 48.2
  • P/E Low - Last 5 Yrs 5
  • Price to Sales 1.66
  • Price to Book 3.21
  • Price to Tangible Book -7.1
  • Price to Cash Flow 6.2
  • Price to Free Cash Flow -24.9
  • Quick Ratio 0.6
  • Current Ratio 0.8
  • LT Debt to Equity 1.21
  • Total Debt to Equity 1.42
  • Interest Coverage 2.8
  • Inventory Turnover 2.24
  • Asset Turnover 0.5

  • ROE 16.70%
  • Return on Assets 6.63%
  • 200 day moving average 39.17
  • Current Ratio 0.76
  • Total debt 14.78B
  • Book value 13.35
  • Qtrly Earnings Growth 40.30%
  • Dividend yield 5 year average 4.70%
  • Dividend rate$ 2.17
  • Payout ratio 69%
  • Dividend growth rate 3 year avg 47.99%
  • Dividend growth rate 5 year avg 43.04%
  • Consecutive dividend increases 3 years
  • Paying dividends since 2006
  • Total return last 3 years 140.94%
  • Total return last 5 years 98.85%

Exelon Corp. (NYSE:EXC)

Industry: Electric Utilities

It has a levered free cash flow rate of -$387 million and a current ratio of 1.26.

Net income for the past three years

  1. 2008= $2.73 billion
  2. 2009= $2.7 billion
  3. 2010= $2.56 billion
  4. 2011= it stands at $1.9 billion and could top the $2.55 billion mark

Total cash flow from operating activities

  1. 2008= $6.55 billion
  2. 2009 =$6.09 billion
  3. 2010 = $5.24 billion
  4. 2011= It stands at $2.94 billion and could top the $4.8 billion mark

Key Ratios

  • Price to sale 5.5
  • Price to tangible book 0
  • Price to cash flow 5.3
  • Price to free cash flow 3.6
  • 5 year sales growth 0.59
  • Inventory turnover 0
  • Asset turnover 0

  • ROE 17.05%
  • Return on assets 5.32%
  • 200 day moving average 42.69
  • Total debt 14.58B
  • Book value 21.65
  • Qtrly Earnings Growth -28.90%
  • Dividend yield 5 year Average 4.10%
  • Dividend rate $ 2.10
  • Payout ratio 57.00%
  • Dividend growth rate 3 year average 1.23%
  • Dividend growth rate 5 year average 5.75%
  • Consecutive dividend increases 0 years
  • Paying dividends since 1902
  • Total return last 3 years -16.33%
  • Total return last 5 years -17.07%

ABB Ltd (NYSE:ABB)

Industry: Electrical Equipment

The dividend was increased from 47 cents to 67 cents and it also has a high beta which makes it a good candidate for covered writes.

Net income for the past three years

  • 2008 = $3.12 billion
  • 2009 = $2.9 billion
  • 2010 = $2.56 billion

Total cash flow from operating activities

  • 2008 = $3.96 billion
  • 2009 = $4.03 billion
  • 2010 = $4.2 billion

Key Ratios

  • P/E Ratio=16
  • P/E High - Last 5 Yrs=28.6
  • P/E Low - Last 5 Yrs=6.7
  • Price to Sales=1.32
  • Price to Book=3.06
  • Price to Tangible Book=7.64
  • Price to Cash Flow=11.8
  • Price to Free Cash Flow=-28.6
  • Quick Ratio=0.9
  • Current Ratio=1.3
  • LT Debt to Equity=0.15
  • Total Debt to Equity=0.29
  • Interest Coverage=22.3
  • Inventory Turnover=4.2
  • Asset Turnover=1

  • ROE =20.59%
  • Return on Assets=7.64%
  • 200 day moving average=19.78
  • Current Ratio=1.34
  • Total debt=4.62B
  • Book value=6.91
  • Qtrly Earnings Growth=2.10%
  • Dividend yield 5 year average=2.90%
  • Dividend rate=$ 0.57
  • Payout ratio =87.00%
  • Dividend growth rate 3 year avg=49.00%
  • Dividend growth rate 5 year avg=75.68%
  • Consecutive dividend increases=2 years
  • Paying dividends since=2003
  • Total return last 3 years=94.37%
  • Total return last 5 years =33.77%

Duke Energy Corp (NYSE:DUK)

Industry: Electric Utilities

It has levered free cash flow rate of -$1.19 billion and current ratio of 1.23.

Net income for the past three years

  • 2008 = $1.36 billion
  • 2009 = $1.08 billion
  • 2010 = $1.32 billion

Total cash flow from operating activities

  • 2008 = $3.33 billion
  • 2009 = $3.46 billion
  • 2010 = $4.51 billion

Key Ratios

  • P/E Ratio15.4
  • P/E High - Last 5 Yrs 21.6
  • P/E Low - Last 5 Yrs 10
  • Price to Sales 1.94
  • Price to Book 1.25
  • Price to Tangible Book 1.53
  • Price to Cash Flow 7.3
  • Price to Free Cash Flow -15.5
  • Quick Ratio 0.8
  • Current Ratio 1.2
  • LT Debt to Equity 0.77
  • Total Debt to Equity 0.84
  • Interest Coverage 4.2
  • Inventory Turnove 6.60
  • Asset Turnover 0.2

  • ROE 8.21%
  • Return on Assets 3.11%
  • 200 day moving average 19.92
  • Current Ratio 1.23
  • Total debt 20.11B
  • Book value 17.11
  • Qtrly Earnings Growth-29.60%
  • Dividend yield 5 year average 5.20%
  • Dividend rate$ 1.00
  • Payout ratio 72.00%
  • Dividend growth rate 3 year avg 3.23%
  • Dividend growth rate 5 year avg 0.98%
  • Consecutive dividend increases 4 years
  • Paying dividends since 1926
  • Total return last 3 years 64.31%
  • Total return last 5 years 39.86%

Life Partners Holdings Inc. (NASDAQ:LPHI)

Industry: Finance Intermediaries & Services

It has a current ratio of 2.97 and a levered free cash flow rate of $6.6 million

Net income for the past three years

  1. 2009= -$25.5 million
  2. 2010 = $26.07 million
  3. 2011= $23.4 million

Total cash flow from operating activities

  1. 2009= $28.4 million
  2. 2010 =$31.2 million
  3. 2011 = -$30.7 million
  • Key Ratios
  • Price to sale -57.3
  • Price to tangible book 0
  • Price to cash flow 19.1
  • Price to free cash flow 4.4
  • 5 year sales growth 26.95
  • Inventory turnover 0
  • Asset turnover 0

  • ROE 1.36%
  • Return on assets 2.13%
  • 200 day moving average 5.96
  • Total debt 0
  • Book value 2.25
  • Dividend yield 5 year Average 6.60%
  • Dividend rate $ 0.80 %
  • Payout ratio 646.00%
  • Dividend growth rate 3 year average 107.26%
  • Dividend growth rate 5 year average 76.04%
  • Consecutive dividend increases 0 years
  • Paying dividends since 2002
  • Total return last 3 years -73.90%
  • Total return last 5 years 29.55%

Warning

LPHI has a very weak quarterly revenue growth rate and is a rather volatile stock; only speculators should consider this play. Despite all the turbulence and negativity surrounding this stock, insiders still have a 50% stake in the company. The short percentage of float is a rather high at 11.50%, making it potentially good candidate for a short squeeze.

All charts were sourced from dividata.com

Disclaimer: 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. The Latin maxim caveat emptor applies-let the buyer beware.

Source: Dividend Champions With Yields As High As 17.5%