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Interested in stocks paying dividend income? Here are some ideas to get you started on your search.

We ran a screen on stocks paying dividend yields above 1% and sustainable payout ratios below 50%. We screened these companies for those with high liquidity, measured by current ratios above 3. We then found those that appear undervalued, with high ratios of levered free cash flow/enterprise value.

Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm's value from all ownership sources: market cap, outstanding debt and preferred shares. Companies with high ratios of levered free cash flow/enterprise value may be undervalued by the market.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks pay reliable dividends? Use this list as a starting point for your own analysis.

List sorted by LFCF/EV.

1. Janus Capital Group, Inc. (NYSE:JNS): A publicly owned asset management holding company. Market cap of $1.41B. Dividend yield at 2.48%, payout ratio at 10.75%. Current ratio at 5.86. Levered free cash flow/enterprise value at 21.46% (levered free cash flow at $298.33M and enterprise value at $1.39B). This is a risky stock that is significantly more volatile than the overall market (beta = 2.57). The stock has had a couple of great days, gaining 10.22% over the last week.

2. Comtech Telecommunications Corp. (NASDAQ:CMTL): Designs and produces a wide range of telecom systems and services. Market cap of $620.37M. Dividend yield at 3.61%, payout ratio at 46.36%. Current ratio at 7.58. Levered free cash flow/enterprise value at 20.05% (levered free cash flow at $69.66M and enterprise value at $347.40M). The stock is a short squeeze candidate, with a short float at 11.15% (equivalent to 6.59 days of average volume). The stock has gained 19.19% over the last year.

3. MKS Instruments Inc. (NASDAQ:MKSI): Provides instruments, subsystems and process control solutions that measure, control, power, monitor and analyze parameters of manufacturing processes worldwide. Market cap of $1.58B. Dividend yield at 1.99%, payout ratio at 16.69%. Current ratio at 10.25. Levered free cash flow/enterprise value at 15.26% (levered free cash flow at $158.68M and enterprise value at $1.04B). The stock has gained 12.2% over the last year.

4. Applied Materials Inc. (NASDAQ:AMAT): Provides manufacturing equipment, services and software to the semiconductor, flat panel display, solar photovoltaic and related industries worldwide. Market cap of $16.07B. Dividend yield at 2.60%, payout ratio at 21.17%. Current ratio at 3.71. Levered free cash flow/enterprise value at 13.72% (levered free cash flow at $1.60B and enterprise value at $11.66B). The stock has had a good month, gaining 20.69%.

5. Brooks Automation Inc. (NASDAQ:BRKS): Provides automation, vacuum, and instrumentation solutions primarily to the semiconductor manufacturing industry worldwide. Market cap of $723.45M. Dividend yield at 2.93%, payout ratio at 4.13%. Current ratio at 3.35. Levered free cash flow/enterprise value at 13.66% (levered free cash flow at $78.94M and enterprise value at $577.94M). The stock has lost 2.06% over the last year.

6. Activision Blizzard, Inc. (NASDAQ:ATVI): Publishes online, personal computer [PC], console, handheld and mobile games of interactive entertainment worldwide. Market cap of $14.05B. Dividend yield at 1.34%, payout ratio at 26.22%. Current ratio at 3.19. Levered free cash flow/enterprise value at 11.37% (levered free cash flow at $1.24B and enterprise value at $10.91B). The stock has gained 9.64% over the last year.

7. Franklin Resources Inc. (NYSE:BEN): Provides its services to individuals, institutions, pension plans, trusts, and partnerships. Market cap of $22.52B. Dividend yield at 1.04%, payout ratio at 11.53%. Current ratio at 5.81. Levered free cash flow/enterprise value at 10.71% (levered free cash flow at $1.86B and enterprise value at $17.36B). The stock has had a couple of great days, gaining 6.97% over the last week.

8. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures, and sells Internet protocol [IP]-based networking and other products related to the communications and information technology industry worldwide. Market cap of $106.55B. Dividend yield at 1.21%, payout ratio at 15.46%. Current ratio at 3.28. Levered free cash flow/enterprise value at 10.60% (levered free cash flow at $8.38B and enterprise value at $79.07B). The stock has had a good month, gaining 10.97%.

*LFCF/EV sourced from Yahoo! Finance, all other data sourced from Finviz.

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

Source: 8 Highly Liquid Dividend Stocks Undervalued By Levered Free Cash Flows