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We have been in an ultra-low interest environment for many years now. This is likely to continue for the foreseeable future. Given this, finding high-yielding stocks is a necessity for income-oriented investors with some risk appetite. Here is an unloved equity with an almost 8% yield. It should be noted that the company is in a slowly dying industry and it currently has negative sales growth of 1% to 2% a year. However, it is going through various restructuring efforts and looking to grow in new areas like software. It has numerous reasons it should be considered as an investment for those seeking yield.

Pitney Bowes (NYSE:PBI) - "Pitney Bowes Inc. provides mail processing equipment and integrated mail solutions worldwide. It offers a suite of equipment, supplies, software, services, and solutions for managing and integrating physical and digital communication channels." (Business Description from Yahoo Finance).

7 Reasons to pick up PBI at $19 a share:

  • The stock is right at long-term technical support (see chart - click to enlarge)

  • PBI yields a massive 7.7% and has raised its dividend an average of 2.5% annually over the last half decade.
  • It is selling at the bottom of its five-year valuation range based on P/CF, P/E and P/S.
  • Although it has $3.5B in debt, it has over $1B in operating cash flow to support debt payments which is less than 4 times its market capitalization.
  • PBI has a forward PE of under 9, which is a 20% discount to its five-year average.
  • Operating margins should improve in 2012 as cost savings from various restructuring efforts are more fully realized.
  • Insiders are hanging tight as there has been no insider selling over the previous six months.

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

Source: An Almost 8% Yielder That Gets No Love From The Market