Seeking Alpha
Profile| Send Message|
( followers)  

I like to invest in dividend stocks with a big dividend yield. Unfortunately, high yielding stocks with low volatility and safe dividends are very rare and highly priced. In order to find some investment opportunities, I screened the popular S&P 500 by cheap high yield stocks. The Standard & Poor's is a major index, free-float capitalization-weighted, and has been published since 1957. There is a summary of the prices of 500 large-cap common stocks that are actively traded in the United States. The index contains seventeen high yield stocks, but most of them are very expensive in terms of expected growth. That's why I screened the index by high yield stocks with a forward P/E ratio of less than 15. Exactly twelve companies fulfilled these criteria, of which five have a "buy" rating. These are the results:

1. Pitney Bowes (NYSE:PBI) has a market capitalization of $3.63 billion. The company employs 28,700 people, generates revenues of $5,277.97 million and has a net income of $369.70 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $795.85 million. Because of these figures, the EBITDA margin is 15.08% (operating margin 7.85% and the net profit margin finally 7.00%).

The company has $3.68 billion in long-term debt, representing 45.22 percent of the total balance sheet. Twelve trailing months earnings per share reached a value of $1.73. Last fiscal year, the company paid $1.48 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.49, forward P/E 8.90, Price/Sales 0.70 and Price/Book ratio is not calculable. Dividend Yield: 8.09%. The beta ratio is 1.02.

2. R.R. Donnelley & Sons (NASDAQ:RRD) has a market capitalization of $2.35 billion. The company employs 58,000 people, generates revenues of $10,611.00 million and has a net income of $-121.10 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $657.40 million. Because of these figures, the EBITDA margin is 6.20% (operating margin -0.04% and the net profit margin finally -1.14%).

The total debt representing 44.20% of the company's assets and the total debt in relation to the equity amounts to 351.06%. Last fiscal, a return on equity of -7.51% was realized. Twelve trailing months earnings per share reached a value of $-0.73. 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 not calculable, forward P/E 7.06, Price/Sales 0.22 and Price/Book ratio 2.24. Dividend Yield: 7.94%. The beta ratio is 1.91.

3. AT&T (NYSE:T) has a market capitalization of $187.29 billion. The company employs 256,420 people, generates revenues of $126,723.00 million and has a net income of $4,184.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $27,595.00 million. Because of these figures, the EBITDA margin is 21.78% (operating margin 7.27% and the net profit margin finally 3.30%).

The total debt representing 23.95% of the company's assets and the total debt in relation to the equity amounts to 61.36%. Last fiscal, a return on equity of 3.63% was realized. Twelve trailing months earnings per share reached a value of $0.66. Last fiscal year, the company paid $1.73 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 47.80, forward P/E 12.44, Price/Sales 1.48 and Price/Book ratio 1.78. Dividend Yield: 5.56%. The beta ratio is 0.59.

4. Pepco Holdings (NYSE:POM) has a market capitalization of $4.35 billion. The company employs 5,104 people, generates revenues of $5,920.00 million and has a net income of $260.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $1,058.00 million. Because of these figures, the EBITDA margin is 17.87% (operating margin 10.68% and the net profit margin finally 4.39%).

The total debt representing 33.75% of the company's assets and the total debt in relation to the equity amounts to 116.05%. Last fiscal, a return on equity of 6.07% was realized. Twelve trailing months earnings per share reached a value of $1.15. 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 16.64, forward P/E 14.38, Price/Sales 0.75 and Price/Book ratio 1.03. Dividend Yield: 5.52%. The beta ratio is 0.50.

5. Supervalu (NYSE:SVU) has a market capitalization of $1.34 billion. The company employs 135,000 people, generates revenues of $37,534.00 million and has a net income of $-1,510.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-37.00 million. Because of these figures, the EBITDA margin is -0.10% (operating margin -2.60% and the net profit margin finally -4.02%).

The total debt representing 49.07% of the company's assets and the total debt in relation to the equity amounts to 503.81%. Last fiscal, a return on equity of -71.45% was realized. Twelve trailing months earnings per share reached a value of $-2.46. Last fiscal year, the company paid $0.35 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is not calculable, forward P/E 5.19, Price/Sales 0.04 and Price/Book ratio 1.00. Dividend Yield: 5.52%. The beta ratio is 1.17.

6. Altria Group (NYSE:MO) has a market capitalization of $61.43 billion. The company employs 9,900 people, generates revenues of $23,800.00 million and has a net income of $3,393.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,321.00 million. Because of these figures, the EBITDA margin is 26.56% (operating margin 25.50% and the net profit margin finally 14.26%).

The total debt representing 37.04% of the company's assets and the total debt in relation to the equity amounts to 371.98%. Last fiscal, a return on equity of 76.13% was realized. Twelve trailing months earnings per share reached a value of $1.64. Last fiscal year, the company paid $1.58 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 18.34, forward P/E 12.72, Price/Sales 2.59 and Price/Book ratio 16.72. Dividend Yield: 5.45%. The beta ratio is 0.41.

7. Gannett (NYSE:GCI) has a market capitalization of $3.60 billion. The company employs 31,000 people, generates revenues of $5,239.99 million and has a net income of $500.13 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $1,012.42 million. Because of these figures, the EBITDA margin is 19.32% (operating margin 15.55% and the net profit margin finally 9.54%).

The total debt representing 26.61% of the company's assets and the total debt in relation to the equity amounts to 75.62%. Last fiscal, a return on equity of 20.43% was realized. Twelve trailing months earnings per share reached a value of $1.89. Last fiscal year, the company paid $0.24 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.05, forward P/E 7.01, Price/Sales 0.68 and Price/Book ratio 1.52. Dividend Yield: 5.36%. The beta ratio is 2.45.

8. Reynolds American (NYSE:RAI) has a market capitalization of $23.82 billion. The company employs 5,400 people, generates revenues of $8,541.00 million and has a net income of $1,406.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $2,537.00 million. Because of these figures, the EBITDA margin is 29.70% (operating margin 28.09% and the net profit margin finally 16.46%).

The total debt representing 22.54% of the company's assets and the total debt in relation to the equity amounts to 58.60%. Last fiscal, a return on equity of 22.04% was realized. Twelve trailing months earnings per share reached a value of $2.40. Last fiscal year, the company paid $2.15 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 17.21, forward P/E 12.88, Price/Sales 2.82 and Price/Book ratio 3.86. Dividend Yield: 5.35%. The beta ratio is 0.57.

9. Exelon Corporation (NYSE:EXC) has a market capitalization of $25.79 billion. The company employs 19,267 people, generates revenues of $18,924.00 million and has a net income of $2,495.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $5,815.00 million. Because of these figures, the EBITDA margin is 30.73% (operating margin 23.67% and the net profit margin finally 13.18%).

The total debt representing 24.49% of the company's assets and the total debt in relation to the equity amounts to 93.79%. Last fiscal, a return on equity of 17.86% was realized. Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, the company paid $2.10 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.36, forward P/E 13.76, Price/Sales 1.39 and Price/Book ratio 1.83. Dividend Yield: 5.30%. The beta ratio is 0.57.

10. PPL Corporation (NYSE:PPL) has a market capitalization of $16.40 billion. The company employs 17,722 people, generates revenues of $12,737.00 million and has a net income of $1,510.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $4,309.00 million. Because of these figures, the EBITDA margin is 33.83% (operating margin 24.30% and the net profit margin finally 11.86%).

The total debt representing 43.54% of the company's assets and the total debt in relation to the equity amounts to 171.51%. Last fiscal, a return on equity of 15.62% was realized. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $1.40 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.44, forward P/E 11.56, Price/Sales 1.29 and Price/Book ratio 1.52. Dividend Yield: 5.07%. The beta ratio is 0.42.

11. Verizon Communications (NYSE:VZ) has a market capitalization of $112.20 billion. The company employs 193,900 people, generates revenues of $110,875.00 million and has a net income of $10,198.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $29,376.00 million. Because of these figures, the EBITDA margin is 26.49% (operating margin 11.62% and the net profit margin finally 9.20%).

The total debt representing 23.93% of the company's assets and the total debt in relation to the equity amounts to 153.33%. Last fiscal, a return on equity of 6.45% was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.98 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 46.73, forward P/E 14.23, Price/Sales 1.01 and Price/Book ratio 3.11. Dividend Yield: 5.07%. The beta ratio is 0.55.

12. Integrys Energy (NYSE:TEG) has a market capitalization of $4.15 billion. The company employs 4,619 people, generates revenues of $4,708.70 million and has a net income of $230.90 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amount to $658.90 million. Because of these figures, the EBITDA margin is 13.99% (operating margin 8.68% and the net profit margin finally 4.90%).

The total debt representing 24.29% of the company's assets and the total debt in relation to the equity amounts to 80.51%. Last fiscal, a return on equity of 7.77% was realized. Twelve trailing months earnings per share reached a value of $2.89. Last fiscal year, the company paid $2.72 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 18.34, forward P/E 14.80, Price/Sales 0.90 and Price/Book ratio 1.42. Dividend Yield: 5.02%. The beta ratio is 0.85.

Source: 12 Cheapest High Yields From The S&P 500