High yield investing is very interesting, especially in times of low interest rates. The royal class of high yield investing is to trade stocks with very high yields (double digit yields). But the risks (e.g. dividend cut) are not to underestimate. For a margin trader, it is still an attractive opportunity, especially short-term before the next ex-dividend date. If you own a stock before this date, you get the next dividend payment. In the case of a double digit annual yield, you should earn at least 2.5 percent for a very short period of investing. I screened my database by stocks with a very high yield (more than 10 percent) as well as ex-dividend date within the upcoming week (March 19 - 25). Exactly seven stocks fulfilled these criteria. These are the detailed results:
1. Invesco Mortgage Capital (IVR) has a market capitalization of $2.10 billion. The company generates revenues of $453.35 million and has a net income of $286.80 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $272.54 million. Because of these figures, the EBITDA margin is 60.12% (operating margin 63.26% and the net profit margin finally 63.26%).
The company has no long-term debt. Last fiscal, a return on equity of 19.37% was realized. Twelve trailing months earnings per share reached a value of $3.42. Last fiscal year, the company paid $3.42 in form of dividends to shareholders. The ex-dividend date is on March 22, 2012.
Here are the price ratios of the company: The P/E ratio is 5.34, Price/Sales 4.56 and Price/Book ratio 1.09. Dividend Yield: 19.07%.
2. Two Harbors Investment (TWO) has a market capitalization of $2.24 billion. The company generates revenues of $201.63 million and has a net income of $127.43 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $188.85 million. Because of these figures, the EBITDA margin is 93.66% (operating margin 62.65% and the net profit margin finally 63.20%).
The total debt representing 82.22% of the company's assets and the total debt in relation to the equity amounts to 524.39%. Last fiscal, a return on equity of 15.42% was realized. Twelve trailing months earnings per share reached a value of $1.26. Last fiscal year, the company paid $1.60 in form of dividends to shareholders. The ex-dividend date is on March 22, 2012.
Here are the price ratios of the company: The P/E ratio is 8.30, Price/Sales 11.09 and Price/Book ratio 1.16. Dividend Yield: 15.33%.
3. CYS Investments (CYS) has a market capitalization of $1.51 billion. The company generates revenues of $232.90 million and has a net income of $291.93 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $190.92 million. Because of these figures, the EBITDA margin is 81.98% (operating margin 81.98% and the net profit margin finally 125.35%).
The company has no long-term debt. Last fiscal, a return on equity of 11.99% was realized. Twelve trailing months earnings per share reached a value of $1.30. Last fiscal year, the company paid $2.25 in form of dividends to shareholders. The ex-dividend date is on March 21, 2012.
Here are the price ratios of the company: The P/E ratio is 10.42, Price/Sales 6.57 and Price/Book ratio 1.05. Dividend Yield: 14.61%.
4. Arlington Asset Investment (AI) has a market capitalization of $184.05 million. The company generates revenues of $52.54 million and has a net income of $15.17 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $35.90 million. Because of these figures, the EBITDA margin is 68.31% (operating margin 68.22% and the net profit margin finally 28.88%).
The total debt representing 76.02% of the company's assets and the total debt in relation to the equity amounts to 395.92%. Last fiscal, a return on equity of 7.58% was realized. Twelve trailing months earnings per share reached a value of $1.97. Last fiscal year, the company paid $3.38 in form of dividends to shareholders. The ex-dividend date is on March 22, 2012.
Here are the price ratios of the company: The P/E ratio is 12.16, Price/Sales 3.65 and Price/Book ratio 1.05. Dividend Yield: 14.00%.
5. Hatteras Financial (HTS) has a market capitalization of $2.21 billion. The company generates revenues of $426.12 million and has a net income of $284.37 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $263.80 million. Because of these figures, the EBITDA margin is 61.91% (operating margin 66.74% and the net profit margin finally 66.74%).
The total debt representing 88.14% of the company's assets and the total debt in relation to the equity amounts to 787.50%. Last fiscal, a return on equity of 17.63% was realized. Twelve trailing months earnings per share reached a value of $3.96. Last fiscal year, the company paid $3.90 in form of dividends to shareholders. The ex-dividend date is on March 20, 2012.
Here are the price ratios of the company: The P/E ratio is 7.24, Price/Sales 5.22 and Price/Book ratio 1.06. Dividend Yield: 12.49%.
6. TICC Capital (TICC) has a market capitalization of $331.14 million. The company generates revenues of $45.19 million and has a net income of $14.21 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $30.00 million. Because of these figures, the EBITDA margin is 66.39% (operating margin 66.39% and the net profit margin finally 31.44%).
The total debt representing 23.51% of the company's assets and the total debt in relation to the equity amounts to 32.68%. Last fiscal, a return on equity of 4.59% was realized. Twelve trailing months earnings per share reached a value of $0.45. Last fiscal year, the company paid $0.99 in form of dividends to shareholders. The ex-dividend date is on March 19, 2012.
Here are the price ratios of the company: The P/E ratio is 22.65, Price/Sales 7.66 and Price/Book ratio 1.13. Dividend Yield: 10.24%.
7. PennantPark Investment (PNNT) has a market capitalization of $610.01 million. The company generates revenues of $91.74 million and has a net income of $10.26 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $52.87 million. Because of these figures, the EBITDA margin is 57.64% (operating margin 57.64% and the net profit margin finally 11.19%).
The total debt representing 41.86% of the company's assets and the total debt in relation to the equity amounts to 84.03%. Last fiscal, a return on equity of 2.42% was realized. Twelve trailing months earnings per share reached a value of $0.04. Last fiscal year, the company paid $1.07 in form of dividends to shareholders. The ex-dividend date is on March 20, 2012.
Here are the price ratios of the company: The P/E ratio is 251.47, Price/Sales 6.66 and Price/Book ratio 1.10. Dividend Yield: 10.05%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
