Seeking Alpha
Profile| Send Message|
( followers)  

Stocks with a yield over 10% are often mocked as not sustainable. Certainly, there are companies that pay high dividends for only a few quarters until they cut dividends. But if the company pays the double-digit yield over a few years, you have received at least enough cash to compensate expected share price losses and your investment paid-off.

In effort to find some attractive opportunities for dividend investors, I screened the capital market by stocks with a double-digit yield and a beta ratio below one (less volatile than the market). In order to exclude the risks of low capitalized and hidden stocks, I observed only companies with a capitalization over $2 billion. Seven stocks met the mentioned criteria of which five have a current buy or better rating. These are the detailed results:

1. Inergy (NRGY) has a market capitalization of $2.11 billion. The company employs 2,865 people, generates revenues of $2,153.80 million and has a net income of $-10.60 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $294.20 million. Because of these figures, the EBITDA margin is 13.66% (operating margin 4.75% and the net profit margin finally -0.49%).

The total debt representing 55.46% of the company's assets and the total debt in relation to the equity amounts to 161.69%. Last fiscal, a return on equity of 2.94% was realized. Twelve trailing months earnings per share reached a value of $-0.47. Last fiscal year, the company paid $2.82 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 1.00 and Price/Book ratio 1.87. Dividend Yield: 17.30%. The beta ratio is 0.54.

2. Annaly Capital Management (NYSE:NLY) has a market capitalization of $15.65 billion. The company employs 147 people, generates revenues of $3,579.62 million and has a net income of $343.32 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,981.85 million. Because of these figures, the EBITDA margin is 55.36% (operating margin 11.24% and the net profit margin finally 9.59%).

The total debt representing 77.94% of the company's assets and the total debt in relation to the equity amounts to 541.02%. Last fiscal, a return on equity of 2.59% was realized. Twelve trailing months earnings per share reached a value of $0.49. Last fiscal year, the company paid $2.44 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 32.95, Price/Sales 4.45 and Price/Book ratio 1.02. Dividend Yield: 13.90%. The beta ratio is 0.30.

3. MFA Financial (NYSE:MFA) has a market capitalization of $2.64 billion. The company employs 35 people, generates revenues of $496.75 million and has a net income of $316.41 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $308.25 million. Because of these figures, the EBITDA margin is 62.05% (operating margin 62.12% and the net profit margin finally 63.70%).

The total debt representing 73.94% of the company's assets and the total debt in relation to the equity amounts to 347.86%. Last fiscal, a return on equity of 12.91% was realized. Twelve trailing months earnings per share reached a value of $0.90. Last fiscal year, the company paid $1.00 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.17, Price/Sales 5.32 and Price/Book ratio 1.06. Dividend Yield: 13.51%. The beta ratio is 0.34.

4. France Telecom (FTE) has a market capitalization of $40.16 billion. The company employs 165,330 people, generates revenues of $59,231.30 million and has a net income of $5,007.78 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,335.17 million. Because of these figures, the EBITDA margin is 32.64% (operating margin 17.55% and the net profit margin finally 8.45%).

The total debt representing 43.35% of the company's assets and the total debt in relation to the equity amounts to 151.06%. Last fiscal, a return on equity of 13.75% was realized. Twelve trailing months earnings per share reached a value of $1.91. Last fiscal year, the company paid $2.02 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 7.93, Price/Sales 0.66 and Price/Book ratio 1.09. Dividend Yield: 13.06%. The beta ratio is 0.80.

5. Hatteras Financial (NYSE:HTS) has a market capitalization of $2.23 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.

Here are the price ratios of the company: The P/E ratio is 7.29, Price/Sales 5.22 and Price/Book ratio 1.06. Dividend Yield: 12.49%. The beta ratio is 0.28.

6. YPF (NYSE:YPF) has a market capitalization of $10.76 billion. The company employs 13,370 people, generates revenues of $10,168.08 million and has a net income of $1,333.12 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,395.65 million. Because of these figures, the EBITDA margin is 33.40% (operating margin 21.46% and the net profit margin finally 13.11%).

The total debt representing 16.72% of the company's assets and the total debt in relation to the equity amounts to 40.91%. Last fiscal, a return on equity of 25.51% was realized. Twelve trailing months earnings per share reached a value of $3.34. Last fiscal year, the company paid $3.40 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.18, Price/Sales 1.17 and Price/Book ratio 2.39. Dividend Yield: 12.73%. The beta ratio is 0.71.

7. Telefonica (NYSE:TEF) has a market capitalization of $25.87 billion. The company employs 35,466 people, generates revenues of $82,203.27 million and has a net income of $8,093.82 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,438.69 million. Because of these figures, the EBITDA margin is 32.16% (operating margin 16.02% and the net profit margin finally 9.85%).

The total debt representing 51.16% of the company's assets and the total debt in relation to the equity amounts to 306.48%. Last fiscal, a return on equity of 23.45% was realized. Twelve trailing months earnings per share reached a value of $4.74. Last fiscal year, the company paid $2.14 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 3.63, Price/Sales 0.92 and Price/Book ratio 0.88. Dividend Yield: 12.80%. The beta ratio is 0.97.

Source: 7 Stocks With Double-Digit Yields And A Very Low Beta Ratio