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 (double-digit) yields. For a trader, it is still an attractive opportunity to buy short-term before the next ex-dividend date. If you own a stock before this date, you get the next dividend payment. In addition, the event should cause a higher volatility.
In the case of a double-digit annual yield, you should expect at least 2.5 percent cash. I screened my database by stocks with a very high yield (more than 10%) as well as ex-dividend date from April 9 to April 15. 4 stocks fulfilled these criteria. These are the detailed results:
1. ARMOUR Residential REIT (ARR) has a market capitalization of $966.44 million. The company generates revenues of $12.18 million and has a net income of $-9.44 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-9.39 million. Because of these figures, the EBITDA margin is -77.12% (operating margin -77.12% and the net profit margin finally -77.54%).
The total debt represents 85.96% of the company's assets and the total debt in relation to the equity amounts to 851.57%. Last fiscal year, a return on equity of -2.57% was realized. Twelve trailing months earnings per share reached a value of $-0.09. Last fiscal year, the company paid $1.40 in the form of dividends to shareholders. The ex-dividend date is on April 12, 2012.
Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 96.89 and Price/Book ratio 1.04. Dividend Yield: 17.60%. The beta ratio is 0.16.
2. MCG Capital Corporation (MCGC) has a market capitalization of $331.86 million. The company employs 36 people, generates revenues of $85.70 million and has a net income of $-93.12 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40.92 million.
The total debt represents 48.31% of the company's assets and the total debt in relation to the equity amounts to 98.91%. Last fiscal year, a return on equity of -18.38% was realized. Twelve trailing months earnings per share reached a value of $-1.22. Last fiscal year, the company paid $0.66 in the form of dividends to shareholders. The ex-dividend date is on April 11, 2012.
Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 3.87 and Price/Book ratio 0.76. Dividend Yield: 15.78%. The beta ratio is 2.30.
3. Banco Santander (STD) has a market capitalization of $62.72 billion. The company employs 193,349 people, generates revenues of $79,684.70 million and has a net income of $5,351.0 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,697.31 million. Because of these figures, the EBITDA margin is 33.50% (operating margin 10.22% and the net profit margin finally 6.89%).
The total debt represents 16.95% of the company's assets and the total debt in relation to the equity amounts to 277.57%. Last fiscal year, a return on equity of 7.10% was realized. Twelve trailing months earnings per share reached a value of $0.80. Last fiscal year, the company paid $0.79 in the form of dividends to shareholders. The ex-dividend date is on April 10, 2012.
Here are the price ratios of the company: The P/E ratio is 8.78, Price/Sales 1.04 and Price/Book ratio 0.63. Dividend Yield: 11.63%. The beta ratio is 1.71.
4. Fifth Street Finance (FSC) has a market capitalization of $795.75 million. The company generates revenues of $125.16 million and has a net income of $30.21 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $80.78 million. Because of these figures, the EBITDA margin is 64.54% (operating margin 24.13% and the net profit margin finally 24.13%).
The total debt represents 23.56% of the company's assets and the total debt in relation to the equity amounts to 39.11%. Last fiscal year, a return on equity of 4.66% was realized. Twelve trailing months earnings per share reached a value of $0.32. Last fiscal year, the company paid $1.28 in the form of dividends to shareholders. The ex-dividend date is on April 11, 2012.
Here are the price ratios of the company: The P/E ratio is 29.80, Price/Sales 6.36 and Price/Book ratio 0.96. Dividend Yield: 11.90%. The beta ratio is 0.99.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
