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The years teach much which the days never knew.

Ralph Waldo Emerson

Only stocks that met the following criteria were included in this list. Novice investors would be wise to focus on the following criteria instead of obsessing on the yield factor only. High yields are generally not associated with safe long-term investors, and unusually high yield are usually a sign that all is not well with the company.

  1. Net income per share has increased vs. 3 years ago
  2. Cash flow per share has generally increased vs. 3 years ago
  3. EPS has to be trending upwards for the past 3 years
  4. Sales should be trending upwards for the past 3 year
  5. In general the payout ratio should be below 100% (exceptions are REITS and MLPS)
  6. A yield of 4.5% or higher
  7. If the company has a positive levered free cash flow, it should be viewed as "icing on the cake"

CBL & Associates Properties, I (NYSE: CBL)

Levered Free Cash Flow: 356.15M

Growth

  1. Net income for the past three years
  2. Net Income 2009 = $-15 million
  3. Net Income 2010 = $62 million
  4. Net Income 2011 = $134 million
  1. EBITDA 12/2011 = $713 million
  2. EBITDA 12/2010 = $712 million
  3. EBITDA 12/2009 = $597 million
  4. Net income Reported Quarterly = $118 million
  1. Total cash flow from operating activities
  2. 2009 = $431.64 million
  3. 2010 = $429.8 million
  4. 2011 = $441.84 million
  1. Cash Flow 12/2011 = 2.51 $/share
  2. Cash Flow 12/2010 = 2.73 $/share
  3. Cash Flow 12/2009 = 2.13 $/share
  1. Annual EPS before NRI 12/2011 = 2.05
  2. Annual EPS before NRI 12/2010 = 1.87
  3. Annual EPS before NRI 12/2009 = 2.52
  4. Annual EPS before NRI 12/2008 = 3.22
  5. Annual EPS before NRI 12/2007 = 3.1

Performance

  1. ROE = 7.9%
  2. Return on Assets = 3.7%
  3. Quarterly Earnings Growth = 217.4%
  4. Quarterly Revenue Growth = -5.5%
  5. Price to Sales = 2.46
  1. Current Ratio 09/2011 = 0.54
  2. Current Ratio 5 Year Average = 0.55
  3. Quick Ratio = 0.54
  4. Cash Ratio = 0.19
  5. Interest Coverage 09/2011 = 1.60
  6. Total return last 3 years = 164%

Dividend history and sustainability

  1. Payout Ratio 09/2011 = 0.38
  2. Payout Ratio 06/2011 = 0.39
  3. Payout Ratio 5 Year Average 09/2011 = 0.44
  4. Payout Ratio 5 Year Average 06/2011 = 0.45
  5. Change in Payout Ratio = -0.06
  1. Dividend yield= 4.5%
  2. Dividend yield 5 year average = 8.8%
  3. Dividend growth rate 3 year Average = 8.3%
  4. Dividend growth rate 5 year average = 4.23%
  5. Consecutive dividend increases = 1 years
  6. Paying dividends since = 1993

Valuation

  1. Price to Book = 2.21
  2. Price to Tangible Book = 2.71
  3. Price to Cash Flow = 19.20
  4. Price to Free Cash Flow = 10.4

Company: Glaxosmithkline (NYSE:GSK)

Levered Free Cash Flow = 7.5B

Basic Key ratios

  1. Percentage Held by Insiders = 10
  2. Market Cap ($mil) = 114649

Growth

  1. Net Income ($mil) 12/2011 = 8757
  2. Net Income ($mil) 12/2010 = 2865
  3. Net Income ($mil) 12/2009 = 8877
  4. 12months Net Income this Quarterly/ 12months Net Income 4Q's ago = 224.01
  5. Quarterly Net Income this Quarterly/ same Quarter year ago = 276.75
  1. EBITDA ($mil) 12/2011 = 15041
  2. EBITDA ($mil) 12/2010 = 8084
  3. EBITDA ($mil) 12/2009 = 14347
  4. Net Income Reported Quarterlytr ($mil) = 1972
  5. Annual Net Income this Yr/ Net Income last Yr = 205.62
  6. Cash Flow ($/share) 12/2011 = 4.65
  7. Cash Flow ($/share) 12/2010 = 5.06
  8. Cash Flow ($/share) 12/2009 = 4.18
  1. Sales ($mil) 12/2011 = 43133
  2. Sales ($mil) 12/2010 = 45905
  3. Sales ($mil) 12/2009 = 44424
  1. Annual EPS before NRI 12/2007 = 1.87
  2. Annual EPS before NRI 12/2008 = 3.79
  3. Annual EPS before NRI 12/2009 = 3.75
  4. Annual EPS before NRI 12/2010 = 3.89
  5. Annual EPS before NRI 12/2011 = 3.54

Dividend history

  1. Dividend Yield = 5.80%
  2. Dividend Yield 5 Year Average = 4.8%
  3. Annual Dividend 12/2011 = 2.21
  4. Annual Dividend 12/2010 = 2
  5. Dividend 5 year Growth = 3.97%

Dividend sustainability

  1. Payout Ratio 06/2011 = 0.61
  2. Payout Ratio 5 Year Average 06/2011 = 0.6
  3. Change in Payout Ratio = 0.02

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 11.57
  2. Next 3-5 Year Estimate EPS Growth rate = 8.12
  3. EPS Growth Quarterly(1)/Q(-3) = 103.3
  4. ROE 5 Year Average 06/2011 = 56.88
  5. Return on Investment 06/2011 = 24.77
  6. Debt/Total Cap 5 Year Average 06/2011 = 55.65
  1. Current Ratio 06/2011 = 1.08
  2. Current Ratio 5 Year Average = 1.45
  3. Quick Ratio = 0.82
  4. Cash Ratio = 0.45
  5. Interest Coverage =10.4

Valuation

  1. Book Value Quarterly = 5.23
  2. Price/ Book = 9.30
  3. Price/ Cash Flow = 11.20
  4. Price/ Sales = 2.73
  5. EV/EBITDA 12 Mo = 8.3

Company: Atlas Pipeline Partners (NYSE:APL)

Levered Free Cash Flow = -118.20M

Basic Key ratios

  1. Percentage Held by Insiders = 0.37
  2. Market Cap ($mil) = 1984

Growth

  1. Net Income ($mil) 12/2011 = 289
  2. Net Income ($mil) 12/2010 = 276
  3. Net Income ($mil) 12/2009 = 60
  1. EBITDA ($mil) 12/2011 = 409
  2. EBITDA ($mil) 12/2010 = 128
  3. EBITDA ($mil) 12/2009 = 171
  1. Cash Flow ($/share) 12/2011 = 3.01
  2. Cash Flow ($/share) 12/2010 = 0.87
  3. Cash Flow ($/share) 12/2009 = 1.79
  1. Sales ($mil) 12/2011 = 1303
  2. Sales ($mil) 12/2010 = 936
  3. Sales ($mil) 12/2009 = 904
  1. Anl EPS before NRI 12/2007 = 1.76
  2. Anl EPS before NRI 12/2008 = 2.41
  3. Anl EPS before NRI 12/2009 = -0.13
  4. Anl EPS before NRI 12/2010 = -0.65
  5. Anl EPS before NRI 12/2011 = 1.3

Dividend history

  1. Div Yield = 6.3%
  2. 5 year dividend growth rate= 7.26%
  3. Annual Dividend 12/2011 = 1.78
  4. Annual Dividend 12/2010 = 0.35
  5. Forward Yield = 6.30

Dividend sustainability

  1. Payout Ratio = 0.34
  2. Payout Ratio 5 Yr Average 09 09/2011 = 1.79

Performance

  1. Percentage Change Price 52 Wks Relative to S&P 500 = 23.43
  2. Standard Dev Target Price Estimate = 2.12
  3. Average EPS Surprise Last 4 Qtr = 168.66
  4. EPS % Change F2/F1 = 83.05
  5. EPS Growth Q (1)/Q(-3) = 10-100.00
  6. 5 Yr Historical EPS Growth 09/2011 = 5.98
  1. ROE 5 Yr Average 0909/2011 = 6.98
  2. Return on Investment 09/2011 = 9.37
  3. Return on Investment 06/2011 = 8.31
  4. Debt/Tot Cap 5 Yr Average 09/2011 = 49.19
  1. Current Ratio 09/2011 = 0.77
  2. Current Ratio 5 Yr Average = 0.73
  3. Quick Ratio = 0.77
  4. Interest Coverage =10.3

Valuation

  1. Price/ Book = 1.48
  2. Price/ Cash Flow = 5.00
  3. Price/ Sales = 1.41

Brandywine Realty Trust (NYSE: BDN)

Levered Free Cash Flow: 77.49M

Growth

  1. Net income for the past three years
  2. Net Income 2009 = $8 million
  3. Net Income 2010 = $-17 million
  4. Net Income 2011 = $-4 million
  1. EBITDA 12/2011 = $348 million
  2. EBITDA 12/2010 = $323 million
  3. EBITDA 12/2009 = $364 million
  4. Net income Reported Quarterly = $1175 million
  1. Total cash flow from operating activities
  2. 2009 = $220.41 million
  3. 2010 = $185.13 million
  4. 2011 = $179.02 million
  1. Cash Flow 12/2011 = 1.58 $/share
  2. Cash Flow 12/2010 = 1.41 $/share
  3. Cash Flow 12/2009 = 1.74 $/share
  1. Annual EPS before NRI 12/2011 = 1.39
  2. Annual EPS before NRI 12/2010 = 1.34
  3. Annual EPS before NRI 12/2009 = 1.87
  4. Annual EPS before NRI 12/2008 = 2.49
  5. Annual EPS before NRI 12/2007 = 2.55

Performance

  1. ROE = -0.48%
  2. Return on Assets = 1.6%
  3. Quarterly Revenue Growth = 0.6%
  1. Current Ratio 09/2011 = 0.24
  2. Current Ratio 5 Year Average = 0.35
  3. Quick Ratio = 0.24
  4. Cash Ratio = 0.03
  5. Interest Coverage 09/2011 = 0.24
  6. Total return last 3 years = 130%

Dividend sustainability and history

  1. Payout Ratio 5 Year Average 09/2011 = 0.51
  2. Payout Ratio 5 Year Average 06/2011 = 0.52
  3. Dividend yield 5 year average = 9.10
  4. Dividend growth rate 5 year average = - 13.64%
  5. Consecutive dividend increases = 0 years
  6. Paying dividends since = 1996

Valuation

  1. Price to Sales = 2.84
  2. Price to Book = 0.91
  3. Price to Tangible Book = 0.95
  4. Price to Cash Flow = - 133
  5. Price to Free Cash Flow = 9.2
  6. Price to free cash flow = 9.70

Aircastle Ltd. (NYSE: AYR)

Levered Free Cash Flow: -142.11M

Growth

  1. Net income for the past three years
  2. Net Income 2009 = $102 million
  3. Net Income 2010 = $66 million
  4. Net Income 2011 = $124 million
  1. EBITDA 12/2011 = $610 million
  2. EBITDA 12/2010 = $506 million
  3. EBITDA 12/2009 = $514 million
  4. Net income Reported Quarterly = $118 million
  1. Total cash flow from operating activities
  2. 2009 = $327.65 million
  3. 2010 = $356.53 million
  4. 2011 = $359.38 million
  1. Cash Flow 12/2011 = 5.17 $/share
  2. Cash Flow 12/2010 = 4.06 $/share
  3. Cash Flow 12/2009 = 4.26 $/share
  1. Annual EPS before NRI 12/2011 = 1.32
  2. Annual EPS before NRI 12/2010 = 0.85
  3. Annual EPS before NRI 12/2009 = 1.32
  4. Annual EPS before NRI 12/2008 = 1.94
  5. Annual EPS before NRI 12/2007 = 1.7

Performance

  1. ROE =9.05%
  2. Return on Assets = 3.77%
  3. Quarterly Earnings Growth = 76.1%
  4. Quarterly Revenue Growth = 13%
  1. Price to Sales = 1.44
  2. Price to Book = 0.62
  3. Price to Tangible Book = 0.62
  4. Price to Cash Flow = 2.20
  5. Price to Free Cash Flow = -1.50
  1. Current Ratio 09/2011 = 6.23
  2. Current Ratio 5 Year Average = 4.54
  3. Quick Ratio = 6.23
  4. Cash Ratio = 6.19
  5. Interest Coverage 09/2011 = 1.7
  6. Total return last 3 years = 164.57%
  7. Total return last 5 years = -53.18%

Dividend sustainability and history

  1. Payout Ratio 09/2011 = 0.45
  2. Payout Ratio 06/2011 = 0.46
  3. Payout Ratio 5 Year Average 09/2011 = 0.6
  4. Payout Ratio 5 Year Average 06/2011 = 0.61
  5. Change in Payout Ratio = -0.15
  1. Dividend yield 5 year average = 8.9%
  2. Dividend growth rate 3 year Average = 91%
  3. Consecutive dividend increases = 1 years
  4. Paying dividends since = 2006

Conclusion

The recent volatility in the markets is a sign that all is not well; they have run up for months on end without letting out any steam. Wise investors would do well to wait for a strong pullback before committing large sums of money to this market. In the mean investors can start putting a together a list of stocks to buy. To open up additional streams of income, one can also sell covered calls or naked puts if you are bullish on the stock. A pullback in the 7%-12% ranges from the peak would qualify as a strong pullback.

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware

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

Additional disclosure: EPS, Price, EPS surprise charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com

Source: Atlas Pipeline Partners Among 5 Interesting Dividend Plays To Reflect On