Seeking Alpha
Profile| Send Message|
( followers)  

Many investors own stocks from the Dow Jones and the S&P 500. Both indices include 500 leading companies in leading industries of the U.S. economy, capturing 75 percent coverage of U.S. equities. Twenty-eight companies from the S&P 500 have yields above 5 percent (look at the table below) but many of them are not cheap. I screened the index with its 500 companies by the best dividend yields and cheapest P/E ratios. The highest dividend yield within the index amounts to 11.11%, paid by Pitney Bowes (NYSE:PBI). In order to focus on the cheapest high yields, I decided to select only those stocks with a current P/E ratio of less than 15. Exactly 13 companies remained of which seven have a buy or better recommendation. These are the detailed results sorted by yield:

1. Pitney Bowes has a market capitalization of $2.70 billion. The company generates revenue 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)) amounts to $795.85 million. The EBITDA margin is 15.08% (operating margin 7.85% and the net profit margin 7.00%).

The total debt represents 51.97% of the company's assets. Twelve trailing months earnings per share reached a value of $1.99. Last fiscal year, the company paid $1.48 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 6.77, Price/Sales 0.51 and Price/Book ratio is not calculable. Dividend Yield: 11.11%. The beta ratio is 1.04.

2. Gannett (NYSE:GCI) has a market capitalization of $2.90 billion. The company generates revenue of $5,239.99 million and has a net income of $500.13 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $1,012.42 million. The EBITDA margin is 19.32% (operating margin 15.55% and the net profit margin 9.54%).

The total debt represents 26.61% of the company's assets and the total debt in relation to the equity amounts to 75.62%. Last fiscal year, a return on equity of 20.43% was realized. Twelve trailing months earnings per share reached a value of $1.80. Last fiscal year, the company paid $0.24 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 6.85, Price/Sales 0.55 and Price/Book ratio 1.26. Dividend Yield: 6.49%. The beta ratio is 2.44.

3. Exelon Corporation (NYSE:EXC) has a market capitalization of $31.28 billion. The company generates revenue 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 amounts to $5,815.00 million. The EBITDA margin is 30.73% (operating margin 23.67% and the net profit margin 13.18%).

The total debt represents 24.49% of the company's assets and the total debt in relation to the equity amounts to 93.79%. Last fiscal year, a return on equity of 17.86% was realized. Twelve trailing months earnings per share reached a value of $3.03. Last fiscal year, the company paid $2.10 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 12.12, Price/Sales 1.65 and Price/Book ratio 1.69. Dividend Yield: 5.72%. The beta ratio is 0.54.

4. Cablevision Systems (NYSE:CVC) has a market capitalization of $2.97 billion. The company generates revenue of $6,700.85 million and has a net income of $238.66 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $2,137.46 million. The EBITDA margin is 31.90% (operating margin 16.95% and the net profit margin 3.56%).

Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, the company paid $0.58 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 13.59, Price/Sales 0.44 and Price/Book ratio is not calculable. Dividend Yield: 5.47%. The beta ratio is 1.43.

5. Cliffs Natural Resources (NYSE:CLF) has a market capitalization of $6.57 billion. The company generates revenue of $6,794.30 million and has a net income of $1,821.40 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $2,763.80 million. The EBITDA margin is 40.68% (operating margin 34.57% and the net profit margin 26.81%).

The total debt represents 25.33% of the company's assets and the total debt in relation to the equity amounts to 63.67%. Last fiscal year, a return on equity of 34.01% was realized. Twelve trailing months earnings per share reached a value of $11.24. Last fiscal year, the company paid $0.84 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 4.10, Price/Sales 0.97 and Price/Book ratio 1.13. Dividend Yield: 5.43%. The beta ratio is 2.45.

6. H&R Block (NYSE:HRB) has a market capitalization of $4.42 billion. The company generates revenue of $3,774.30 million and has a net income of $419.40 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $787.27 million. The EBITDA margin is 20.86% (operating margin 17.63% and the net profit margin 11.11%).

The total debt represents 20.70% of the company's assets and the total debt in relation to the equity amounts to 74.38%. Last fiscal year, a return on equity of 28.95% was realized. Twelve trailing months earnings per share reached a value of $1.33. Last fiscal year, the company paid $0.60 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 11.29, Price/Sales 1.17 and Price/Book ratio 3.17. Dividend Yield: 5.31%. The beta ratio is 0.59.

7. PPL Corporation (NYSE:PPL) has a market capitalization of $15.93 billion. The company generates revenue 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 amounts to $4,309.00 million. The EBITDA margin is 33.83% (operating margin 24.30% and the net profit margin 11.86%).

The total debt represents 43.54% of the company's assets and the total debt in relation to the equity amounts to 171.51%. Last fiscal year, a return on equity of 15.62% was realized. Twelve trailing months earnings per share reached a value of $2.82. Last fiscal year, the company paid $1.40 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 9.73, Price/Sales 1.25 and Price/Book ratio 1.47. Dividend Yield: 5.24%. The beta ratio is 0.38.

8. Lorillard (NYSE:LO) has a market capitalization of $15.66 billion. The company generates revenue of $6,466.00 million and has a net income of $1,116.00 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $1,929.00 million. The EBITDA margin is 29.83% (operating margin 29.26% and the net profit margin 17.26%).

The total debt represents 86.27% of the company's assets. Twelve trailing months earnings per share reached a value of $8.00. Last fiscal year, the company paid $5.20 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 14.99, Price/Sales 2.42 and Price/Book ratio is not calculable. Dividend Yield: 5.17%. The beta ratio is 0.44.

9. Entergy Corporation (NYSE:ETR) has a market capitalization of $11.40 billion. The company generates revenue of $11,229.07 million and has a net income of $1,367.37 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $3,115.30 million. The EBITDA margin is 27.74% (operating margin 17.93% and the net profit margin 12.18%).

The total debt represents 30.43% of the company's assets and the total debt in relation to the equity amounts to 134.03%. Last fiscal year, a return on equity of 15.43% was realized. Twelve trailing months earnings per share reached a value of $5.28. Last fiscal year, the company paid $3.32 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 12.19, Price/Sales 1.02 and Price/Book ratio 1.27. Dividend Yield: 5.16%. The beta ratio is 0.52.

10. ConocoPhillips (NYSE:COP) has a market capitalization of $64.73 billion. The company generates revenue of $251,226.00 million and has a net income of $12,502.00 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $31,891.00 million. The EBITDA margin is 12.69% (operating margin 9.16% and the net profit margin 4.98%).

The total debt represents 14.76% of the company's assets and the total debt in relation to the equity amounts to 34.69%. Last fiscal year, a return on equity of 18.59% was realized. Twelve trailing months earnings per share reached a value of $9.15. Last fiscal year, the company paid $2.64 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 5.59, Price/Sales 0.26 and Price/Book ratio 1.01. Dividend Yield: 5.16%. The beta ratio is 1.12.

11. TECO Energy (NYSE:TE) has a market capitalization of $3.71 billion. The company generates revenue of $3,343.40 million and has a net income of $272.90 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $928.30 million. The EBITDA margin is 27.77% (operating margin 18.59% and the net profit margin 8.16%).

The total debt represents 41.97% of the company's assets and the total debt in relation to the equity amounts to 135.60%. Last fiscal year, a return on equity of 12.23% was realized. Twelve trailing months earnings per share reached a value of $1.25. Last fiscal year, the company paid $0.85 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 13.71, Price/Sales 1.11 and Price/Book ratio 1.64. Dividend Yield: 5.12%. The beta ratio is 0.79.

12. Federated Investors (NYSE:FII) has a market capitalization of $1.98 billion. The company generates revenue of $895.11 million and has a net income of $155.08 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $272.76 million. The EBITDA margin is 30.47% (operating margin 28.76% and the net profit margin 17.33%).

The total debt representing 31.39% of the company's assets and the total debt in relation to the equity amounts to 66.66%. Last fiscal year, a return on equity of 28.24% was realized. Twelve trailing months earnings per share reached a value of $1.54. Last fiscal year, the company paid $0.96 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 12.32, Price/Sales 2.21 and Price/Book ratio 3.63. Dividend Yield: 5.06%. The beta ratio is 0.93.

13. NYSE Euronext (NYSE:NYX) has a market capitalization of $6.02 billion. The company generates revenue of $4,552.00 million and has a net income of $603.00 million. The firm's earnings before interest, taxes, depreciation and amortization amounts to $1,130.00 million. The EBITDA margin is 24.82% (operating margin 18.67% and the net profit margin 13.25%).

The total debt represents 15.87% of the company's assets and the total debt in relation to the equity amounts to 31.53%. Last fiscal year, a return on equity of 9.25% was realized. Twelve trailing months earnings per share reached a value of $2.10. Last fiscal year, the company paid $1.20 in dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 11.29, Price/Sales 1.32 and Price/Book ratio 0.93. Dividend Yield: 5.06%. The beta ratio is 1.63.

These are the high yields from the S&P 500:

TickerCompanyDividend YieldP/E
FTRFrontier Communications Corporation11.37%29.33
PBIPitney Bowes Inc.11.11%6.78
WINWindstream Corporation10.88%22.97
RRDR.R. Donnelley & Sons Company10.07%N/A
CTLCenturyLink, Inc.7.83%38.59
GCIGannett Co., Inc.6.49%6.85
AVPAvon Products Inc.5.87%17.41
RAIReynolds American Inc.5.75%18.09
EXCExelon Corporation5.72%12.11
PBCTPeople's United Financial Inc.5.62%19.31
POMPepco Holdings, Inc.5.61%16.44
LEGLeggett & Platt, Incorporated5.52%19.52
CVCCablevision Systems Corporation5.47%13.54
HCNHealth Care REIT, Inc.5.46%66.15
HCBKHudson City Bancorp, Inc.5.44%N/A
CLFCliffs Natural Resources Inc.5.43%4.1
HRBH&R Block, Inc.5.31%11.32
PPLPPL Corporation5.24%9.74
TAT&T, Inc.5.19%49.13
MOAltria Group Inc.5.18%18.98
LOLorillard, Inc.5.17%15
ETREntergy Corporation5.16%12.19
COPConocoPhillips5.16%5.59
TETECO Energy, Inc.5.12%13.76
TEGIntegrys Energy Group, Inc.5.07%21.04
FIIFederated Investors, Inc.5.06%12.31
NYXNYSE Euronext, Inc.5.06%11.3
HCPHCP, Inc.5.05%26.06
Source: 13 Dirty Cheap High-Yield Stocks From The S&P 500