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 (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 (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 (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 (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 (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 (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 (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 (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 (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 (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 (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 (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 (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:
| Ticker | Company | Dividend Yield | P/E |
| FTR | Frontier Communications Corporation | 11.37% | 29.33 |
| PBI | Pitney Bowes Inc. | 11.11% | 6.78 |
| WIN | Windstream Corporation | 10.88% | 22.97 |
| RRD | R.R. Donnelley & Sons Company | 10.07% | N/A |
| CTL | CenturyLink, Inc. | 7.83% | 38.59 |
| GCI | Gannett Co., Inc. | 6.49% | 6.85 |
| AVP | Avon Products Inc. | 5.87% | 17.41 |
| RAI | Reynolds American Inc. | 5.75% | 18.09 |
| EXC | Exelon Corporation | 5.72% | 12.11 |
| PBCT | People's United Financial Inc. | 5.62% | 19.31 |
| POM | Pepco Holdings, Inc. | 5.61% | 16.44 |
| LEG | Leggett & Platt, Incorporated | 5.52% | 19.52 |
| CVC | Cablevision Systems Corporation | 5.47% | 13.54 |
| HCN | Health Care REIT, Inc. | 5.46% | 66.15 |
| HCBK | Hudson City Bancorp, Inc. | 5.44% | N/A |
| CLF | Cliffs Natural Resources Inc. | 5.43% | 4.1 |
| HRB | H&R Block, Inc. | 5.31% | 11.32 |
| PPL | PPL Corporation | 5.24% | 9.74 |
| T | AT&T, Inc. | 5.19% | 49.13 |
| MO | Altria Group Inc. | 5.18% | 18.98 |
| LO | Lorillard, Inc. | 5.17% | 15 |
| ETR | Entergy Corporation | 5.16% | 12.19 |
| COP | ConocoPhillips | 5.16% | 5.59 |
| TE | TECO Energy, Inc. | 5.12% | 13.76 |
| TEG | Integrys Energy Group, Inc. | 5.07% | 21.04 |
| FII | Federated Investors, Inc. | 5.06% | 12.31 |
| NYX | NYSE Euronext, Inc. | 5.06% | 11.3 |
| HCP | HCP, Inc. | 5.05% | 26.06 |
Disclosure: I am long LO.
