Are you a dividend investor, searching out companies with sustainable payouts? For ideas on where to look, we honed in on companies with considerable profits, backed by ratings of 'Strong Buy' by analysts. We think you'll find our list rather interesting.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.
The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.
We first looked for dividend stocks. We then looked for companies that analysts rate as "Strong Buy" (mean recommendation < 2). We next screened for businesses that have posted strong earnings growth for shareholders over an extended period of time (1-year fiscal EPS growth rate>10%)(1-year operating margin>15%). We did not screen out any market caps or sectors.
Do you think these stocks failed to price their value accurately? Please use our list to assist with your own analysis.
1) Triangle Capital Corporation (NYSE:TCAP)
Triangle Capital Corporation has a Dividend Yield of 9.56%, a Payout Ratio of 64.14%, a Analysts' Rating of 1.50, a Earnings Per Share Growth Rate of 45.93%, and a Operating Profit Margin of 63.67%. The short interest was 3.56% as of 06/07/2012. Triangle Capital Corporation is a business development company specializing in private equity and venture capital investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market companies. The firm prefers to make investments in many business sectors including manufacturing, distribution, transportation, energy, communications, health services, restaurants, media, and others.
2) Medallion Financial Corp. (NASDAQ:TAXI)
Medallion Financial Corp. has a Dividend Yield of 7.96%, a Payout Ratio of 64.11%, a Analysts' Rating of 1.00, a Earnings Per Share Growth Rate of 69.63%, and a Operating Profit Margin of 26.86%. The short interest was 2.58% as of 06/07/2012. Medallion Financial Corp., through its subsidiaries, operates as a specialty finance company in the United States. The company engages in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. It offers commercial loans to finance the purchase of the equipment and related assets necessary to open a new business, or the purchase or improvement of an existing business; asset-based loans to small businesses; and secured mezzanine loans to businesses in various industries, including manufacturing and various service providers.
3) MicroFinancial Inc. (NASDAQ:MFI)
MicroFinancial Inc. has a Dividend Yield of 3.12%, a Payout Ratio of 34.97%, a Analysts' Rating of 1.00, a Earnings Per Share Growth Rate of 69.08%, and a Operating Profit Margin of 26.40%. The short interest was 0.08% as of 06/07/2012. MicroFinancial Incorporated, through its subsidiaries, operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. It provides financing alternatives, and leases and rents commercial equipment to start-up businesses and established enterprises for use in their daily operations. The company also leases water filtration systems, food service equipment, security equipment, point of sale cash registers, salon equipment, health care and fitness equipment, and automotive equipment. In addition, it offers consumer financings, which consist of service contracts from dealers that primarily provide residential security monitoring services, as well as consumer leases for a range of consumer products.
4) Cedar Fair, L.P. (NYSE:FUN)
Cedar Fair, L.P. has a Dividend Yield of 6.14%, a Payout Ratio of 79.73%, a Analysts' Rating of 1.30, a Earnings Per Share Growth Rate of 326.25%, and a Operating Profit Margin of 23.01%. The short interest was 0.10% as of 06/07/2012. Cedar Fair, L.P. owns and operates amusement and water parks in the United States and Canada. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Kings Island near Cincinnati, Ohio; Canada's Wonderland near Toronto, Canada; Dorney Park & Wildwater Kingdom located near Allentown in South Whitehall Township, Pennsylvania; Valleyfair located near Minneapolis/St. Paul in Shakopee, Minnesota; Michigan's Adventure located near Muskegon, Michigan; Kings Dominion near Richmond, Virginia; Carowinds in Charlotte, North Carolina; Worlds of Fun located in Kansas City, Missouri; Knott's Berry Farm located near Los Angeles in Buena Park, California; and California's Great America located in Santa Clara, California, as well as manages and operates Gilroy Gardens Family Theme Park in Gilroy, California.
5) Inergy Midstream LLC (NRGM)
|Industry:||Oil & Gas Pipelines|
Inergy Midstream LLC has a Dividend Yield of 7.23%, a Payout Ratio of 0.00%, a Analysts' Rating of 1.20, a Earnings Per Share Growth Rate of 35.95%, and a Operating Profit Margin of 39.60%. The short interest was 0.54% as of 06/07/2012. Inergy Midstream, L.P. engages in acquiring, owning, developing, and operating midstream energy assets.
6) Colony Financial, Inc. (NYSE:CLNY)
|Industry:||REIT - Diversified|
Colony Financial, Inc. has a Dividend Yield of 8.00%, a Payout Ratio of 92.79%, a Analysts' Rating of 1.50, a Earnings Per Share Growth Rate of 23.35%, and a Operating Profit Margin of 66.66%. The short interest was 4.39% as of 06/07/2012. Colony Financial, Inc. operates as a real estate finance and investment company that focuses primarily on acquiring, originating, and managing commercial mortgage loans, and other commercial real estate-related debt investments. The company has elected to be taxed as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Google Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.