Are you a dividend investor searching for stocks with high yields of over 5%? Would you be even more interested if you could get those high yields at a discount? If so, we ran a screen you may be interested in.
The Price/Book Value Ratio is a great price-multiple valuation metric to find companies that could be potentially undervalued or overvalued. If a firm has a Price/Book Value Ratio of less than 1 it is stated to be trading below "break up" value. A lower P/BV Ratio can indicate a potentially mispriced company or indicate that something is fundamentally wrong with it.
The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share [EPS], and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. A lower ratio is 'better' (cheaper) and a higher ratio is 'worse' (expensive) - a PEG ratio of 1 means the company is fairly priced.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for stocks that have a high dividend yield (Div. Yield > 5%). We next screened for businesses that are undervalued (P/BV<1)(PEG Ratio < 1). We then looked for businesses that have high future earnings per share growth forecasts(1-year projected EPS Growth Rate>25%). We did not screen out any market caps or sectors.
Do you think these stocks are worth more than their current valuations? Please use our list to assist with your own analysis.
1) Alumina Ltd. (AWC)
Alumina Ltd. has a Dividend Yield of 6.37%, a Payout Ratio of 134.91%, a Price/Book Value Ratio of 0.81, a Price/Earnings to Growth Ratio of 0.53, and a 1-Year Projected Earnings Per Share Growth Rate of 3450.00%. The short interest was 0.13% as of 06/10/2012. Alumina Limited, through its 40% equity interest in Alcoa World Alumina and Chemicals, engages in the bauxite mining, alumina refining, and aluminum smelting businesses. It has interests in eight alumina refineries and eight bauxite mines, as well as operates two aluminum smelters in Victoria, Australia. The company also owns interests in a network of mines, refineries, and smelters in the United States, Guinea, Suriname, Jamaica, Brazil, and Spain. In addition, it owns and operates a shipping operation that transports alumina, aluminum, and raw materials worldwide.
2) STMicroelectronics NV (STM)
|Industry:||Semiconductor - Broad Line|
STMicroelectronics NV has a Dividend Yield of 7.50%, a Price/Book Value Ratio of 0.62, a Price/Earnings to Growth Ratio of 0.24, and a 1-Year Projected Earnings Per Share Growth Rate of 140.00%. The payout ratio could not be determined. The short interest was 0.55% as of 06/10/2012. STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices.
3) Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
|Industry:||Foreign Regional Banks|
Banco Bilbao Vizcaya Argentaria, S.A. has a Dividend Yield of 8.68%, a Payout Ratio of 16.33%, a Price/Book Value Ratio of 0.65, a Price/Earnings to Growth Ratio of 0.60, and a 1-Year Projected Earnings Per Share Growth Rate of 54.93%. The short interest was 0.10% as of 06/10/2012. Banco Bilbao Vizcaya Argentaria, S.A. engages in the retail banking, asset management, private banking, and wholesale banking businesses. It accepts various customer deposits, such as demand, savings, and time deposits; and offers commercial and industrial, construction real estate, mortgage, and individual loans. The company provides corporate, business, and investment banking services; and insurance products, as well as manages mutual and pension funds; and engages in treasury and distribution activities.
4) Penn West Petroleum Ltd. (PWE)
|Industry:||Oil & Gas Drilling & Exploration|
Penn West Petroleum Ltd. has a Dividend Yield of 8.16%, a Payout Ratio of 125.37%, a Price/Book Value Ratio of 0.72, a Price/Earnings to Growth Ratio of 0.83, and a 1-Year Projected Earnings Per Share Growth Rate of 160.00%. The short interest was 0.24% as of 06/10/2012. Penn West Petroleum Ltd., an exploration and production company, engages in acquiring, exploring, developing, exploiting, and holding interests in petroleum and natural gas properties and related assets in Western Canada. The company's principal proved plus probable reserves are located in Alberta, British Columbia, Saskatchewan, Manitoba, and the Northwest Territories, Canada. It also has proved plus probable reserves interests in Wyoming and North Dakota, the United States.
5) Enduro Royalty Trust (NDRO)
|Industry:||Independent Oil & Gas|
Enduro Royalty Trust has a Dividend Yield of 10.68%, a Price/Book Value Ratio of 0.78, a Price/Earnings to Growth Ratio of 0.61, and a 1-Year Projected Earnings Per Share Growth Rate of 108.99%. The payout ratio could not be determined.The short interest was 0.20% as of 06/10/2012. Enduro Royalty Trust focuses on acquiring and owning a net profits interest representing the right to receive an 80% of the net profits from the sale of oil and natural gas production from certain properties located in the states of Texas, Louisiana, and New Mexico held by Enduro Resource Partners LLC. The company was founded in 2011 and is based in Austin, Texas. Enduro Royalty Trust is a subsidiary of Enduro Resource Partners LLC.
*Company profiles were sourced from Finviz.