Are you a dividend investor searching for stocks that not only offer attractive yields, but also substantial long-term growth? Today we screened for companies with both of those traits, and narrowed our focus to only the stocks rated as "Buy" or "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. 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 dividend stocks. We then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We then looked for companies with projected high growth, measured by one-year projected EPS growth above 25%. We did not screen out any market caps or sectors.
Do you think these stocks are undervalued and should be trading higher? Please use our list to assist with your own analysis.
1) HNI Corporation (HNI)
HNI Corp. has a Dividend Yield of 3.55%, a Payout Ratio of 86.97%, an Analysts' Rating of 2.40, and a 1-Year Projected Earnings Per Share Growth Rate of 29.55%. The short interest was 5.24% as of 07/04/2012. HNI Corporation, together with its subsidiaries, engages in designing, manufacturing, and marketing office furniture and hearth products primarily in the United States, Canada, China, Hong Kong, and Taiwan.
Its office furniture products include storage products, such as vertical files, lateral files, and pedestals; seating products comprising task chairs, executive desk chairs, conference/training chairs, side chairs, and educational chairs and desk combinations; office systems that consist of modular and moveable workspaces with integrated work surfaces, space dividers, and lighting; and desks and related products, including tables, bookcases, and credenzas.
The company sells its office furniture products under the HON, Allsteel, Maxon, Gunlocke, Paoli, HBF, Artco Bell, Midwest Folding Products, LSI Corporation of America, basyx, and Lamex brand names, as well as under private labels. HNI Corporation's hearth products comprise gas, electric, and wood burning fireplaces; inserts; stoves; facings; and accessories for the home under the Heatilator, Heat & Glo, Quadra-Fire, and Harman Stove brand names.
2) TESSCO Technologies Incorporated (TESS)
TESSCO Technologies has a Dividend Yield of 3.19%, a Payout Ratio of 26.36%, an Analysts' Rating of 2.00, and a 1-Year Projected Earnings Per Share Growth Rate of 28.78%. The short interest was 2.78% as of 07/04/2012. TESSCO Technologies provides products and value chain solutions to organizations for building, operating, and maintaining wireless broadband systems primarily in the United States.
It offers base infrastructure products, including base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas to build, repair, and upgrade wireless telecommunications; and connector installation, custom jumper assembly, site kitting, and logistics integration services.
The company also provides network systems products comprising fixed and mobile broadband equipment, wireless networking, filtering systems, two-way radios, and security and surveillance products to build and upgrade computing and Internet networks; and training classes, technical support, and engineering design services. In addition, it offers installation, test, and maintenance products, such as analysis equipment; various frequency, voltage, and power-measuring devices; and an assortment of tools, hardware, GPS, and replacement parts and components used by service technicians to install, tune, and maintain wireless communications equipment.
3) NYSE Euronext (NYX)
NYSE Euronext has a Dividend Yield of 4.64%, a Payout Ratio of 57.71%, an Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 27.19%. The short interest was 1.92% as of 07/04/2012. NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.