Are you a dividend investor searching for stocks with high yields of 5% and greater? One great place to search is among those that can sustain their payouts due to strong sources of profitability, matched with clear projected growth trends. Today we screened for stocks of this nature, and came up with a short but interesting list.
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. 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 with projected high growth, measured by 1-year projected EPS growth above 25%. From here, we then looked for companies that have strong profitability (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 deserve to trade higher? Use our list along with your own analysis.
1) Greenhill & Co., Inc. (GHL)
|Industry:||Investment Brokerage - Regional|
Greenhill & Co., Inc. has a Dividend Yield of 4.98%, a Payout Ratio of 89.06%, a 1-Year Projected Earnings Per Share Growth Rate of 38.46%, a Earnings Per Share Growth Rate of 28.04%, and a Operating Profit Margin of 29.24%. The short interest was 15.14% as of 07/05/2012. Greenhill & Co., Inc., an independent investment bank, provides financial advice on mergers, acquisitions, restructurings, financings, and capital raising to corporations, partnerships, institutions, and governments worldwide. The company offers a range of advice to clients in relation to domestic and cross-border mergers, acquisitions, and related corporate finance matters; and is involved in various stages of these transactions, from initial structuring to final execution. It advises clients on strategic matters, including acquisitions, divestitures, defensive tactics, special committee projects, and other important corporate events.
2) Golar LNG Partners LP (GMLP)
Golar LNG Partners LP has a Dividend Yield of 5.17%, a Payout Ratio of 46.97%, a 1-Year Projected Earnings Per Share Growth Rate of 43.33%, a Earnings Per Share Growth Rate of 10.16%, and a Operating Profit Margin of 63.61%. The short interest was 4.30% as of 07/05/2012. Golar LNG Partners LP owns and operates floating storage and regasification units (FSRUs) and liquefied natural gas (LNG) carriers. Its fleet consists of two FSRUs and two LNG carriers. Golar GP LLC serves as the general partner of Golar LNG Partners LP.
3) Linn Energy, LLC (LINE)
|Industry:||Independent Oil & Gas|
Linn Energy, LLC has a Dividend Yield of 7.46%, a Payout Ratio of 57.07%, a 1-Year Projected Earnings Per Share Growth Rate of 28.49%, a Earnings Per Share Growth Rate of 413.15%, and a Operating Profit Margin of 55.74%. The short interest was 0.81% as of 07/05/2012. Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and gas properties. The company's properties are primarily located in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin in the United States. As of December 31, 2011, it had proved reserves of 3,370 billion cubic feet equivalent of oil and gas, and natural gas liquids, as well as operated 7,759 gross productive wells.
*Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.