Are you a dividend investor looking for stocks that offer not only attractive yields, but also considerable near-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 industry 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 businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We next screened for businesses that have expected earnings per share growth of more than 25 percent for the next year (1-year projected EPS Growth Rate > 25%). We did not screen out any market caps or sectors.
Do you think these stocks will offer healthy returns? Use this list as a starting-off point for your own analysis.
1) Steel Dynamics, Inc. (STLD)
|Industry:||Steel & Iron|
Steel Dynamics Inc. has a Dividend Yield of 3.20%, a Payout Ratio of 40.17%, an Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 71.59%. The short interest was 4.30% as of July 16, 2012. Steel Dynamics, Inc., together with its subsidiaries, engages in the manufacture and sale of steel products in the United States and internationally. The company operates in three segments—Steel Operations, Metals Recycling and Ferrous Resources Operations, and Steel Fabrication Operations.
The Steel Operations segment provides a range of sheet steel products, including hot rolled, cold rolled, and coated steel products; structural steel beams, pilings, and rails; special bar quality and merchant bar quality rounds and round-cornered squares; billets and merchant steel products comprising angles, plain rounds, flats, and channels; and merchant beams and specialty structural steel sections.
2) Capital Product Partners L.P. (CPLP)
Capital Product Partners L.P. has a Dividend Yield of 11.89%, a Payout Ratio of 59.08%, an Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 81.82%. The short interest was 0.35% as of 07/16/2012. Capital Product Partners L.P., a shipping company, provides seaborne transportation services of crude oil, refined petroleum products, edible oils, and soft chemicals.
The company provides marine transportation services under short-term voyage charters, and medium- to long-term time and bareboat charters. Its vessels carry crude oil, and refined oil products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals comprising ethanol.
3) Carnival Corporation (CCL)
|Industry:||Resorts & Casinos|
Carnival Corporation has a Dividend Yield of 3.08%, a Payout Ratio of 54.53%, an Analysts' Rating of 2.20, and a 1-Year Projected Earnings Per Share Growth Rate of 36.07%. The short interest was 3.93% as of July 16, 2012. Carnival Corporation operates as a cruise and vacation company worldwide.
It provides cruises to various vacation destinations with a portfolio of cruise brands comprising Carnival Cruise Lines, Holland America Line, Princess Cruises, and Seabourn in North America; and AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, and P&O Cruises in Europe, Australia, and Asia. The company also owns and operates hotels, as well as offers tourism and transportation services.
4) Cypress Semiconductor Corporation (CY)
|Industry:||Semiconductor - Broad Line|
Cypress Semiconductor Corporation has a Dividend Yield of 3.68%, a Payout Ratio of 64.46%, an Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 43.53%. The short interest was 4.38% as of July 16, 2012. Cypress Semiconductor Corporation designs, develops, manufactures, and markets mixed-signal and programmable solutions worldwide.
Its Consumer and Computation division offers programmable system-on-chip (PSoC) devices for consumer, industrial, medical, and system management applications; TrueTouch touchscreen controllers; CapSense touch-sensing solutions; universal serial bus (USB) controllers, USB hubs, transceivers, serial interface engines, and embedded-host products; WirelessUSB; programmable clocks for devices requiring multiple frequencies; and RoboClock clock buffers that offer timing solutions.
The company's Data Communications division provides peripheral bridge controllers to enable direct connection between peripherals; dual-port memories that are compelling solutions for interprocessor communication; FIFO Memories that are used as buffer between systems operating at various frequencies; physical layer devices; programmable logic devices; PowerPSoC embedded power controllers; PSoC-based programmable Powerline Communications solutions; and EZ-Color LED lighting solutions.
5) Atlas Energy (ATLS)
Atlas Energy has a Dividend Yield of 3.23%, a Payout Ratio of 57.20%, an Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 96.69%. The short interest was 3.05% as of July 16, 2012. Atlas Energy engages in the development and production of natural gas and oil in the Appalachian basin, Illinois basin, and the Rocky Mountain region of the United States.
It is also involved in the provision of natural gas gathering, processing, and treating services in the Anadarko and Permian basins located in the southwestern and mid-continent regions of the United States; natural gas gathering services in the Appalachian basin in the northeastern region of the United States; and natural gas liquids transportation services in the southwest region of the United States.
6) Lazard Ltd. (LAZ)
Lazard Ltd. has a Dividend Yield of 3.19%, a Payout Ratio of 51.09%, an Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 50.79%. The short interest was 2.80% as of July 16, 2012. Lazard Ltd., together with its subsidiaries, operates as a financial advisory and asset management firm.
Its financial advisory services include advice on mergers and acquisitions and other strategic matters, as well as on restructurings, capital structure, capital raising, and other financial matters. The company's asset management services comprise strategies for the management of equity and fixed income securities, and alternative investment and private equity funds, as well as wealth management services. It serves corporations, governments, institutions, partnerships, and individuals.
7) Great Plains Energy Inc. (GXP)
Great Plains Energy Inc. has a Dividend Yield of 3.79%, a Payout Ratio of 70.80%, an Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 27.34%. The short interest was 2.81% as of July 16, 2012. Great Plains Energy, a public utility holding company, engages in the generation, transmission, distribution, and sale of electricity. It also provides regulated steam service to customers in the St. Joseph, Missouri, area.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.