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This list is meant to serve as a starting point for investors. A lot of data has been provided so it should be relatively easy for an investor to scroll down the list and decide if the stock warrants further attention. If you find the stock appealing, you can dig deeper and see if meets with your investment criteria. Investors should not base their decision on yield alone. There are many stocks that offer extremely high yields, but their performance over the years has been anything but spectacular. In some cases the total rate of return has been negative for the past 3-5 years. One should look at the robustness of the company, the dividend growth rate, the sustainability of the dividend and finally one should take a look at the company's dividend history. Companies with stellar records will do everything possible to avoid cutting the dividend in order to maintain this record. To help the novice investor we have put out this guide, which could prove to be useful in the selection process. "Our suggested guidelines when searching for new investment ideas.

Company: Silver Wheaton (SLW)

Brief Overview

  1. Relative Strength 52 weeks = 37
  2. Levered Free Cash Flow = 353.38M
  3. Cash Flow 5-year Average = 0.62
  4. Profit Margin = 74%
  5. Operating Margin = 76%
  6. Quarterly Revenue Growth = 26.20%
  7. Quarterly Earnings Growth = 20.5%
  8. Operating Cash Flow = $ 663 million
  9. Beta = 1.26
  10. 5 year EPS growth rate= 39.8%
  11. 5 year sales growth rate= 39%

Growth

  1. Net Income ($mil) 12/2011 = 550
  2. Net Income ($mil) 12/2010 = 290
  3. Net Income ($mil) 12/2009 = 118
  4. Net Income ($mil) 12/2008 = 18
  5. Net Income Reported Quarterly ($mil) = 147
  6. EBITDA ($mil) 12/2011 = 616
  7. EBITDA ($mil) 12/2010 = 334
  8. EBITDA ($mil) 12/2009 = 159
  9. Cash Flow ($/share) 12/2011 = 1.72
  10. Cash Flow ($/share) 12/2010 = 1
  11. Cash Flow ($/share) 12/2009 = 0.47
  12. Sales ($mil) 12/2011 = 730
  13. Sales ($mil) 12/2010 = 423
  14. Sales ($mil) 12/2009 = 239
  15. Annual EPS before NRI 12/2007 = 0.37
  16. Annual EPS before NRI 12/2002 = 0.33
  17. Annual EPS before NRI 12/2009 = 0.38
  18. Annual EPS before NRI 12/2010 = 0.83
  19. Annual EPS before NRI 12/2011 = 1.55

Dividend history

  1. Dividend Yield = 1.4
  2. Dividend Yield 5 Year Average = 0.12

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.09
  2. 3. Payout Ratio 5 Year Average = 0.03

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 22.99
  2. ROE 5 Year Average = 13.09
  3. Current Ratio = 5.03
  4. Current Ratio 5 Year Average = 2.99
  5. Quick Ratio = 5.03
  6. Cash Ratio = 5.01
  7. Retention rate = 91%

Notes

This is a great play for those who are bullish on the long term prospects of Silver. Consider dividing your money into two lots and deploying one of them in the 20-21 ranges. If by some chance it drops to the 15.00-17.00 ranges then deploy the second lot.

Company: Wells Fargo & Co (WFC)

Basic Key ratios

  1. Percentage held by institutions = 77%
  2. Short ratio = 1.60%
  3. Quarterly earnings growth = 17%
  4. Quarterly revenue growth = 5.10%
  5. Beta = 1.10
  6. Relative Strength 52 weeks = 81
  7. 5 year sales growth rate = 13.5%
  8. Sales vs 1 year ago = -6%
  9. Long term debt to equity = 0.97

Growth

  1. Net Income ($mil) 12/2011 = 16211
  2. Net Income ($mil) 12/2010 = 12663
  3. Net Income ($mil) 12/2009 = 12667
  1. EBITDA ($mil) 12/2011 = 30238
  2. EBITDA ($mil) 12/2010 = 26132
  3. EBITDA ($mil) 12/2009 = 27015
  4. Cash Flow ($/share) 12/2011 = 3.43
  5. Cash Flow ($/share) 12/2010 = 2.77
  6. Cash Flow ($/share) 12/2009 = 3.01
  1. Sales ($mil) 12/2011 = 87597
  2. Sales ($mil) 12/2010 = 93249
  3. Sales ($mil) 12/2009 = 98636
  1. Annual EPS before NRI 12/2007 = 2.38
  2. Annual EPS before NRI 12/2008 = 0.75
  3. Annual EPS before NRI 12/2009 = 1.81
  4. Annual EPS before NRI 12/2010 = 2.26
  5. Annual EPS before NRI 12/2011 = 2.82

Dividend history

  1. Dividend Yield = 2.6
  2. Dividend Yield 5 Year Average = 2.4
  3. Dividend 5 year Growth = - 7.31%

Dividend sustainability

  1. Payout Ratio = 0.23
  2. Payout Ratio 5 Year Average = 0.41

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 10.09
  2. 5 Year History EPS Growth = 5.96
  3. ROE 5 Year Average = 12.58
  4. Return on Investment = 5.98
  5. Current Ratio = 0.9
  6. Current Ratio 5 Year Average = 0.97
  7. Quick Ratio = 0.85
  8. Cash Ratio = 0.14
  9. Interest Coverage = 5.00
  10. Retention rate = 77%

Company: Yum Brands Inc (YUM)

Brief Overview

  1. Relative Strength 52 weeks = 81
  2. Profit Margin = 11.4%
  3. Operating Margin = 16.09%
  4. Quarterly Revenue Growth = 12.5%
  5. Quarterly Earnings Growth = 4.7%
  6. Operating Cash Flow = 2.17B
  7. Levered Free Cash Flow = $817M
  8. Beta = 0.68
  9. Percentage Held by Institutions = 75.3%
  10. Short Percentage of Float = 1.8%

Growth

  1. Net Income ($mil) 12/2011 = 1319
  2. Net Income ($mil) 12/2010 = 1158
  3. Net Income ($mil) 12/2009 = 1071
  4. Net Income Reported Quarterly ($mil) = 458
  5. EBITDA ($mil) 12/2011 = 2443
  6. EBITDA ($mil) 12/2010 = 2358
  7. EBITDA ($mil) 12/2009 = 2170
  8. Cash Flow ($/share) 12/2011 = 4.37
  9. Cash Flow ($/share) 12/2010 = 3.88
  10. Cash Flow ($/share) 12/2009 = 3.48
  11. Sales ($mil) 12/2011 = 12626
  12. Sales ($mil) 12/2010 = 11343
  13. Sales ($mil) 12/2009 = 10836
  14. Annual EPS before NRI 12/2007 = 1.68
  15. Annual EPS before NRI 12/2008 = 1.91
  16. Annual EPS before NRI 12/2009 = 2.17
  17. Annual EPS before NRI 12/2010 = 2.53
  18. Annual EPS before NRI 12/2011 = 2.88

Dividend history

  1. Dividend Yield = 1.8
  2. Dividend Yield 5 Year Average 03/2012 = 2.10
  3. Dividend 5 year Growth 03/2012 = 17.8

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.34
  2. Payout Ratio 5 Year Average 12/2011 = 0.37

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 11.92
  2. ROE 5 Year Average 12/2011 = 138.18
  3. Current Ratio = 1.01
  4. Current Ratio 5 Year Average = 0.8
  5. Quick Ratio = 0.84
  6. Cash Ratio = 0.72
  7. Interest Coverage Quarterly = 17.43
  8. Retention rate = 66%
  9. EPS 5 year growth rate = 13.8%
  10. 5 year sales growth rate = 4.46%

Notes

Quarterly earnings growth slowed from 73% in the prior quarter to 4.7% in the most recent quarter.

Company: Altria Group (MO)

Basic overview

  1. Levered free cash flow = $4.94 billion
  2. Beta = 0.41
  3. Quarterly earnings growth = 1.3%
  4. Quarterly revenue growth = 3.8%
  5. Operating margins= 40.05%
  6. Profit margins = 20.05%
  7. Relative Strength 52 weeks = 87
  8. Operating cash flow = $3.39 billion
  9. Long term debt to equity = 3.54

Growth

  1. Net Income ($mil) 12/2011 = 3390
  2. Net Income ($mil) 12/2010 = 3905
  3. Net Income ($mil) 12/2009 = 3206
  4. Net Income Reported Quarterly ($mil) = 973
  1. EBITDA ($mil) 12/2011 = 7051
  2. EBITDA ($mil) 12/2010 = 7132
  3. EBITDA ($mil) 12/2009 = 6353
  4. Cash Flow ($/share) 12/2011 = 2.18
  5. Cash Flow ($/share) 12/2010 = 2.03
  6. Cash Flow ($/share) 12/2009 = 1.9
  1. Sales ($mil) 12/2011 = 23800
  2. Sales ($mil) 12/2010 = 24363
  3. Sales ($mil) 12/2009 = 23556
  1. Annual EPS before NRI 12/2007 = 4.38
  2. Annual EPS before NRI 12/2008 = 1.65
  3. Annual EPS before NRI 12/2009 = 1.75
  4. Annual EPS before NRI 12/2010 = 1.9
  5. Annual EPS before NRI 12/2011 = 2.05

Dividend history

  1. Dividend Yield = 4.6%
  2. Dividend Yield 5 Year Average = 8.00
  3. Dividend 5 year Growth = - 14.5%

Dividend sustainability

  1. Payout Ratio = 0.96
  2. Payout Ratio 5 Year Average = 0.73

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 6.42
  2. ROE 5 Year Average = 79.95
  3. Return on Investment = 23.9
  4. Current Ratio = 0.90
  5. Current Ratio 5 Year Average = 0.89
  6. Quick Ratio = 0.5
  7. Cash Ratio = 0.67
  8. Interest Coverage Quarterly = 4.10

Company: Costco Whole Cp (COST)

Brief Overview

  1. Levered Free Cash Flow = 1.30B
  2. Long term debt to equity = 0.11
  3. Short ratio = 2.6%
  4. Number of Institutional Sellers 12 Weeks = 3
  5. 5 year EPS growth rate = 7.29%
  6. Relative Strength 52 weeks = 81
  7. Cash Flow 5-year Average = 4.33
  8. Capital Spending rate = - 4.03%
  9. Quarterly Revenue Growth = 8.2%
  10. Quarterly Earnings Growth = 19.1%
  11. Operating Cash Flow = 3.27B
  12. Beta = 0.52
  13. Percentage Held by Institutions = 78.1%

Growth

  1. Net Income ($mil) 12/2011 = 1462
  2. Net Income ($mil) 12/2010 = 1303
  3. Net Income ($mil) 12/2009 = 1086
  4. Net Income Reported Quarterly ($mil) = 386
  5. EBITDA ($mil) 12/2011 = 3354
  6. EBITDA ($mil) 12/2010 = 2960
  7. EBITDA ($mil) 12/2009 = 2563
  8. Cash Flow ($/share) 12/2011 = 5.29
  9. Cash Flow ($/share) 12/2010 = 4.81
  10. Cash Flow ($/share) 12/2009 = 4.25
  11. Sales ($mil) 12/2011 = 88915
  12. Sales ($mil) 12/2010 = 77946
  13. Sales ($mil) 12/2009 = 71422
  14. Annual EPS before NRI 12/2007 = 2.63
  15. Annual EPS before NRI 12/2008 = 2.91
  16. Annual EPS before NRI 12/2009 = 2.54
  17. Annual EPS before NRI 12/2010 = 2.95
  18. Annual EPS before NRI 12/2011 = 3.3

Dividend history

  1. Dividend Yield = 1.2
  2. Dividend Yield 5 Year Average = 1.2
  3. Dividend 5 year Growth = 12.28

Dividend sustainability

  1. Payout Ratio = 0.28
  2. Payout Ratio 5 Year Average 03/2012 = 0.26

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 12.85
  2. 5 Year History EPS Growth 03/2012 = 5.99
  3. ROE 5 Year Average 03/2012 = 12.86
  4. Current Ratio 03/2012 = 1.18
  5. Current Ratio 5 Year Average = 1.12
  6. Quick Ratio = 0.59
  7. Cash Ratio = 0.51
  8. Interest Coverage Quarterly = 33.74
  9. Retention rate= 72%
  10. 5 year sales growth rate= 7.49%
  11. 5 year capital spending growth rate = - 4.03%

EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com. Earnings and growth data sourced from dailyfinance.com

Disclaimer

It is imperative that you do your due diligence and then determine if the above plays meets with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware

Source: A Good Mix Of Dividend Plays To Mull Over