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Investors should not go after a stock simply because it offers a lofty yield. There are many stocks that offer lofty yields, but their performance over the years has been dismal. In some instances even with the high yield the total rate of return has been negative for the past 3-5 years. Novice Investors can use "this guide "as a means to help you determine which stocks you should get into and which ones to avoid. These are not absolute rules. They are just suggestions to help get you started and please note there are always exceptions to the rule. The goal is to try to satisfy as many of them as possible.

Company: Navios Maritime Partners LP (NMM)

Brief Overview

  1. Percentage Held by Insiders = 9.23%
  2. Cash Flow 5-year Average = 2.4
  3. Profit Margin = 35%
  4. Operating Margin = 40.3%
  5. Quarterly Revenue Growth = 7%
  6. Quarterly Earnings Growth = 27%
  7. Operating Cash Flow = 138M
  8. Beta = 1.50
  9. Levered Free Cash Flow = 60M
  10. Percentage Held by Institutions = 24.6%
  11. Sales vs 1 year ago = 30%
  12. Sales vs 1 quarter ago = 12%
  13. EPS vs 1 year ago = 2.00
  14. Long term debt to equity = 0.51

Growth

  1. Net Income ($mil) 12/2011 = 65
  2. Net Income ($mil) 12/2010 = 61
  3. Net Income ($mil) 12/2009 = 34
  4. Net Income Reported Quarterly ($mil) = 17
  5. EBITDA ($mil) 12/2011 = 139
  6. EBITDA ($mil) 12/2010 = 109
  7. EBITDA ($mil) 12/2009 = 59
  8. Cash Flow ($/share) 12/2011 = 2.86
  9. Cash Flow ($/share) 12/2010 = 2.49
  10. Cash Flow ($/share) 12/2009 = 2.24
  11. Sales ($mil) 12/2011 = 187
  12. Sales ($mil) 12/2010 = 143
  13. Sales ($mil) 12/2009 = 93
  14. Annual EPS before NRI 12/2007 = 0.15
  15. Annual EPS before NRI 12/2008 = 1.56
  16. Annual EPS before NRI 12/2009 = 1.66
  17. Annual EPS before NRI 12/2010 = 1.51
  18. Annual EPS before NRI 12/2011 = 1.4

Dividend history

  1. Dividend Yield = 11.8
  2. Dividend Yield 5 Year Average = 11.33

Dividend sustainability

  1. Payout Ratio = 4.73
  2. Payout Ratio 5 Year Average = 1.08

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 5
  2. ROE 5 Year Average = 24.89
  3. Current Ratio = 1.19
  4. Current Ratio 5 Year Average = 2.26
  5. Quick Ratio = 1.12
  6. Cash Ratio = 1.04
  7. Interest Coverage Quarterly = 7.03

Notes

Quarterly earnings growth rose to 27% in the second quarter from 2% in the previous quarter. Levered free cash flow rose to $63million in the 2nd quarter from - $5.89 million in the 1st quarter. Operating cash flow also improved from 133 million in the 1st quarter to $138 million in the 2nd quarter. This is a good contrarian play on the shipping sector as things appear to be improving for the company at least in terms of earnings growth and sales. If you are going to open up a position, the ideal entry points would be in the $12.50-$14.00 ranges. Consider placing a stop in the $9.50-$10.00 ranges. A weekly close below $10 could take it down to the $6.00 ranges. The company increased the distribution to 0.4425, a 0.6% Increase from the prior quarter.

Company: Ternium SA (TX)

Brief Overview

  1. Relative Strength 52 weeks = 28
  2. Cash Flow 5-year Average = 5.57
  3. Profit Margin = 4.2%
  4. Operating Margin = 13%
  5. Quarterly Revenue Growth = - 8%%
  6. Quarterly Earnings Growth = -44%
  7. Operating Cash Flow = 1.04B
  8. Beta = 2.00
  9. Levered Free Cash Flow = 515M

Growth

  1. Net Income ($mil) 12/2011 = 650
  2. Net Income ($mil) 12/2010 = 780
  3. Net Income ($mil) 12/2009 = 767
  4. Net Income Reported Quarterly ($mil) = 160
  5. EBITDA ($mil) 12/2011 = 1472
  6. EBITDA ($mil) 12/2010 = 1642
  7. EBITDA ($mil) 12/2009 = 921
  8. Cash Flow ($/share) 12/2011 = 6.27
  9. Cash Flow ($/share) 12/2010 = 5.8
  10. Cash Flow ($/share) 12/2009 = 3.61
  11. Sales ($mil) 12/2011 = 9157
  12. Sales ($mil) 12/2010 = 7382
  13. Sales ($mil) 12/2009 = 4959
  14. Annual EPS before NRI 12/2007 = 0.39
  15. Annual EPS before NRI 12/2008 = 2.93
  16. Annual EPS before NRI 12/2009 = 1.58
  17. Annual EPS before NRI 12/2010 = 3.1
  18. Annual EPS before NRI 12/2011 = 3.42

Dividend history

  1. Dividend Yield = 3.8
  2. Dividend Yield 5 Year Average = 3.49
  3. Annual Dividend = 1.5

Dividend sustainability

  1. Payout Ratio = 0.32
  2. Payout Ratio 5 Year Average 12/2011 = 0.26

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 2
  2. ROE 5 Year Average = 12.66
  3. 8. Current Ratio = 2.01
  4. 9. Current Ratio 5 Year Average = 3
  5. Quick Ratio = 1.74
  6. Cash Ratio = 1.37
  7. Interest Coverage Quarterly = 8.28
  8. Sales vs 1 year ago = 24%
  9. 5 year sales growth rate = 2.3%

Company : Petrobras (PBR)

Brief Overview

  1. Relative Strength 52 weeks = 23
  2. Sales vs 1 year ago = 21%
  3. Sales vs quarter 1 year ago = 14.7%
  4. 5 year sales growth = 11.9%
  5. Levered Free Cash Flow = -15.95B
  6. 5 year capital spending rate = 21.24
  7. Cash Flow 5-year Average = 7.05
  8. Profit Margin = 12.18%
  9. Operating Margin = 17.06%
  10. Quarterly Revenue Growth = 14.7%
  11. Quarterly Earnings Growth = -20.9%
  12. Operating Cash Flow = 31.81B
  13. Beta = 1.71

Growth

  1. Net Income ($mil) 12/2011 = 20121
  2. Net Income ($mil) 12/2010 = 20055
  3. Net Income ($mil) 12/2009 = 15308
  4. Net Income Reported Quarterly ($mil) = 5212
  5. EBITDA ($mil) 12/2011 = 37259
  6. EBITDA ($mil) 12/2010 = 35582
  7. EBITDA ($mil) 12/2009 = 29409
  8. Cash Flow ($/share) 12/2011 = 8.03
  9. Cash Flow ($/share) 12/2010 = 7.63
  10. Cash Flow ($/share) 12/2009 = 8.61
  11. Sales ($mil) 12/2011 = 141798
  12. Sales ($mil) 12/2010 = 121779
  13. Sales ($mil) 12/2009 = 92817
  14. Annual EPS before NRI 12/2007 = 3
  15. Annual EPS before NRI 12/2008 = 4.32
  16. Annual EPS before NRI 12/2009 = 3.36
  17. Annual EPS before NRI 12/2010 = 4.08
  18. Annual EPS before NRI 12/2011 = 2.96

Dividend history

  1. Dividend Yield = 1.2
  2. Dividend Yield 5 Year Average = 0.46
  3. Dividend 5 year Growth = 6.27

Dividend sustainability

  1. Payout Ratio = 0.37
  2. Payout Ratio 5 Year Average 12/2011 = 0.05

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 5.97
  2. ROE 5 Year Average = 22.04
  3. Current Ratio = 1.92
  4. Current Ratio 5 Year Average = 1.48
  5. Quick Ratio = 1.36
  6. Cash Ratio = 0.85
  7. Interest Coverage = 17.5
  8. Retention rate = 66%
  9. Long term debt to equity ratio = 0.43

Company: Morgan Stanley (MS)

Brief Overview

  1. Relative Strength 52 weeks = 29
  2. Profit Margin = 8.00%
  3. Operating Margin = 14%
  4. Quarterly Revenue Growth = - 25%
  5. Quarterly Earnings Growth = - 50%
  6. Operating Cash Flow = 15.44B
  7. Beta = 2.05
  8. Percentage Held by Institutions = 75.5%
  9. Short Percentage of Float = 2.1%
  10. 5 year sales growth rate = -16%
  11. EPS vs quarter 1 year ago = - 46%
  12. Sales growth rate vs 1 quarter ago = -25%

Growth

  1. Net Income ($mil) 12/2011 = 4110
  2. Net Income ($mil) 12/2010 = 4703
  3. Net Income ($mil) 12/2009 = 1346
  4. Net Income Reported Quarterly ($mil) = -94
  5. EBITDA ($mil) 12/2011 = 14425
  6. EBITDA ($mil) 12/2010 = 14064
  7. EBITDA ($mil) 12/2009 = 9041
  8. Cash Flow ($/share) 12/2011 = 2.89
  9. Cash Flow ($/share) 12/2010 = 3.89
  10. Cash Flow ($/share) 12/2009 = 1.75
  11. Sales ($mil) 12/2011 = 32403
  12. Sales ($mil) 12/2010 = 31622
  13. Sales ($mil) 12/2009 = 23358
  14. Annual EPS before NRI 12/2007 = 2.37
  15. Annual EPS before NRI 12/2008 = 1.54
  16. Annual EPS before NRI 12/2009 = -0.93
  17. Annual EPS before NRI 12/2010 = 2.44
  18. Annual EPS before NRI 12/2011 = 1.26

Dividend history

  1. Dividend Yield = 1.5
  2. Dividend Yield 5 Year Average 03/2012 = 1.78
  3. Dividend 5 year Growth 03/2012 = - 27%

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.41
  2. Payout Ratio 5 Year Average 03/2012 = 0.27

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 16.13
  2. ROE 5 Year Average 03/2012 = 5.6
  3. Debt/Total Cap 5 Year Average 03/2012 = 79.56
  4. Current Ratio = 0.82
  5. Current Ratio 5 Year Average = 0.98
  6. Quick Ratio = 0.83
  7. Cash Ratio = 0.7
  8. Interest Coverage Quarterly = 1.13

Company: Ameren Corp (AEE)

Brief Overview

  1. Levered Free Cash Flow = 472.88M
  2. Relative Strength 52 weeks = 81
  3. Cash Flow 5-year Average = 6.32
  4. Profit Margin = 0.63%
  5. Operating Margin = 19.73%
  6. Quarterly Revenue Growth = -13%
  7. Quarterly Earnings Growth
  8. Operating Cash Flow = 1.71B
  9. Beta = 0.31
  10. Percentage Held by Institutions = 1.5%
  11. Short Percentage of Float = 1.3%

Growth

  1. Net Income ($mil) 12/2011 = 519
  2. Net Income ($mil) 12/2010 = 139
  3. Net Income ($mil) 12/2009 = 612
  4. Net Income Reported Quarterly ($mil) = -403
  5. EBITDA ($mil) 12/2011 = 2116
  6. EBITDA ($mil) 12/2010 = 1796
  7. EBITDA ($mil) 12/2009 = 2250
  8. Cash Flow ($/share) 12/2011 = 5.98
  9. Cash Flow ($/share) 12/2010 = 6.17
  10. Cash Flow ($/share) 12/2009 = 5.91
  11. Sales ($mil) 12/2011 = 7531
  12. Sales ($mil) 12/2010 = 7638
  13. Sales ($mil) 12/2009 = 7090
  14. Annual EPS before NRI 12/2007 = 3.25
  15. Annual EPS before NRI 12/2008 = 2.95
  16. Annual EPS before NRI 12/2009 = 2.79
  17. Annual EPS before NRI 12/2010 = 2.75
  18. Annual EPS before NRI 12/2011 = 2.56

Dividend history

  1. Dividend Yield = 4.70
  2. Dividend Yield 5 Year Average = 5.78
  3. Dividend 5 year Growth = -11.36

Dividend sustainability

  1. Payout Ratio = 8.26
  2. Payout Ratio 5 Year Average = 0.66

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 0.3
  2. ROE 5 Year Average = 8.65
  3. Current Ratio = 1.32
  4. Current Ratio 5 Year Average = 1.23
  5. Quick Ratio = 0.89
  6. Cash Ratio = 0.58
  7. Interest Coverage Quarterly = 1.37
  8. Sales vs 1 year ago = - 1.4%
  9. 5 year capital spending growth rate = - 53%

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 estimates 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: An Interesting Combination Of Dividend Plays To Give The Once Over