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For many investors, the key to building wealth is in earning high dividend yields. To hone in on companies that can pay strong, yet reliable dividends, it makes sense to go where the money is, by targeting companies that can consistently generate strong profits. In our screen today, we focused on profitable companies paying back investors what we consider to be high yields, over 5%. Additionally, to better narrow our short list of candidates, we only included companies holding positive analyst ratings, as a sign that on the whole the companies are doing a variety of things right. With these ideas in mind, we came up with a short, but intriguing list of companies worthy of further consideration.

The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability.

Net Margin = Net Income/Total Revenue

Return on Assets (ROA) illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.

We first looked for stocks that have a high dividend yield (Div. Yield > 5%). We then screened for businesses that have been able to retain strong profit margins on the bottom line (Net Margin [TTM]>10%)(ROA > 10%). Next, we then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). Please note that the analyst recommendation score is an average of all of the ratings by analysts who have rated a particular stock. We did not screen out any market caps or sectors.

Do you think these stocks should be priced higher? Use our list to help with your own analysis.

1) LRR Energy, L.P. (NYSE:LRE)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$361.67M
Beta:-

LRR Energy, L.P. has a Dividend Yield of 11.79%, a Payout Ratio of 27.14%, a Net Margin of 31.67%, a Return on Assets of 12.32%, and an Analysts' Rating of 2.30. The short interest was 1.86% as of August 12, 2012. LRR Energy, L.P., through its subsidiary, LRE Operating, LLC, engages in the acquisition, exploitation, development, and operation of oil and natural gas properties in North America. The company holds interests in various properties located in the Permian Basin region in west Texas and southeast New Mexico; the Mid-Continent region in Oklahoma and east Texas; and the Gulf Coast region in Texas.

2) Cliffs Natural Resources Inc. (NYSE:CLF)

Sector:Basic Materials
Industry:Steel & Iron
Market Cap:$6.40B
Beta:2.40

Cliffs Natural Resources Inc. has a Dividend Yield of 5.57%, a Payout Ratio of 14.55%, a Net Margin of 24.43%, a Return on Assets of 11.33%, and an Analysts' Rating of 2.30. The short interest was 10.15% as of August 12, 2012. Cliffs Natural Resources Inc., a mining and natural resources company, engages in the production of iron ore pellets, fines and lump ore, and metallurgical coal. It operates five iron ore mines located in Michigan and Minnesota; five metallurgical coal mines located in West Virginia and Alabama; and one thermal coal mine located in West Virginia. The company also operates two iron ore mines in eastern Canada that primarily provide iron ore to steel producers in Asia; and two iron ore mining complexes in Western Australia.

3) Vanguard Natural Resources, LLC (NASDAQ:VNR)

Sector:Basic Materials
Industry:Oil & Gas Drilling & Exploration
Market Cap:$1.47B
Beta:0.96

Vanguard Natural Resources, LLC has a Dividend Yield of 8.44%, a Payout Ratio of 65.86%, a Net Margin of 45.11%, a Return on Assets of 10.16%, and an Analysts' Rating of 1.90. The short interest was 1.18% as of August 12, 2012. Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. It owns properties and oil and natural gas reserves primarily located in six operating areas: the Permian Basin in west Texas and New Mexico; the Big Horn Basin in Wyoming and Montana; south Texas; the Williston Basin in North Dakota and Montana; Mississippi; and the Arkoma Basin in Arkansas and Oklahoma.

4) Safe Bulkers, Inc. (NYSE:SB)

Sector:Services
Industry:Shipping
Market Cap:$466.03M
Beta:2.10

Safe Bulkers, Inc. has a Dividend Yield of 9.87%, a Payout Ratio of 51.19%, a Net Margin of 48.99%, a Return on Assets of 10.04%, and an Analysts' Rating of 2.30. The short interest was 1.22% as of August 12, 2012. Safe Bulkers, Inc. provides marine drybulk transportation services worldwide. The company transports various bulk cargoes, primarily coal, grain, and iron ore. As of March 21, 2012, it had a fleet of 20 drybulk vessels.

5) Alliance Holdings GP, L.P. (NASDAQ:AHGP)

Sector:Basic Materials
Industry:Nonmetallic Mineral Mining
Market Cap:$2.79B
Beta:0.77

Alliance Holdings GP, L.P. has a Dividend Yield of 5.98%, a Payout Ratio of 70.22%, a Net Margin of 19.17%, a Return on Assets of 21.26%, and an Analysts' Rating of 2.00. The short interest was 0.83% as of August 12, 2012. Alliance Holdings GP, L.P., through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coals with varying sulfur and heat contents. The company also operates ten underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia.

6) Alliance Resource Partners LP (NASDAQ:ARLP)

Sector:Basic Materials
Industry:Industrial Metals & Minerals
Market Cap:$2.40B
Beta:0.81

Alliance Resource Partners LP has a Dividend Yield of 6.54%, a Payout Ratio of 53.14%, a Net Margin of 19.33%, a Return on Assets of 16.21%, and an Analysts' Rating of 2.00. The short interest was 1.43% as of August 12, 2012. Alliance Resource Partners, L.P. engages in the production and marketing of coal primarily to utilities and industrial users in the United States.

7) QR Energy, LP (NYSE:QRE)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$788.00M
Beta:-

QR Energy, LP has a Dividend Yield of 11.03%, a Payout Ratio of 76.59%, a Net Margin of 66.34%, a Return on Assets of 18.15%, and an Analysts' Rating of 1.60. The short interest was 1.14% as of August 12, 2012. QR Energy, LP, through its subsidiary, QRE Operating, LLC, engages in the acquisition, exploitation, development, and production of onshore crude oil and natural gas properties in the United States. As of December 31, 2011, its properties consisted of working interests in 3,867 gross producing wells located in Texas, New Mexico, Arkansas, Louisiana, southwestern Kansas, Oklahoma, Florida, and Alabama.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz.

Source: 7 High-Yield, High-Profit Dividends Backed With Analyst Confidence