The Ten Highest Yielding NYSE Stocks

Here are the highest yielding stocks that trade on the New York Stock Exchange, with P/E ratios below 20, PEG ratios below one, and market caps above $500 million. You will notice that there are many European companies on the list, including a couple Irish banks.

• Northstar Realty Finance Corp. (NRF) is a debt-oriented real estate investment trust that yields 15.91%.
• KKR Financial Holdings LLC (KFN) is a mortgage-oriented real estate investment trust that yields 15.31%.
• Barclays PLC (BCS) is the London-based bank holding company that yields 12.83%.
• Bank of Ireland (IRE) is the Ireland-based bank that yields 12.55%.
• Allied Irish Banks, plc. (AIB) is an Ireland-based bank that yields 11.57%.
• Magyar Telekom Plc. (MTA) is a Hungarian telecom company that yields 8.87%.i
• Qwest Communications International Inc. (Q) is a Denver-based telecom company that yields 8.40%.
• Diana Shipping Inc. (DSX) is a Greece based shipping company that yields 8.22%.
• AEGON N.V. (AEG) is a Netherlands-based insurance company that yields 7.73%.
• Deutsche Bank AG (DB) is a German-based bank that yields 7.40%.

Disclosure: The author owns DB.

Comments

[InvestingPennies.com]

We hold a buy rating on AIB. One NYSE stock you failed to mention was HRP (HRPT Properties Trust), a REIT specializing in healthcare, government, & commercial properties. The current yield is 12.3% and is paid quarterly with the most recent dividend being paid to shareholders of today. Our full recommendation for the company can be found here:

investingpennies.com/i...

[Itsonlymoney]

Checking DSX shows a higher yield than you indicate.
Dividend: 3.40
Yield: 11.90

[Aalan]

You missed the best deal of all.
As of this morning, GKK is yielding a whopping 32%! It's a REIT with a p/b of 0.4, allowing plenty of headroom for non-performing loans. Credit Suisse rated it "outperform" as of yesterday.

[Patrick1980SC]

Gramercy Capital will not be yielding 32% much longer. From the Q2 conference call: "Consistent with all of these strategies and goals I’ve enumerated just now, the directors of Gramercy intend to evaluate the dividend policy in the third quarter for possible reduction." Gramercy's own guidance for $0.50/share in quarterly earnings suggests that the dividend will be lowered to at least this level, if not lower. The stock was downgraded by Stifel Nicolaus from "buy" to "hold" this morning.

[iansane]

What about GLS? It's paying 15.80% and will have good upside to declining oil prices.

[iansane]

You forgot GLS. It's paying 15.80% and has good upside to falling oil prices.

[iansane]

oops! I thought GLS had a mkt cap of over 500 mil.It's closer to 425.

[Aalan]

Patrick, "Gramercy Capital will not be yielding 32% much longer...." may be true, but at $.50 quarterly EPS, a 90% payout vs. latest stock price of $7.14 is still about 25%--and I don't see anyone predicting that the firm will fail, so there's no great risk to the stock at such a price. If the price dips again, I'd buy even more.

Ian, I like GLS, too. Leaving micro-caps off the list makes sense, though--a whole different kind of risk.

[John Egan]

"Itsonlymoney&quo... .... The reason there is a difference in the above dividend quote and that of Yahoo Finance is how different sites calculate the dividend yield.

Yahoo apparently takes the last dividend and multiplies it by the number of payments per year to get $3.40 and divides it to come up with the 11.9 % yield you noted.

The figure quoted in the article takes a slightly different tack... They add up all the **real** dividends and divide to come up with a 'yearly' dividend.

So: 51+58+60+85 = $2.54 total dividend for the year.
$2.54/$30.70 = 0.082736156351792% ...

Or as of right this moment about 8.3% yearly yield.

If you have an MLP or paying stock that issues regular as clockwork payments (such as ADVDX at 14%), you can get by with using the last payment. The idea is that if the payments increase, then it is expected that the future payments will be the same.

The problem arises when you have a stock or MLP that varies their payments. In the case of shipping and some energy or mining stocks (HTE comes to mind), a drop in business climate might cause a marked drop in the expected payments and you cannot trust the last payment to continue. Sometimes MLPs etc have special payments as well which throw off the calcs. These payments can be separate, or included at the same time as the regular dividend. You can see that by blindly using the last payment as a means of calculating your returns is not necessarily effective.

So... Regular paying stocks, you can normally use the last payment to calculate. Irregular paying stocks, or those that vary seasonally, it's probably better to use the yearly.

And it doesn't hurt to inspect the dividends over a few years and in conjunction with established companies with a longer track record. I find it best to go to Yahoo Finance's interactive chart, pull up a three year range and click on 'show dividends'. This way I can see how the dividends compare to the stock price over a period of time. It could alert you to a cyclical short dividend on the horizon.

jegan ;-)

[Jmar11]

DB may not be in this privileged position for much longer. It may take a hit in the fall, when a central clearing house for credit derivatives is launched. DB could be a huge beneficiary of this move; some more details here:
www.greenfaucet.com/th...

[dbackroyal]

All I know is that Frontline (FRO) was not mentioned and neither was Nordique American (NAT) both yeilding spectacular dividends. I own DSX, NAT, and FRO. Good long term potential

[JFrazer1]

I'm trying to figure out why DSX is continuing to fall in value. It looks good to me. Oh well, decreased price made the yield even higher.