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I am an independent investor writing at Scott's Investments ( My site is dedicated to discussing and publicly tracking historically successful investments strategies and sharing free investment resources. I emphasize empirical, historical, and quantitative... More
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  • Search for Yield, Momentum, and Value 1 comment
    Jul 15, 2009 10:29 AM | about stocks: AAUKY, AEG, AGNC, CRYP, ERIC, NTRI, PSEC, SPIL, TKC

    Given the declining yields in US equities and continued thirst for dividends by investors, I decided to run a screen over at to see if I could come up with any potential high yield candidates. The criteria are listed below:

    Dividend Yield>4%
    Average Volume>50k, to filter out illiquid companies
    PEG ratio<1, which can be used as a 'growth at a reasonable price' indication
    Forward PE>0, to make sure the company is projected to be profitable going forward
    Debt/Equity<.4, to make sure the company's balance sheet is relatively healthy on a debt basis           Price>200 Day SMA, to make sure the company is in a positive trend (something I've written about numerous times)

    The results, according to Finzviz:

    Ticker Company Sector Industry
    AAUK ANGLO AM PLC ADR Basic Materials Industrial Metals & Minerals
    AEG AEGON N V ADR Financial Life Insurance
    AGNC American Capital Agency Corp. Financial REIT - Residential
    CRYP CryptoLogic Limited Technology Business Software & Services
    ERIC LM Ericsson Telephone Co. Technology Communication Equipment
    NTRI NutriSystem Inc. Services Consumer Services
    PSEC Prospect Capital Corporation Financial Closed-End Fund - Equity
    SPIL Siliconware Precision Industries Co. Ltd. Technology Semiconductor Equipment & Materials
    TKC Turkcell Iletisim Hizmetleri AS Technology Wireless Communications

    The yields are below:

    Ticker Market Cap Dividend Yield
    AAUK 37945.13 5.99%
    AEG 9262.87 17.84%
    AGNC 322.65 27.89%
    CRYP 75.89 8.11%
    ERIC 30295.9 4.47%
    NTRI 433.93 4.95%
    PSEC 330.69 17.29%
    SPIL 3952.39 7.93%
    TKC 11748 6.06%

    Obviously, there are some outliers on this list that may need further investigation - a 17% and 27% yield are generally not sustainable and a further red flag is that all 3 yields over 10% originate from the financial sector. However, running a search like this can help identify some potential candidates for further consideration in a yield-oriented portfolio.

    no disclosures

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  • Trevose_Lion
    , contributor
    Comments (96) | Send Message
    I believe AEG hasn't paid a dividend since August 2008. But AGNC and PSEC raised their last dividend.
    10 Aug 2009, 12:42 PM Reply Like
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