+10% yielding shares with strong earnings per share growth originally published at "long-term-investments.blogspot.com" Some of my friends search regular for stocks with a very high yield. I don't talk about high-yields, stocks with yields between 5-10 percent. I mean stocks with annualized dividend yields of more than 10 percent.
It sounds a bit unserious and I personally would never buy such stocks but I can understand my friends because they have only a low net worth and they try to boost their passive income from dividends.
Let me say one thing: It could not sustainable for any kind of business to pay such a high amount of money to shareholders at a normal valuation. Something must be wrong. But if find an attractive investment, you can boost your dividend income and in ten years your investment paid-off.
Out there are 148 stocks with a yield over 10 percent. I've tried to figure out some interesting stocks.
These are my criteria:
- Dividend Yield above 10%
- Earnings per share growth for the next 5Y over 5%
- Market Capitalization over 300 million
Eighteen shares fulfilled these criteria. Seven of them have a current buy or better recommendation.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 14.99 and forward P/E ratio is 9.96. The dividend yield has a value of 14.38 percent. Price to book ratio is 1.96 and price to sales ratio 2.90. The operating margin amounts to 30.02 percent and the beta ratio is 1.36. The average stock from the screening results has a debt to equity ratio of 2.46.
Related stock ticker symbols:
NTI, XRS, CEL, SDT, ARR, OIBR, BGCP, NMM, MITT, BMA, STON, LOGI, MCGC, VGR, SAN, PNNT, EROC, NCT