Stocks with very high yields and low price ratios originally published at "long-term-investments.blogspot.com". Some of my readers often ask themselves what are the highest yielding stocks at the market. When they read articles about the highest dividend paying shares they noticed Pitney Bowes, who is also a S&P 500 member, or Annaly Capital Management.
Both have a double digit yield and a higher market capitalization and investors of the early round have made their first money with these stocks. The market is still in doubt and I am too because I don't like stocks with a very high yield and huge debt loads. I am a believer of dividend growth and I like stocks with a yield between 1-2 percent much more when they increase them with a double-digit rate.
PBI has gained 44 percent over the recent quarter and has now a yield below the 10 percent mark but the P/E ratio is still in a single-digit range. Today I like to publish all higher capitalized dividend stocks (over $2 billion market capitalization) with a low P/E ratio (under 15). Eleven stocks fulfilled these criteria of which eight have a 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 7.94 and forward P/E ratio is 8.32. The dividend yield has a value of 15.13 percent. Price to book ratio is 1.10 and price to sales ratio 4.96. The operating margin amounts to 31.45 percent and the beta ratio is 0.39. Stocks from the list have an average debt to equity ratio of 3.99.
Related stock ticker symbols:
VIP, EBR, APO, TWO, AGNC, ARR, KKR, CYS, IVR, NLY, HTS