9 One-Shot Dividend Plays

by: Efsinvestment

Dividend stocks are known to be safe investments for the long-term. That is why, high-dividend stocks should be an integral part of the ultimate retirement portfolio. For short-term investors, high-yield stocks can also prove to be profitable trades. One unconventional strategy is called “dividend capture. Experience shows that buying stocks just before record date, pocketing it, and selling soon after it reaches ex-dividend prices can be really profitable. Timing is essential in dividend capture strategy. Almost all U.S. companies pay quarterly dividends. Therefore, one needs to look overseas to find one-shot, high dividends. Here is a list of one-shot dividend companies paying regular, yet fat dividends:

Alto Palermo S.A. (NASDAQ:APSA): APSA is one of the largest real estate developers in Argentina. The company operates several shopping centers in Buenos Aires, Cordoba, Mendoza, Salta, and Santa Fe. Alto Palermo has a trailing ratio of 17.4. The company enjoyed an EPS growth of 36.23%, and increased earnings by 159.97% this year. Paying a nice dividend yield of 6.9%, APSA has a 21.10% profit margin.

AstraZeneca plc (NYSE:AZN): Formerly known as Zeneca Group; AstraZeneca is in the business of discovering, developing, manufacturing and selling pharmaceuticals. AstraZeneca has a $69.03 billion market cap, and a low P/E ratio of 9.11, while its forward P/E ratio is 8.23. AZN shareholders enjoyed 13.87% EPS growth in the last five years. Having a net profit margin of 24.3%, AZN paid a dividend yield of 5.04% last year. UBS recommends buying, while Cowen& Co suggested an outperform rate.

Baltic Trading Limited (NYSE:BALT): The New York-based BALT owns dry bulk vessels, trading in trip charters and vessel pools in the pool market. The company has a market cap of $182 million, and a P/E ratio of 21.2, while its forward P/E ratio is 12.6. Its yearly earnings increased by 42.22%; analysts expect the company to have a 70% growth in the next five years. Baltic Trading has a good dividend yield of 8.44%, while its net profit margin is 25.56%. Its PEG of 0.3 is one of the lowest. The recent beat-down slashed the stock prices by almost 50% in last 6 months.

Corpbanca (BCA): BCA is a provider of various commercial and retail banking services, which, as of Dec 31, 2009, operated 111 branch offices and 324 ATMs in Chile. Corpbanca supports a market capital of $3.50 billion, and it has a trailing ratio of 13.6. The company had an EPS growth of 21.49% over the last five years, while its earnings increased by 39.01% this year. February 16th, BCA offered $1.26 [5.56%]. Considering that Corpbanca pays dividend only once in a year, and dividends kept rising for the last three years, this company perfectly fits in a one-shot dividend play game.

BBVA Banco Frances (NYSE:BFR): BBVA provides financial services to companies, corporations and individuals in Argentina. The company operated 271 offices as of June 30, 2010. The market capitalization of BFR is $1.9 billion, and it has a pretty low P/E ratio of 6.64, and a forward P/E ratio of 9.1. Although BFR had a negative growth during the last five years, analysts expect the company to increase its earnings by 21.43% next year. Having a good profit margin of 26.07%, BFR offered a marvelous dividend of 22 cents with record date of April 20.

Seacube Container Leasing Ltd. (NYSE:BOX-OLD): Seacube acquires, owns, manages and sells intermodal equipment in the U.S. and internationally. Its earnings increased 286.28% this year. BOX has a $329 million market capital, and a trailing ratio of 9.2, while its forward P/E ratio is 7.29. Paying a dividend yield of 5.46%, the company had a 21.58% profit margin in 2010.

Blue Square-Israel Ltd. (NYSE:BSI)): BSI operates supermarkets and outlets in Israel, offering food, beverages and textile products. BSI is the one of the largest retail groups in Israel. The market capital of BSI is $690 million, and its P/E ratio is 25. Last October, BSI offered a dividend of approximately $3.39 per share/ADS.

CNInsure Inc. (CISG): CNInsure is probably one of the best companies among the listed ones. Oppenheimer suggested outperform for CISG, while Roth Capital and Brean Murray recommend buying. Having a market cap of $755 million, CNInsure has a trailing ratio of 11. Its forward P/E ratio is 10.3, while its profit margin is 27.17%. CISG shareholders enjoyed a fabulous EPS growth of 33.58% during the last five years, whereas its earnings increased by 31.59% this year. The company offered 6.95% dividend yield, with a low PEG value of 0.48.

ENI S.p.A. (NYSE:E): Eni SpA explores, products, transports, transforms and markets oil and natural gas. Bernstein suggested an outperform rating for E, while UBS recommends buying. The market capitalization of Eni is $103 billion, while its trailing ratio is 10.1. The company has a forward P/E ratio of 8.7. Although the company had a -5.67 EPS growth during the last five years, this year earnings increased by 44.67%. Having a 7.42% profit margin, the company offered a dividend yield of 5.28% last year. Eni pays dividends two times a year. One is in September, whereas the other is in May.

Besides “Dividend Capture,” there is another strategy named “Dividend Rush.” Information on upcoming dividend payments tends to be emphasized more as time gets closer. Given the increasing media exposure of high yields, investors get into bullish sentiment for these stocks. Experience shows that this strategy, where one buys high-dividend stocks a few weeks before the record date, can beat the market with a large margin as well.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.