High-yield investing can be interesting, and even more so in times of low interest rates. The M.O. of high-yield investing is to trade stocks with very high yields (as in, double-digits). But in order not to kill the goose that lays the golden egg, sustainable payout ratios and long term growth also matter when choosing high yield stocks. Today we focused on stocks that not only have those two traits, but that also have positive analyst ratings. We came up with a short, but interesting list for you.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for stocks with a very high yield (more than 10%). We then looked for businesses that are considered high-growth, with 1-year projected EPS growth above 25%. We then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We did not screen out any market caps or sectors.
Do you think these stocks offer both value and growth? Use our screened list as a starting point for your own analysis.
1) James Hardie Industries SE (NYSE:JHX)
James Hardie Industries SE has a Dividend Yield of 19.91%, a Payout Ratio of 2.88%, a 1-Year Projected Earnings Per Share Growth Rate of 41.53%, and a Analysts' Rating of 2.00. The short interest was 0.01% as of 06/18/2012. James Hardie Industries SE, together with its subsidiaries, manufactures and sells fibre cement products and systems for internal and external building construction applications primarily in the United States, Canada, Australia, New Zealand, Europe, Asia, and the Middle East. Its products include fiber cement interior linings, exterior siding products, and related accessories products. The company offers fiber cement products with various patterned profiles and surface finishes for a range of applications, including external siding and soffit lining, internal linings, facades, lattice, fencing, decorative columns, floor and tile underlayments, and ceiling applications.
2) Capital Product Partners L.P. (NASDAQ:CPLP)
Capital Product Partners L.P. has a Dividend Yield of 13.21%, a Payout Ratio of 59.08%, a 1-Year Projected Earnings Per Share Growth Rate of 81.82%, and a Analysts' Rating of 2.30. The short interest was 0.36% as of 06/18/2012. Capital Product Partners L.P., a shipping company, provides seaborne transportation services of crude oil, refined petroleum products, edible oils, and soft chemicals. The company provides marine transportation services under short-term voyage charters and medium to long-term time and bareboat charters. Its vessels carry crude oil, and refined oil products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals comprising ethanol.
3) Breitburn Energy Partners L.P. (BBEP)
|Industry:||Oil & Gas Drilling & Exploration|
Breitburn Energy Partners L.P. has a Dividend Yield of 10.85%, a Payout Ratio of 68.74%, a 1-Year Projected Earnings Per Share Growth Rate of 103.03%, and a Analysts' Rating of 1.60. The short interest was 0.60% as of 06/18/2012. BreitBurn Energy Partners L.P. engages in the acquisition, exploitation, and development of oil and gas properties in the United States. The company's properties include natural gas, oil, and midstream assets comprising fields in the Antrim Shale in Michigan, and the New Albany Shale in Indiana and Kentucky; and fields in the Evanston and Green River basins in southwestern Wyoming, the Wind river and Big Horn basins in central Wyoming, the Powder River basin in eastern Wyoming, the Los Angeles basin in California, and fields in Florida's Sunniland Trend.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.