Stocks with over 10% dividend yield and positive earnings growth originally published at "long-term-investments.blogspot.com". Some people believe that a very high yield should help them to boost their dividend income. This may be right for the short-run but a high yield does not guarantee that you will receive the same dividend every year over a long time. Not enough, if your dividend income is not growing you will get poorer because inflation makes the prices of other goods more expensive and your purchasing power sinks.
What you need is a rising dividend income to fight the inflation. Today, I like to screen the market by the highest yielding stocks with growing earnings, expected for the next five years. Sure, these are very rough screening criteria but it's a first step to get new ideas.
42 stocks matched the mentioned criteria but some of the results have a very low market capitalization. In order to eliminate those risks, I selected only companies with a market capitalization of more than USD 2 billion. Finally, 10 stocks remain of which six 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 14.32 and forward P/E ratio is 8.06. The dividend yield has a value of 15.78 percent. Price to book ratio is 1.17 and price to sales ratio 4.06. The operating margin amounts to 4.15 percent and the beta ratio is 1.06. Stocks from the list have an average debt to equity ratio of 3.09.
Related stock ticker symbols:
OZM, VIP, KKR, AGNC, ARR, PT, CIM, PSEC, PGH, PWE