Cheaply valuated shares with very high dividend yields originally published at long-term-investments.blogspot.com. Today I would like to show you some of the highest yielding stocks on the market with low earnings multiples. I choose stocks with a dividend yield of more than 10% with a forward P/E of less than 15. In order to eliminate the lower capitalized companies who have definitely a higher risk, I need to look at companies with a market cap over $2 billion.
Only twelve shares on the market met these restrictions. I believe that a high dividend yield will help investors to get a quick cash return and should boost the passive income but it's also very dangerous to buy those stocks. Most of the high yielders come from the Financial or REIT sector. Most of them are highly loaded with debt and they are no long-term dividend growers like Procter and Coca Cola.
Six of the twelve results have a current buy or better rating. The yields are between 11.38 percent and 20.32 percent.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 11.56 and forward P/E ratio is 8.62. The dividend yield has a value of 13.79 percent. Price to book ratio is 2.66 and price to sales ratio 8.24. The operating margin amounts to 54.02 percent and the beta ratio is 0.61. Stocks from the list have an average debt to equity ratio of 3.06.
Related Stock Ticker Symbols:
CVRR, AGNC, IVR, OIBR, NLY, TWO, VIP, CIM, MFA, PSEC, OAK, NRP