11 Large And Mid-Cap Dividend Stocks, Each Less Than $5 A Share
Dividend Yield | Oct 11, 2012 07:01AM ET
It is a very stupid asset strategy to buy stocks simply for their low stock price. Somehow, many people believe that a lower price should allow them to buy more shares and increase the leverage of their investment. In times of margin trading, options, obligations, derivatives and CFDs, there should be a smarter way to increase your investment leverage.
In order to get a sense of what kind of stocks are available for less than USD 5, and are not of questionable quality, I made a screen of stocks with a current price under $5, a positive dividend yield and a market capitalization of more than USD 2 billion. Eleven companies emerged, of which three have a double-digit yield and an additional three offering high yields. Five are at least recommended to buy.
Portugal Telecom (NYSE: PT) has a market capitalization of $4.31 billion. The company employs 72,347 people, generates revenue of $7,913.44 million and has a net income of $544.46 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,664.39 million. The EBITDA margin is 33.67 percent (operating margin 12.10 percent and net profit margin 6.88 percent).
Financial Analysis: The total debt represents 53.53 percent of the company’s assets and the total debt in relation to the equity amounts to 434.25 percent. Due to the financial situation, a return on equity of 9.39 percent was realized. Twelve trailing months earnings per share reached a value of $0.34. Last fiscal year, the company paid $1.67 in form of dividends to shareholders. The stock price closed at $4.92.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.32, P/S ratio 0.55 and P/B ratio 1.21. Dividend Yield: 16.58 percent. The beta ratio is 0.81.
Nokia (NYSE: NOK) has a market capitalization of $9.74 billion. The company employs 120,309 people, generates revenue of $49,769.55 million and has a net income of $-1,915.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $629.54 million. The EBITDA margin is 1.26 percent (operating margin -2.78 percent and net profit margin -3.85 percent).
Financial Analysis: The total debt represents 14.70 percent of the company’s assets and the total debt in relation to the equity amounts to 44.82 percent. Due to the financial situation, a return on equity of -8.87 percent was realized. Twelve trailing months earnings per share reached a value of $-1.21. Last fiscal year, the company paid $0.26 in form of dividends to shareholders. The stock price closed at $2.60.
Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, P/S ratio 0.19 and P/B ratio 0.64. Dividend Yield: 9.72 percent. The beta ratio is 1.54.
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Frontier Communications (NASDAQ: FTR) has a market capitalization of $4.89 billion. The company employs 15,300 people, generates revenue of $5,243.04 million and has a net income of $157.61 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,311.90 million. The EBITDA margin is 44.09 percent (operating margin 17.33 percent and net profit margin 3.01 percent).
Financial Analysis: The total debt represents 47.53 percent of the company’s assets and the total debt in relation to the equity amounts to 186.30 percent. Due to the financial situation, a return on equity of 3.02 percent was realized. Twelve trailing months earnings per share reached a value of $0.11. Last fiscal year, the company paid $0.75 in form of dividends to shareholders. The stock price closed at $4.90.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 46.62, P/S ratio 0.93 and P/B ratio 1.09. Dividend Yield: 8.16 percent. The beta ratio is 0.75.
Take a closer look at the full table of higher capitalized dividend stocks under $5 in price. The average price to earnings ratio (P/E ratio) amounts to 24.94 and forward P/E ratio is 17.26. The dividend yield has a value of 7.92 percent. Price to book ratio is 1.18 and price to sales ratio 1.25. The operating margin amounts to -0.68 percent and the beta ratio is 1.38. The average stock has a debt to equity ratio of 1.38.
Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
PT, OIBR, CIM, NOK, FTR, AWC, FIG, AUO, UMC, ASX, MTU
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