17 High Yield Stocks With Potential To Grow Dividends

 | May 26, 2013 06:14AM ET

Yesterday, I made a screen of Dividend Contenders with low, long-term debt-to-equity ratios as well as slim payouts.

Today I'd like to widen the latest screen to High-Yields with a market capitalization over USD 300 million. These are my new criteria:

- Market Capitalization over USD 300 million
- Dividend Yield over 5 percent
- Long-term debt to equity above 0.6
- Payout ratio under 50 percent

KKR Financial Holdings (KFN) has a market capitalization of $2.16 billion. The company employs people, generates revenue of $555.47 million and has a net income of $348.23 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $214.98 million. The EBITDA margin is 38.70 percent (the operating margin is 62.07 percent and the net profit margin 62.69 percent).

Financial Analysis: The total debt represents 77.23 percent of the company’s assets and the total debt in relation to the equity amounts to 351.02 percent. Due to the financial situation, a return on equity of 19.75 percent was realized. Twelve trailing months earnings per share reached a value of $1.84. Last fiscal year, the company paid $0.86 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.74, the P/S ratio is 3.90 and the P/B ratio is finally 1.03. The dividend yield amounts to 7.95 percent and the beta ratio has a value of 2.59.