20 High-Yield Stocks With Safe Haven Characteristics
Dividend Yield | Mar 31, 2013 03:54AM ET
Investors often try to realize a bigger return by excluding additional risks. Risk-free stocks don’t exist but some stocks have higher volatility than others. A ratio that measures the volatility is the beta ratio.
Below is a list of the “safest” high-yielding stocks. Those stocks have a beta ratio below 0.5 as well as a higher market capitalization. In this case, I screened for stocks with a market valuation over USD 2 billion.
Only 20 companies fulfilled the mentioned criteria of which six have a double-digit yield. Eight of the results are recommended to buy. REITs and oil and gas pipeline stocks dominating the screen.
Annaly Capital Management (NLY) has a market capitalization of $15.05 billion. The company employs 147 people, generates revenue of $3.259 billion and has a net income of $1.735 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.198 billion. The EBITDA margin is 67.45 percent (the operating margin is 54.36 percent and the net profit margin 53.26 percent).
Financial Analysis: The total debt represents 78.99 percent of the company’s assets and the total debt in relation to the equity amounts to 662.00 percent. Due to the financial situation, a return on equity of 11.09 percent was realized. Twelve trailing months earnings per share reached a value of $1.70. Last fiscal year, the company paid $2.05 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.34, the P/S ratio is 4.62 and the P/B ratio is finally 1.00. The dividend yield amounts to 11.33 percent and the beta ratio has a value of 0.31.
Kinder Morgan Energy (KMP) has a market capitalization of $33.50 billion. The company employs 10,685 people, generates revenue of $8.642 billion and has a net income of $2.025 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.428 billion. The EBITDA margin is 39.67 percent (the operating margin is 27.08 percent and the net profit margin 23.43 percent).
Financial Analysis: The total debt represents 54.13 percent of the company’s assets and the total debt in relation to the equity amounts to 153.43 percent. Due to the financial situation, a return on equity of 7.34 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $4.98 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 54.54, the P/S ratio is 3.94 and the P/B ratio is finally 3.96. The dividend yield amounts to 5.75 percent and the beta ratio has a value of 0.41.
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Altria Group (MO) has a market capitalization of $69.12 billion. The company employs 9,100 people, generates revenue of $24.618 billion and has a net income of $4.183 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.624 billion. The EBITDA margin is 26.91 percent (the operating margin is 25.91 percent and the net profit margin 16.99 percent).
Financial Analysis: The total debt represents 39.28 percent of the company’s assets and the total debt in relation to the equity amounts to 438.07 percent. Due to the financial situation, a return on equity of 121.70 percent was realized. Twelve trailing months earnings per share reached a value of $2.06. Last fiscal year, the company paid $1.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.71, the P/S ratio is 2.81 and the P/B ratio is finally 21.82. The dividend yield amounts to 5.12 percent and the beta ratio has a value of 0.42.
Take a closer look at the full list of the safest High-Yields. The average P/E ratio amounts to 19.71 and forward P/E ratio is 14.30. The dividend yield has a value of 8.25 percent. Price to book ratio is 2.85 and price to sales ratio 4.75. The operating margin amounts to 37.15 percent and the beta ratio is 0.36. Stocks from the list have an average debt to equity ratio of 3.0.
Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
TWO, AGNC, ARR, NLY, CYS, HTS, MFA, SPH, BWP, APU, CLMT, BPL, KMP, EPB,
LO, ETR, FE, MO, POM, SEP
Disclosure: I am long MO, LO. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.
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