20 Stocks With Yields Over 10% And High Buy Ratings

 | Jan 17, 2013 05:52AM ET

I love stocks with high dividend yields but there are only a few with sustainable payments. I think about Altria (MO) or Lorillard (LO).

Each month, I made a regular screen of the stocks with the highest dividend yields. This month, I've zeroed in on the 20 most recommended stocks with double-digit dividend yields and a higher market capitalizations (over USD 300 million). There are 95 companies that fit this criteria, but only 35 have a buy or better recommendation. The REIT industry is still a big player on my screen with 6 representatives.

Northern Tier Energy (NTI) has a market capitalization of $2.34 billion. The company employs 2,667 people, generates revenue of $4.280 billion and has a net income of $28.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $452.10 million. The EBITDA margin is 10.56 percent (the operating margin is 9.87 percent and the net profit margin 0.66 percent).

Financial Analysis: The total debt represents 30.23 percent of the company’s assets and the total debt in relation to the equity amounts to 96.70 percent. Due to the financial situation, a return on equity of 9.48 percent was realized. Twelve trailing months earnings per share reached a value of $4.43. Last fiscal year, the company paid no dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.76, the P/S ratio is 0.55 and the P/B ratio is finally 7.51. The dividend yield amounts to 34.73 percent and the beta ratio is not calculable.