6 High Yield Stocks With Low Debt And Payout Ratio
Dividend Yield | May 08, 2012 03:58AM ET
Stocks with high yields are sometimes risky because they pay dividends in a not sustainable way. A necessary requirement to reduce risks of dividend cuts is the fundamental basis; the company should have low payout ratios and low debt ratios.
In order to find the best high yield stocks with low debt and payout ratios, I screened the market by stocks with a yield over five percent, a debt to equity ratio of less than 0.3 and a payout ratio below 50 percent. Six companies fulfilled these criteria, of which two are recommended to buy.
USA Mobility (NASDAQ:USMO) has a market capitalization of $284.09 million. The company employs 1,375 people, generates revenues of $242.91 million and has a net income of $88.64 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $84.27 million. Because of these figures, the EBITDA margin is 34.69 percent (operating margin 24.56 percent and the net profit margin finally 36.49 percent).
Financial Analysis: The total debt representing 8.07 percent of the company’s assets and the total debt in relation to the equity amounts to 11.19 percent. Due to the financial situation, a return on equity of 40.58 percent was realized. Twelve trailing months earnings per share reached a value of $2.50. Last fiscal year, the company paid $1.00 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.14, P/S ratio 1.17 and P/B ratio 1.12. Dividend Yield: 7.79 percent. The beta ratio is 0.77.
Deer Consumer Products (NASDAQ:DEER) has a market capitalization of $102.79 million. The company employs 890 people, generates revenues of $226.75 million and has a net income of $39.81 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51.19 million. Because of these figures, the EBITDA margin is 22.58 percent (operating margin 21.27 percent and the net profit margin finally 17.55 percent).
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Financial Analysis: The total debt representing 0.34 percent of the company’s assets and the total debt in relation to the equity amounts to 0.37 percent. Due to the financial situation, a return on equity of 24.19 percent was realized. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, the company paid $0.20 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 2.58, P/S ratio 0.47 and P/B ratio 0.57. Dividend Yield: 6.31 percent. The beta ratio is 3.18.
Crown Crafts (NASDAQ:CRWS) has a market capitalization of $53.70 million. The company employs 157 people, generates revenues of $89.97 million and has a net income of $4.40 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.11 million. Because of these figures, the EBITDA margin is 10.13 percent (operating margin 8.48 percent and the net profit margin finally 4.89 percent).
Financial Analysis: The total debt representing 13.76 percent of the company’s assets and the total debt in relation to the equity amounts to 20.03 percent. Due to the financial situation, a return on equity of 14.95 percent was realized. Twelve trailing months earnings per share reached a value of $0.49. Last fiscal year, the company paid $0.09 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.24, P/S ratio 0.60 and P/B ratio 1.71. Dividend Yield: 5.71 percent. The beta ratio is 0.55.
Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
AT, USMO, PSE, DEER, CRWS, HCII
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