9 Consumer Dividend Stocks With Highest Float Short Ratio

 | Jun 14, 2012 04:22AM ET

The consumer sector is a major part of the economy with cyclic and non-cyclic roots.

There are 407 companies linked to the sector with a total market capitalization of USD 144.8 trillion. The average sector yield amounts to 2.71 percent and the average P/E ratio is 21.81. The highest dividend paying industries are Cigarettes and Toys & Games.

I screened the sector by dividend stocks with the highest amount of short selling stocks, measured by the float short ratio. The ratio shows how many stocks are shorted by investors. Companies with a high ratio of float short have a little upside potential if investors need to close their short position. Nine dividend stocks from the consumer goods sector have a float short ratio of more than 15 percent.

Sturm, Ruger & Co. (NYSE:RGR) has a market capitalization of $681.40 million. The company employs 1,224 people, generates revenues of $328.82 million and has a net income of $40.02 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $74.76 million. Because of these figures, the EBITDA margin is 22.74 percent (operating margin 18.98 percent and the net profit margin finally 12.17 percent).

Financial Analysis: The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 31.77 percent was realized. Twelve trailing months earnings per share reached a value of $2.45. Last fiscal year, the company paid $0.43 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.50, P/S ratio 2.13 and P/B ratio 5.08. Dividend Yield: 2.24 percent. The beta ratio is 0.34.