In order to find some interesting stocks with high
yields and low risk, I made a screen of high-yield stocks with a beta ratio below
one. The beta ratio is a statistical measure which represents the performance in
relation to the market. A ratio of less than one means that the stock is lower correlated
with the market. In down markets, the stock falls less than the market. In order
to reduce the risks from lower capitalized stocks, I selected only those with a
market capitalization above USD 10 billion. Twenty stocks remained of which three
have a double-digit yield and eight a current buy or better rating.
Here are my favorite stocks:
AstraZeneca (NYSE:AZN) has a market capitalization of $58.85 billion. The company employs 57,200 people, generates revenue of $33,591.00 million and has a net income of $10,016.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14,792.00 million. The EBITDA margin is 44.04 percent (operating margin 38.09 percent and net profit margin 29.82 percent).
Financial Analysis: The total debt represents 17.66 percent of the company’s assets and the total debt in relation to the equity amounts to 40.13 percent. Due to the financial situation, a return on equity of 42.98 percent was realized. Twelve trailing months earnings per share reached a value of $6.24. Last fiscal year, the company paid $2.80 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.58, P/S ratio 1.72 and P/B ratio 2.58. Dividend Yield: 6.13 percent. The beta ratio is 0.65.
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| Long-Term Stock History Chart Of AstraZeneca (Click to enlarge) |
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| Long-Term Dividends History of AstraZeneca (AZN) (Click to enlarge) |
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| Long-Term Dividend Yield History of AstraZeneca (NYSE: AZN) (Click to enlarge) |
National Grid (NYSE:NGG) has a market capitalization of $41.18 billion. The company employs 25,645 people, generates revenue of $22,225.44 million and has a net income of $3,274.68 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,617.90 million. The EBITDA margin is 34.28 percent (operating margin 25.08 percent and net profit margin 14.73 percent).
Financial Analysis: The total debt represents 48.64 percent of the company’s assets and the total debt in relation to the equity amounts to 249.22 percent. Due to the financial situation, a return on equity of 22.25 percent was realized. Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, the company paid $3.16 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.40, P/S ratio 1.83 and P/B ratio 2.79. Dividend Yield: 5.56 percent. The beta ratio is 0.62.
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| Long-Term Stock History Chart Of National Grid (Click to enlarge) |
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| Long-Term Dividends History of National Grid (NGG) (Click to enlarge) |
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| Long-Term Dividend Yield History of National Grid (NYSE: NGG) (Click to enlarge) |
Reynolds American (NYSE:RAI) has a market capitalization of $24.14 billion. The company employs 5,400 people, generates revenue of $8,541.00 million and has a net income of $1,406.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,537.00 million. The EBITDA margin is 29.70 percent (operating margin 28.09 percent and net profit margin 16.46 percent).
Financial Analysis: The total debt represents 22.54 percent of the company’s assets and the total debt in relation to the equity amounts to 58.60 percent. Due to the financial situation, a return on equity of 22.04 percent was realized. Twelve trailing months earnings per share reached a value of $2.52. Last fiscal year, the company paid $2.15 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.91, P/S ratio 2.81 and P/B ratio 3.91. Dividend Yield: 5.56 percent. The beta ratio is 0.55.
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| Long-Term Stock History Chart Of Reynolds American (Click to enlarge) |
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| Long-Term Dividends History of Reynolds American (RAI) (Click to enlarge) |
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| Long-Term Dividend Yield History of Reynolds American (NYSE: RAI) (Click to enlarge) |
Altria Group (NYSE:MO) has a market capitalization of $67.61 billion. The company employs 9,900 people, generates revenue of $23,800.00 million and has a net income of $3,393.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,321.00 million. The EBITDA margin is 26.56 percent (operating margin 25.50 percent and net profit margin 14.26 percent).
Financial Analysis: The total debt represents 37.04 percent of the company’s assets and the total debt in relation to the equity amounts to 371.98 percent. Due to the financial situation, a return on equity of 76.13 percent was realized. Twelve trailing months earnings per share reached a value of $2.16. Last fiscal year, the company paid $1.58 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.36, P/S ratio 2.83 and P/B ratio 18.43. Dividend Yield: 5.31 percent. The beta ratio is 0.39.
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| Long-Term Stock History Chart Of Altria Group (Click to enlarge) |
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| Long-Term Dividends History of Altria Group (MO) (Click to enlarge) |
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| Long-Term Dividend Yield History of Altria Group (NYSE: MO) (Click to enlarge) |
Take a closer look at the full table of high yields stocks with the lowest beta ratio. The average price to earnings
ratio (P/E ratio) amounts to 19.25 and forward P/E ratio is 14.57. The dividend
yield has a value of 7.11 percent. Price to book ratio is 3.12 and price to
sales ratio 2.52. The operating margin amounts to 21.44 percent and the beta
ratio is 0.63. The average stock has a debt to equity ratio of 2.20.
Here is the full table with
some fundamentals (TTM):
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| The Safest High Yield Large Caps (Click to enlarge) |
Related stock
ticker symbols:
NLY, KMP, MO,
CHT, LO, AGNC, EXC, RAI, NGG, AZN, ETP, CTL, FTE, VOD, BCE, CIG, ETE, CPL, SKM,
EC
Selected Articles:
* I am long MO, LO, AZN. 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.
