Bookmark and Share

5 Higher Yielding Financial Stocks With Low Debt Figures

Dividends are a powerful income source if you use it wisely. I personally prefer stocks with solid growth potential but don't like to overpay a stock.

But as investor with a small pocket and a high desire of big yielding stocks, I also need to look at companies with yields far above the 5 percent mark. 

Today I've discovered some stock ideas from the financial sector. I know, it’s not the best place to hunt for opportunities because the assets are often strange in terms of asset volatility. In addition, the financial sector often life from interest arbitrage, a risky and low margin business (in a market with full information). However, you can find a compilation about financial stocks with high yields and "normal" debt ratios beow.

These are my criteria:

Market cap is greater than Over 100 million.
Dividend yield is greater than 8.5%.
The payout ratio is less than 100%.
Total debt to equity is less than 1.00.

Five higher yielding stocks from the financial sector fulfilled these criteria. The most of the results are low capitalized.

5 High-Yielding financial stocks with lower debt ratios....

TICC Capital (NASDAQ:TICC) has a market capitalization of $554.59 million. The company generates revenue of $71.17 million and has a net income of $68.32 million. TICC Capital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $37.18 million. The EBITDA margin is 52.23 percent (the operating margin is 52.23 percent and the net profit margin 95.99 percent).

Financial Analysis: The total debt represents 43.69 percent of TICC Capital’s assets and the total debt in relation to the equity amounts to 80.65 percent. Due to the financial situation, a return on equity of 19.12 percent was realized by TICC Capital. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, TICC Capital paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.40, the P/S ratio is 7.79 and the P/B ratio is finally 1.05. The dividend yield amounts to 11.15 percent and the beta ratio has a value of 0.86.


Long-Term Stock Price Chart Of TICC Capital (TICC)
Long-Term Dividend Payment History of TICC Capital (TICC)
Long-Term Dividend Yield History of TICC Capital (TICC)

PennantPark Investment (NASDAQ:PNNT) has a market capitalization of $781.26 million. The company generates revenue of $129.19 million and has a net income of $91.78 million. PennantPark Investment’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $66.94 million. The EBITDA margin is 51.82 percent (the operating margin is 51.82 percent and the net profit margin 71.04 percent).

Financial Analysis: The total debt represents 31.55 percent of PennantPark Investment’s assets and the total debt in relation to the equity amounts to 52.17 percent. Due to the financial situation, a return on equity of 13.43 percent was realized by PennantPark Investment. Twelve trailing months earnings per share reached a value of $1.38. Last fiscal year, PennantPark Investment paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.49, the P/S ratio is 6.05 and the P/B ratio is finally 1.12. The dividend yield amounts to 9.54 percent and the beta ratio has a value of 1.48.


Long-Term Stock Price Chart Of PennantPark Investment (PNNT)
Long-Term Dividend Payment History of PennantPark Investment (PNNT)
Long-Term Dividend Yield History of PennantPark Investment (PNNT)

Gladstone Investment (NASDAQ:GAIN) has a market capitalization of $205.45 million. The company generates revenue of $30.54 million and has a net income of $17.28 million. Gladstone Investment’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $21.26 million. The EBITDA margin is 69.61 percent (the operating margin is 53.99 percent and the net profit margin 56.58 percent).

Financial Analysis: The total debt represents 35.51 percent of Gladstone Investment’s assets and the total debt in relation to the equity amounts to 55.97 percent. Due to the financial situation, a return on equity of 7.71 percent was realized by Gladstone Investment. Twelve trailing months earnings per share reached a value of $0.56. Last fiscal year, Gladstone Investment paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.93, the P/S ratio is 6.73 and the P/B ratio is finally 0.85. The dividend yield amounts to 9.28 percent and the beta ratio has a value of 0.71.


Long-Term Stock Price Chart Of Gladstone Investment (GAIN)
Long-Term Dividend Payment History of Gladstone Investment (GAIN)
Long-Term Dividend Yield History of Gladstone Investment (GAIN)

New Mountain Finacial (NYSE:NMFC) has a market capitalization of $674.24 million. The company generates revenue of $37.51 million and has a net income of $31.88 million. New Mountain Finacial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.29 million. The EBITDA margin is 64.75 percent (the operating margin is 84.99 percent and the net profit margin 84.99 percent).

Financial Analysis: The total debt represents 0.00 percent of New Mountain Finacial’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 13.04 percent was realized by New Mountain Finacial. Twelve trailing months earnings per share reached a value of $1.47. Last fiscal year, New Mountain Finacial paid $1.71 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.12, the P/S ratio is 17.97 and the P/B ratio is finally 1.06. The dividend yield amounts to 9.11 percent and the beta ratio is not calculable.


Long-Term Stock Price Chart Of New Mountain Finacial (NMFC)
Long-Term Dividend Payment History of New Mountain Finacial (NMFC)
Long-Term Dividend Yield History of New Mountain Finacial (NMFC)

Ares Capital (NASDAQ:ARCC) has a market capitalization of $4.93 billion. The company employs 560 people, generates revenue of $748.02 million and has a net income of $508.18 million. Ares Capital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $503.84 million. The EBITDA margin is 67.36 percent (the operating margin is 47.77 percent and the net profit margin 67.94 percent).

Financial Analysis: The total debt represents 34.30 percent of Ares Capital’s assets and the total debt in relation to the equity amounts to 55.06 percent. Due to the financial situation, a return on equity of 14.24 percent was realized by Ares Capital. Twelve trailing months earnings per share reached a value of $2.07. Last fiscal year, Ares Capital paid $1.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.46, the P/S ratio is 6.59 and the P/B ratio is finally 1.09. The dividend yield amounts to 8.68 percent and the beta ratio has a value of 1.64.


Long-Term Stock Price Chart Of Ares Capital (ARCC)
Long-Term Dividend Payment History of Ares Capital (ARCC)
Long-Term Dividend Yield History of Ares Capital (ARCC)
-----------

*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.

2 comments:

  1. What Do you think about Prospect Capital?

    ReplyDelete
  2. It's not the kind of dividend growth stock that I would prefer...

    ReplyDelete

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.