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5 Higher Yielding Growth Picks With Acceptable Price Ratios

I've recently published an article about stocks that combined dividends and growth. The article introduced five picks with attractive fundamentals but the yield ratios were really low.

Today I would like to fix this lack by showing you some higher yielding stocks with great earnings growth forecasts. 


In addition, the valuation could not be cheap because of the higher growth rates but they should be acceptable. These are my criteria in detail:

- Dividend Yield - Over 4%
- Payout Ratio - Under 100%
- Sales growth Past 5 years - Over 10%
- EPS growth Past 5 years - Over 10%
- EPS growth next 5 years - Over 10%
- Trailing P/E - Under 25
- Forward P/E - Under 20

5 Top Growth Picks With Acceptable Earnings Multiples

Seadrill (NYSE:SDRL) has a market capitalization of $19.35 billion. The company employs 8,700 people, generates revenue of $4.478 billion and has a net income of $1.205 billion. Seadrill’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.406 billion. The EBITDA margin is 53.73 percent (the operating margin is 40.00 percent and the net profit margin 26.91 percent).

Financial Analysis: The total debt represents 60.24 percent of Seadrill’s assets and the total debt in relation to the equity amounts to 214.92 percent. Due to the financial situation, a return on equity of 19.30 percent was realized by Seadrill. Twelve trailing months earnings per share reached a value of $4.74. Last fiscal year, Seadrill paid $3.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.70, the P/S ratio is 4.30 and the P/B ratio is finally 3.52. The dividend yield amounts to 9.19 percent and the beta ratio has a value of 1.59.

Long-Term Stock Price Chart Of Seadrill (SDRL)
Long-Term Dividend Payment History of Seadrill (SDRL)
Long-Term Dividend Yield History of Seadrill (SDRL)

Alliance Resources (NASDAQ:ARLP) has a market capitalization of $2.80 billion. The company employs 4,345 people, generates revenue of $2.03 billion and has a net income of $335.57 million. Alliance Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $611.63 million. The EBITDA margin is 30.07 percent (the operating margin is 18.41 percent and the net profit margin 16.50 percent).

Financial Analysis: The total debt represents 41.44 percent of Alliance Resources’s assets and the total debt in relation to the equity amounts to 114.91 percent. Due to the financial situation, a return on equity of 23.99 percent was realized by Alliance Resources. Twelve trailing months earnings per share reached a value of $7.28. Last fiscal year, Alliance Resources paid $4.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.39, the P/S ratio is 1.37 and the P/B ratio is finally 2.85. The dividend yield amounts to 6.22 percent and the beta ratio has a value of 0.86.

Long-Term Stock Price Chart Of Alliance Resources (ARLP)
Long-Term Dividend Payment History of Alliance Resources (ARLP)
Long-Term Dividend Yield History of Alliance Resources (ARLP)

Seaspan (NYSE:SSW) has a market capitalization of $1.41 billion. The company employs 2,500 people, generates revenue of $660.79 million and has a net income of $121.30 million. Seaspan’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $494.38 million. The EBITDA margin is 74.82 percent (the operating margin is 51.24 percent and the net profit margin 18.36 percent).

Financial Analysis: The total debt represents 55.38 percent of Seaspan’s assets and the total debt in relation to the equity amounts to 256.82 percent. Due to the financial situation, a return on equity of 4.39 percent was realized by Seaspan. Twelve trailing months earnings per share reached a value of $2.51. Last fiscal year, Seaspan paid $0.94 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.72, the P/S ratio is 2.30 and the P/B ratio is finally 1.13. The dividend yield amounts to 5.71 percent and the beta ratio has a value of 0.76.

Long-Term Stock Price Chart Of Seaspan (SSW)
Long-Term Dividend Payment History of Seaspan (SSW)
Long-Term Dividend Yield History of Seaspan (SSW)

Oritani Financial (NASDAQ:ORIT) has a market capitalization of $719.92 million. The company employs 164 people, generates revenue of $127.23 million and has a net income of $39.54 million. Oritani Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $83.77 million. The EBITDA margin is 81.14 percent (the operating margin is 59.59 percent and the net profit margin 38.30 percent).

Financial Analysis: The total debt represents 0.25 percent of Oritani Financial’s assets and the total debt in relation to the equity amounts to 1.38 percent. Due to the financial situation, a return on equity of 7.68 percent was realized by Oritani Financial. Twelve trailing months earnings per share reached a value of $0.94. Last fiscal year, Oritani Financial paid $0.65 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.73, the P/S ratio is 6.99 and the P/B ratio is finally 1.38. The dividend yield amounts to 4.43 percent and the beta ratio has a value of 0.92.

Long-Term Stock Price Chart Of Oritani Financial (ORIT)
Long-Term Dividend Payment History of Oritani Financial (ORIT)
Long-Term Dividend Yield History of Oritani Financial (ORIT)

Lorillard (NYSE:LO) has a market capitalization of $18.64 billion. The company employs 2,900 people, generates revenue of $6,623.00 million and has a net income of $1,099.00 million. Lorillard’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,077.00 million. The EBITDA margin is 31.36 percent (the operating margin is 28.36 percent and the net profit margin 16.59 percent).

Financial Analysis: The total debt represents 91.61 percent of Lorillard’s assets. Twelve trailing months earnings per share reached a value of $3.20. Last fiscal year, Lorillard paid $2.07 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.80, the P/S ratio is 2.83 and the P/B ratio is finally not calculable due to a negative equity base. The dividend yield amounts to 4.32 percent and the beta ratio has a value of 0.37.

Long-Term Stock Price Chart Of Lorillard (LO)
Long-Term Dividend Payment History of Lorillard (LO)
Long-Term Dividend Yield History of Lorillard (LO)
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*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.