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6 High Yield Stocks With Low Debt And Payout Ratio

Stocks With High Yields, Low Debt And Low Dividend Payout Ratio Researched By Dividend Yield - Stock, Capital, Investment. 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 fulfilledthese criteria of which two are recommended to buy.

Here are my favorite stocks:
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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.


Long-Term Stock History Chart Of USA Mobility Inc (Click to enlarge)
Long-Term Dividends History of USA Mobility Inc (USMO) (Click to enlarge)
Long-Term Dividend Yield History of USA Mobility Inc (NASDAQ: USMO) (Click to enlarge)


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).


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.


Long-Term Stock History Chart Of Deer Consumer Products... (Click to enlarge)
Long-Term Dividends History of Deer Consumer Products... (DEER) (Click to enlarge)
Long-Term Dividend Yield History of Deer Consumer Products... (NASDAQ: DEER) (Click to enlarge)


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.


Long-Term Stock History Chart Of Crown Crafts, Inc. (Click to enlarge)
Long-Term Dividends History of Crown Crafts, Inc. (CRWS) (Click to enlarge)
Long-Term Dividend Yield History of Crown Crafts, Inc. (NASDAQ: CRWS) (Click to enlarge)


Take a closer look at the full table of high yield stocks with low debt and payout ratios. The average price to earnings ratio (P/E ratio) amounts to 7.00. The dividend yield has a value of 6.87 percent. Price to book ratio is 1.81 and price to sales ratio 1.44. The operating margin amounts to 26.83 percent.

Here is the full table with some fundamentals (TTM):

6 High Yield Stocks With Low Debt And Payout Ratio (Click to enlarge)

Related stock ticker symbols:
AT, USMO, PSE, DEER, CRWS, HCII

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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.