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20 Stocks With Yields Over 10% And Highest Buy Ratings

Most recommended stocks with very high yields originally published at "long-term-investments.blogspot.com". I love stocks with high dividend yields but there are only a few with sustainable payments. I think about Altria or Lorillard. Other stocks have a huge potential for a dividend cut, also if they are a Dividend Champion or a stock with a very long dividend growth history. I made this investment mistake with Avon Products. The company was highly leveraged and became some operations problems. Finally they reduced the dividend dramatically.

Most of the people need stocks with very high yields. I don’t because my private wealth is high enough to catch the dividend payments and live off it. In the past, I often thought it would be the only solution to put all my money into the highest yielding stocks with the most attractive fundamentals. This strategy failed and I lost much money within the closed-end shipping industry. That was a big mistake from which I learned and I like to share this with you.


Please don’t put all your money into one stock or make a single bet on a high-yield stock. This is very risky. That’s all I can say. Make a good research and try to avoid an overweighting of a stock or asset theme.


Each month, I made a regular screen about the stocks with the highest dividend yields because I believe there is a lot of value information in it for my readers. This month, I like to show you the 20 most recommended stocks with a double-digit dividend yield and a higher market capitalization (over USD 300 million). Out there are 95 companies with a very high yield but only 35 have a buy or better recommendation. The REIT industry is still a big player on my screen with 6 representatives.



Here are the 3 biggest stocks from the screen:
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Northern Tier Energy (NYSE:NTI) has a market capitalization of $2.34 billion. The company employs 2,667 people, generates revenue of $4.280 billion and has a net income of $28.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $452.10 million. The EBITDA margin is 10.56 percent (the operating margin is 9.87 percent and the net profit margin 0.66 percent).

Financial Analysis: The total debt represents 30.23 percent of the company’s assets and the total debt in relation to the equity amounts to 96.70 percent. Due to the financial situation, a return on equity of 9.48 percent was realized. Twelve trailing months earnings per share reached a value of $4.43. Last fiscal year, the company paid no dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.76, the P/S ratio is 0.55 and the P/B ratio is finally 7.51. The dividend yield amounts to 34.73 percent and the beta ratio is not calculable.


”Long-Term
Long-Term Stock History Chart Of Northern Tier Energy (NTI)
”Long-Term
Long-Term Dividends History of Northern Tier Energy (NTI)
”Long-Term
Long-Term Dividend Yield History of Northern Tier Energy (NTI)

Companhia Energetica de Minas Gerais (NYSE:CIG) has a market capitalization of $9.43 billion. The company employs 8,706 people, generates revenue of $7.743 billion and has a net income of $1.182 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.620 billion. The EBITDA margin is 33.84 percent (the operating margin is 27.91 percent and the net profit margin 15.26 percent).

Financial Analysis: The total debt represents 42.24 percent of the company’s assets and the total debt in relation to the equity amounts to 134.35 percent. Due to the financial situation, a return on equity of 20.79 percent was realized. Twelve trailing months earnings per share reached a value of $1.93. Last fiscal year, the company paid $0.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.73, the P/S ratio is 1.20 and the P/B ratio is finally 1.64. The dividend yield amounts to 22.15 percent and the beta ratio has a value of 0.74.


”Long-Term
Long-Term Stock History Chart Of Companhia Energetica de Minas Gerais (CIG)
”Long-Term
Long-Term Dividends History of Companhia Energetica de Minas Gerais (CIG)
”Long-Term
Long-Term Dividend Yield History of Companhia Energetica de Minas Gerais (CIG)

American Capital Mortgage Investment (NASDAQ:AGNC) has a market capitalization of $10.63 billion. The company generates revenue of $1.108 billion and has a net income of $770.48 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $750.34 million. The EBITDA margin is 67.67 percent (the operating margin is 70.04 percent and the net profit margin 69.48 percent).

Financial Analysis: The total debt represents 83.81 percent of the company’s assets and the total debt in relation to the equity amounts to 782.19 percent. Due to the financial situation, a return on equity of 19.80 percent was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $5.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.29, the P/S ratio is 9.59 and the P/B ratio is finally 1.12. The dividend yield amounts to 16.07 percent and the beta ratio has a value of 0.42.


”Long-Term
Long-Term Stock History Chart Of American Capital Mortgage Investment (AGNC)
”Long-Term
Long-Term Dividends History of American Capital Mortgage Investment (AGNC)
”Long-Term
Long-Term Dividend Yield History of American Capital Mortgage Investment (AGNC)


Take a closer look at the full list of very high yielding stocks with the highest buy ratings. The average P/E ratio amounts to 8.59 and forward P/E ratio is 8.85. The dividend yield has a value of 14.12 percent. Price to book ratio is 1.70 and price to sales ratio 6.05. The operating margin amounts to 52.40 percent and the beta ratio is 0.74. Stocks from the list have an average debt to equity ratio of 2.83.

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

20 Highly Recommended Stocks With Very High Yields (Click to enlarge)

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Related stock ticker symbols:
NTI, XRS, WMC, NYMT, AGNC, MTGE, ARR, SDR, AMTG, CYS, CIG, DX, HCLP, EFC, TICC, QRE, MEMP, LRE, NRP, PNNT

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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.