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11 Cheap Stocks With Unbelievable High Dividends

Stocks with very high yields and low price ratios originally published at "long-term-investments.blogspot.com". Some of my readers often ask themselves what are the highest yielding stocks at the market. When they read articles about the highest dividend paying shares they noticed Pitney Bowes, who is also a S&P 500 member, or Annaly Capital Management.

Both have a double digit yield at a higher market capitalization and investors of the early round have made their first money with these stocks. The market is still in doubt and I am too because I don’t like stocks with a very high yield and huge debt loads. I'm a believer of dividend growth and I like stocks with a yield between 1-2 percent much more when they increase them with a double-digit rate.


PBI has gained 44 percent over the recent quarter and has now a yield below the 10 percent mark but the P/E ratio is still in a single-digit range. Today I like to publish all higher capitalized dividend stocks (over $2 billion market capitalization) with a low P/E ratio (under 15). Eleven stocks fulfilled these criteria of which eight have a buy or better recommendation.


Here are my favorite stocks:
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ARMOUR Residential (NYSE:ARR) has a market capitalization of $2.38 billion. The company generates revenue of $308.85 million and has a net income of $222.31 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $222.28 million. The EBITDA margin is 71.97 percent (the operating margin is 71.97 percent and the net profit margin 71.98 percent).

Financial Analysis: The total debt represents 87.96 percent of the company’s assets and the total debt in relation to the equity amounts to 795.84 percent. Due to the financial situation, a return on equity of 15.02 percent was realized. Twelve trailing months earnings per share reached a value of $0.98. Last fiscal year, the company paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.51, the P/S ratio is 7.71 and the P/B ratio is finally 0.85. The dividend yield amounts to 13.19 percent and the beta ratio has a value of 0.20.


”Long-Term
Long-Term Stock History Chart Of ARMOUR Residential (ARR)
”Long-Term
Long-Term Dividends History of ARMOUR Residential (ARR)
”Long-Term
Long-Term Dividend Yield History of ARMOUR Residential (ARR)

Annaly Capital Management (NYSE:NLY) has a market capitalization of $14.83 billion. The company employs 147 people, generates revenue of $3.259 billion and has a net income of $1.735 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.198 billion. The EBITDA margin is 67.45 percent (the operating margin is 54.36 percent and the net profit margin 53.26 percent).

Financial Analysis: The total debt represents 78.99 percent of the company’s assets and the total debt in relation to the equity amounts to 662.00 percent. Due to the financial situation, a return on equity of 11.09 percent was realized. Twelve trailing months earnings per share reached a value of $1.70. Last fiscal year, the company paid $2.05 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.21, the P/S ratio is 4.55 and the P/B ratio is finally 0.99. The dividend yield amounts to 11.49 percent and the beta ratio has a value of 0.31.


”Long-Term
Long-Term Stock History Chart Of Annaly Capital Management (NLY)
”Long-Term
Long-Term Dividends History of Annaly Capital Management (NLY)
”Long-Term
Long-Term Dividend Yield History of Annaly Capital Management (NLY)

VimpelCom (NYSE:VIP) has a market capitalization of $24.15 billion. The company employs 65,950 people, generates revenue of $23.061 billion and has a net income of $1.982 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.177 billion. The EBITDA margin is 39.79 percent (the operating margin is 18.09 percent and the net profit margin 8.59 percent).

Financial Analysis: The total debt represents 46.88 percent of the company’s assets and the total debt in relation to the equity amounts to 174.56 percent. Due to the financial situation, a return on equity of 14.84 percent was realized. Twelve trailing months earnings per share reached a value of $1.32. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.92, the P/S ratio is 0.83 and the P/B ratio is finally 1.62. The dividend yield amounts to 6.80 percent and the beta ratio is not calculable.


”Long-Term
Long-Term Stock History Chart Of VimpelCom (VIP)
”Long-Term
Long-Term Dividends History of VimpelCom (VIP)
”Long-Term
Long-Term Dividend Yield History of VimpelCom (VIP)

Take a closer look at the full list of cheap stocks with 10+ percent yields. The average P/E ratio amounts to 7.94 and forward P/E ratio is 8.32. The dividend yield has a value of 15.13 percent. Price to book ratio is 1.10 and price to sales ratio 4.96. The operating margin amounts to 31.45 percent and the beta ratio is 0.39. Stocks from the list have an average debt to equity ratio of 3.99.

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

11 Cheap Stocks With Very High Yields (Click to enlarge)

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Related stock ticker symbols:
VIP, EBR, APO, TWO, AGNC, ARR, KKR, CYS, IVR,  NLY, HTS

Selected Articles:

* 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.


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