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17 High Yields With Additional Potential To Grow Dividends

High yielding stocks with low payout and debt ratios originally published at "long-term-investments.blogspot.com". Yesterday, I made a screen of Dividend Contenders with low long-term debt to equity ratios as well as slim payouts.

Today I like to widen the latest screen to High-Yields with a market capitalization over USD 300 million. Most of the high yielding stocks are full of debt. The only companies with a smaller amount of loans are such with a lower capitalization. The risks are much higher for those shares. I also needed to lower my screening guidance because of the small amount of results. These are my new criteria:

- Market Capitalization over USD 300 million
- Dividend Yield over 5 percent
- Long-term debt to equity above 0.6
- Payout ratio under 50 percent

Now, twelve stocks fulfill these criteria. Six of the results have a current buy or better rating.

Here are my favorite stocks:
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KKR Financial Holdings (NYSE:KFN) has a market capitalization of $2.16 billion. The company employs people, generates revenue of $555.47 million and has a net income of $348.23 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $214.98 million. The EBITDA margin is 38.70 percent (the operating margin is 62.07 percent and the net profit margin 62.69 percent).

Financial Analysis: The total debt represents 77.23 percent of the company’s assets and the total debt in relation to the equity amounts to 351.02 percent. Due to the financial situation, a return on equity of 19.75 percent was realized. Twelve trailing months earnings per share reached a value of $1.84. Last fiscal year, the company paid $0.86 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.74, the P/S ratio is 3.90 and the P/B ratio is finally 1.03. The dividend yield amounts to 7.95 percent and the beta ratio has a value of 2.59.


Long-Term Stock Price Chart Of KKR Financial Holdings (KFN)
Long-Term Dividend Payment History of KKR Financial Holdings (KFN)
Long-Term Dividend Yield History of KKR Financial Holdings (KFN)

Grupo Aeroportuario Centro Norte (NASDAQ:OMAB) has a market capitalization of $1.42 billion. The company employs 1,011 people, generates revenue of $222.63 million and has a net income of $49.17 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $86.25 million. The EBITDA margin is 38.74 percent (the operating margin is 32.95 percent and the net profit margin 22.08 percent).

Financial Analysis: The total debt represents 16.76 percent of the company’s assets and the total debt in relation to the equity amounts to 25.64 percent. Due to the financial situation, a return on equity of 10.31 percent was realized. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, the company paid $0.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.30, the P/S ratio is 5.46 and the P/B ratio is finally 2.89. The dividend yield amounts to 4.76 percent and the beta ratio has a value of 1.54.


Long-Term Stock Price Chart Of Grupo Aeroportuario Centro Norte (OMAB)
Long-Term Dividend Payment History of Grupo Aeroportuario Centro Norte (OMAB)
Long-Term Dividend Yield History of Grupo Aeroportuario Centro Norte (OMAB)

China Petroleum & Chemical (NYSE:SNP) has a market capitalization of $92.11 billion. The company employs 376,201 people, generates revenue of $454.411 billion and has a net income of $10.894 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27.767 billion. The EBITDA margin is 6.11 percent (the operating margin is 3.54 percent and the net profit margin 2.40 percent).

Financial Analysis: The total debt represents 21.95 percent of the company’s assets and the total debt in relation to the equity amounts to 54.43 percent. Due to the financial situation, a return on equity of 12.99 percent was realized. Twelve trailing months earnings per share reached a value of $11.54. Last fiscal year, the company paid $4.89 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.19, the P/S ratio is 0.21 and the P/B ratio is finally 1.11. The dividend yield amounts to 4.53 percent and the beta ratio has a value of 0.87.


Long-Term Stock Price Chart Of China Petroleum & Chemical (SNP)
Long-Term Dividend Payment History of China Petroleum & Chemical (SNP)
Long-Term Dividend Yield History of China Petroleum & Chemical (SNP)

Take a closer look at the full list of High-Yields with additional potential to hike future payouts. The average P/E ratio amounts to 8.55 and forward P/E ratio is 11.04. The dividend yield has a value of 8.16 percent. Price to book ratio is 1.33 and price to sales ratio 3.90. The operating margin amounts to 38.76 percent and the beta ratio is 1.35. Stocks from the list have an average debt to equity ratio of 1.33.


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

High-Yields With Payout Potential (Click to enlarge)

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Related stock ticker symbols:
AMTG, AI, OMAB, NDRO, AT, KFN, NTE, PRIM, MAIN, TEO, SNP, FLY

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.