The higher the yield of a stock, the less capital
you need for an acceptable return. But High-Yields often have the problem that
they are not sustainable, especially when the market capitalization is low and
the debt high.
We’ve seen this problem with Pitney Bowes, a
very popular Dividend Aristocrat who yielded for months over 10 percent until
they decided to reduce the dividend distributions by a half. For sure, they still pay a good
dividend but your passive income is now significant lower.
Today I like to show you the highest yielding stocks from the S&P 500 with their current ratings. Only 13 companies
survived the strong market gain since the beginning of the year. Last year, the
number of High-Yields within the popular index was over 20!
Below the top results are many telecom service
companies as well as electric utilities. Five of the results have a current buy
or better rating.
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The Goodyear Tire & Rubber (NASDAQ:GT) has a market capitalization of $3.91 billion. The company employs 69,000 people, generates revenue of $20.992 billion and has a net income of $237.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.664 billion. The EBITDA margin is 7.93 percent (the operating margin is 2.10 percent and the net profit margin 1.13 percent).
Financial Analysis: The total debt represents 29.97 percent of the company’s assets. Due to the financial situation, a return on equity of 307.56 percent was realized. Twelve trailing months earnings per share reached a value of $0.82. For the fiscal year, the company should paid $2.94 in the form of dividends to shareholders of the mandatory convertible preferred stock.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.68, the P/S ratio is 0.18 and the P/B ratio is finally not calculable. The dividend yield amounts to 19.20 percent and the beta ratio has a value of 2.64.
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| Long-Term Stock Price Chart Of The Goodyear Tire & Rubber (GT) |
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| Long-Term Dividend Payment History of The Goodyear Tire & Rubber (GT) |
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| Long-Term Dividend Yield History of The Goodyear Tire & Rubber (GT) |
Windstream (NASDAQ:WIN) has a market capitalization of $4.93 billion. The company employs 13,787 people, generates revenue of $6.156 billion and has a net income of $168.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.277 billion. The EBITDA margin is 37.00 percent (the operating margin is 14.45 percent and the net profit margin 2.74 percent).
Financial Analysis: The total debt represents 64.34 percent of the company’s assets and the total debt in relation to the equity amounts to 814.31 percent. Due to the financial situation, a return on equity of 12.70 percent was realized. Twelve trailing months earnings per share reached a value of $0.27. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.99, the P/S ratio is 0.80 and the P/B ratio is finally 4.42. The dividend yield amounts to 12.03 percent and the beta ratio has a value of 0.89.
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| Long-Term Stock Price Chart Of Windstream (WIN) |
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| Long-Term Dividend Payment History of Windstream (WIN) |
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| Long-Term Dividend Yield History of Windstream (WIN) |
Frontier Communications (NASDAQ:FTR) has a market capitalization of $4.21 billion. The company employs 14,400 people, generates revenue of $5.011 billion and has a net income of $153.31 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.367 billion. The EBITDA margin is 47.24 percent (the operating margin is 18.07 percent and the net profit margin 3.06 percent).
Financial Analysis: The total debt represents 50.43 percent of the company’s assets and the total debt in relation to the equity amounts to 217.71 percent. Due to the financial situation, a return on equity of 3.12 percent was realized. Twelve trailing months earnings per share reached a value of $0.16. Last fiscal year, the company paid $0.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.96, the P/S ratio is 0.84 and the P/B ratio is finally 1.03. The dividend yield amounts to 9.48 percent and the beta ratio has a value of 0.77.
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| Long-Term Stock Price Chart Of Frontier Communications (FTR) |
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| Long-Term Dividend Payment History of Frontier Communications (FTR) |
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| Long-Term Dividend Yield History of Frontier Communications (FTR) |
Take a closer look at the full list of the highest yielding stocks from the S&P 500 with buy or better rating. The average P/E ratio amounts to 19.50
and forward P/E ratio is 13.43. The dividend yield has a value of 7.20 percent.
Price to book ratio is 2.18 and price to sales ratio 1.41. The operating margin
amounts to 18.73 percent and the beta ratio is 0.85. Stocks from the list have
an average debt to equity ratio of 2.0.
Here is the full table with
some fundamentals (TTM):
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| S&P 500 High Yields (Click to enlarge) |
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Related stock
ticker symbols:
GT, WIN, FTR, CTL, FE, GRMN, POM, RAI,
PBI, TE, PPL, LO, T
Selected Articles:
*I am long LO. I receive no
compensation to write about these specific stocks, sector or theme. I don't
plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: 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.