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15 High Beta Dividend Stocks With Very Low Market Valuation

A high beta dividend share with very low forward P/E’s originally published at long-term-investments.blogspot.com. I often hear from others that they want to make quick and fast money. I can understand this wish from some investors. If you don’t have enough money for your investing goals, you need to speculate in order to get a higher amount of money in a very short time.

This is a very dangerous process. I’m a believer in slow growing dividend growth and I think that if you safe each month a bit, in the end you will definitely have a high amount of money. The stock market could help you to boost your money with a 5 to 10 percent return.

Speculation is not investing. It’s money gambling like casino or poker. Today I would like to introduce you some of the stocks with the highest sentiment on the market. I used the S&P 500 High Beta Index for the stock ideas. The index covers 100 stocks from the broad S&P 500 with the highest sensitivity to market movements over the past 12 months. The beta ratio is the main valuation driver.

Exactly 71 companies from the S&P 500 High Beta Index pay actual a dividend. I wanted to know which of them are really cheap for the time being. Because there are 52 stocks with a low forward P/E, I selected only those high beta stocks with a very low forward price ratio. 15 shares are valuated with a forward P/E of less than 10 and 13 of them are currently recommended to buy. You can find a list of the results below.

Here the highest yielding results:
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Freeport-McMoRan Copper & Gold (NYSE:FCX) has a market capitalization of $26.80 billion. The company employs 34,000 people, generates revenue of $18.010 billion and has a net income of $3.977 billion. Freeport-McMoRan Copper & Gold’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.927 billion. The EBITDA margin is 38.46 percent (the operating margin is 31.35 percent and the net profit margin 22.08 percent).

Financial Analysis: The total debt represents 9.95 percent of Freeport-McMoRan Copper & Gold’s assets and the total debt in relation to the equity amounts to 20.10 percent. Due to the financial situation, a return on equity of 18.33 percent was realized by Freeport-McMoRan Copper & Gold. Twelve trailing months earnings per share reached a value of $2.81. Last fiscal year, Freeport-McMoRan Copper & Gold paid $1.25 in the form of dividends to shareholders. Forward P/E: 8.55.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.03, the P/S ratio is 1.49 and the P/B ratio is finally 1.53. The dividend yield amounts to 4.43 percent and the beta ratio has a value of 1.99.

Long-Term Stock Price Chart Of Freeport-McMoRan Copper & Gold (FCX)
Long-Term Dividend Payment History of Freeport-McMoRan Copper & Gold (FCX)
Long-Term Dividend Yield History of Freeport-McMoRan Copper & Gold (FCX)

Seagate Technology (NASDAQ:STX) has a market capitalization of $14.81 billion. The company employs 57,900 people, generates revenue of $14.351 billion and has a net income of $1.838 billion. Seagate Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.966 billion. The EBITDA margin is 20.67 percent (the operating margin is 14.57 percent and the net profit margin 12.81 percent).

Financial Analysis: The total debt represents 30.04 percent of Seagate Technology’s assets and the total debt in relation to the equity amounts to 79.21 percent. Due to the financial situation, a return on equity of 52.49 percent was realized by Seagate Technology. Twelve trailing months earnings per share reached a value of $4.81. Last fiscal year, Seagate Technology paid $1.40 in the form of dividends to shareholders. Forward P/E: 7.04.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.57, the P/S ratio is 1.03 and the P/B ratio is finally 4.22. The dividend yield amounts to 3.68 percent and the beta ratio has a value of 2.43.

Long-Term Stock Price Chart Of Seagate Technology (STX)
Long-Term Dividend Payment History of Seagate Technology (STX)
Long-Term Dividend Yield History of Seagate Technology (STX)

ENSCO (NYSE:ESV) has a market capitalization of $13.44 billion. The company employs 9,000 people, generates revenue of $4.300 billion and has a net income of $1.222 billion. ENSCO’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.150 billion. The EBITDA margin is 50.01 percent (the operating margin is 36.39 percent and the net profit margin 28.42 percent).

Financial Analysis: The total debt represents 26.10 percent of ENSCO’s assets and the total debt in relation to the equity amounts to 40.91 percent. Due to the financial situation, a return on equity of 10.59 percent was realized by ENSCO. Twelve trailing months earnings per share reached a value of $5.40. Last fiscal year, ENSCO paid $1.50 in the form of dividends to shareholders. Forward P/E: 7.51.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.68, the P/S ratio is 3.12 and the P/B ratio is finally 1.13. The dividend yield amounts to 3.47 percent and the beta ratio has a value of 1.44.

Long-Term Stock Price Chart Of ENSCO (ESV)
Long-Term Dividend Payment History of ENSCO (ESV)
Long-Term Dividend Yield History of ENSCO (ESV)

Here is the performance review:

Performance of STX, FCX and ESV (Click to enlarge)

Take a closer look at the full list of the cheapest high beta stocks from the S&P High Beta index. The average P/E ratio amounts to 17.44 and forward P/E ratio is 8.52. The dividend yield has a value of 2.07 percent. Price to book ratio is 1.61 and price to sales ratio 1.25. The operating margin amounts to 18.41 percent and the beta ratio is 2.04. Stocks from the list have an average debt to equity ratio of 0.61. Below the results are many technology, financials and basic material stocks. These 3 sectors are full of high beta stocks with a very low valuation. But beware; the low valuation can also be an expression for a decreasing income that the market anticipates in the future.

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

15 High Beta Dividend Stocks (Click to enlarge)

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Related Stock Ticker Symbols:
FCX, STX, ESV, LYB, XRX, MET, PRU, BRCM, WDC, JOY, JBL, NE, HIG, LNC, C

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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.