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12 Stocks With Dividend Yields Over 10% And Low Forward P/E’s

Cheaply valuated shares with very high dividend yields originally published at long-term-investments.blogspot.com. Today I would like to show you some of the highest yielding stocks on the market with low earnings multiples. I choose stocks with a dividend yield of more than 10% with a forward P/E of less than 15. In order to eliminate the lower capitalized companies who have definitely a higher risk, I need to look at companies with a market cap over $2 billion.

Only twelve shares on the market met these restrictions. I believe that a high dividend yield will help investors to get a quick cash return and should boost the passive income but it’s also very dangerous to buy those stocks. Most of the high yielders come from the Financial or REIT sector. Most of them are highly loaded with debt and they are no long-term dividend growers like Procter and Coca Cola.


Six of the twelve results have a current buy or better rating. The yields are between 11.38 percent and 20.32 percent.


Here are the biggest stocks from the screener:
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VimpelCom (NASDAQ:VIP) has a market capitalization of $23.01 billion. The company employs 58,184 people, generates revenue of $23.061 billion and has a net income of $1.982 billion. VimpelCom’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.768 billion. The EBITDA margin is 42.36 percent (the operating margin is 18.09 percent and the net profit margin 8.59 percent).


Financial Analysis: The total debt represents 46.94 percent of VimpelCom’s assets and the total debt in relation to the equity amounts to 180.35 percent. Due to the financial situation, a return on equity of 15.17 percent was realized by VimpelCom. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, VimpelCom paid $0.80 in the form of dividends to shareholders. Forward P/E: 8.54.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.96, the P/S ratio is 0.85 and the P/B ratio is finally 1.27. The dividend yield amounts to 12.49 percent and the beta ratio has a value of 1.23.

Long-Term Stock Price Chart Of VimpelCom (VIP)
Long-Term Dividend Payment History of VimpelCom (VIP)
Long-Term Dividend Yield History of VimpelCom (VIP)

Annaly Capital Management (NYSE:NLY) has a market capitalization of $11.74 billion. The company employs 147 people, generates revenue of $3.259 billion and has a net income of $1.735 billion. Annaly Capital Management’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.360 billion. The EBITDA margin is 72.43 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 Annaly Capital Management’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 by Annaly Capital Management. Twelve trailing months earnings per share reached a value of $3.39. Last fiscal year, Annaly Capital Management paid $2.05 in the form of dividends to shareholders. Forward P/E: 8.66.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 3.52, the P/S ratio is 3.46 and the P/B ratio is finally 0.75. The dividend yield amounts to 13.42 percent and the beta ratio has a value of 0.17.

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

American Capital Agency (NASDAQ:AGNC) has a market capitalization of $9.39 billion. The company generates revenue of $2.109 billion and has a net income of $1.277 billion. American Capital Agency’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.453 billion. The EBITDA margin is 68.90 percent (the operating margin is 61.45 percent and the net profit margin 60.55 percent).

Financial Analysis: The total debt represents 76.33 percent of American Capital Agency’s assets and the total debt in relation to the equity amounts to 703.74 percent. Due to the financial situation, a return on equity of 14.96 percent was realized by American Capital Agency. Twelve trailing months earnings per share reached a value of $7.87. Last fiscal year, American Capital Agency paid $5.00 in the form of dividends to shareholders. Forward P/E: 6.81.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 2.96, the P/S ratio is 4.38 and the P/B ratio is finally 0.74. The dividend yield amounts to 18.03 percent and the beta ratio has a value of 0.29.

Long-Term Stock Price Chart Of American Capital Agency (AGNC)
Long-Term Dividend Payment History of American Capital Agency (AGNC)
Long-Term Dividend Yield History of American Capital Agency (AGNC)

Take a closer look at the full list of stocks with yields over 10 percent and low forward P/Es. The average P/E ratio amounts to 11.56 and forward P/E ratio is 8.62. The dividend yield has a value of 13.79 percent. Price to book ratio is 2.66 and price to sales ratio 8.24. The operating margin amounts to 54.02 percent and the beta ratio is 0.61. Stocks from the list have an average debt to equity ratio of 3.06.

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

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

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Related Stock Ticker Symbols:
CVRR, AGNC, IVR, OIBR, NLY, TWO, VIP, CIM, MFA, PSEC, OAK, NRP

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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.