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15 High Yields With The Lowest Dividend Payout Ratios

High Yields with dividend payouts of less than 50 percent and room to boost future dividends originally published at long-term-investments.blogspot.com. If you have only small amounts of money available for investing, you need a higher yield. I do know this problem but I always remember that higher dividend yields are also equally with a higher risk.

Today I would like to screen all higher yielding stocks with a dividend yield over 5 percent and a market capitalization above the 2 billion mark by its payout ratios. I’m hunting for opportunities that pay less than 50 percent of its earnings. I believe that there should be more room for a small dividend hike if earnings are not cyclic and grow over the time.

Fifteen high yielding stocks fulfilled these criteria of which eleven are currently recommended to buy.

Here are the biggest stocks:
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BP (NYSE:BP) has a market capitalization of $133.97 billion. The company employs 85,700 people, generates revenue of $388.285 billion and has a net income of $11.816 billion. BP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39.891 billion. The EBITDA margin is 10.27 percent (the operating margin is 5.08 percent and the net profit margin 3.04 percent).

Financial Analysis: The total debt represents 16.26 percent of BP’s assets and the total debt in relation to the equity amounts to 41.21 percent. Due to the financial situation, a return on equity of 10.07 percent was realized by BP. Twelve trailing months earnings per share reached a value of $8.07. Last fiscal year, BP paid $1.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.28, the P/S ratio is 0.35 and the P/B ratio is finally 1.15. The dividend yield amounts to 5.07 percent and the beta ratio has a value of 1.48.

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

Westpac Banking (NYSE:WBK) has a market capitalization of $98.17 billion. The company employs 36,000 people, generates revenue of $35.217 billion and has a net income of $5.764 billion. Westpac Banking’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18.570 billion. The EBITDA margin is 108.12 percent (the operating margin is 49.28 percent and the net profit margin 33.57 percent).

Financial Analysis: The total debt represents 25.40 percent of Westpac Banking’s assets and the total debt in relation to the equity amounts to 387.48 percent. Due to the financial situation, a return on equity of 13.85 percent was realized by Westpac Banking. Twelve trailing months earnings per share reached a value of $1.91. Last fiscal year, Westpac Banking paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.66, the P/S ratio is 5.74 and the P/B ratio is finally 2.31. The dividend yield amounts to 5.51 percent and the beta ratio has a value of 1.47.

Long-Term Stock Price Chart Of Westpac Banking (WBK)
Long-Term Dividend Payment History of Westpac Banking (WBK)
Long-Term Dividend Yield History of Westpac Banking (WBK)

Honda Motor (NYSE:HMC) has a market capitalization of $72.00 billion. The company employs 190,338 people, generates revenue of $100.019 billion and has a net income of $3.138 billion. Honda Motor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.495 billion. The EBITDA margin is 11.49 percent (the operating margin is 5.52 percent and the net profit margin 3.14 percent).

Financial Analysis: The total debt represents 35.89 percent of Honda Motor’s assets and the total debt in relation to the equity amounts to 97.16 percent. Due to the financial situation, a return on equity of 7.79 percent was realized by Honda Motor. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, Honda Motor paid $0.77 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.75, the P/S ratio is 0.72 and the P/B ratio is finally 1.41. The dividend yield amounts to 0.99 percent and the beta ratio has a value of 0.81.

Long-Term Stock Price Chart Of Honda Motor (HMC)
Long-Term Dividend Payment History of Honda Motor (HMC)
Long-Term Dividend Yield History of Honda Motor (HMC)

Take a closer look at the full list of High-Yields with low dividend payouts. The average P/E ratio amounts to 10.34 and forward P/E ratio is 20.84. The dividend yield has a value of 5.86 percent. Price to book ratio is 2.06 and price to sales ratio 9.15. The operating margin amounts to 26.96 percent and the beta ratio is 1.31. Stocks from the list have an average debt to equity ratio of 1.12.

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

High-Yields With Lowest Payouts (Click to enlarge)

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Related Stock Ticker Symbols:
KFN, CVI, KYN, SKM, NGG, WBK, SMFG, SIX, HTA, LXP, CXW, BP, YZC, GLNG, HMC

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*I am long CA. 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.