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.