One of the nice thing about dividend payments is that, generally speaking, only profitable companies can afford to pay them. With that in mind I decided to screen for some relative bargains which are profitable and pay dividends.
1) A minimum market capitalization of $1 billion, in order that the stock is liquid enough to exit out of if one’s bet turns south.
2) A minimum P/E ratio of 5. I’m not interested in deep-value here, but only attractively-priced stocks.
3) A maximum P/E ratio of 15. I don’t want to overpay for earnings, especially since the market has beaten down these stocks.
4) A dividend yield of at least 5%. I want to be compensated for the risk of investing in equities, and a 5% return is better than what I could get by sticking my money in a savings account.
5) A minimum 52-week price change of -50%. This is admittedly arbitrary, but I figure that a company whose stock has declined by more than 50% is headed for bankruptcy or some other big problem that I don’t want to deal with.
6) A maximum 52-week price change of 0%. I’m not interested in investing or trading on momentum here. I’m interested in finding stocks that the market doesn’t really like right now.
Obviously these are not stocks for active traders looking to ride momentum up. Some of these stocks are more volatile than the market as a whole, and so may have price swings that traders can take advantage of. And, obviously, if you are doing fundamental analysis on a stock, there is a whole lot more to take into consideration that just its market capitalization, P/E ratio, dividend yield, 52-week price change, and beta.
All that having been said, following are the 23 companies that my screen returned, along with some commentary about each stock and links to our company page for these stocks.
|Company name||Exchange:Ticker||Market cap||P/E ratio||Div yield (%)||52w price change (%)||Beta|
|AllianceBernstein Income Fund Inc.||(NYSE:ACG)||1.88B||8.85||6.22||-5.16||0.34|
|Annaly Capital Management, Inc.||(NYSE:NLY)||14.57B||9.42||13.72||-0.17||0.36|
|Banco Santander, SA (ADR)||(NYSE:STD)||100.61B||8.84||6.82||-12.38||1.81|
|Cellcom Israel Ltd.||(NYSE:CEL)||3.22B||8.86||11.65||-5.38||0.71|
|Eli Lilly & Co.||(NYSE:LLY)||39.93B||7.52||5.7||-6.17||0.77|
|France Telecom SA (ADR)||(NYSE:FTE)||58.49B||10.87||7.93||-8.55||0.75|
|Frontline Ltd. (NYSE:USA)||(NYSE:FRO)||1.93B||11.96||7.5||-19.06||1.12|
|Huaneng Power International, Inc. (ADR)||(NYSE:HNP)||8.14B||9.17||5.35||-3.24||0.67|
|Hudson City Bancorp, Inc.||(NASDAQ:HCBK)||5.20B||9.08||6.08||-29.66||0.61|
|Mercury General Corporation||(NYSE:MCY)||2.13B||13.99||6.35||-13.25||0.83|
|National Grid plc (ADR)||(NYSE:NGG)||33.35B||12.44||5.85||-1.73||0.63|
|Nokia Corporation (ADR)||(NYSE:NOK)||31.67B||11.81||6.51||-45.09||1.59|
|OneBeacon Insurance Group, Ltd.||(NYSE:OB)||1.24B||10.56||6.42||-20.49||0.83|
|Partner Communications Company Ltd (ADR)||(NASDAQ:PTNR)||2.88B||8.3||11.21||-13.67||0.72|
|Prospect Capital Corporation||(NASDAQ:PSEC)||1.08B||8.2||10.05||-5.7||0.78|
|Tele Norte Leste Participacoes SA (ADR)||(NYSE:TNE)||6.85B||11.07||20.15||-7.93||0.74|
|Telecom Corp of New Zealand (ADR)||(NYSE:NZT)||2.86B||12.58||9.84||-1.97||1.14|
|Westpac Banking Corporation (ADR)||(NYSE:WBK)||73.03B||11.49||5.49||-8.61||1.41|
|YPF SA (ADR)||(NYSE:YPF)||16.61B||11.19||6.96||-2.36||0.84|
Value Screen: Profitable, cheap, dividend-paying stocks that have declined over the past 52 weeks
1) AllianceBernstein Income Fund Inc. (NYSE:ACG): ACM Income Fund, Inc. is a diversified, closed-end management investment company incorporated in the USA. The Fund’s objective is high current income consistent with the preservation of capital. The Fund invests principally in US government obligations. The Fund may also invest a portion of its assets in other fixed income securities, including those issued by foreign governments.
2) Annaly Capital Management, Inc. (NYSE:NLY): Annaly Capital Management, Inc. is a real estate investment trust which owns and manages assets and funds on behalf of institutional and individual investors worldwide. The Company manages a portfolio of mortgage backed securities, including mortgage passthrough certificates, collateralized mortgage obligations, and other securities.
3) Banco Santander, SA (ADR) (NYSE:STD): Banco Santander SA attracts deposits and offers retail, commercial and private banking, and asset management services. The Bank offers consumer credit, mortgage loans, lease financing, factoring, mutual funds, pension funds, insurance, commercial credit, investment banking services, structured finance, and advice on mergers and acquisitions.
3) Cellcom Israel Ltd. (NYSE:CEL): Cellcom Israel Ltd. provides cellular communications services.
4) DPL Inc. (NYSE:DPL): DPL Inc. is a holding company whose principal subsidiary is The Dayton Power and Light Company. Dayton Power & Light sells electricity to residential, commercial, and government customers in west central Ohio.
5) Eli Lilly & Co. (NYSE:LLY): Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products for humans and animals. The Company’s products are sold in countries arnd the world. Eli Lilly’s products include neuroscience products, endocrine products, anti-infectives, cardiovascular agents, oncology products, and animal health products.
6) Exelon Corporation (NYSE:EXC): Exelon Corporation is a utility services holding company. The Company, through its subsidiaries distributes electricity to customers in Illinois and Pennsylvania. Exelon also distributes gas to customers in the Philadelphia areas as well as operates nuclear power plants in states that include Pennsylvania and New Jersey.
7) FirstEnergy Corp. (NYSE:FE): FirstEnergy Corp. is a public utility holding company. The Company’s subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, exploration and production of oil and natural gas, transmission and marketing of natural gas, and energy management and other energy-related services.
8) France Telecom SA (ADR) (NYSE:FTE): France Telecom SA provides telecommunications services to residential, professional, and large business customers. The Company offers public fixed-line telephone, leased lines and data transmission, mobile telecommunications, cable television, Internet and wireless applications, and broadcasting services, and telecommunications equipment sales and rentals.
9) Frontline Ltd. (NYSE:USA) (NYSE:FRO): Frontline Limited owns a fleet of very large crude carries and Suezmax tankers that transport crude oil and oil products between ports. The Company’s vessels are managed by ship management companies. Frontline conducts activities worldwide.
10) Huaneng Power International, Inc. (ADR) (NYSE:HNP): Huaneng Power International, Inc. develops, constructs, owns and operates coal-fired power plants throughout China.
11) Hudson City Bancorp, Inc. (NASDAQ:HCBK): Hudson City Bancorp, Inc. is a bank holding company. The Company, through its banking subsidiary, is a federally chartered stock savings bank that offers traditional deposit products, residential real estate mortgage loans and consumer loans. Hudson also purchases mortgages and mortgage-backed securities and other securities issued by US government-sponsored enterprises.
12) Mercury General Corporation (NYSE:MCY): Mercury General Corporation is a specialty writer of all risk classifications of automobile insurance. The Company is an agency writer of private passenger automobile insurance in California. Mercury operates primarily in California with operations in several other states.
13) National Grid plc (ADR) (NYSE:NGG): National Grid PLC owns, operates and develops electricity and gas networks. The Group’s electricity transmission and gas distribution networks are located throughout the United Kingdom and in the north-eastern section of the United States. They also own liquefied natural gas storage facilities in Britain and provide infrastructure services to the mobile telecom industry.
14) Nokia Corporation (ADR) (NYSE:NOK): Nokia Corporation is a player in the mobile industry. The Company makes a range of mobile devices with services and software that enable people to experience music, navigation, video, television, imaging, games, business mobility and more. Nokia also provides equipment, solutions and services for communications networks.
15) OneBeacon Insurance Group, Ltd. (NYSE:OB): OneBeacon Insurance Group Ltd. offers property/casualty insurance. The Company offers media, lawyers’ and hospital professional liability, HMO reinsurance and managed care errors and omissions; physical damage or loss and general liability for marine cargo and commercial hull, marinas and yachts; and excess property coverage for apartments, condominiums, manufacturers and retailers.
16) Partner Communications Company Ltd (ADR) (NASDAQ:PTNR): Partner Communications Company Ltd. is a global systems for mobile communications (NASDAQ:GSM) mobile telephone network operates in Israel. The Company offers voice mail, voice messaging, information services, and data and fax transmission services.
17) PPL Corporation (NYSE:PPL): PPL Corporation is an energy and utility holding company. The Company, through its subsidiaries, generates electricity from power plants in the northeastern and western United States, and markets wholesale and retail energy primarily in the northeastern and western portions of the United States, and delivers electricity in Pennsylvania and the United Kingdom.
18) Prospect Capital Corporation (NASDAQ:PSEC): Prospect Capital Corporation is a mezzanine debt and private equity firm. The Company primarily provides non-control debt financing to management teams or financial sponsors as well as makes control acquisitions by providing multiple levels of the capital structure.
19) Tele Norte Leste Participacoes SA (ADR) (NYSE:TNE): Tele Norte Leste Participacoes S.A. is a telecommunications service provide in Brazil. The Company offers a range of integrated telecommunication services that includes fixed-line and mobile telecommunications, data transmission, Internet service provide (NYSE:ISP) services and other services, for residential and business customers.
20) Telecom Corp of New Zealand (ADR) (NYSE:NZT): Telecom Corporation of New Zealand provides telecommunications services by offering local, national and international telephone services to households and businesses. Telecom’s other services include leased circuits, data communications, directories, cellular, paging and Internet related services and solutions.
21) Westpac Banking Corporation (ADR) (NYSE:WBK): Westpac Banking Corporation offers general and savings banking, including lending, deposit taking and payment services. Westpac also provides investment portfolio management and advice, unit trust and superannuation fund management, nominee and custodian facilities, insurance services, consumer finance, leasing, general finance, foreign exchange dealing and money market services.
22) YPF SA (ADR) (NYSE:YPF): YPF Sociedad Anonima explores for, develops, and produces oil and natural gas in South America, the United States, and Indonesia. The Company also refines, markets, transports, and distributes oil and other petroleum products, petroleum derivatives, petrochemicals, and liquid petroleum gas.