Saturday, June 16, 2007

Highest Yielding Israeli Stocks

During the turmoil in the Middle East last week, several Israeli stocks either took a hit or traded very choppily. Some investors have been looking towards Israel for buying opportunities. To help reduce risk, there are several stocks of companies based in Israel that pay dividends. Here is a list of ten Israeli stocks and one Closed End Fund worth looking into. Please note that several of these stocks have very short term dividend track records, some dividends have fluctuated significantly, and some companies have skipped dividends altogether for certain years.

American Israeli Paper Mills Ltd. (AIP), which trades on the American Stock Exchange, has a very high yield of 15.2%, based on what was reported on the company’s financial for 2006, and the conversion rate of $1=NIS 4.155. The dividend has been very erratic, fluctuating significantly. Although dividends have been paid for the last 15 years, it appears that they haven’t been paid every year. The company manufactures and markets numerous types of paper and paper products. The stock has a very high price earnings ratio of 472 and a price sales ratio of 1.82. The stock is very illiquid.

Formula Systems (1985) Ltd. (FORTY), which trades on NASDAQ, develops and sells information technology solutions and services to large corporations. The stock has a yield of 8.3%, based on last year’s annual dividend payment. They have a very short dividend track record. The P/E is 20.8 and the P/S is .31. This is another very illiquid stock.

Tefron Ltd. (TFR) trades on the New York Stock Exchange and yields 5.3%, based on last year’s two dividend payments which the company just started paying. The company makes and markets swimwear, intimate apparel, and other clothing. The stock has a P/E of 11.5 and the P/S is 1.05.

MIND C.T.I., Ltd. (MNDO) creates and sells mediation, rating, billing, and customer care software for communication companies. The stock yields 7.3%, and has paid dividends annually for five years. The company’s P/E is 42 and the P/S is 3.

Blue Square Israel Ltd. (BSI), which trades on the NYSE, operates a chain of supermarkets in Israel. They have paid dividends at least once a year and generally twice a year for the last ten years, with a current yield of 3.4% based on the last two dividend payments. The P/E is 13.8 and the P/S is .43.

The mobile telecommunications company, Partner Communications Co. Ltd. (PTNR), which trades on NASDAQ, has a yield of 4%, based on its last four quarterly dividends. They have paid quarterly dividends for the last seven quarters. The P/E is 14, the P/S is 1.7, and the PEG is 1.15.

Cellcom Israel Ltd. (CEL) is a cellular communications company that yields 2.1%, based on their first dividend that the company has just paid. They trade on the NYSE. The P/E is 17, the P/S is 1.7, and the PEG is 1.2,

Ituran Location & Control Ltd. (ITRN), on NASDAQ, provides stolen vehicle recovery and tracking services. They have operations in Israel, Brazil, Argentina, and the United States. The stock has a P/E of 16, a P/S of 2.8, and a PEG of .81. The stock yields 1.6% and has made only two annual dividend payments.

Elbit Systems Ltd. (ESLT) makes and markets defense electronic systems and electro-optic systems. This company has paid dividends, usually quarterly for the last ten years and currently yields 1.5%. The P/E is 24 and the P/S is 1.15.

Teva Pharmaceutical Industries Ltd. (TEVA) makes and sells generic pharmaceuticals, pharmaceutical ingredients, and animal health pharmaceuticals. This is one of the longest dividend payers on the list, paying quarterly for over 15 years. The current yield is 1%, the P/E is 17.4, the P/S is 3.4, and the PEG is 1.1.

First Israel Fund Inc. (ISL) is a closed end fund that invests primarily in Israeli stocks. The shares trade on the American Stock Exchange. The P/E is 8.3, the P/S is 42, and the yield is 6.6%, based on its latest reported payment, which includes capital gains. Actual dividend rate is probably around 1%. Dividends have been paid very sporadically for the last 14 years.

Author does not own any of the above.

1 comment:

daniel said...

In regards to Defense Stocks, i would recommend the following report to anyone considering investing in them for the future. As is states, the defense stocks look poised for big gains...

Defense Stock Report

-Cheers!