Many investors think that the perfect stock is one that sells for a low price and pays a high yield. It may be hard to believe but there are actually several stocks, including closed end funds or CEF's, that sell for less than $5 a share and pay a dividend, with five of the stocks with yields in excess of 6%.
All of the following stocks pay quarterly unless otherwise specified. Also, all of the following have market caps above $265 million. Just remember that the yields are based on historical payments, and the dividends can be adjusted or terminated at any time.
Zweig Fund ( ZF ) is a CEF with an objective of capital appreciation primarily through investment in equity securities. The stock has a PE of 12. The stock has a yield of 10.4 %.
Zweig Total Return Fund ( ZTR ) is a CEF with an objective of capital appreciation and current income, with equity investments in technology, energy, industrials, consumer staples, and financials. The stock has a PE of 13. The stock has a yield of 10.3 %.
Dreyfus High Yield Strategies Fund ( DHF ) is a CEF which invests in fixed-income securities which are generally below investment grade credit quality. The stock has a PE of 12. The stock has a yield of 9.1 %.
Qwest Communications International ( Q ) is a provider of wireline and wireless voice, data, Internet, and video services. The stock has a PE of 3 , and a PEG of 4.66 . The stock has a yield of 6.8 %.
Colonial Bancgroup Inc ( CNB ) is a commercial bank holding company which serves Alabama, Florida, Georgia, Nevada and Texas. The stock has a PE of 5 , and a PEG of 1.21 . The stock has a yield of 6.4 %.
United Microelectronics Corp ( UMC ) is a Taiwan based semiconductor manufacturer. It pays dividends annually. The stock has a PE of 19 , and a PEG of 1.8 . The stock has a yield of 3.2 %.
Mahanagar Telephone Nigam Ltd. ( MTE ) is an India based provider of fixed line telecommunications services in Delhi and Mumbai. I pays dividends semi-annually. The stock has a PE of 6 , and a PEG of 5.01 . The stock has a yield of 5.6 %.
Quest Capital Corp ( QCC ) is a Canadian real estate mortgage financing company. They recently announced a dividend of $0.045 per share which is an 80% increase over the previous dividend. The stock has a PE of 13. The stock has a yield of 5.1 %.
UCBH Holdings Inc. ( UCBH ) is a San Francisco bank holding company which owns United Commercial Bank. The stock has a PE of 5 , and a PEG of 0.67 . The stock has a yield of 3.7 %.
Transportadora de Gas Del Sur S.A. ( TGS ) is an Argentina based transporter and marketer of natural gas. The stock has a PE of 12. The stock has a yield of 0.9 %.
If you like high yield stocks, you should review high yield electric utility stocks, high yield gas utilities, and oil royalty trusts that have high yields.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com