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Thursday, January 21, 2010

Stocks With High Yields Selling Below Book

Two popular metrics that investors often look for are the yields and whether the stock is selling below book value. The stocks that pay dividends return your capital faster and they can reduce the stock's volatility.

The book value is what the shareholder would receive if the company went out of business, sold off all its assets, paid off its debts, and distributed all the cash equally among all the shareholders. So if you buy the stock for less than book value, you have that additional protection.

There are over 35 stocks selling below book value and pay dividends, that wallstreetnewsnetwork.com just turned up, all with market caps over $500 million.

As an example, Foot Locker, Inc. (FL), which sells for 93% of book value and yields 5%. This retailer of athletic footwear and apparel has a forward PE of 16.2 and has a market cap of $1.9 billion.

Safety Insurance Group, Inc. (SAFT), a provider of automobile insurance in Massachusetts, sells for 86% of book value and yields 4.5%. The stock has a forward PE of 10.6 and a market cap of $526.5 million.

There are plenty of real estate investment trusts on the list including Colonial Properties Trust (CLP), trading at 62% of book, yielding 4.9%, with a forward PE of 13, and market cap of $807.0 million.

To see the entire list of high yield below book stocks in an Excel format, go to wsnn.com.

Author does not own any of the above.

By Stockerblog.com

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