When looking for high yield investments, it is important to consider the safety and security of the company, not just the high dividend payout. One metric to look at is the Price to Book Ratio, which is the price of the stock in relation to the neto worth of the stock, in other words, what each share would be worth if all the company assets were sold off, all the debts paid off, and what is left over divided by the number of shares outstanding. The lower the Price to Book Ratio, the better the buy. If the ratio is less than one, the shareholder would receive more for their shares are trading at if the company immediately went out of business and sold everything off.
Obviously, the book value can be nebulous in many circumstances, especially with companies that own a lot of real estate, but the ratio can still be used as a good comparison indicator. According to WallStreetNewsNetwork.com, there are over 35 stocks with market caps over $500 million, yields above 5%, and price to book value ratios less than one. They also have PE ratios less than 20 and PEG ratios less than 1. [Many of the very high yield stocks have yields that are tenuous.] Here are ten of those stocks.
ProLogis ( PLD ) The company pays a yield of 14.8% and has a Price to Book Value of 0.51 . The stock has a PE of 7 and a PEG of 0.91 .
Protective Life Corp. ( PL ) The company pays a yield of 11.3% and has a Price to Book Value of 0.28 . The stock has a PE of 3 and a PEG of 0.31 .
Lincoln National Corporation ( LNC ) The company pays a yield of 9.6% and has a Price to Book Value of 0.46 . The stock has a PE of 6 and a PEG of 0.58 .
Colonial BancGroup, Inc. ( CNB ) The company pays a yield of 9.4% and has a Price to Book Value of 0.34 . The stock has a PE of 7 and a PEG of 0.78 .
Genworth Financial, Inc. ( GNW ) The company pays a yield of 8.3% and has a Price to Book Value of 0.17 . The stock has a PE of 4 and a PEG of 0.44 .
ArcelorMittal ( MT ) The company pays a yield of 5.7% and has a Price to Book Value of 0.58 . The stock has a PE of 3 and a PEG of 0.35 .
Ternium S.A. ( TX ) The company pays a yield of 5.7% and has a Price to Book Value of 0.33 . The stock has a PE of 2 and a PEG of 0.35 .
Royal Caribbean Cruises Ltd. ( RCL ) The company pays a yield of 5.5% and has a Price to Book Value of 0.41 . The stock has a PE of 5 and a PEG of 0.35 .
Teekay Corporation ( TK ) The company pays a yield of 5.4% and has a Price to Book Value of 0.55 . The stock has a PE of 11 and a PEG of 0.67 .
Oshkosh Corporation ( OSK ) The company pays a yield of 5.2% and has a Price to Book Value of 0.38 . The stock has a PE of 5 and a PEG of 0.24 .
A downloadable Excel database of the stocks with high yields that are selling below book value can be found at WallStreetNewsNetwork.com, which can be changed, added to, and updated.
Author does not own any of the above.
By Stockerblog.com
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