Monday, November 09, 2009

What Biotech Stock Yields Over 12% and Sells for Less Than $10 per Share?

Investors love low priced stocks. Investors love dividends. What happens if you combine the two criteria? just came out with a list of over 25 stocks selling for less than $10 per share, with market caps over $250 million, and yields over 10%. Many of them were closed end funds, but several are businesses, such as Cedar Fair LP (FUN), the amusement park and water park company, which just went ex-dividend. Based on its latest quarterly payment of 25 cents, it yields 14.6%.

How about a biotech that has a 12.2% yield? PDL BioPharma, Inc. (PDLI) is an interesting company selling for less than ten dollars a share. They manage antibody humanization patents and royalty assets, consisting of patents and license agreements with biotech companies. They also pay 25 cents per quarter and last went ex dividend on September 15, and paid their dividend October 1. They just priced a $300 million securitization transaction which will monetize 60% of the royalties from sales of current Genentech products. They intend to pay a significant portion of the proceeds from the securitization to stockholders in the form of a special dividend, most likely in December of this year. The total amount of this special cash dividend, along with the record and payment dates will be finalized at the upcoming board of director's meeting on November 11th and announced the following day.

If you want to see a bunch of other interesting low priced high yield stocks in the form of a free downloadable Excel database of high dividend low priced stocks, go to Remember, these stocks can reduce or eliminate their dividend at any time.

Author does not own any of the above.


1 comment:

Unknown said...

Hey thank you for the post, its very informative and interesting.