Monday, December 17, 2012

Debt Free Stocks with High Yields

If you look at the companies that have gone out of business over the last several years, you will notice that one thing that most of them have in common is that they had debt, and usually a lot of debt. Investors who want income, and want to play it safe, may want to look for stocks that are debt free and pay decent dividends. has turned up over a dozen no debt high yield stocks, with yields ranging from 4% to above 10%.

One example is the Texas based company A. H. Belo Corporation (AHC), which is in the newspaper publishing business, pays dividends quarterly and provides shareholders with a generous yield of 5.1%. The company owns The Dallas Morning News, The Providence Journal, The Press-Enterprise, and The Denton Record-Chronicle, plus some Spanish language newspapers. The stock trades at 32 times forward earnings. The stock sells below book value and has $1.87 in cash per share.

Simulations Plus, Inc. (SLP) creates pharmaceutical simulation software. The stock pays a CD beating yield of 4.6%. The stock trades at 15.8 times forward earnings. Earnings for the latest quarter skyrocketed by 88.1% on a 14.9% rise in revenues.

Universal Technical Institute, Inc. (UTI) is in the postsecondary education field providing programs in the areas of professional automotive, diesel, collision repair, motorcycle, and marine. The stock pays a yield of 4.1% and trades at 29.9 times forward earnings. This debt free company has $3.90 per share in cash.

For a free list of no debt high yield stocks, go to The list can be downloaded, sorted and updated.


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