logo
  Join        Login             Stock Quote

Nine High-Yield Stocks with a Low Price to Book

 November 20, 2012 11:28 AM
 


When looking for value-priced stocks, the Price-To-Book (P/B) ratio is one that I like to focus on. P/B is calculated as share price divided by book value per share. Book value is most often calculated as Assets less Liabilities.

Some people conservatively calculate book value as Assets less Intangibles less Liabilities. I prefer the latter since it excludes goodwill and other intangibles which might be difficult to recover in a liquidation, and that is what is used in the calculations below.

P/B is similar to yield, in that when it is at an extreme you have to question why it is there. If you determine it is the result of an irrational market movement, a purchase could result in both a higher yield and significant future capital appreciation.

[Related -Trying To Beat The Market Is A Fool's Errand]

A low P/B ratio could indicate a stock is undervalued or distressed. Since GAAP accounting is mostly based on historical cost, a viable growing company will normally be worth more than its book value. However, there are times when good companies will be punished along with the bad. It is our job as investors to separate the good companies from those that have fundamental problems.

This week week, I screened my dividend growth stocks database for stocks with a P/B of 1.5 or lower, 10 or more years of dividend increases and with a dividend yield at or above 4%. The results are presented below:

Universal Corporation (UVV)

[Related -General Dynamics Corporation (GD) Dividend Stock Analysis]

Yield: 4.2% | Years of Growth: 42 | P/B: 1.00

Universal Corporation, a leaf tobacco merchant and processor, buys, processes, packs, stores, ships, and finances leaf tobacco for sale to manufacturers of consumer tobacco products.

WGL Holdings Inc. (WGL)

Yield: 4.3% | Years of Growth: 36 | P/B: 1.46

WGL Holdings Inc. provides natural gas service in the Washington, DC, metropolitan area and surrounding regions, including Maryland and Virginia.

Cincinnati Financial Corp. (CINF)

Yield: 4.2% | Years of Growth: 52 | P/B: 1.23

Cincinnati Financial Corp. is an insurance holding company that primarily markets property and casualty coverage. It also conducts life insurance and asset management operations.

Consolidated Edison, Inc. (ED)

Yield: 4.4% | Years of Growth: 39 | P/B: 1.45

Consolidated Edison, Inc. is an electric and gas utility holding company serves parts of New York, New Jersey and Pennsylvania.

Avista Corporation (AVA)

Yield: 5.0% | Years of Growth: 10 | P/B: 1.19

Avista Corp. generates, transmits and distributes energy as well as engages in energy-related businesses. The company operates in two business segments.

National Retail Properties, Inc. (NNN)

Yield: 5.2% | Years of Growth: 21 | P/B: 1.47

National Retail Properties, Inc. is an equity real estate investment trust that invests in high-quality, freestanding retail properties subject to long-term net leases with major retail tenants.

Mercury General C Corp. (MCY)

Yield: 6.2% | Years of Growth: 25 | P/B: 1.22

Mercury General Corp. is an insurance holding company, operating primarily in California, writes a full line of automobile coverage for all classifications of risk.

Senior Housing Properties Trust (SNH)

Yield: 7.0% | Years of Growth: 11 | P/B: 1.50

Senior Housing Properties Trust, a real estate investment trust (REIT), primarily invests in senior housing properties.

Old Republic International (ORI)

Yield: 7.1% | Years of Growth: 31 | P/B: 0.70

Old Republic Intl writes property and liability, mortgage guaranty, title and life, and disability insurance.

As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 220+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: Long CINF, ED, NNN in my Dividend Growth Portfolio and AVA, MCY, SNH in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

Related Articles

- 9 High-Yield Dividend Achievers With 25 Years of Increases

- 7 Dividend Stocks For A Confident And Secure Future

- 7 High Yielders With A Low Free Cash Flow Payout

- Wealth is a Journey, Dividend Stocks Can Take You There

- 5 Higher-Yielding, Income Growing Tech Stocks

Tags: (UVV) (WGL) (CINF) (ED) (AVA) (NNN) (MCY) (SNH) (ORI)

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article image7 Profitable Tech Stocks with 50-DMA turning Bullish

Lately tech has been coming out of the doldrums. That's good news for tech investors and the market as a read on...

article imageCommodity Traders Eye Strengthening Dollar

Commodity prices have been feeling the backlash of a strengthening dollar as of late, and investors it read on...

article imageThe Euro Crash?

As the US federal reserve might start soon raising interest rates and the ECB is about to being his read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.