High Yield Stocks Below $10 a Share

Most investors still believe that it is easier to get a better return on lower priced stocks than higher priced stocks. However, it really doesn't make a difference on a generalized basis. Just look at the performance of Warren Buffett's Berkshire Hathaway (BRK-A) A shares. Fifteen years ago, Berkshire was trading at a high priced 32,150 per share. It has more than tripled in price to 104,000.

Even still, from a psychological standpoint, investors like lower priced shares. WallStreetNewsNetwork.com just updated its list of high yielding stocks under $10 a share. Many of the companies listed are closed end funds, such as the Blackrock Enhanced Dividend Achievers (BDJ), which sports a yield of 9.4% and the Putnam Premier Income Fund (PPT), which pays out a yield of 9.2%.

Yet there are also regular corporations, such as Alaska Communications (ALSK) which provides landline and wireless services to the 49th state, which happens to be the largest state by area. The stock sells for a little over $7 per share, has a forward price to earnings ratio of 19, and pays a yield of 11.8%. The company reports earnings on October 26.

Another example is Provident Energy (PVX) processes, transports, stores, and markets natural gas liquids in the United States and Canada. It sells for a bit over $8 per share, and yields 6.5%. It recently generated negative earnings.

Hercules Technology (HTGC) which is a private equity, venture capital, and venture debt firm, sells for less than $9 per share, has a forward PE of 7.5, and sports a yield of 9.9%.

For a list of more than a dozen stocks that pay yields in excess of 4% and sell for less than $10 per share, go to wsnn.com. Keep in mind, very high yields may not be sustainable and may be indicative of higher risk.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Stocks I Discussed at the Money Show Part 3

Last Wednesday, August 10, I gave a speech at the MoneyShow on high dividend stocks. I you missed my first two articles on the stocks I covered, you can see them here and here. My goal was to provide high yield stock ideas from various industries including energy, mortgages, inflation protection, real estate, utilities, entertainment, telecommunications, financial, and speculation.



One sector that you wouldn't expect to find high yield stocks is the entertainment field. Shaw Communications, Inc. (SJR), which closed at 20.34 last Wednesday, is in the broadband cable television business and sports a yield of 4.3%. What is really amazing is that it is one of the few straight stocks (not REITs, not CEFs, not MLPs) that pays dividends monthly. Shaw is also involved in Internet services, digital phone services, telecommunications, and satellite direct-to-home services.



The stock trades at 13.2 times forward earnings. Quarterly earnings for the latest quarter ending May 31 were up 23.2% on a revenue increase of 36.1%. The company has excellent dividend coverage; dividends incur $413.76 million in payouts, easily covered by $1.22 billion in operating cash flow.



Alaska Communications (ALSK) is a telecom company that pays an incredibly high yield of 12.1% payable quarterly, and closed at 7.07 last Wednesday. The company is involved in both landline and wireless communications. For the latest quarter, it had quarterly revenue growth of 0.5%, with enterprise revenue increasing 6.9%, and wireless revenue rising 4.9%. ALSK pays out $38.87 million in dividends which are covered by $73.81 million in operating cash flow.



The stock trades at 19.2 times forward earnings, which is a bit on the high side. The population of Alaska continues to grow. From 2000 to 2010, the population of Alaska increased by 13.3% versus 9.7% for the United States overall.



In the financial services industry, there is a high dividend payer that many investors are unaware of. The company is BGC Partners, Inc. (BGCP), which pays 10.3% payable quarterly, and closed at 6.31 last Wednesday. BGC is an interdealer investment broker which offers voice and electronic executions and operates multiple real-time electronic marketplaces.



The company pays out 75% to 85% of earnings and rewarded investors with a 21% dividend increase in May. It has $81.45 million in dividend payouts with $143.19 million in operating cash flow. The stock carries a very favorable forward PE of 7.9.



Earnings should continue to rise as electronic trading is increasing over voice. With electronic trading there are far fewer costs than voice operations. This should generate increased margins. Electronic trading grew by 31% in 2010 year over year.



If you like high dividend stock ideas, check out the numerous lists of high dividend stocks at WallStreetNewsNetwork.com, that can be downloaded, updated, and sorted. Also, stay tuned for upcoming articles on more stocks from the MoneyShow.



Disclosure: Author did not own any of the above at the time the article was written.



By Stockerblog.com

High Yield Telephone Stocks

According to the latest Forbes Magazine billionaire issue, the richest man in the world is Carlos Slim Helu, who made much of his money from the Latin American telecommunications company, America Movil (AMX). The company announced this week that it is proposing a two for one stock split and a stock buyback in excess of $4 billion. The stock trades at fourteen times current earnings and twelve times forward earnings. However, it only pays a nominal yield of 0.4%.

Fortunately, there are plenty of other telecom stocks with high yields, as much as 8%. WallStreetNewsNetwork.com has updated its free list of over ten telecom stocks yielding 3% or more. For example, Alaska Communications Systems Group, Inc. (ALSK) is a provider of both wireless and landlines in the forty-ninth state. The company has a market cap of $438 million, trades at 25 times forward earnings, and pays a generous yield of 8.5%.

Qwest Communications International Inc. (Q), which is lucky to have a single letter stock ticker symbol, is a $12 billion market cap company, a forward PE of 16, and a yield of 4.8%.

The high paying telecom stock CenturyLink, Inc. (CTL) has a 7.2% dividend payout. The market cap is $12.5 billion, with a forward price to earnings ratio of 13.5. The company has increased its dividend in nine out of the last ten years.

To see the rest of the high paying telecommunications companies, which includes half a dozen with yields above 6%, check out the free list of high yield telecom stocks, at wsnn.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

15 Top Yielding Stocks Below $10 per Share

No matter how you explain the price of stocks to someone, a majority of investors still believe that low priced stocks are a better way to go and can provide a better rate of return. Obviously, some low priced stocks do perform better than some high priced stocks. But in general, a good stock will perform just as well if it is priced like Warren Buffett's Berkshire Hathaway (BRK-A) A shares as a lower priced stock like Ford (F) which traded below $2 a share in 2009. WallStreetNewsNetwork.com just updated its list of top yielding stocks under $10 a share (it also includes a couple that trade for round $11 per share). Many of the companies listed are closed end funds, such as the Dreyfus High Yield Strategies Fund (DHF), which sports a yield of 11.6% and the Western Asset High Income Fund II Inc. (HIX), which pays out 10.9%.

But there are also regular corporations, such as Alaska Communications (ALSK) which provides landline and wireless services to Sarah Palin's state. The stock sells for around $10 per share, has a forward price to earnings ratio of 37, and pays a yield of 7.8%. The company reports earnings on March 4.

Another example is Hercules Technology (HTGC) which is a private equity, venture capital, and venture debt firm. It sells for less than $11 per share, has a forward PE of 9.8, and pays a yield of 7.4%.

Provident Energy (PVX) processes, transports, stores, and markets natural gas liquids in the United States and Canada. It sells for slightly more than $8 per share, has a forward PE of 17, and yields 8.8%.

For a list of over 15 stocks that pay a yield over 6% and sell for less than $10 per share, go to wsnn.com. Just remember, very high yields may not be sustainable.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Telecom Stocks: the Forgotten Utilities

Telecommunication stocks seem to be the forgotten utility. Most income investors have filled their portfolio with electric utilities, natural gas utilities, and water utilities, which, in general, provide stability and steady income. Telecom stocks can help round out a utility portfolio.

Of course, telecoms can carry some risks: land lines are decreasing, cell phone usage is increasing, and more and more households are now using cell phones as their primary if not their only phone. The phone companies aren't standing still; they are pushing many other services in addition to the usual telephone services. Also, much of the negative news has already been built into the price of many of these stocks.

Many of these stocks have some decent yields, creating some interesting income opportunities. WallStreetNewsNetwork.com has turned up about a dozen of these telecom stocks yielding around 3% or more. As a matter of fact, six of the stocks yield more than 6%.

Alaska Communications Systems Group, Inc. (ALSK) is a provider of both wireless and landlines in the home state of Sarah Palin. The company has a market cap of $467 million, trades at 39 times forward earnings, and pays a generous yield of 8.2%. The operating cash flow of $93 million significantly covers the dividend payout of $38.3 million.

Another high paying telecom stock is CenturyLink, Inc. (CTL), with a 6.8% dividend payout. This Louisiana based company pays $833 million in dividends, easily covered by the $2.09 billion in operating cash flow. The market cap is $12.8 billion, with a forward PE ratio of 13.

Qwest Communications International Inc. (Q), one of the few stocks with a single letter stock ticker symbol, is a $9 billion market cap, a forward PE of 17, and a yield of 4.7%.

To see the rest of the high paying telecommunications companies, check out the free Excel database of high yield telecom stocks, at wsnn.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com