Tuesday, July 7, 2009

High Yield (stocks, that is) (MWV)

AlphaNinja - Below is a screen of stocks with high dividend yields, debt-to-equity of less than .5, and decent-sized market values (over $2billion). Should be no surprise to see quite a few REITS and utilities in there - they have high yields due to high risk. In a private setting (were these companies bought), the free cash flows would exceed these dividend yields significantly.
The oil & gas pipelines look interesting, provided that they stay safely in compliance with debt covenants.

MeadWestvaco (MWV) also caught my eye. Nice yield, but unfortunately the company has been relying on selling off its timber acreage to offset dismal performance in its other divisions...this can only go on so long.

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