9 High-Yield Stocks With Strong Buy Rating (2024)

High yielding dividend paying stocks withstrongest buy rating originally published at "long-term-investments.blogspot.com". I'm often asked if Iwould recommend to buy high-yielding stocks. I answer them that it makes senseto buy stocks with a yield over five percent but don’t expect that they willpay the dividend to the end of your lifetime and don’t expect that they willhike their payments each year or with a higher growth rate.

I personally bought several high yielding stocksaround the world and nearly each investment was a disaster. Sure I also made some profits with stocks from the tobacco industry but they were the only investment ideas that workedfor me. If I draw a line and make a calculation about my High-Yield activities,it would result in a very bad performance. That is my personal experience withthe investment category.

Stocks with a higher yield are risky but itmakes sense to look for them. Today I like to discover the most recommendedHigh-Yields with a market capitalization over USD 300 million. Nine companieswith a yield over 5 percent have a strong buy rating.

Here are the 3 highest yielding results:

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Arlington Asset Investment (NYSE:AI) has a market capitalization of $344.01 million. The company employs 11 people, generates revenue of $64.15 million and has a net income of $191.83 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.79 million. The EBITDA margin is 65.14 percent (the operating margin is 65.07 percent and the net profit margin 299.01 percent).

Financial Analysis:The total debt represents 76.61 percent of the company’s assets and the total debt in relation to the equity amounts to 341.61 percent. Due to the financial situation, a return on equity of 59.16 percent was realized. Twelve trailing months earnings per share reached a value of $15.11. Last fiscal year, the company paid $3.50 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 1.74, the P/S ratio is 6.77 and the P/B ratio is finally 0.74. The dividend yield amounts to 13.34 percent and the beta ratio has a value of 1.96.

Long-Term Stock Price Chart Of Arlington Asset Investment (AI)

Long-Term Dividend Payment History of Arlington Asset Investment (AI)

Long-Term Dividend Yield History of Arlington Asset Investment (AI)

Legacy Reserves (NASDAQ:LGCY) has a market capitalization of $1.61 billion. The company employs 206 people, generates revenue of $346.46 million and has a net income of $68.64 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $153.64 million. The EBITDA margin is 44.34 percent (the operating margin is 14.86 percent and the net profit margin 19.81 percent).

Financial Analysis:The total debt represents 45.91 percent of the company’s assets and the total debt in relation to the equity amounts to 115.75 percent. Due to the financial situation, a return on equity of 11.85 percent was realized. Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, the company paid $2.23 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 19.60, the P/S ratio is 4.65 and the P/B ratio is finally 2.39. The dividend yield amounts to 8.20 percent and the beta ratio has a value of 1.08.

Long-Term Stock Price Chart Of Legacy Reserves (LGCY)

Long-Term Dividend Payment History of Legacy Reserves (LGCY)

Long-Term Dividend Yield History of Legacy Reserves (LGCY)

Starwood Property Trust (NYSE:STWD) has a market capitalization of $3.71 billion. The company generates revenue of $306.98 million and has a net income of $203.68 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $227.18 million. The EBITDA margin is 74.01 percent (the operating margin is 58.66 percent and the net profit margin 66.35 percent).

Financial Analysis:The total debt represents 32.23 percent of the company’s assets and the total debt in relation to the equity amounts to 51.25 percent. Due to the financial situation, a return on equity of 8.91 percent was realized. Twelve trailing months earnings per share reached a value of $1.81. Last fiscal year, the company paid $1.86 in the form of dividends to shareholders.

Market Valuation:Here are the price ratios of the company: The P/E ratio is 15.11, the P/S ratio is 14.48 and the P/B ratio is finally 1.37. The dividend yield amounts to 6.42 percent and the beta ratio has a value of 0.70.

Long-Term Stock Price Chart Of Starwood Property Trust (STWD)

Long-Term Dividend Payment History of Starwood Property Trust (STWD)

Long-Term Dividend Yield History of Starwood Property Trust (STWD)

Take a closer look at the full list of High-Yield stocks with strong buy rating. The average P/E ratio amounts to 20.92and forward P/E ratio is 23.19. The dividend yield has a value of 6.75 percent.Price to book ratio is 1.80 and price to sales ratio 4.12. The operating marginamounts to 19.21 percent and the beta ratio is 1.61. Stocks from the list havean average debt to equity ratio of 1.65.

Here is the full table withsome fundamentals (TTM):

High-Yield Stocks With Strongest Buy Rating (Click to enlarge)

Related stockticker symbols:

AI, LGCY, STWD,NGL, RAS, ARCP, IEP, MIC, CIG

Selected Articles:

*Ihave no positions in any stocks mentioned, and no plans to initiate anypositions within the next 72 hours. I receive no compensation to write aboutany specific stock, sector or theme.