Dividends4Life: High Yield Stocks With A Big Return on Equity

High Yield Stocks With A Big Return on Equity

Posted by D4L | Saturday, October 01, 2011 | | 0 comments »

Investments in high yielding stocks are very popular. The goal is to buy stocks with huge cash return and to minimize the risk of a decreasing share price or to bet on rising prices. The total return is the above all target. The higher the cash dividend, the lower the expected capital gain must be in order to achieve the target.

I screened the capital market by stocks with a dividend yield of more than 5 percent. I order to avoid the risk of low diversified and small business; I decided to screen only stocks with a market capitalization of more than $10 billion. Finally, the stocks should have a return on equity of more than 20 percent. That’s a pretty good figure to evaluate the efficiency of the shareholders equity. 16 stocks remained of which 4 have a dividend yield of more than 7 percent. Here are the three best results by dividend yield: 1. Vivo Participacoes (VIV), 2. Telefonica (TEF) and 3. YPF (YPF).

Source: Guru Focus

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