6 High Yield Dividend Stocks More Profitable Than Their Peers

Posted:10/25/12
By:Rebecca Lipman

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6 High Yield Dividend Stocks More Profitable Than Their Peers

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Looking for the best of the high yield stocks? As a starting point, we provide a list of high yield dividend stocks (yields above 4%) that are outperforming their industry peers.

They are outperforming based on three metrics:

TTM Gross margin: This metric that tells us the percentage of a company’s revenue is left after paying all production expenses. Costs include overhead, payroll and taxation. ((revenues – cost of goods sold) / Revenue ) *100 = Gross margin %

TTM Operating margin: This tells us the percentage remaining after all operating expenses are paid. Operating expenses include: supplies, repairs, research and development, and depreciation. (Operating Income / Net Operating Revenue) *100 = Operating Margin %

TTM Pretax margin: A company’s earnings before taxes. This incorporates all of the expenses associated with business excluding taxes. It can help to determine the overall operating efficiency of the firm. The higher the pretax margin, the more profitable the company. (Net profit before taxes / net sales) *100 = Pretax Margin

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We were left with 6 names.

As a recap, these names are high yield dividend stocks that have stronger profit margins than their industry peers.

Do you think these names pay reliable dividends? Use the list below as a starting point for your own analysis. List sorted by dividend yield.

1. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $106.41B. Dividend yield at 4.19%. Payout ratio: 35.97%. TTM gross margin at 76.44% vs. industry average at 62.04%. TTM operating margin at 29.92% vs. industry average at 22.63%. TTM pretax margin at 30.24% vs. industry average at 21.14%.

2. NextEra Energy, Inc. (NEE, Earnings, Analysts, Financials): Engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. Market cap at $29.91B. Dividend yield at 3.35%. Payout ratio: 45.06%. TTM gross margin at 35.27% vs. industry average at 29.04%. TTM operating margin at 25.57% vs. industry average at 18.93%. TTM pretax margin at 19.34% vs. in

3. Westamerica Bancorp. (WABC, Earnings, Analysts, Financials): Operates as the holding company for Westamerica Bank that provides various banking services to individual and corporate customers in northern and central California. Market cap at $1.23B. Dividend yield at 3.29%. Payout ratio: 49.05%. TTM gross margin at 92.97% vs. industry average at 73.27%. TTM operating margin at 61.8% vs. industry average at 42.74%. TTM pretax margin at 44.97% vs. industry average at 24.32%.

4. Cleco Corporation (CNL, Earnings, Analysts, Financials): Engages in the generation, transmission, distribution, and sale of electricity in Louisiana. Market cap at $2.54B. Dividend yield at 3.24%. Payout ratio: 42.42%. TTM gross margin at 39.75% vs. industry average at 29.04%. TTM operating margin at 27.91% vs. industry average at 18.93%. TTM pretax margin at 24.8% vs. industry average at 13.19%.

5. Wisconsin Energy Corp. (WEC, Earnings, Analysts, Financials): Engages in the generation, distribution, and sale of electric energy and steam. Market cap at $8.87B. Dividend yield at 3.14%. Payout ratio: 48.26%. TTM gross margin at 29.76% vs. industry average at 24.6%. TTM operating margin at 21.75% vs. industry average at 16.51%. TTM pretax margin at 19.16% vs. industry average at 9.96%.

6. CVB Financial Corp. (CVBF, Earnings, Analysts, Financials): Operates as a bank holding company for Citizens Business Bank that provides various retail banking and financial services to small to mid-sized businesses, high net-worth individuals, and professionals in the United States. Market cap at $1.17B. Dividend yield at 3.04%. Payout ratio: 46.43%. TTM gross margin at 89.85% vs. industry average at 72.25%. TTM operating margin at 58.68% vs. industry average at 46.74%. TTM pretax margin at 39.62% vs. industry average at 23.73%.