Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘turnaround stocks’

Stocks with 4% Dividend Yields with Positive Earnings Surprises

As we start earnings season, the blue-chip stocks get the attention.  This is logical because these stocks have a large following of investors.  In comparison, I am always looking for stocks with nice yields that have positive earnings surprises.  So far, I have identified three stocks with positive earnings in the first week.  Here are the a brief details of stocks with dividend yields higher than 4% that made the list.

Gannett (GCI), publisher of USA today, reported better-than-expected quarterly earnings this week.  The largest newspaper chain in the United States and an industry bellwether, said excluding special items, it earned 56 cents per share, beating analysts’ average forecast of 52 cents, according to Thomson Reuters I/B/E/S.  Gannett is in the process of rolling out a digital pay strategy; it has launched already at half of its U.S. publishing properties. Digital revenue was up about 33 percent in the quarter and circulation revenue was up for the first time in years.

GCI expects a surge in advertising demand due to the Summer Olympics and U.S. elections.  GCI is trading at $14.78 with a dividend yield of 5.41%.  GCI has an equity summary score of 7.7 out of 10 for a Bullish outlook.

Shaw Communications (SJR) is a diversified communications and media company, providing consumers with broadband cable television, High-Speed Internet, Home Phone, telecommunications services (through Shaw Business), satellite direct-to- home services (through Shaw Direct) and engaging programming content (through Shaw Media).

SJR had net income from continuing operations of $248 million or $0.53 per share for the quarter ended May 31, 2012 compared to$203 million or $0.45 per share for the same period last year. Net income from continuing operations for the first nine months of the year was $628 million or $1.34 per share compared to $392 million or $0.86 per share last year. SJR is trading at $19.42 with a dividend yield of 4.94%.  Dividends are paid on a monthly basis.  SJR has an equity summary score of 9.1 out of 10 for a VERY Bullish outlook.

Banco Latinoamericano De Comercio Exterior, S.A. (BLX) provides trade financing to commercial banks, middle-market companies, and corporations primarily in Latin America and the Caribbean.  Net Income during the first six months 2012 reached $55.4 million, a $13.4 million, or 32%, improvement compared to the same period in 2011.  The results were driven by the strong performance in the Commercial Division, where Net Income rose $20.3 million, or 96%, during the period, reflecting higher net interest income due to increased lending balances and yields.

Bladex is trading at $21.398 with a dividend yield of 4.68%.  BLX has an equity summary score of 9.9 out of 10 for a VERY Bullish outlook.

Dividend Stocks Bought by Stock Gurus

We all like to look at what the stock gurus are buying to determine where to invest our money or at least see what sectors they are looking at for their clients.  I am looking at the high yield stocks owned by investing gurus.  This is a great way to find high yield stocks as the entry point is not as important because you are investing for the income.  Also, I am looking at microcap stocks as they offer some growth potential along the way.  Here is a list of high yield microcap stocks bought by gurus in the last quarter.

Intersections Inc. (INTX) is a leading provider of consumer and corporate identity risk management services. Intersections provide various levels of service to more than 9.1 million consumers. Those services are offered through North America’s leading financial institutions, directly to consumers under Intersections’ award-winning IDENTITY GUARD(R) brand and through the company’s exclusive partnership with ITAC, the Identity Theft Assistance Center. INTX announced record financial results for the quarter ended March 31, 2012. Revenue for the quarter ended March 31, 2012was $90.2 million, as compared to $90.4 million for the quarter ended March 31, 2011. Consolidated adjusted EBITDA before share related compensation for the quarter endedMarch 31, 2012 was $16.3 million, compared to $13.0 million for the quarter ended March 31, 2011. Net income for the quarter ended March 31, 2012 was $6.2 million, a new record, as compared to $4.6 million for the quarter ended March 31, 2011.  INTX is trading at $11.45 with a dividend yield of 6.77%.  INTX has announced a recent $3.5 million share buyback program.  INTX has an equity summary score of 8.7 out of 10 for a Bullish outlook.  INTX was purchased by Joel Greenblatt of Gotham Capital in the previous quarter.

These two stocks are turn around plays:

Lincoln Educational Services Corporation (LINC) is a leading provider of diversified career-oriented post-secondary education. Lincoln offers recent high school graduates and working adults degree and diploma programs in five principal areas of study: health sciences, automotive technology, skilled trades, business and information technology and hospitality services.  The first quarter of 2012 marked the beginning of a year of rebuilding for LINC.  For the full year, LINC expects revenue of $440 million to $460 million, representing a decrease of approximately 10% to 14% over 2011, and diluted EPS of$0.25 to $0.40, representing a decrease of approximately 49% to 68% over 2011. Guidance for the full year is based on an increase in expected student starts of 6% to 8% over 2011. The Board of Directors has set the record and payment dates for the dividend for the second quarter of 2012. The cash dividend of $0.07 per share will be payable on June 29, 2012 to shareholders of record on June 15, 2012.  LINC is trading at $6.20 with a dividend yield of 4.54%.  LINC was purchased by Joel Greenblatt of Gotham Capital in the previous quarter.

Having helped Americans lose millions of pounds over the last 40 years, Nutrisystem, Inc. (NTRI) is a leading authority on nutrition research and the science of weight loss and is also the number one home delivery weight loss company.   NTRI expects revenue growth in the mid-single digits for 2012, and, excluding one-time charges, we are on plan from an operational standpoint with earnings guidance for the year in the range of 45 to 55 cents per share. For the second quarter, NTRI expects double-digit revenue growth due to strong new customer starts, and earnings per share in the range of 30 to 35 cents per share before one-time items.  NTRI is trading at $10.73 with a dividend yield of 6.57%. Gurus buying the stock include Joel Greenblatt of Gotham Capital and John Hussman of Hussman Econometrics Advisors.

Share Some Winning Cash
Archives