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As an income investor, I cannot over-emphasize the importance of having good dividend yield stocks in your portfolio. While it is tempting to have regular stream of dividend, you need not sacrifice your capital gains potential. The following billion dollar companies are all set to give you the biggest bang for your buck.
Changeyou.com Limited (NASDAQ: CYOU): This Chinese company is a subsidiary of Sohu.com Inc and it closed its previous trading session at $23.24, which is closer to its 52 weeks low of $17 than to its 52 weeks high of $38.03. This online gaming company boasts of a strong customer base of about 200 million. The company reported a decline in its revenue for the latest quarter. However, things are likely to change for Changeyou.com as it is planning to collaborate with 17173.com for its multiplayer games. Changeyou.com’s latest earning per share stood at $5.00 and its stock is trading at Price earnings ratio of 4.62. As a nod of confidence, Citigroup has initiated the coverage on this stock with an initial Buy rating. The price target has been set at solid $32.90, and let’s not forget its attractive 16.35 percent dividend yield ratio.
American Capital Agency Corp. (NASDAQ: AGNC): With the market cap of around $12 billion, this stock can give you potential dividend yield of more than 14 percent. The stock is currently trading at $34.75, which is only slightly lower than its 52 weeks high of $35.58. The lowest point for the stock in the past 52 weeks was at $22.84. American Capital Agency Corp. has appreciated by more than 20 percent this year. The company is also likely to benefit from the change in Federal Reserve’s mortgage policy. The stock has been recommended by investment guru Jim Cramer. American Capital Agency Corp. is a mortgage REIT company and invests indirectly in property market through mortgage agencies. The company stock is trading at Price Earnings ratio of 9.71 and the company reported its latest earnings per share at $3.58.
Prospect Capital Corporation (NASDAQ: PSEC): This billion dollar company stock is also currently trading near to its 52 weeks high. The stock’s current quotation stands at $11.49 and its 52 weeks trading range is $7.58 and $12.00. Prospect Capital Corporation commands dividend yield ratio of about 11 percent and it is highly likely that the company will be issuing special dividend soon. Alternatively, it may increase its regular dividend to meet the legal requirement of distributing 90 percent of its net investment income to shareholders. The company recently announced strong quarterly results with $187 million in net investment income, up 48 percent. Its earnings per share for the quarter was reported at $1.67. Prospect Capital Corporation is a closed ended investment company and deals with middle market companies. This robust company has been clocking double digit growth from last five quarters and the stock is trading at Price earnings ratio of 6.87.
Windstream Corporation (NASDAQ: WIN): The stock is trading marginally up at $9.95 in its latest trading session. The company seems to be a little under the weather due to some unsavory news from Oklahoma. Windstream Corporation has been named in an indictment by an Oklahoma grand jury and it has been accused of bribery and conspiracy. The company, however, has vociferously denied the charges. The outlook may seem bleak as the company operates in wireline telecom market, but the stock itself shows resilience and movement, thanks to active insider trading. It has also maintained steady dividend yield ratio of 10 percent. With 52 weeks high price at $13.08, the stock may also provide good capital upside. The company has reported its latest earnings per share at $0.29 and its P/E ratio stands at 34.02.
Eagle Rock Energy Partners (NASDAQ: EROC) The company is engaged in energy sector and deals in natural gas and natural gas liquids. Eagle Rock Energy Partners stock is currently trading at $9.47 and offers about 9.30 percent dividend yield ratio. The company stock is trading at P/E ratio of 15.33 and the company earned $0.62 per share during the latest reported quarter. Eagle Rock Energy Partners is likely to benefit from increase in midcontinent propane price as it is engaged in upstream and midstream operations. It recently closed its public offering of common units and its net proceeds stood at $84 million. Since the company will be utilizing the proceeds for acquiring gas processing facilities, you can expect the operational results to get better in coming quarters. Eagle Rock Energy Partners is planning to buy these facilities from BP Plc.
