4 high-yielding stocks that fly under the radar
The US stock market fell again on Tuesday as Remarks by Fed Chairman Jerome Powell on inflation scared investors and pushed bond rates up. The 10-year Treasury yield reached as high as 1.56% on Tuesday. The S&P 500 had its worst day since May, while the Nasdaq Composite had its worst day since March, the tech sector struggled to capture the attention of investors because of their susceptibility to an increase in interest rates.
Since the stock market is expected to remain very volatile, dividend paying stocks are expected to outperform due to their superior quality and guaranteed income.
Thus, it might be wise to bet on lesser known, high dividend yielding stocks like Ternium SA (Emission), OneMain Holdings Inc. (OMF), Westlake Chemical Partners LP (WLKP) and Ennis Inc. (EBF) which have fundamental strength.
Ternium SA (Emission)
TX, through its subsidiaries, manufactures and processes a range of steel products in various regions. Steel and mining are the two operating segments of the company. In addition, the company provides medical and social, financial, scrap metal, engineering and other services.
Last month, TX and Vale SA signed a memorandum of understanding in which the two companies pledged to seek opportunities to create steel solutions that reduce CO2 emissions.
TX’s revenue increased 124.5% year-on-year to $ 3.92 million for the second quarter ended June 30, 2021. Its operating profit increased significantly from the value of l last year to reach $ 1.27 billion. The company’s net income increased significantly from the previous year quarter to $ 1.02 billion. In addition, his Cash and cash equivalents increased 42.9% year-over-year to $ 768.7 billion for the six-month period ended June 30, 2021.
The company’s EPS is expected to grow 475.8% year-over-year to $ 17.39 in the current year. Analysts expect TX revenue to grow 78.9% year-on-year to $ 15.63 billion in fiscal 2022. TX stock was up 136.6% over the course of the year. last year and 46.9% in the last nine months.
TX’s $ 2.1 annual dividend earns 4.7% of its current stock price. On April 14, the company approved a quarterly dividend of $ 2.10, payable May 14. Its four-year average dividend yield is 3.6%.
TX POWR odds reflect this promising outlook. The company has an overall rating of A, which translates into a strong buy in our proprietary rating system. POWR ratings evaluate stocks based on 118 different factors, each with its own weight.
TX also earned an A rating for momentum and quality, and a B for value and sentiment. In category A Steel industry, it is ranked # 2 out of 33 stocks. Click here to see additional POWR ratings for growth and stability for TX.
OneMain Holdings Inc. (OMF)
OMF is a financial services holding company specializing in consumer loans and insurance. Personal loans secured by vehicles, other secured or unsecured collateral are issued, underwritten and managed by the company. It operates through 1,500 branches in 44 states of the United States and a website onemainfinancial.com.
Last month, OMF announced the launch of Money LaunchPad, a new personal financial education program that teaches fundamental financial skills to children in grades 9 to 12. Through this, the company aims to strengthen and promote the financial well-being of people of all ages.
In the second quarter ended June 30, 2021, OMF revenue increased 1.4% year-on-year to $ 150 million. The company’s net profit jumped 293.3% from last year’s value to $ 350 million, while its EPS rose 293.9% from the previous year’s quarter to $ 2.6.
Analysts expect OMF’s EPS to grow 75.8% year-on-year to $ 10.67 in fiscal 2021. In addition, the company’s revenue is expected to increase 5.6 % in the current year. In addition, the stock has jumped 96.9% in the past year and 20.9% since the start of the year.
OMF paid a quarterly dividend of $ 0.7 on August 13. While the four-year average dividend yield for OMF is 8.1%, the current dividend translates to a yield of 4.8%.
OMF’s POWR ratings reflect this promising outlook. The company has an overall rating of A, which translates into a strong buy in our proprietary rating system. The action is also rated B for momentum, value and quality.
Within the Consumer financial services industry, OMF is ranked # 2 out of 51 stocks. Click here to see additional POWR ratings for Growth, Sentiment and Stability for OMF.
Westlake Chemical Partners LP (WLKP)
WLKP acquires, develops and operates ethylene manufacturing plants and related assets in the United States. The company’s ethylene production facilities primarily convert ethane to ethylene. In addition, it sells ethylene co-products directly to other parties on an ad hoc or contractual basis, including propylene, crude butadiene, pyrolysis gasoline and hydrogen.
WLKP’s revenue increased 35.1% year-on-year to $ 322.23 million in the second quarter ended June 31, 2021. Its operating profit increased 46.3% year-over-year. last year’s value to reach $ 122.76 million. The company’s net profit jumped 68.9% from a year ago quarter to $ 25.10 million, while its EPS rose 65.1% year-on-year to $ 0.71 during this period.
The company’s EPS is expected to grow 9.6% year-over-year to $ 2.06 in fiscal 2021. In addition, its revenue is expected to increase 16.6% during the year. In progress. The stock has gained 25.4% in the past year and 10.9% in the past nine months.
WLKP’s annual dividend of $ 1.89 earns 7.7% of its current share price. On August 12, the company approved a quarterly dividend of $ 0.47, payable on August 26. Its four-year average dividend yield is 7.9%.
WLKP’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. WLKP also has an A rating for quality and a B for value and momentum. The stock is ranked n ° 2 out of 10 stocks in the A rating MLP – Other industry.
Beyond the POWR Ratings that I just highlighted, you can see the WLKP ratings for stability, growth and sentiment.
Ennis Inc. (EBF)
EBF is engaged in the manufacture and sale of printed business products, business forms and other business supplies. Under the Ennis tag & label brand, the company sells high performance custom labels and stock labels.
In June, EBF announced the acquisition of the assets and businesses of AmeriPrint Corporation in Harvard, Illinois. Through this acquisition, the company aims to expand its operational capabilities and product portfolio.
EBF’s revenue increased 16% year-on-year to $ 100.45 million in the second quarter ended August 31, 2021. Operating profit increased 21.1% from value from a year ago to $ 10.81 million, while its net profit jumped 16.2% year-on-year. year to $ 7.46 million during this period. The company’s EPS rose 16% from last year’s value to $ 0.29.
The company’s EPS is expected to grow 31.2% year-on-year to $ 1.22 in fiscal 2021. Analysts expect EBF revenue to increase 11.9 % year on year to reach $ 400.48 million for the current year. The stock has gained 11.8% in the past year and 14% in the past nine months.
EBF declared a quarterly dividend of $ 0.25, payable November 5. While the four-year average dividend yield for EBF is 4.7%, the current dividend translates to a yield of 5.2%.
It’s no surprise that EBF has an overall rating of B, which equates to Buy in our POWR rating system. The stock also has an A rating for quality and a B for stability and value. In the Consumer goods industry, it is ranked # 3 out of 71 stocks.
In addition to the POWR Ratings that I just highlighted, you can see the EBF ratings for Growth, Momentum and Sentiment here.
TX shares were trading at $ 42.80 a share on Wednesday afternoon, down $ 0.24 (-0.56%). Year-to-date, TX has gained 55.28%, compared to a 17.89% increase in the benchmark S&P 500 over the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college, she majored in finance and is currently pursuing the CFA program and is a Level II candidate. Following…