Buy These Top 3 Buy-Rated Dividend Stocks Today: NYCB, DFT, SFUN
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.
While plenty of high-yield opportunities exist, investors must always consider the safety of their dividend and the total return potential of their investment. It is not uncommon for a struggling company to suspend high-yielding dividends which could subsequently result in precipitous share price declines.
TheStreet Ratings' stock rating model views dividends favorably, but not so much that other factors are disregarded. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e. how much one is willing to risk in order to earn profits?; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to its stock's performance.
These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. As always, stock ratings should not be treated as gospel — rather, use them as a starting point for your own research.
The following pages contain our analysis of 3 stocks with substantial yields, that ultimately, we have rated "Buy."
Dividend Yield: 6.00%
(NYSE:
) shares currently have a dividend yield of 6.00%.
New York Community Bancorp, Inc. operates as a holding company for New York Community Bank and New York Commercial Bank that offer banking products and financial services in New York, New Jersey, Florida, Ohio, and Arizona. The company has a P/E ratio of 15.23.
The average volume for New York Community Bancorp has been 3,024,100 shares per day over the past 30 days. New York Community Bancorp has a market cap of $7.4 billion and is part of the banking industry. Shares are up 5.7% year-to-date as of the close of trading on Monday.
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TheStreet Ratings rates
New York Community Bancorp
as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, growth in earnings per share and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 383.29% to $228.59 million when compared to the same quarter last year. In addition, NEW YORK CMNTY BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -115.87%.
- The gross profit margin for NEW YORK CMNTY BANCORP INC is currently very high, coming in at 71.84%. Regardless of NYCB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NYCB's net profit margin of 26.59% compares favorably to the industry average.
- NEW YORK CMNTY BANCORP INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NEW YORK CMNTY BANCORP INC increased its bottom line by earning $1.10 versus $1.08 in the prior year. For the next year, the market is expecting a contraction of 5.5% in earnings ($1.04 versus $1.10).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Thrifts & Mortgage Finance industry average. The net income increased by 9.2% when compared to the same quarter one year prior, going from $120.16 million to $131.20 million.
- You can view the full New York Community Bancorp Ratings Report.
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Dividend Yield: 5.20%
(NYSE:
) shares currently have a dividend yield of 5.20%.
DuPont Fabros Technology, Inc., a real estate investment trust (REIT), engages in the ownership, acquisition, development, operation, management, and lease of large-scale data center facilities in the United States. The company has a P/E ratio of 27.42.
The average volume for Dupont Fabros Technology has been 849,600 shares per day over the past 30 days. Dupont Fabros Technology has a market cap of $2.1 billion and is part of the real estate industry. Shares are up 0.1% year-to-date as of the close of trading on Monday.
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TheStreet Ratings rates
Dupont Fabros Technology
as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 55.55% and other important driving factors, this stock has surged by 38.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 38.7% when compared to the same quarter one year prior, rising from $18.27 million to $25.35 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 8.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $72.70 million or 36.88% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.05%.
- You can view the full Dupont Fabros Technology Ratings Report.
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Dividend Yield: 6.70%
(NYSE:
) shares currently have a dividend yield of 6.70%.
SouFun Holdings Limited operates a real estate Internet portal, and a home furnishing and an improvement Website in the People's Republic of China. The company has a P/E ratio of 1.86.
The average volume for SouFun Holdings has been 7,600,900 shares per day over the past 30 days. SouFun Holdings has a market cap of $2.4 billion and is part of the internet industry. Shares are down 14.1% year-to-date as of the close of trading on Monday.
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TheStreet Ratings rates
SouFun Holdings
as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- SFUN's revenue growth trails the industry average of 18.6%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for SOUFUN HLDGS LTD is currently very high, coming in at 82.22%. Regardless of SFUN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SFUN's net profit margin of 37.00% significantly outperformed against the industry.
- SFUN's debt-to-equity ratio of 0.92 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that SFUN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.20 is high and demonstrates strong liquidity.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, SOUFUN HLDGS LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full SouFun Holdings Ratings Report.
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Other helpful dividend tools from TheStreet:
- Our dividend calendar.
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