What To Buy: Top 3 Buy-Rated Dividend Stocks: ISIL, MMP, LVS
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." IntersilDividend Yield: 4.10%Intersil (NASDAQ: ISIL) shares currently have a dividend yield of 4.10%. Intersil Corporation designs and develops power management and precision analog integrated circuits (ICs) for applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. The company has a P/E ratio of 10.55. The average volume for Intersil has been 959,200 shares per day over the past 30 days. Intersil has a market cap of $1.6 billion and is part of the electronics industry. Shares are down 8% year-to-date as of the close of trading on Tuesday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreet Ratings rates Intersil as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, impressive record of earnings per share growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 117.1% when compared to the same quarter one year prior, rising from -$68.82 million to $11.75 million.
- ISIL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ISIL has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
- INTERSIL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTERSIL CORP reported lower earnings of $0.04 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.67 versus $0.04).
- The gross profit margin for INTERSIL CORP is rather high; currently it is at 61.53%. Regardless of ISIL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.08% trails the industry average.
- You can view the full Intersil Ratings Report.
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Dividend Yield: 4.50%
(NYSE:
) shares currently have a dividend yield of 4.50%. Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates through Refined Products, Crude Oil, and Marine Storage segments. The company has a P/E ratio of 39.23. The average volume for Magellan Midstream Partners has been 944,200 shares per day over the past 30 days. Magellan Midstream Partners has a market cap of $16.4 billion and is part of the energy industry. Shares are up 5% year-to-date as of the close of trading on Tuesday.
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TheStreet Ratings rates
Magellan Midstream Partners
as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- The gross profit margin for MAGELLAN MIDSTREAM PRTNRS LP is rather high; currently it is at 54.53%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 36.14% significantly outperformed against the industry average.
- Despite the weak revenue results, MMP has outperformed against the industry average of 34.1%. Since the same quarter one year prior, revenues fell by 14.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 17.8% when compared to the same quarter one year ago, dropping from $252.09 million to $207.12 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MAGELLAN MIDSTREAM PRTNRS LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $345.59 million or 12.28% when compared to the same quarter last year. Despite a decrease in cash flow MAGELLAN MIDSTREAM PRTNRS LP is still fairing well by exceeding its industry average cash flow growth rate of -39.87%.
- You can view the full Magellan Midstream Partners Ratings Report.
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Dividend Yield: 6.20%
(NYSE:
) shares currently have a dividend yield of 6.20%. Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. The company has a P/E ratio of 20.96. The average volume for Las Vegas Sands has been 5,238,800 shares per day over the past 30 days. Las Vegas Sands has a market cap of $37.2 billion and is part of the leisure industry. Shares are up 4.4% year-to-date as of the close of trading on Tuesday.
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TheStreet Ratings rates
Las Vegas Sands
as a
. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- LVS, with its decline in revenue, underperformed when compared the industry average of 10.8%. Since the same quarter one year prior, revenues slightly dropped by 9.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of LAS VEGAS SANDS CORP has not done very well: it is down 17.21% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- LAS VEGAS SANDS CORP's earnings per share declined by 37.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, LAS VEGAS SANDS CORP reported lower earnings of $2.47 versus $3.51 in the prior year. For the next year, the market is expecting a contraction of 4.7% in earnings ($2.36 versus $2.47).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 37.5% when compared to the same quarter one year ago, falling from $511.92 million to $320.17 million.
- You can view the full Las Vegas Sands Ratings Report.
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Other helpful dividend tools from TheStreet:
- Our dividend calendar.
