5 Stocks From Jim Cramer That Yield Over 7%

Chris Lau, Kapitall: For the week of February 25 2013, Cramer mentioned 5 companies that yielded more than 7%. The companies are worth deeper analysis, in an environment where yield is hard to find. The companies mentioned were:

Screen shot 2013-03-04 at 12.21.26 PM

List Average 1-Year Return10%

 

1. Pengrowth Energy Corporation ( PGH): Engages in the acquisition, exploration, development, and production of oil and natural gas reserves in the Western Canadian Sedimentary Basin. Market cap at $2.03B.

Sell. Pengrowth declared a $0.04 monthly dividend, giving the company shares a yield of over 10%. Shares traded ex-dividend on February 21. In December, the company sold 10% of its interest in Weyburn property. The CAD $315M gained was used to reduce the company’s debt. Pengrowth is also in the initial phases of an oil sands project in Alberta.

Pengrowth bottomed below $4, and is now 17% above its 52-week low.

 

2. Ship Finance International Limited ( SFL): Engages in the ownership and operation of vessels and offshore related assets in Bermuda, Cyprus, Malta, Liberia, Norway, the United States, Singapore, the United Kingdom, and the Marshall Islands. Market cap at $1.39B.

Sell. Ship Finance reported fourth quarter earnings of $0.60 per share, beating estimates by $0.27. Charter revenue was $168 million. In January, the company announced an increase in the issuance of convertible senior notes that would be due in 2018. The total issue is now $350 million.

 

3. SeaDrill Limited ( SDRL): Provides offshore drilling services to the oil and gas industries worldwide. Market cap at $17.13B.

Buy. SeaDrill pays a dividend that yields 9.1%. The company reported quarterly results on February 28 2013, beating revenue estimates by $110M. SeaDrill earned $0.04 per share on revenue of $1.22B. The only negative news with this company was that it raised estimates for the downtime required for its deep-water rigs. The estimate was raised to around 100 days, up from 41 days. In Q4, operating profits for floaters declined by 7.3%, but profits from jack-up rigs increased by 44%. Operating costs increased by 24% to $774M.

 

4. Newcastle Investment Corp. ( NCT): Operates as a real estate investment and finance company that invests in and manages a portfolio consisting primarily of real estate securities. Market cap at $2.71B.

Buy. Newcastle reported a quarterly EPS of $0.19. Shares yield 7.9%. Most significant was that the company priced its 20 million share offering, which gives the company $209.6 million. These was why shares dipped in mid-February, but have recovered since.

 

5. Linn Energy, LLC ( LINE): Engages in the development and acquisition of oil and gas properties in the United States. Market cap at $8.75B.

Buy. Line Energy reported quarterly earnings on February 21. Q4 earnings of $0.41 per share were in-line with estimates. The company is acquiring Berry Petroleum for $4.3 billion, which includes assumed debt. The purchase was at a nearly 20% premium.
 

( List compiled by Kapitall Contributor Chris Lau )

 

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