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3 Dividend Stocks For A Record-Low Bond Yield Environment

Adam Clark

Last week saw stocks recover from a major sell-off after the United Kingdom’s decision to leave the European Union, but the Brexit is still affecting the financial world. The bond market is seeing historically low yields, which is driving investors towards other investment opportunities. One of these investment vehicles is dividend stocks, which offer investors income as well as some downside-risk protection.

Using Zacks Premium Screens To Find High-Yielding Dividend Stocks

Many investors know that screening is a very powerful way to find the best stocks, but creating your own screens can be difficult and time consuming. However, with Zacks Premium Screens, finding the best stocks is just a few clicks away.

To show just how easy it can be, I have used one of Zacks Premium Screens, named the “Dividends with Style” screen. Though they are already implemented for you, the parameters of this screen is that the stocks must be a Zacks Rank #1 (Strong Buy) or #2 (Buy), a dividend yield greater than 4%, Style Scores of a C or better, and average 20-day volume above 100,000.

Below are 3 high-yield dividend stocks that also have top Zacks Ranks and solid Zacks Style Scores that were found from using the “Dividends with Style” premium screen:

BG Staffing Inc. BGSF

BG Staffing Inc. is a national provider of temporary staffing services across a diverse set of industries. The company’s business segments offer temporary staffing services in the Multi-Family, Professional, and Commercial Sectors. BGSF holds a Zacks Rank #1 (Strong Buy), and has a dividend yield of 5.41%, to a go along with 3 solid Style Scores.

For its Value Style Score, the company holds an A, thanks to a low PE ratio of 11.35 and a price to sales of .61. In regards to its Growth Style Score, BGSF holds an A as well, with a ROE figure of 20.78%, in addition to projected sales growth of 19.43%, and projected EPS growth of 123.29%, both for the current year. The company also has a B for its Momentum Style Score, with a 52-week price change of 65.82%, and with the current year EPS estimate rising 56.73% in the last month.

Genesis Energy GEL

Genesis Energy operates crude oil common carrier pipelines and is an independent gatherer and marketer of crude oil in North America, with operations concentrated in Texas, Louisiana, Alabama, Florida, Mississippi, and New Mexico. Genesis Energy is a Zacks Rank #2 (Buy), and offers a dividend yield of 6.96%.

The company has a B for its Value Style Score, which can be attributed to cash flow per share of 2.15 and an earnings yield of 3.86%. GEL also holds a B for its Growth Style Score, backed up by projected EPS growth of 71.90% and a high net margin of 20.86%. The company also has a 12-week price change of 30.20%, and has seen its EPS estimates for the current year rise 3.99% in the last 3 months.

CenterPoint Energy CNP

CenterPoint Energy is a domestic energy company that includes electricity transmission and distribution, natural gas distribution and sales, in addition to interstate pipeline and gathering operations. The company is a Zacks Rank #2 (Buy), and offers a dividend yield of 4.28%. CenterPoint is also in a highly-ranked industry by Zacks, coming in the top 38% of all industries.

The company holds a B for its Value Style Score, backed up by cash flow per share of 3.40, an earnings yield of 4.79%, and a cash to price ratio of 30.72. CenterPoint also has an A for its Growth Style Score, which can be attributed to a ROE figure of 13.43%, in addition to projected sales growth of 3.48%, and projected EPS growth of 6.67%, both for the current year. Also, thanks to a 52-week price change of 24.03% and upward EPS estimate revision activity, the company has a B for its Momentum Style Score.

Bottom Line

In a record-low bond yield environment like the one we are seeing today, dividend stocks like these can provide investors with income and returns that other investment vehicles can’t. As the three stocks above show, the capabilities of the Zacks Premium Stocks offer top stock investment options with just a few clicks The screens are already made for investors. All you have to do is choose the screen you wish to use, whether it be for top-ranked, high-yield dividend stocks like these, or for stocks that the multitude of other screens can help investors find.

To use more than 45 predefined screens strategically created to find the best stocks — and access even more proven tools and resources — start your free 30-day trial to Zacks Premium.


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CENTERPOINT EGY (CNP): Free Stock Analysis Report
 
GENESIS ENERGY (GEL): Free Stock Analysis Report
 
BG STAFFING INC (BGSF): Free Stock Analysis Report
 
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