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3 High Forward-Yield Stocks for the Dividend Investor

- By Alberto Abaterusso

In terms of a higher dividend yield, the following stocks are thrashing the S&P 500 index, which had a dividend yield of 2.02% at market close on June 7.

In addition, Wall Street issued a recommendation rating of overweight for all of them, which means that the stocks are predicted to outperform the overall market within 12 months. Also, while the S&P 500 index, which is considered as benchmark for the overall U.S. stock market, is forecasted to fall 9.1% over the same period, the price target for the following securities translates to at least 11.5% upside from the closing share price Friday.


The first company is Country Garden Holdings Co. Ltd. (CTRYF), which closed at $1.32 per share on Friday with a market capitalization of $29.11 billion. The stock has a forward dividend yield of 6.66% versus the industry median of 3.43%.

The Chinese real estate company has paid dividends since 2005. On July 10, Country Garden Holdings will pay a semi-annual dividend of approximately 4.4 cents per common share to shareholders of record May 23.

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GuruFocus assigned the company a rating of 4 out of 10 for financial strength and a 9 out of 10 rating for profitability and growth.

The stock has a price-earnings ratio of 5.24 versus the industry median of 10.26, a price-book ratio of 1.53 compared to the industry median of 0.94 and a price-sales ratio of 0.49 compared to the industry median of 2.54.

The stock increased 10% so far this year. The 52-week range is $0.99 to $2.16.

The 14-day relative strength index of 6.3 suggests the stock is oversold.

Wall Street issued an overweight recommendation rating with an average target price of $14.71 per share of Country Garden Holdings Co. Ltd. reflecting 1,014.4% upside from the share price at close on Friday.

The second company is Nokia Oyj (NOK), which closed at $5.08 per share on Friday with a market capitalization of $28.05 billion. The forward dividend yield is 5.75% versus an industry median of 2.12%.

The Finnish provider of communication equipment has paid dividends since 1994. On June 11, Nokia will pay a cash quarterly dividend of approximately 5.6 cents per common share to shareholders of record May 23.

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GuruFocus assigned a rating of 5 out of 10 for the company's financial strength and 6 out of 10 for profitability and growth.

The stock has a price-book ratio of 1.66 versus an industry median of 1.94 and a price-sales ratio of 1.13 versus an industry median of 1.41.

Year to date, the stock has fallen 13%. The 52-week range is $4.71 to $6.65.

The 14-day relative strength index of 47 suggests the stock is neither oversold nor overbought.

Wall Street issued an overweight recommendation rating for shares of Nokia Oyj with an average target price of $6.29 which represents a 24% growth from the share price at close on Friday.

The third company is Six Flags Entertainment Corp. (SIX), which closed at $51.83 per share on Friday with a market capitalization of $4.37 billion.

The stock has a forward dividend yield of 6.33% versus an industry median of 2.37%.

The Grand Prairie, Texas-based leisure company has paid dividends since 1995. On June 10, the company will pay an 82-cent cash quarterly dividend per common share to shareholders of record May 30.

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GuruFocus assigned a rating of 4 out of 10 for Six Flags Entertainment's financial strength and an 8 out of 10 rating for profitability and growth.

The stock has a price-earnings ratio of 16.48 versus the industry median of 20.77 and a price-sales ratio of 3.01 versus an industry median of 1.89.

The share price has fallen 7% so far this year. The 52-week range is $48.68 to $73.38 per share.

The 14-day relative strength index of 50 suggests the stock is neither overbought nor oversold.

Wall Street issued an overweight recommendation rating for shares of Six Flags Entertainment with a target price of $57.82 reflecting 11.6% increase from the share price at close on Friday.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.