3 High Dividend Stocks with Low PEG Ratios & Good Growth Prospects

By Robert Hauver

If you’re looking for dividend paying stocks with good future EPS growth prospects and low P/E to EPS growth valuations, (PEG), here are 3 dividend stocks from our High Dividend Stocks by Sector tables:

United Online, (UNTD), and Himax Technologies, (HIMX), are both ranked high in our Technology High Dividend Stocks table, and Collectors Universe, (CLCT), has the highest current dividend yield in our Consumer Discretionary Dividend table.  CLCT also recently raised their dividend from $.25/share per quarter to $.30/share.

As you’ll see in the table below, all 3 of these stocks have PEG ratios well below 1, current dividend yields from 6.64% to over 9%, and are expected to have EPS growth of at least 15% over the next 5 years:

Ticker

Price

Dividend Yield

P/E

PEG

EPS growth next 5 years

UNTD

$6.02

6.64%

8.6

0.57

15.00%

HIMX

$3.02

8.28%

9.44

0.63

15.00%

CLCT

$13.10

9.16%

14.24

0.71

20.00%

Their valuation and mgt. effectiveness ratios vary widely, and their Debt/Equity ratios range from debt-free for 2 of the firms, to .72 for United Online:

ROE

ROI

Total Debt/Equity

Profit Margin

P/B

P/Free Cash per Share

UNTD

15.24%

7.97%

0.72

6.57%

1.23

8.58

HIMX

9.96%

9.03%

0

5.48%

1.26

8.01

CLCT

33.84%

29.10%

0

18.65%

5.57

3.30

There are call and put options available for UNTD and HIMX, but none for CLCT.

For investors looking for a lower entry point via selling cash-secured put options, Himax has the most attractive put-selling yield.  Selling cash secured puts currently offers a much better return than selling covered calls on either of these stocks.  Both of these trades are listed in our Covered Put Table.

Put Strike Price/Expiration Month Put Bid Premium Nominal Yield * Annualized Yield *
HIMX $2.50/Dec. 2010 $.20 8.00% 16.98%
UNTD $5.00/Dec. 2010 $.35 7.00% 14.85%

* Yields based upon 100% cash reserve.

Disclosure: No positions in these stocks at this time.

Disclaimer: This article is written for informational purposes only.