25 Dividend Stocks With Magic Formula Characteristics

Last week, I looked for magic formula tech stocks. With the recent pullback from the Japanese earthquakes, I thought I'd use the pullback to look for stocks with high dividend yields and magic formula like characteristics. The high dividend yield and low valuation should protect the stocks' downside while the high returns on capital and low valuation should provide plenty of upside. To put the list together, I took the Russell 3000 and eliminated all stocks with negative EBIT or stocks that didn't pay a dividend. Then I ranked the stocks from highest to lowest dividend yield (so Capstead Mortgage (CMO) had the highest dividend yield and received a 1. MFA financial (MFA) had the second highest and received a two). I then did the same with the stocks on an EV / EBIT basis (Wellpoint (WLP) had the lowest EV / EBIT and recieved a one, PDL Biopharama (PDLI)... Read more