Among high yield stocks from the S&P 500 with high margins, profitability is very important. Indeed, the higher the profit margins, the better the market position and market strength of a company.
I screened the popular S&P 500 index by high yield stocks with an operating margin of more than 10 percent. Eleven firms have such margins, of which one yields at double-digit rates. Five have a current buy or better recommendation by brokerage firms.
- Exelon Corporation (NYSE: EXC) has a market capitalization of $31.46 billion. The company employs 19,267 people, generates revenue of $18,924.00 million and has a net income of $2,495.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,815.00 million. The EBITDA margin is 30.73% (operating margin 23.67% and net profit margin 13.18%).
Financial Analysis:
The total debt represents 24.49% of the company’s assets and the total debt in relation to the equity amounts to 93.79%. Due to the financial situation, a return on equity of 17.86% was realized. Twelve trailing months earnings per share reached a value of $2.43. Last fiscal year, the company paid $2.10 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.17, P/S ratio 1.67 and P/B ratio 1.71. Dividend Yield: 5.66%. The beta ratio is 0.53. 
- Gannett Co. (NYSE: GCI) has a market capitalization of $3.55 billion. The company employs 31,000 people, generates revenue of $5,239.99 million and has a net income of $500.13 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,012.42 million. The EBITDA margin is 19.32% (operating margin 15.55% and net profit margin 9.54%).
Financial Analysis:
The total debt represents 26.61% of the company’s assets and the total debt in relation to the equity amounts to 75.62%. Due to the financial situation, a return on equity of 20.43% was realized. Twelve trailing months earnings per share reached a value of $1.69. Last fiscal year, the company paid $0.24 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.11, P/S ratio 0.68 and P/B ratio 1.56. Dividend Yield: 5.22%. The beta ratio is 2.45. 
- Reynolds American (NYSE: RAI) has a market capitalization of $25.47 billion. The company employs 5,400 people, generates revenue of $8,541.00 million and has a net income of $1,406.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,537.00 million. The EBITDA margin is 29.70% (operating margin 28.09% and net profit margin 16.46 percent).
Financial Analysis:
The total debt represents 22.54% of the company’s assets and the total debt in relation to the equity amounts to 58.60%. Due to the financial situation, a return on equity of 22.04% was realized. Twelve trailing months earnings per share reached a value of $2.52. Last fiscal year, the company paid $2.15 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.85, P/S ratio 3.01 and P/B ratio 4.19. Dividend Yield: 5.19%. The beta ratio is 0.54. 
Take a closer look at the full table of the most profitable high-yields from the S&P 500. The average price to earnings ratio (P/E ratio) amounts to 22.10 and forward P/E ratio is 16.00. The dividend yield has a value of 6.35%. Price to book ratio is 1.79 and price to sales ratio 2.11. The operating margin amounts to 18.00% and the beta ratio is 0.97.
Full Table With Fundamentals (TTM):
Related stock ticker symbols:
WIN, FTR, CTL, CLF, EXC, POM, PBCT, RAI, GCI, HCN, TE,