3 high earnings yield stocks set to outperform

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Investors should look for stocks that generate returns that are more than twice the returns of 20 year high quality corporate bonds. Holders of these bonds receive a monthly spot rate of 3.51%.

These bonds are corporate bonds from companies with AAA, AAA and AAA ratings, which means a very low investment risk for bondholders and shareholders.

As a result, the following stocks, which have a price-earnings ratio of less than 14.25 and whose stocks have recently outperformed 20-year high-quality market bonds, may offer valuable opportunities for investors.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Companhia de Saneamento Basico "data-reactid =" 20 ">Companhia de Saneamento Basico

Companhia de Saneamento Basico do Estado de São Paulo (NYSE: SBS) shares closed Thursday, January 2 at $ 10.24 billion in stock capital of $ 14.98. The Brazilian provider of treated water, sanitation and liquid waste services has a return on profit of 9.3% compared to the industry average of 6% and a price-earnings ratio of 10.72 compared to the industry average of 16.66.

The stock price has risen by almost 145% in the past five years. However, stocks still seem cheap based on the Peter Lynch chart.

The company received a GuruFocus rating of 5 out of 10 for its financial strength and 9 out of 10 for its profitability.

As of Thursday, the share grants a forward dividend yield of 2%.

The stock has an overweight recommendation rating from Wall Street analysts and an average target price of $ 14.93 per share.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Warrior hit coal "data-reactid =" 42 ">Warrior hit coal

Warrior Met Coal Inc. (NYSE: HCC) shares closed Thursday at $ 21.63 and a market cap of $ 1.1 billion.

The Brookwood, Alabama-based producer and exporter of metallurgical coal to steel companies has a profit margin of 58.1%, which is well above the industry average of 9.8%. The price-earnings ratio is 1.72 compared to the industry median of 10.23.

The stock is cheap, according to Peter Lynch's chart below, regardless of an increase of 20.2% over five years.

As of Thursday, the stock offers a forward dividend yield of 0.92%.

Wall Street sell-side analysts gave an overweight recommendation rating for Warrior Met Coal stocks with an average price target of $ 27.88.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Civista Bancshares "data-reactid =" 64 ">Civista Bancshares

Civista Bancshares Inc. (NASDAQ: CIVB) shares closed Thursday at $ 24.07 and a market capitalization of $ 372.59 million. The company is headquartered in Sandusky, Ohio and operates as a regional bank holding company. The stock has a return on earnings of 8.26% compared to the industry median of 8.31% and a price-earnings ratio of 12.1 compared to the industry median of 12.03.

Although the stock has risen 134.4% in the past five years through January 2, it is still trading cheaply based on the Peter Lynch chart.

GuruFocus rated the company's financial strength as 2 out of 10 and profitability as 4 out of 10.

The stock will grant a dividend yield of 1.84% on Thursday.

Wall Street gave an overweight recommendation rating for Civista Bancshares stocks with an average price target of $ 25.88.

Disclosure: I have no positions in the above securities.

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