The S&P 500 has almost recovered its losses this year, and we are close to breaking into positive territory.The Fed paused on raising interest rates, and reduced the number of rate hikes it expects to employ this year.This is pretty good news for the market, as the lower rates should be around for at least a few more months.
At the same time, this news shows how the Fed is cautious of the volatile macro economy. There are reasons to be optimistic, but just as many (if not more) reasons to remain cautious. There are many questions which need to be answered with regards to Chinese growth concerns, oil production and supply, Eurozone stability, and so on.
These questions are sure to pop back up and cause more volatility as we progress through the year. Over the last few weeks, the market has been bullish. If you expect the trend to continue, but still want some income to secure your returns if things don’t go your way, we’ve got just the right stocks for you now.
Below, we outline three Buy-ranked stocks with dividend yields north of 3%. These companies also have considerable growth potential, with an attractive combination of profitability, sales growth, ROE, and other fundamental metrics.
Ormat Technologies, Inc- (ORA – Snapshot Report)
Ormat develops, manufactures, and markets innovative power systems.The company provides alternative and renewable energy technology.Ormat is a Zacks Rank #2 (Buy), and it currently offers a dividend yield of 3.11%. The company also has a current ratio of 1.99, so it has plenty of liquidity to fall back on.The company also has positive cash flow growth, and has sustained positive free cash flows over the last two years.
Ormat has very desirable growth metrics across the board.The company’s debt-to-capital is just 44.18%.It also has net margins of 20.11%, while the rest of the industry lags behind with negative net margins of -23.89%.The industry’s ROE is -38.03%, while Ormat’s return on equity is 7.34%.Ormat’ superiority across these metrics suggests that it is well ahead of the alternative energy industry.Sales are projected to grow by 4.26% this year, while EPS is expected to grow by 14.97%.
