High free cash flow (FCF) together with attractive dividend yield is considered
an appealing investment combination for a lucrative long-term investment.
High free cash flow yield stocks experience higher total returns, while
high dividend yielding stocks offer downside protection with income generation.
Ubika Research has shortlisted twelve financial stocks which offer an
attractive combination of good free cash flow yield and decent dividend
payout ratios. Moreover, these stocks are estimated to register strong
earnings growth during 2014, based on the consensus estimates of analysts
polled by Bloomberg. We note that the shortlisted stocks have accumulated
gains during the past three months with daily average traded volume in
excess of 100,000.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
Free Cash Flow Yield* |
Dividend Yield* |
Dividend Payout Ratio* |
EPS Growth (2014E) |
Dividend Yield (2014E) |
|
First Commonwealth Financial Corp |
NYSE |
FCF |
0.8 |
8.47 |
445,635 |
5.9% |
10.0% |
2.9% |
36.5% |
11.4% |
2.7% |
|
HCI Group Inc |
NYSE |
HCI |
0.6 |
49.12 |
179,626 |
19.5% |
21.9% |
2.5% |
18.9% |
86.6% |
2.2% |
|
Industrial Alliance Insurance & Financial Services Inc |
TSX |
IAG |
4.5 |
45.69 |
139,506 |
2.1% |
25.4% |
2.3% |
22.6% |
12.9% |
2.2% |
|
Selective Insurance Group Inc |
NASDAQ |
SIGI |
1.4 |
25.83 |
140,438 |
5.1% |
19.2% |
2.1% |
22.8% |
181.0% |
2.0% |
|
Glacier Bancorp Inc |
NASDAQ |
GBCI |
2.2 |
28.99 |
314,964 |
12.6% |
13.9% |
2.4% |
43.5% |
25.3% |
1.9% |
|
Symetra Financial Corp |
NYSE |
SYA |
2.2 |
19.02 |
335,922 |
2.3% |
42.8% |
1.8% |
23.2% |
15.8% |
1.8% |
|
Allied World Assurance Co Holdings AG |
NYSE |
AWH |
3.6 |
107.41 |
152,341 |
4.1% |
12.5% |
1.8% |
13.9% |
90.3% |
1.7% |
|
Aspen Insurance Holdings Ltd |
NYSE |
AHL |
2.7 |
40.39 |
448,921 |
7.2% |
20.7% |
1.9% |
12.4% |
12.8% |
1.7% |
|
Evercore Partners Inc |
NYSE |
EVR |
2.3 |
57.61 |
313,136 |
17.1% |
12.3% |
1.8% |
44.7% |
24.1% |
1.6% |
|
First Interstate Bancsystem Inc |
NASDAQ |
FIBK |
1.2 |
26.79 |
102,807 |
10.7% |
13.5% |
2.2% |
25.7% |
53.9% |
1.5% |
|
Assurant Inc |
NYSE |
AIZ |
4.8 |
66.63 |
583,286 |
15.1% |
18.0% |
1.7% |
14.6% |
14.6% |
1.4% |
|
Home Capital Group Inc |
TSX |
HCG |
2.7 |
77.60 |
107,671 |
3.3% |
19.7% |
1.4% |
15.7% |
14.4% |
1.4% |
Source: Bloomberg
*Latest Reported Quarter
Company Description:
First Commonwealth Financial Corp (NYSE: FCF)
First Commonwealth Financial Corporation is a bank holding company. The
company, through its subsidiaries, provides general banking business and
offers a range of financial services including traditional retail banking
services, such as savings, time deposits, mortgage, consumer installment,
and commercial loans.
HCI Group Inc (NYSE: HCI)
HCI Group, Inc. offers property/casualty insurance. The company offers
homeowners’, condominium owners’, and tenants’ insurance.
Industrial Alliance Insurance & Financial Services Inc (TSX: IAG)
Industrial Alliance Insurance and Financial Services Inc. is an insurance
and financial services company that has operations throughout Canada. The
company provides life and health insurance, savings and retirement plans,
registered retirement saving plans, investment funds, mortgage loans, securities
brokerage services, auto and home insurance, and other financial products
and services.
Selective Insurance Group Inc (NASDAQ: SIGI)
Selective Insurance Group, Inc., through its subsidiaries, offers a broad
range of commercial insurance products, alternative risk management products,
and managed care and related services. The company’s customers include
small to medium-sized businesses, governmental entities, selected classes
of light industry, as well as individuals and families.
Glacier Bancorp Inc (NASDAQ: GBCI)
Glacier Bancorp, Inc. is a multi-bank holding company. The Banks attract
deposits from the general public and use those funds to originate a variety
of commercial and consumer loans.
Symetra Financial Corp (NYSE: SYA)
Symetra Financial Corporation offers group health, retirement, life insurance,
and employee benefits.
Allied World Assurance Co Holdings AG (NYSE: AWH)
Allied World Assurance Company Holdings AG is a specialty insurance and
reinsurance company that underwrites a diversified portfolio of property
and casualty insurance and reinsurance lines of business.
Aspen Insurance Holdings Ltd (NYSE: AHL)
Aspen Insurance Holdings Ltd. is a holding company that provides property/casualty
insurance and reinsurance. The company offers property and liability insurance
in the United Kingdom and United States, and marine, energy, and aviation
insurance and reinsurance worldwide.
Evercore Partners Inc (NYSE: EVR)
Evercore Partners Inc. is an investment banking boutique. The firm provides
advisory services to multinational corporations on mergers, acquisitions,
divestitures, restructurings and other corporate transactions. Evercore
also manages private equity funds for institutional investors.
First Interstate Bancsystem Inc (NASDAQ: FIBK)
First Interstate BancSystem, Inc. is the holding company of First Interstate
Bank. The Bank attracts deposits and offers business and consumer
loans, mortgages, investment products, and trust services. Through
a subsidiary, First Interstate BancSystem reinsures credit life and disability
insurance. The Bank operates in Montana and Wyoming.
Assurant Inc (NYSE: AIZ)
Assurant, Inc. provides specialized insurance and insurance-related products.
The company offers individual and small employer group health insurance,
group dental insurance, pre-funded funeral insurance, group disability
and life insurance, creditor-placed homeowners insurance, manufactured
housing homeowners insurance, debt protection administration, credit insurance,
and warranties.
Home Capital Group Inc (TSX: HCG)
Home Capital Group Inc. is a holding company operating through its principal
subsidiary, Home Trust Company. Home Trust is a federally regulated
trust company offering deposit, mortgage lending, and credit card issuing
services. Licensed to conduct business across Canada, Home Trust has offices
in Ontario, Alberta, and British Columbia.
