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- By Hoang Quoc Anh
Long-term income investors prefer to sleep well at night. They like stocks with high dividend yields and low volatility. In our Global Hidden Gems Portfolio, apart from handpicking stocks that are profitable but trading less than net cash, we also featured high dividend yield stocks around the world in a monthly basis. Here is a list of 70 stocks with the highest yields, but with volatility in the S&P 500 basket.
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Warning! GuruFocus has detected 3 Warning Signs with CTL. Click here to check it out.
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NYSE:CTL) has reached its 27-year-low, resulted from the market mistrust when the company's auditor stated that it had material weaknesses in its internal control. However, the market has overreacted negatively because even with proper procedures, internal control error cannot be eliminated completely. One confidence factor is that both CEO and CFO has recently turned bullish in CenturyLink, buying in 50,000 and 15,000 shares of the company, respectively. Many investors might worry about its high leverage balance sheet. However, the management is trying the best to reduce its leverage level to a more reasonable level. From the first quarter of 2018, its net debt to adjusted Ebitda has gone down from 4.3x to 3.9x. In the next three years, CenturyLink estimated to reach reasonable target leverage of 2.75x to 3.25x. By 2020, CenturyLink is expected to generate $1.30 in per share earnings. With a 14x P/E valuation, CenturyLink should be worth $18.2, an 80% upside. In addition, investors can receive an additional 10% dividend yield each year. Thus, the total return should be around 100% in two years.