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4 High-Yield Stocks With Widely Varied Prospects

Some good examples of when a juicy payout is and isn't worth it

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Banco Santander

Banco Santander

Dividend Yield: 10.17%
Green Light

If you follow the eurozone crisis at all, you know that Spanish retail banking giant Banco Santander (NYSE:SAN) is deep in the middle of the turmoil. But SAN isn’t strictly a Spanish-centric operation. It operates in the U.K., Portugal, Latin America and the U.S. It has a market cap of over $80 billion, making it one of the world’s biggest banks.

I think this is one of the good guys. It has room to move on both stock appreciation and dividend increases. The shares are up just over 17% in the last year, and the dividend of 20 cents per quarter looks pretty stable.

Fears about both the eurozone and the banking sector appear to be ebbing, at least based on the lack of recent bad news in the former and improved results in the latter. Yahoo (NASDAQ:YHOO) Finance provided forecasts suggesting SAN will improve its EPS by nearly 150% for fiscal 2013, up to 91 cents per share. Five-year revenue growth estimates are for just over 16% per year.

It’s a difficult world for banks, and some pain might still be around the corner, but SAN appears to be one of those high-dividend-yield players that can work long-term for investors.

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