29 Underrated US Stocks With Potential To Yield Tremendous Profits In 2017 – Part 2

Industrial Sector

  1. R Donnelly & Sons Co. (NYSE: RRD) is expected to payout a dividend yield of 6.62% in 2017. Its free cash flow for the past 12 months has been calculated to 8.57% with headroom of 1.95%. The company’s estimated sales growth for the year 2017 is expected to be at 1% accompanied by a consensus EPS estimate of 9.4
  2. CEB Inc. (NYSE: CEB) is expected to payout a dividend yield of 3.03% in 2017. Its free cash flow for the past 12 months has been calculated to 7.16% with headroom of 4.13%. The company’s estimated sales growth for the year 2017 is expected to be at 6% accompanied by a consensus EPS estimate of 12.6
  3. Boeing Co. (NYSE: BA) is expected to payout a dividend yield of 3.31% in 2017. Its free cash flow for the past 12 months has been calculated to 9.37% with headroom of 6.06%. The company’s estimated sales growth for the year 2017 is expected to be at 1% accompanied by a consensus EPS estimate of 13.7

Analysts predict that industrial sector estimated earnings will increase by 16.4 folds by 2017.

Information Technology Sector

  1. Western Union Co. (NYSE: WU) is expected to payout a dividend yield of 3.07% in 2017. Its free cash flow for the past 12 months has been calculated to 9.70% with headroom of 6.63%. The company’s estimated sales growth for the year 2017 is expected to be at 2% accompanied by a consensus EPS estimate of 12
  2. CA Inc. (NASDAQ: CA) is expected to payout a dividend yield of 3.08% in 2017. Its free cash flow for the past 12 months has been calculated to 7.04% with headroom of 3.95%. The company’s estimated sales growth for the year 2017 is expected to be at 2% accompanied by a consensus EPS estimate of 12.7
  3. Western Digital Corp. (NASDAQ: WDC) is expected to payout a dividend yield of 3.42% in 2017. Its free cash flow for the past 12 months has been calculated to 9.17% with headroom of 5.75%. The company’s estimated sales growth for the year 2017 is expected to be at 35% accompanied by a consensus EPS estimate of 13.0

Analysts predict that IT sector estimated earnings will increase by 16.8 folds by 2017.

Materials Sector

  1. LyondellBasell Industries NV Class A (NYSE: LYB) is expected to payout a dividend yield of 4.22% in 2017. Its free cash flow for the past 12 months has been calculated to 10.34% with headroom of 6.12%. The company’s estimated sales growth for the year 2017 is expected to be at 6% accompanied by a consensus EPS estimate of 8.3
  2. Schweitzer-Mauduit International Inc. (NYSE: SWM) is expected to payout a dividend yield of 4.15% in 2017. Its free cash flow for the past 12 months has been calculated to 9.91% with headroom of 5.76%. The company’s estimated sales growth for the year 2017 is expected to be at 1% accompanied by a consensus EPS estimate of 11.4
  3. International Paper Co. (NYSE: IP) is expected to payout a dividend yield of 3.67% in 2017. Its free cash flow for the past 12 months has been calculated to 8.05% with headroom of 4.38%. The company’s estimated sales growth for the year 2017 is expected to be at 3% accompanied by a consensus EPS estimate of 12.5

Analysts predict that materials sector estimated earnings will increase by 16.1 folds by 2017.

Real Estate Sector

  1. Hospitality Partners Trust (NYSE: HPT) is expected to payout a dividend yield of 6.86% in 2017. Its free cash flow for the past 12 months has been calculated to 11.94% with headroom of 5.08%. The company’s estimated sales growth for the year 2017 is expected to be at 4% accompanied by a consensus EPS estimate of 7.6
  2. Chesapeake Lodging Trust (NYSE: CHSP) is expected to payout a dividend yield of 6.99% in 2017. Its free cash flow for the past 12 months has been calculated to 10.66% with headroom of 3.67%. The company’s estimated sales growth for the year 2017 is expected to be at 2% accompanied by a consensus EPS estimate of 8.8
  3. Summit Hotel Properties Inc Real Estate Trust (NYSE: INN) is expected to payout a dividend yield of 4.03% in 2017. Its free cash flow for the past 12 months has been calculated to 9.50% with headroom of 5.47%. The company’s estimated sales growth for the year 2017 is expected to be at 1% accompanied by a consensus EPS estimate of 9.4

Analysts predict that the real estate sector earnings will increase by 17 folds as per consensus 2017 FFO estimates. FFO stands for funds from operations and is used to measure the dividend paying capability of a particular real estate company. This is used as a yardstick to measure the future growth of a company by most REITs.

Telecommunications Sector

  1. Verizon Communications Inc. (NYSE: VZ) is expected to payout a dividend yield of 4.44% in 2017. Its free cash flow for the past 12 months has been calculated to 7.52% with headroom of 3.07%. The company’s estimated sales growth for the year 2017 is expected to be at 1% accompanied by a consensus EPS estimate of 12.8
  2. AT&T Inc. (NYSE: T) is expected to payout a dividend yield of 4.73% in 2017. Its free cash flow for the past 12 months has been calculated to 6.64% with headroom of 1.91%. The company’s estimated sales growth for the year 2017 is expected to be at 2% accompanied by a consensus EPS estimate of 13.5

Analysts predict that telecommunications sector estimated earnings will increase by 13.6 folds by 2017.

Utilities Sector

  1. AES Corp. (NYSE: AES) is expected to payout a dividend yield of 3.42% in 2017. Its free cash flow for the past 12 months has been calculated to 6.05% with headroom of 2.62%. The company’s estimated sales growth for the year 2017 is expected to be at 1% accompanied by a consensus EPS estimate of 11.5
  2. Great Plains Energy Inc. (NYSE: GXP) is expected to payout a dividend yield of 3.85% in 2017. Its free cash flow for the past 12 months has been calculated to 5.21% with headroom of 1.37%. The company’s estimated sales growth for the year 2017 is expected to be at 2% accompanied by a consensus EPS estimate of 15.6

Analysts predict that utilities sector estimated earnings will increase by 13.6 folds by 2017.

All the stocks mentioned above belonging to various sectors across the U.S stock market have a minimum dividend yield of 3% and have the potential to raise their dividend payouts even more in 2017.

Note: While the analysts have done all the hard work, there might be still some flaws in their predictions. For example, a company that is not included in the list may perform better in 2017 by selling one of its business units which in turn may increase its profits and subsequently may be able to pay better dividend yields than predicted.

Hence, it is advised that the investors may not want to solely depend on the above recommended stock dividends, but perform their own research before making any decisions.

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