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Inspired by this morning's reminder by our friend Jeffrey Saut to look for companies with fat earnings yields, I ran two screens. The first lists companies with Trailing 12 Months Yields, and Forward 12 Months EPS Estimates Yields of greater than 9%. What jumped out from the results is the inclusion of some companies that have balance sheets that definitely cool the initial enthusiasm.

The second screen attempts to get around this problem, by screening on the basis of the Yield of EPS (trailing and forward) to Enterprise Value per Diluted Share. The threshold is kept at 9% for both trailing and forward. This cuts some slack to companies that are cash rich, and eliminates balance sheet horrors such as the automakers.

Hopefully this is a starting point for digging into some candidates. In the spirit of the 'Ville, please share your knowledge about specific issues that might strengthen or weaken this analysis.

P.S. Forgot to mention that I filtered out virtually all financial and insurance names from the screens as well as a few other industries.

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No positions in stocks mentioned.
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