Three basic materials companies -- Companhia Siderurgica Nacional (NYSE: WLT) -- were among the top-performing dividend-paying stocks in August.

So was Chinese Web portal operator SouFun Holdings (NYSE: SFUN). And analysts see at least a little further upside potential in all four of them. Below we take a glance at how these stocks have fared and what analysts expect from them.

Note that some of August's other top performers with dividends include property manager E-House (China) Holdings (NYSE: GGAL) and Yanzhou Coal Mining (NYSE: YZC).

See also: Stocks Hitting 52-Week Highs

Companhia Siderurgica Nacional

This Brazilian steel producer reported record revenue for the first half of the year and much better-than-expected earnings for the second quarter. It sports a market capitalization of more than $5 billion and offers a dividend yield of 3.4 percent. Its long-term earnings per share (EPS) growth forecast is more than 21 percent.

Only one of the five analysts surveyed by Thomson/First Call recommends buying shares, while three rate the stock at Underperform. However, the price target, or where that analyst expects the share price to go, is more than 65 percent higher than the current share price. That target would be a new 52-week high.

Shares have risen more than 24 percent in the past month, though the share price is still more than 42 percent lower year-to-date. Over the past six months, the stock has underperformed not only the Down Jones Industrial Average, but ArcelorMittal (NYSE: MT) and U.S. Steel (NYSE: X) as well.


This Toronto-based miner of gold, silver and copper narrowly missed consensus EPS estimates in the most recent quarter but reaffirmed its full-year production guidance. Its market cap is more than $2 billion and the dividend yield is about 4.2 percent. Note that the return on equity is only about four percent.

Only five the 19 surveyed analysts recommend buying shares. For at least three months, the consensus recommendation has been to hold shares. The analysts' mean price target is more than 11 percent higher than the current share price. That target is well below the 52-week high.

Though the share price is more than 25 percent higher than a month ago, that is after a more than 11 percent retreat last week. Over the past six months, this stock has outperformed the likes of Barrick Gold (NYSE: ABX), though it has underperformed the broader markets.

Walter Energy

This Birmingham, Alabama-based coal miner said in early August that it was weighing assets sales in the face of declining coal revenues. The company's market cap is near $810 million, and its dividend yield is about 0.3 percent. The long-term EPS growth forecast is more than 24 percent.

The consensus recommendation of the surveyed analysts is to hold shares, and it has been for at least three months. Yet their mean price target indicates more than 30 percent potential upside. That consensus price target is much less than the 52-week high reached last fall.

Shares are trading more than 26 percent higher than a month ago but are still down more than 65 percent since the beginning of the year. The stock has underperformed competitors CONSOL Energy (NYSE: CNX) and Westmoreland Coal (NASDAQ: WLB) over the past six months.

See also: Short Sellers Shy Away From Coal Stocks

SouFun Holdings

This Beijing-based real estate website operator posted better-than-expected earnings for the most recent quarter due to China's strong housing market. The $3+ billion market cap company offers a 4.8 percent dividend yield. The long-term EPS growth forecast is more than 25 percent and the return on equity is about 93 percent.

Three of the five surveyed analysts recommend buying shares, but none rates the stock at Underperform. Analysts see only a little headroom for shares, as their mean price target is marginally higher than the current share price. That would be a new multiyear high, though.

The share price is up almost 20 percent in the past month and shares are trading near a 52-week high. SouFun Holdings has outperformed competitors such as (NASDAQ: SOHU) and the broader markets over the past six months.

At the time of this writing, the author had no position in the mentioned equities.

Related Articles
  1. Stock Analysis

    How Much Coca-Cola Spends on Advertising

    Learn about Coca-Cola's ad spending and why the company has decided to spend the amount of money it does. Understand comparable companies and industries.
  2. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  3. Economics

    What Is The Labor Market Conundrum?

    We are facing a conundrum with investment implications: Why are wages still stagnant, when jobs are being created at the fastest pace since the late 90's?
  4. Investing

    Why Are Consumers In Hesitation?

    Diverging monetary policy globally and a stronger dollar continued to be key drivers of the recent underperformance and last week’s tumble in U.S. stocks.
  5. Economics

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  6. Stock Analysis

    Sierra Wireless Benefits From These Megatrends

    We take a closer look at how Sierra Wireless' transition from 2G to 3G and 4G technologies, has impacted its business today, and the future expectations.
  7. Stock Analysis

    3 Growth Opportunities For ARM Holdings

    ARM Holdings highlighted several growth opportunities in its most recent roadshow presentation. Here are three of the large opportunities it talked about.
  8. Stock Analysis

    Is Cheniere Energy Still On Track For 2016?

    The energy boom in the U.S. has opened up a huge range of opportunities in the oil and gas industry.
  9. Stock Analysis

    What’s The Key To Costco’s Extraordinary Success?

    Costco has been one of America's most successful companies: It's growing, efficient, profitable and its long-term shareholders have benefited a windfall.
  10. Stock Analysis

    Can American Capital Agency Maintain Its Dividend?

    Dividend investors know that real estate investment trusts with REITs that invest in mortgage-backed securities produce double-digit dividend yields.
  1. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  2. Core Durable Goods Orders

    New orders for U.S. core durable goods, which are the total durable ...
  3. Investopedia

    One of the best-known sources of financial information on the ...
  4. Market Depth

    The market's ability to sustain relatively large market orders ...
  5. Closing Tick

    The difference between the number of stocks that closed higher ...
  6. Institutional Brokers' Estimate ...

    A system that gathers and compiles the different estimates made ...
  1. What is the long-term outlook of the metals and mining sector?

    An industry agency council was established by the World Economic Forum in 2014 to serve as an advisory board on the future ... Read Full Answer >>
  2. What is the railroads sector?

    The railroads sector is comprised of publicly traded stocks for companies that operate railroad tracks and/or trains. Railroad ... Read Full Answer >>
  3. Who are Amgen Inc.'s (AMGN) main competitors?

    Biotech giant Amgen Inc (AMGN) bills itself as one of the first biotechnology firms. It was founded in 1980 and has grown ... Read Full Answer >>
  4. What's the most expensive stock of all time?

    Back in late August 2012, Apple’s (AAPL) stock price reached nearly $700 per share. The stock has since split but has yet ... Read Full Answer >>

You May Also Like

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!