2 Undervalued Stocks With 12% Or More Dividend Yield

While the virtual banks such as Annaly Mortgage (NLY) and Hatteras Financial (HTS) have been priced above their fair value, there are still stocks with high yields that are still trading below their fair value. These two companies pay a high-yield dividend above 12% with a positive earnings outlook for the near term. Equally important is these companies are still trading below their fair value estimates. Here is a discussion on the performance and expectations of these two stocks.

Rentech Nitrogen Partners (RNF), a fertilizer company, looks to benefit from the weather drought in 2012. Currently, Rentech is trading at $35.70, which is 48% below its fair value of $53. This indicates significant upside potential when Rentech delivers higher earnings in the early 2013 planting season.

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