Garmin Ltd. (GRMN), Intersil Corp (ISIL): These Three Stocks Are Better Than High Risk Bonds

Revenues and earnings took a hit in 2010, but have since come back strongly. Like all steel companies, Friedman is a cyclical business that goes through good times and bad times. That said, despite the tough market in 2010, the company still made money, which shows that having no debt is a big benefit in a tough market. The dividend, meanwhile, tends to rise and fall with the success of the business.

The company pays a quarterly dividend of $0.08 per share, which equates to a yield of around 3.2%. However, it also paid a special dividend of $0.50 last year. A special dividend of that magnitude in 2013 would more than double the yield.

Bond-Like Investments

If the low interest rate environment has tempted you to buy into higher-risk bonds, step back and take a second look at stocks. Finding higher-risk stocks without debt could be a better idea. GPS specialist Garmin Ltd. (NASDAQ:GRMN) is looking for ways to grow again, Intersil Corp (NASDAQ:ISIL) is revamping its chip business, and Friedman Industries chugs along in the steel industry. Having no debt gives them all staying power and ample backing to support their notable yields.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article These Three Stocks Are Better Than High Risk Bonds originally appeared on Fool.com and is written by Reuben Brewer.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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