From GuruFocus:

Investors normally love stocks which have a record of both long-term profitability and high-dividend yield. These stocks best suit long-term and income investors.

In order to choose the stocks that fit the above criteria, I set the screening parameters with three main following points: 1) profitable for the last five years, 2) at least 10% return on equity for the last five years, and 3) current dividend yield at least 12%. Here are the four candidates:

Portugal Telecom SA (PT)

PT is a Portugal-based telecommunications operator. It is engaged in rendering a range of telecoms and multimedia services in Portugal and other countries such as Brazil and Africa, including fixed, mobile, and multimedia, data and corporate solutions.

The company has extremely high return on equity, which increased rapidly in the last years, ranging from more than 40% to nearly 200%. Currently, PT's share price is $5.30, with a total market capitalization of $4.7 billion. In 2011, the company paid out...

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