Brisbane based ERM Power Ltd (ASX: EPW) is an electricity producer and retailer with core operations in Australia and a growing US division. The company has become one of the biggest electricity retailers for large organisations in Australia by focusing on customer service and is now replicating this success with small and medium sized enterprises (SMEs).

In the past year it has declared 12 cents of dividends translating to a dividend yield of 12.8% at current prices. Dividends could fall in future periods as the company's pay-out ratio in 2016 was 153.8% of underlying earnings-per-share (EPS). This appears to be why the stock is trading on such a high yield.

Profits are likely to fall in 2017 as increased competition in Australia is expected to shrink margins more than offsetting growth in the US. However, longer term if ERM can replicate its effective marketing strategy stateside then the company will have a bright future.

Accounting and financial planning group Countplus Ltd (ASX: CUP) currently pays a two cent dividend each quarter equating to a dividend yield of 10.1%. Unlike ERM, Count's dividends are fully franked.

The company is in the process of selling partial equity to the principals that run its practices through its Direct Equity Plan (DEP). This is a smart move as it better aligns the interests of those running subsidiaries with the parent. AUB Group Ltd (ASX: AUB) has successfully executed a similar model in the insurance broking industry.

Count was an early shareholder in Class Ltd (ASX: CL1) and held 5.4% of the company when it listed in December 2015. At 30 June, these shares were valued at $3.30 delivering a $16.3 million fair value gain in 2016. Since then Class shares have climbed to $4.10, but Count has started to sell down its holding.

Aside from gains from the Class investment, the underlying Count business went backwards in 2016. Revenue fell 0.9%, costs rose and by my estimates underlying profitability from the core operations was less than dividends paid and declared during the year.

TV producer and distributor Beyond International Ltd (ASX: BYI) reported total dividends of 10 cents per share in 2016 and so the stock currently trades on an unfranked dividend yield of 9.3%. Like the other two companies in this article, Beyond declared higher dividends than earnings last year suggesting that current yields are unsustainable.

Beyond's core business is TV production and MythBusters is probably its most successful show. The company is also involved in distribution and digital marketing.

The Digital Marketing division swung from a profit to a loss in 2016 and the segment has been a drag on group profits since its formation. I am unsure why Beyond persists with this business as it does not seem to fit with its core competency of making TV programs.

As consumers increasingly choose to watch TV online through streaming services such as Netflix, Beyond's distribution divisions look set to struggle, particularly its DVD business. This technological shift may also provide the company with an opportunity to sell its programs to a greater international audience. Overall, regardless of the distribution medium the quality of Beyond's shows will determine its future success.

Foolish takeaway

These three companies trade on very high yields because their current dividends are unlikely to be sustainable. However, pay-outs to shareholders shouldn't fall that much since all three businesses have low debt levels, generate decent returns on equity and have been profitable for a number of years.

The post Revealed: 3 ASX companies paying 9% dividends appeared first on The Motley Fool Australia.

Mid-cap stocks are those that aren't the mega large companies on the ASX, but neither are they at the small end of the index. In this case, we're talking companies with market caps of between $200 million and $1 billion.

Beyond International Limited (ASX: BYI) crashed down 11.4% to $1.24 after the company released a profit downgrade yesterday. Beyond is primarily a TV production company, and blamed the 9% to 12% fall in operating profit after tax compared to last financial year on delayed negotiations with broadcasters. Beyond also announced an impairment of $2 million on specific TV program assets for the 12 months to June 2015. As a result, reported net profit will sink by 30% to 35% compared to last year.

Walnuts and onions producer Webster Limited (ASX: WBA) saw its shares drop 4.2% to $1.50, despite no specific company news. Webster is diversifying its operations and recently finalised its takeover offer for Tandou Limited (ASX: TAN). Tandou was engaged in production and marketing of cotton and cereal crops and also had a substantial water asset portfolio.

Iron ore miner Arrium Limited (ASX: ARI) saw its share price sink 3.7% to 13 cents. Iron ore prices sank more than 3% overnight to US$59.35 per tonne and many commentators are expecting much lower prices in future. As I outlined earlier today, supply is rapidly growing and already exceeds demand, which is falling. Arrium may well see its share price sink further along with the iron ore price.

Southern Cross Media Group Ltd (ASX: SXL) dropped 4.1% to 93 cents. Southern Cross operates a collection of media assets including free-to-air television, radio, digital and advertising. But the company is aligned with Ten Network Holdings Limited (ASX: TEN), which saw its shares drop 5.3% today to 18 cents. Streaming giant Netflix is making a huge impact on broadcasters as we outlined yesterday.

The post 4 mid cap stocks sinking on the ASX today appeared first on The Motley Fool Australia.

Here are four stocks that have soared today, with three reporting fantastic full year results…

Altium Limited (ASX: ALU)

The company that sells software to design printed circuit boards has seen its shares climb 4.3% to $2.69, after reporting a 717% increase in net profit for the 2014 financial year. Altium saw revenues rise 15% to $71 million and net profit at $11.2 million. That's equates to a still hefty P/E ratio of 26.7x, but if the company can continue to generate growth like that, the current price is cheap.

Steadfast Group Ltd (ASX: SDF)

Insurance broker Steadfast's shares are up 8.3%, as the company reported a 287% increase in net profit to $25.1 million for 2014 and exceeded its prospectus forecasts. Steadfast declared a final dividend of 2.7 cents, fully franked, putting it on an annualised yield of 3.6%.

The company also announced a takeover of Calliden Group Limited (ASX: CIX), offering 41.5 cents cash per share and a 5 cents special dividend to be paid by Calliden. Calliden shares soared 33% to 46 cents.

WDS Limited (ASX: WDS)

Mining services company WDS's shares have soared 9%, after the contractor reported a 61% rise in net profit to $13.3 million for the 2014 financial year. The company declared a final dividend of 3.25 cents per share and a special dividend of 1.25 cents. Total dividends for the year were 9.5 cents, a whopping fully franked yield of 9.8%! WDS also says it see promising signs in coal seam gas going forward.

Beyond international Ltd (ASX: BYI)

The TV and movie producer delivered the only fall in net profit of the these four stocks – a 14% fall in net profit to $8 million, as revenues fell 13% to $89 million. Shares were 5.4% higher after Beyond said it expects 2015 financial year net profit to be around 10% higher than this year. At current prices, Beyond is trading on a P/E ratio of 10x, and paying an unfranked dividend yield of 6.5%, which doesn't appear expensive.

The post 4 stocks soaring more than 4% today appeared first on The Motley Fool Australia.

My top stock for September 2013 was My Net Fone Limited (ASX: MNF), a small telecommunications company with both retail and wholesale divisions selling capacity on its nationwide network. Operating cashflow for the first half of FY 2014 came in at about $2.9 million, and NPAT was just under $2.4 million. One positive development was that the gap between payables and receivables has narrowed from $2.9 million to $1.6 million. Pleasingly, the company has now paid all the deferred consideration for past acquisitions.

When I recommended the company, shares were trading at $1.38, but today they are trading at $2.10, a gain of over 50%. The company will almost certainly report higher earnings in the second half, and has forecast a profit of $5.5 million for FY 2014. My Net Fone is therefore trading at a forward P/E ratio of over 23, and I have sold 25% of my holding. I would not buy shares at current prices, but I'm happy to hold.

My stock for October 2014 was Clover Corporation Limited (ASX: CLV), a company that turns fish oil into powder for addition to processed foods and baby formula. I didn't end up buying shares in Clover because of my concerns about margin compression. As I wrote in October: "Clover faces increasing competition, so investors should watch their margins. Decreasing margins can result in lower profits, even when sales are up."

Since I recommended the company, the share price has appreciated from 52c to the current price of 57c, and shareholders have received a dividend of 1.5c. The company should report its half-year results in March, and shareholders must expect poor results. At the 2013 AGM, the chairman reported that sales for FY 2014 are expected to be down 20%-30%, due to the recall of Fonterra's milk products.

Shareholders unwilling to hold for the long term should sell at current prices. Long-term holders will be watching whether Clover's pipeline of new products can gain traction. If I owned shares in Clover, I'd probably sell, but not in a hurry.

My top stock for November has performed poorly. Beyond International Limited (ASX: BYI) is a television content producer and distributor that I picked due to its agreement to form a joint venture with Seven Network. The share price has dropped 23% since I picked it amidst an excited market. While the company has decent long-term prospects, my timing was terrible.

The mistake of picking it right when the market was excited was compounded by the fact that the company has proven to be incapable of running its new division, Beyond Digital, at a profit. Disappointingly, earnings in the company's core division, production and copyright, were also down in the last half. I'd prefer not to own shares in a company that I think may be in denial about the poor acquisition that was Beyond Digital. However, shareholders might benefit from waiting for a contribution from the company's new joint venture with Seven Network.

Foolish takeaway

It's too early to know if Clover Corporation will play out as a satisfactory investment. However, the temporary impact of the recall is likely to be more severe than I had guessed. Beyond International was a really bad call on my behalf, because it had precisely zero margin of safety at those prices, and I apologise unreservedly for the mistake. While Beyond shares are down over 20%, My Net Fone shares are up over 50%, so I hope that redeems me somewhat.

The post 3 top stocks in review: How are my selections faring? appeared first on The Motley Fool Australia.