2/11/2012

14 Services Stocks With Strongest Earnings Growth And Best Dividends

The Best Yielding Service Stocks With Highest Expected Growth Researched by Dividend Yield - Stock, Capital, Investment. The service sector is, after agriculture and industrials, the tertiary production level of an industrialized economy. The sector has a total market capitalization of USD 34.86 trillion and includes 907 companies. The average stock from the sector pays 1.58 percent in dividends and is currently valuated with a P/E ratio of 20.64.

I screened the sector by stocks with the highest earnings per share growth for the upcoming five years (at least 15 percent yearly). In addition, the company should pay today more than 2 percent in cash dividends and the market capitalization should above USD 300 million in order to exclude the risks of low capitalized companies. 14 stocks fulfilled my criteria of which two are high yields; One stock has a double digit yield. Thirteen stocks have a buy or better recommendation.

Here are my favorite stocks:
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The Washington Post (NYSE:WPO) has a market capitalization of $3.00 billion. The company employs 20,000 people, generates revenues of $4,723.57 million and has a net income of $306.82 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $821.81 million. Because of these figures, the EBITDA margin is 17.40 percent (operating margin 11.58 percent and the net profit margin finally 6.50 percent). 


Financial Analysis:
The total debt representing 7.75 percent of the company’s assets and the total debt in relation to the equity amounts to 14.14 percent. Due to the financial situation, a return on equity of 10.57 percent was realized. Twelve trailing months earnings per share reached a value of $16.70. Last fiscal year, the company paid $9.00 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 23.29, Price/Sales 0.64 and Price/Book ratio 1.13. Dividend Yield: 2.52 percent. The beta ratio is 0.95.


Long-Term Stock History Chart Of The Washington Post Co. (Click to enlarge)


Long-Term Dividends History of The Washington Post Co. (WPO) (Click to enlarge)


Long-Term Dividend Yield History of The Washington Post Co. (NYSE: WPO) (Click to enlarge)


Limited Brands (NYSE:LTD) has a market capitalization of $13.32 billion. The company employs 17,500 people, generates revenues of $9,613.00 million and has a net income of $805.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,678.00 million. Because of these figures, the EBITDA margin is 17.46 percent (operating margin 13.36 percent and the net profit margin finally 8.37 percent).


Financial Analysis:
The total debt representing 38.86 percent of the company’s assets and the total debt in relation to the equity amounts to 169.85 percent. Due to the financial situation, a return on equity of 44.00 percent was realized. Twelve trailing months earnings per share reached a value of $2.90. Last fiscal year, the company paid $0.60 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.49, Price/Sales 1.39 and Price/Book ratio 9.78. Dividend Yield: 2.22 percent. The beta ratio is 1.52.


Long-Term Stock History Chart Of Limited Brands, Inc. (Click to enlarge)


Long-Term Dividends History of Limited Brands, Inc. (LTD) (Click to enlarge)


Long-Term Dividend Yield History of Limited Brands, Inc. (NYSE: LTD) (Click to enlarge)


Union Pacific Corporation (NYSE:UNP) has a market capitalization of $53.59 billion. The company employs 44,861 people, generates revenues of $19,557.00 million and has a net income of $3,292.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,336.00 million. Because of these figures, the EBITDA margin is 37.51 percent (operating margin 29.24 percent and the net profit margin finally 16.83 percent).


Financial Analysis:
The total debt representing 19.75 percent of the company’s assets and the total debt in relation to the equity amounts to 47.94 percent. Due to the financial situation, a return on equity of 18.12 percent was realized. Twelve trailing months earnings per share reached a value of $6.73. Last fiscal year, the company paid $1.93 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 16.59, Price/Sales 2.74 and Price/Book ratio 2.88. Dividend Yield: 2.15 percent. The beta ratio is 1.22.


Long-Term Stock History Chart Of Union Pacific Corporation (Click to enlarge)


Long-Term Dividends History of Union Pacific Corporation (UNP) (Click to enlarge)


Long-Term Dividend Yield History of Union Pacific Corporation (NYSE: UNP) (Click to enlarge)


Time Warner Cable (NYSE:TWC) has a market capitalization of $23.77 billion. The company employs 47,500 people, generates revenues of $19,675.00 million and has a net income of $1,667.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,096.00 million. Because of these figures, the EBITDA margin is 36.07 percent (operating margin 20.68 percent and the net profit margin finally 8.47 percent).


Financial Analysis:
The total debt representing 55.39 percent of the company’s assets and the total debt in relation to the equity amounts to 355.14 percent. Due to the financial situation, a return on equity of 19.89 percent was realized. Twelve trailing months earnings per share reached a value of $4.97. Last fiscal year, the company paid $1.92 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.18, Price/Sales 1.22 and Price/Book ratio 3.16. Dividend Yield: 2.97 percent. The beta ratio is 0.72.


Long-Term Stock History Chart Of Time Warner Cable Inc. (Click to enlarge)


Long-Term Dividends History of Time Warner Cable Inc. (TWC) (Click to enlarge)


Long-Term Dividend Yield History of Time Warner Cable Inc. (NYSE: TWC) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 20.07 and forward P/E ratio is 17.91. The dividend yield has a value of 2.74 percent. Price to book ratio is 5.38 and price to sales ratio 1.23. The operating margin amounts to 18.89 percent.

Here is the full table with some fundamentals (TTM):

Services Dividend Stocks With Strongest Earnings Growth  (Click to enlarge)

Related stock ticker symbols:
TEU, NM, SSW, CVC, WSO, HOTT, HCSG, TWC, NSC, WPO, ASCA, IPG, LTD, UNP

Selected Articles:


* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

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