2/20/2012

An Overview Of The Safest Dividend Aristocrats

Dividend Aristocrats With Lowest Beta Ratio Researched By Dividend Yield - Stock, Capital, Investment. Dividend Aristocrats are stocks that have raised dividends over a period of more than 25 consecutive years and they are part of the S&P 500 Dividend Aristocrats Index. The index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. Unfortunately, the index covers only 25 percent of all stocks with such a long dividend payment history. The other stocks can be discovered as Dividend Champions. However, I’ve tried to summarize only stocks with a very low volatility, measured by a low beta ratio (a value of less than 0.5). Fourteen companies remained of which six have a yield of more than 3 percent. Five stocks have a buy or better recommendation.

Here are my favorite stocks:
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PepsiCo (NYSE:PEP) has a market capitalization of $98.03 billion. The company employs 294,000 people, generates revenues of $66,504.00 million and has a net income of $6,462.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,370.00 million. Because of these figures, the EBITDA margin is 18.60 percent (operating margin 14.48 percent and the net profit margin finally 9.72 percent).


Financial Analysis:
The total debt representing 36.73 percent of the company’s assets and the total debt in relation to the equity amounts to 130.04 percent. Due to the financial situation, a return on equity of 30.70 percent was realized. Twelve trailing months earnings per share reached a value of $4.02. Last fiscal year, the company paid $2.02 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.61, Price/Sales 1.47 and Price/Book ratio 4.73. Dividend Yield: 3.29 percent. The beta ratio is 0.49.


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


Long-Term Dividends History of PepsiCo, Inc. (PEP) (Click to enlarge)


Long-Term Dividend Yield History of PepsiCo, Inc. (NYSE: PEP) (Click to enlarge)


The Procter & Gamble Company (NYSE:PG) has a market capitalization of $178.79 billion. The company employs 129,000 people, generates revenues of $82,559.00 million and has a net income of $11,797.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,656.00 million. Because of these figures, the EBITDA margin is 22.60 percent (operating margin 19.16 percent and the net profit margin finally 14.29 percent).


Financial Analysis:
The total debt representing 23.14 percent of the company’s assets and the total debt in relation to the equity amounts to 47.33 percent. Due to the financial situation, a return on equity of 18.32 percent was realized. Twelve trailing months earnings per share reached a value of $3.40. Last fiscal year, the company paid $1.97 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 19.09, Price/Sales 2.17 and Price/Book ratio 2.70. Dividend Yield: 3.24 percent. The beta ratio is 0.43.


Long-Term Stock History Chart Of The Procter & Gamble Co. (Click to enlarge)


Long-Term Dividends History of The Procter & Gamble Co. (PG) (Click to enlarge)


Long-Term Dividend Yield History of The Procter & Gamble Co. (NYSE: PG) (Click to enlarge)


Colgate-Palmolive Company (NYSE:CL) has a market capitalization of $45.13 billion. The company employs 39,200 people, generates revenues of $16,734.00 million and has a net income of $2,554.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,262.00 million. Because of these figures, the EBITDA margin is 25.47 percent (operating margin 22.95 percent and the net profit margin finally 15.26 percent).


Financial Analysis:
The total debt representing 37.80 percent of the company’s assets and the total debt in relation to the equity amounts to 202.53 percent. Due to the financial situation, a return on equity of 96.28 percent was realized. Twelve trailing months earnings per share reached a value of $4.94. Last fiscal year, the company paid $2.27 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 18.87, Price/Sales 2.70 and Price/Book ratio 19.00. Dividend Yield: 2.49 percent. The beta ratio is 0.42.


Long-Term Stock History Chart Of Colgate-Palmolive Company (Click to enlarge)


Long-Term Dividends History of Colgate-Palmolive Company (CL) (Click to enlarge)


Long-Term Dividend Yield History of Colgate-Palmolive Company (NYSE: CL) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 17.84 and forward P/E ratio is 14.05. The dividend yield has a value of 2.32 percent. Price to book ratio is 5.58 and price to sales ratio 1.72. The operating margin amounts to 14.33 percent.

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

The Safest Dividend Aristocrats (Click to enlarge)

Related stock ticker symbols:
ED, KMB, CLX, ABT, PEP, PG, MCD, CL, MKC, WMT, ADM, HRL, FDO, BCR

Selected Articles:


* I am long KMB, PEP, CL, MKC, WMT, MCD, PG. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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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