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My Favorite Dividend Contender Picks For 2013 | Dividend Growth At Fair Value

Everybody loves dividends and dividend growth and everybody wanted to buy high dividend stocks with growth potential as well. But making money with stocks is not easy. It’s more than buying cheap stocks and selling them at a higher price. You need to take care of your risks and your trading limits.

I love stocks with rising sales and earnings that raise their distributions to shareholders every year. For me as investor, it is a great source to boost my dividend income without hard work. That’s the main reason why I am looking for buy opportunities of best dividend paying stocks worldwide. Today I like to progress with my best dividend picks for 2013. I screened my Dividend Contenders database by cheap stocks to buy with interesting valuation figures.

Dividend Contenders are “middle class” dividend growth stocks. They raised their dividend payments over a period of more than 10 consecutive years but less than 25 years. For the time being, 180 Contenders are available for stock trading. I selected only those with a market capitalization over USD 2 billion, a forward P/E ratio of less than 15 as well as double-digit expected earnings per share growth. In addition, the company should have shown a past sales growth of more than 10 percent yearly and the operating margin should be over 10 percent. Thirteen wonderful dividend growth stocks fulfilled these criteria of which eleven are currently rated with a buy or strong buy.

Here are the 3 best yielding results:
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People's United Financial (NASDAQ:PBCT) has a market capitalization of $4.22 billion. The company employs 4,788 people, generates revenue of $1.052 billion and has a net income of $198.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $402.60 million. The EBITDA margin is percent (the operating margin is 24.01 percent and the net profit margin 16.15 percent).

Financial Analysis: The total debt represents 2.48 percent of the company’s assets and the total debt in relation to the equity amounts to 13.09 percent. Due to the financial situation, a return on equity of 3.78 percent was realized. Twelve trailing months earnings per share reached a value of $0.66. Last fiscal year, the company paid $0.63 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.26, the P/S ratio is 3.43 and the P/B ratio is finally 0.81. The dividend yield amounts to 5.27 percent and the beta ratio has a value of 0.32.


”Long-Term
Long-Term Stock History Chart Of People's United Financial (PBCT)
”Long-Term
Long-Term Dividends History of People's United Financial (PBCT)
”Long-Term
Long-Term Dividend Yield History of People's United Financial (PBCT)

Caterpillar (NYSE:CAT) has a market capitalization of $56.21 billion. The company employs 129,113 people, generates revenue of $60.138 billion and has a net income of $5.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.592 billion. The EBITDA margin is 15.95 percent (the operating margin is 11.89 percent and the net profit margin 8.32 percent).

Financial Analysis: The total debt represents 42.47 percent of the company’s assets and the total debt in relation to the equity amounts to 268.51 percent. Due to the financial situation, a return on equity of 41.57 percent was realized. Twelve trailing months earnings per share reached a value of $9.77. Last fiscal year, the company paid $1.82 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.80, the P/S ratio is 0.93 and the P/B ratio is finally 4.32. The dividend yield amounts to 2.42 percent and the beta ratio has a value of 1.86.


”Long-Term
Long-Term Stock History Chart Of Caterpillar (CAT)
”Long-Term
Long-Term Dividends History of Caterpillar (CAT)
”Long-Term
Long-Term Dividend Yield History of Caterpillar (CAT)

John Wiley & Sons (NYSE:JW.A) has a market capitalization of $2.57 billion. The company employs 5,200 people, generates revenue of $1.782 billion and has a net income of $212.75 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $367.57 million. The EBITDA margin is 20.62 percent (the operating margin is 15.73 percent and the net profit margin 11.93 percent).

Financial Analysis: The total debt represents 18.75 percent of the company’s assets and the total debt in relation to the equity amounts to 46.68 percent. Due to the financial situation, a return on equity of 21.32 percent was realized. Twelve trailing months earnings per share reached a value of $3.25. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.17, the P/S ratio is 1.44 and the P/B ratio is finally 2.51. The dividend yield amounts to 2.24 percent and the beta ratio has a value of 0.76.


”Long-Term
Long-Term Stock History Chart Of John Wiley & Sons (JW.A)
”Long-Term
Long-Term Dividends History of John Wiley & Sons (JW.A)


Take a closer look at the full list of the best Dividend Contenders for 2013. The average P/E ratio amounts to 15.12 and forward P/E ratio is 13.17. The dividend yield has a value of 1.81 percent. Price to book ratio is 3.08 and price to sales ratio 2.04. The operating margin amounts to 17.69 percent. The average stock has a debt to equity ratio of 0.38.

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

Dividend Contenders For 2013 (Click to enlarge)

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Related stock ticker symbols:
PBCT, CAT, JW-A, TIF, NUS, MSM, SYK, QCOM, CNQ, LECO, ROST, VMI, AAN,

Selected Articles:


*I am long NUS. 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.