In my view it’s for every high-quality stock
possible to manage a 50 year dividend growth. The only requirement is a stable
growing business with a high degree of self-financing. So, the only big
difference between the longest dividend growers is the rate of the dividend
growth. There are fast growing stocks and slow hikers. Which should you buy?
If you want to make money with dividend growth
stocks, you need fast growth but it makes only sense to purchase them for an
acceptable price. What return will you make when you pay a price that is 100
times of the expected earnings?
Today, I like to screen the investment category
“Dividend Champions” by stocks with the highest rate of dividend growth over
the recent 10 years. Linked is a full list of the top 20 champs with a
double-digit dividend growth. Fourteen of the results have a current buy or
better rating.
Here are my favorite stocks:
Here are my favorite stocks:
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McDonald's (NYSE:MCD) has a market capitalization of $100.04 billion. The company employs 440,000 people, generates revenue of $27.567 billion and has a net income of $5.464 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.965 billion. The EBITDA margin is 36.15 percent (the operating margin is 31.21 percent and the net profit margin 19.82 percent).
Financial Analysis: The total debt represents 38.52 percent of the company’s assets and the total debt in relation to the equity amounts to 89.14 percent. Due to the financial situation, a return on equity of 36.82 percent was realized. Twelve trailing months earnings per share reached a value of $5.39. Last fiscal year, the company paid $2.87 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.52, the P/S ratio is 3.63 and the P/B ratio is finally 6.54. The dividend yield amounts to 3.09 percent and the beta ratio has a value of 0.39.
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| Long-Term Stock Price Chart Of McDonald's (MCD) |
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| Long-Term Dividend Payment History of McDonald's (MCD) |
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| Long-Term Dividend Yield History of McDonald's (MCD) |
PepsiCo (NYSE:PEP) has a market capitalization of $130.05 billion. The company employs 278,000 people, generates revenue of $65.492 billion and has a net income of $6.214 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.920 billion. The EBITDA margin is 18.20 percent (the operating margin is 13.91 percent and the net profit margin 9.49 percent).
Financial Analysis: The total debt represents 38.00 percent of the company’s assets and the total debt in relation to the equity amounts to 127.20 percent. Due to the financial situation, a return on equity of 28.62 percent was realized. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.56, the P/S ratio is 1.99 and the P/B ratio is finally 5.79. The dividend yield amounts to 2.56 percent and the beta ratio has a value of 0.50.
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| Long-Term Stock Price Chart Of PepsiCo (PEP) |
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| Long-Term Dividend Payment History of PepsiCo (PEP) |
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| Long-Term Dividend Yield History of PepsiCo (PEP) |
Wal-Mart Stores (NYSE:WMT) has a market capitalization of $262.10 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).
Financial Analysis: The total debt represents 26.65 percent of the company’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.02. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.75, the P/S ratio is 0.56 and the P/B ratio is finally 3.43. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 0.34.
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| Long-Term Stock Price Chart Of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |
Medtronic (NYSE:MDT) has a market capitalization of $47.23 billion. The company employs 45,000 people, generates revenue of $16.184 billion and has a net income of $3.415 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.127 billion. The EBITDA margin is 31.68 percent (the operating margin is 25.61 percent and the net profit margin 21.10 percent).
Financial Analysis: The total debt represents 32.14 percent of the company’s assets and the total debt in relation to the equity amounts to 62.13 percent. Due to the financial situation, a return on equity of 20.65 percent was realized. Twelve trailing months earnings per share reached a value of $3.28. Last fiscal year, the company paid $0.97 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.22, the P/S ratio is 2.92 and the P/B ratio is finally 2.82. The dividend yield amounts to 2.23 percent and the beta ratio has a value of 0.93.
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| Long-Term Stock Price Chart Of Medtronic (MDT) |
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| Long-Term Dividend Payment History of Medtronic (MDT) |
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| Long-Term Dividend Yield History of Medtronic (MDT) |
Take a closer look at the full list of the fastest growing Dividend Champions. The average P/E ratio amounts to 19.19
and forward P/E ratio is 14.91. The dividend yield has a value of 2.09 percent.
Price to book ratio is 3.84 and price to sales ratio 2.23. The operating margin
amounts to 18.01 percent and the beta ratio is 1.0. Stocks from the list have an
average debt to equity ratio of 0.52.
Here is the full table with
some fundamentals (TTM):
 |
| Dividend Champions With Highest Dividend Growth (Click to enlarge) |
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community!
Here is the sheet with dividend growth rates and years of growth:
|
Company
|
Ticker
|
Years Of
Dividend Growth
|
10Y Dividend Growth Rate in %
|
|
|
|
|
|
|
Lowe's
Companies
|
LOW
|
50
|
31.1
|
|
McDonald's
Corp.
|
MCD
|
36
|
28.4
|
|
Nucor
Corp.
|
NUE
|
40
|
22.6
|
|
Walgreen
Company
|
WAG
|
37
|
21.2
|
|
Raven
Industries
|
RAVN
|
27
|
19.4
|
|
AFLAC Inc.
|
AFL
|
30
|
19.3
|
|
Target
Corp.
|
TGT
|
45
|
18.6
|
|
Wal-Mart
Stores Inc.
|
WMT
|
39
|
18.1
|
|
Eaton
Vance Corp.
|
EV
|
32
|
18.0
|
|
Mine
Safety Appliances
|
MSA
|
41
|
17.6
|
|
Becton
Dickinson & Co.
|
BDX
|
41
|
16.8
|
|
Sigma-Aldrich
Corp.
|
SIAL
|
37
|
16.6
|
|
W.W.
Grainger Inc.
|
GWW
|
41
|
15.6
|
|
T. Rowe
Price Group
|
TROW
|
26
|
15.6
|
|
Donaldson
Company
|
DCI
|
27
|
15.5
|
|
Medtronic
Inc.
|
MDT
|
35
|
15.5
|
|
Weyco
Group Inc.
|
WEYS
|
31
|
14.8
|
|
Franklin
Resources
|
BEN
|
32
|
14.7
|
|
RLI Corp.
|
RLI
|
37
|
14.2
|
|
PepsiCo
Inc.
|
PEP
|
41
|
13.6
|
Related stock
ticker symbols:
NUE, MCD, WEYS,
AFL, PEP, WMT, MSA, MDT, WAG, TGT, BDX, EV, TROW, RLI, LOW, RAVN, GWW, DCI, SIAL,
BEN
Selected Articles:
*I am long BDX, MCD, PEP,
WMT, WAG, and SIAL. 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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