4/16/2013

The Safest Consumer Dividend Stocks | 20 Exclusive Shares

Consumer dividend stocks with low beta ratios and high market capitalization originally published at "long-term-investments.blogspot.com". Today I like to close my monthly screen theme “the safest dividend stocks” with the consumer goods sector.

Consumer goods stocks are one of my favorite sectors because of the strong relationship to the end-consumer. As a result, sales and earnings are less volatile than in other sectors. Not enough, most of them are great long-term dividend plays. From 390 stocks pay 193 dividends. That’s pretty good ratio.

However, below is a list of the best yielding large cap consumer dividend stocks with a volatility lower than the overall market.

It’s not surprising that the big tobacco companies are on the top results. You can hate them or not but they are still some of the safest dividend stocks on the market. Below the top 20 results are three High-Yields, eleven are recommended to buy.

Here are my favorite stocks:
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Companhia de Bebidas das Americas - AMBEV (NYSE:ABV) has a market capitalization of $122.39 billion. The company employs 46,503 people, generates revenue of $13.561 billion and has a net income of $4.359 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.556 billion. The EBITDA margin is 48.34 percent (the operating margin is 43.17 percent and the net profit margin 32.14 percent).

Financial Analysis: The total debt represents 8.92 percent of the company’s assets and the total debt in relation to the equity amounts to 16.07 percent. Due to the financial situation, a return on equity of 34.58 percent was realized. Twelve trailing months earnings per share reached a value of $1.59. Last fiscal year, the company paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.62, the P/S ratio is 8.85 and the P/B ratio is finally 9.53. The dividend yield amounts to 4.63 percent and the beta ratio has a value of 0.98.

Long-Term Stock Price Chart Of AMBEV (ABV)
Long-Term Dividend Payment History of AMBEV (ABV)
Long-Term Dividend Yield History of AMBEV (ABV)

Mattel (NASDAQ:MAT) has a market capitalization of $14.82 billion. The company employs 28,000 people, generates revenue of $6.420 billion and has a net income of $776.46 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,195.30 million. The EBITDA margin is 18.62 percent (the operating margin is 15.90 percent and the net profit margin 12.09 percent).

Financial Analysis: The total debt represents 23.13 percent of the company’s assets and the total debt in relation to the equity amounts to 49.23 percent. Due to the financial situation, a return on equity of 27.08 percent was realized. Twelve trailing months earnings per share reached a value of $2.21. Last fiscal year, the company paid $1.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.47, the P/S ratio is 2.31 and the P/B ratio is finally 4.80. The dividend yield amounts to 3.35 percent and the beta ratio has a value of 0.98.

Long-Term Stock Price Chart Of Mattel (MAT)
Long-Term Dividend Payment History of Mattel (MAT)
Long-Term Dividend Yield History of Mattel (MAT)

Procter & Gamble (NYSE:PG) has a market capitalization of $217.58 billion. The company employs 126,000 people, generates revenue of $83.680 billion and has a net income of $9.317 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.496 billion. The EBITDA margin is 19.71 percent (the operating margin is 15.88 percent and the net profit margin 11.13 percent).

Financial Analysis: The total debt represents 22.52 percent of the company’s assets and the total debt in relation to the equity amounts to 46.94 percent. Due to the financial situation, a return on equity of 13.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, the company paid $2.14 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.42, the P/S ratio is 2.60 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.02 percent and the beta ratio has a value of 0.47.

Long-Term Stock Price Chart Of Procter & Gamble (PG)
Long-Term Dividend Payment History of Procter & Gamble (PG)
Long-Term Dividend Yield History of Procter & Gamble (PG)

Coca-Cola (NYSE:KO) has a market capitalization of $178.67 billion. The company employs 150,900 people, generates revenue of $48.017 billion and has a net income of $9.086 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.761 billion. The EBITDA margin is 26.58 percent (the operating margin is 22.45 percent and the net profit margin 18.92 percent).

Financial Analysis: The total debt represents 37.84 percent of the company’s assets and the total debt in relation to the equity amounts to 99.45 percent. Due to the financial situation, a return on equity of 28.00 percent was realized. Twelve trailing months earnings per share reached a value of $1.97. Last fiscal year, the company paid $1.02 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.38, the P/S ratio is 3.72 and the P/B ratio is finally 5.46. The dividend yield amounts to 2.79 percent and the beta ratio has a value of 0.53.

Long-Term Stock Price Chart Of Coca-Cola (KO)
Long-Term Dividend Payment History of Coca-Cola (KO)
Long-Term Dividend Yield History of Coca-Cola (KO)


Take a closer look at the full list of the safest consumer dividend stocks. The average P/E ratio amounts to 20.42 and forward P/E ratio is 15.83. The dividend yield has a value of 3.40 percent. Price to book ratio is 6.73 and price to sales ratio 2.33. The operating margin amounts to 17.05 percent and the beta ratio is 0.61. Stocks from the list have an average debt to equity ratio of 4.01.

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

20 Safest Consumer Dividend Stocks (Click to enlarge)

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Related stock ticker symbols:
LO, RAI, MO, ABV, CAJ, PM, MAT, KMB, GIS, UL, CLX, CAG, HNZ, PG, KO, K, PEP, UN, CPB, HMC

Selected Articles:


*I am long LO, MO, ABV, PM, MAT, KMB, GIS, UL, HNZ, PG, KO, K, PEP, UN, CPB. 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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