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Cheapest Dividend Paying Large Caps As of May 2013

Cheap large capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. The markets getting more expensive and my research for real bargains or cheap valuated stocks rise. Today I like to use my monthly screen of the cheapest large capitalized stocks.

Buy low and sell high is the basic philosophy behind. But its very difficult to know when stocks are cheap. In markets that are going up for years, the only reason to find cheap stocks is to look at the future growth. A growing company let the P/E ratio shrink. A current P/E of 20 can come down to 13 with growing earnings per share. Growth is only one criterion of hundreds.

My criteria for the cheap Large Cap screen are:

- Market Capitalization over USD 10 billion
- Expected Earnings per share growth over 10 percent for the next year.
- P/E ratio under 15
- P/S and P/B ratio under 2
- Positive Dividends

Fourteen companies fulfilled these criteria of which nine are currently recommended to buy. The screen is dominated by foreign stock; eight come from abroad. Another characteristic is that basic material stocks are mostly represented. The fear of falling commodity prices due to Chinas slowing growth is the reason behind.

Here are my favorites:
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PetroChina (NYSE:PTR) has a market capitalization of $227.20 billion. The company employs 548,355 people, generates revenue of $358.070 billion and has a net income of $21.305 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $53.822 billion. The EBITDA margin is 15.03 percent (the operating margin is 7.95 percent and the net profit margin 5.95 percent).

Financial Analysis: The total debt represents 20.52 percent of the company’s assets and the total debt in relation to the equity amounts to 41.82 percent. Due to the financial situation, a return on equity of 11.16 percent was realized. Twelve trailing months earnings per share reached a value of $10.04. Last fiscal year, the company paid $4.63 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.36, the P/S ratio is 0.71 and the P/B ratio is finally 1.31. The dividend yield amounts to 3.65 percent and the beta ratio has a value of 1.04.


Long-Term Stock Price Chart Of PetroChina (PTR)
Long-Term Dividend Payment History of PetroChina (PTR)
Long-Term Dividend Yield History of PetroChina (PTR)

Principal Financial Group (NYSE:PFG) has a market capitalization of $11.52 billion. The company employs 13,373 people, generates revenue of $9.140 billion and has a net income of $817.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.335 billion. The EBITDA margin is 14.61 percent (the operating margin is 10.97 percent and the net profit margin 8.94 percent).

Financial Analysis: The total debt represents 1.68 percent of the company’s assets and the total debt in relation to the equity amounts to 28.01 percent. Due to the financial situation, a return on equity of 8.30 percent was realized. Twelve trailing months earnings per share reached a value of $2.51. 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 14.99, the P/S ratio is 1.21 and the P/B ratio is finally 1.14. The dividend yield amounts to 2.45 percent and the beta ratio has a value of 2.79.


Long-Term Stock Price Chart Of Principal Financial Group (PFG)
Long-Term Dividend Payment History of Principal Financial Group (PFG)
Long-Term Dividend Yield History of Principal Financial Group (PFG)

National-Oilwell (NYSE:NOV) has a market capitalization of $29.56 billion. The company employs 51,661 people, generates revenue of $20.041 billion and has a net income of $2.483 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.185 billion. The EBITDA margin is 20.88 percent (the operating margin is 17.75 percent and the net profit margin 12.39 percent).

Financial Analysis: The total debt represents 10.00 percent of the company’s assets and the total debt in relation to the equity amounts to 15.56 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $5.58. Last fiscal year, the company paid $0.49 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.39, the P/S ratio is 1.47 and the P/B ratio is finally 1.46. The dividend yield amounts to 1.50 percent and the beta ratio has a value of 1.65.


Long-Term Stock Price Chart Of National-Oilwell (NOV)
Long-Term Dividend Payment History of National-Oilwell (NOV)
Long-Term Dividend Yield History of National-Oilwell (NOV)


Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 10.71 while the forward P/E ratio is 9.51. P/S ratio is 0.86 and P/B ratio 1.21. The expected earnings growth for next year amounts to 15.25 and 8.35 percent for the upcoming five years.

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

Cheapest Large Capitalized Stocks (Click to enlarge)

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Related stock ticker symbols:
SKM, BP, NEM, FCX, AEG, PKX, TU, PTR, KSS, PFG, MUR, MGA, NOV, PBR

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