7/19/2013

20 Cheap Dividend Contenders With Real Low Debt Figures

Dividend Contenders with low debt and cheap price ratios originally published at long-term-investments.blogspot.com. Dividend Contenders have raised their dividend payments over 10 years in a row but not more than 25 consecutive years. There are over 200 stocks with such an impressive dividend growth history but not all of them are really good. Every stock has a something that an investor loves and hates. The perfect stock does not exist.

Today I would like to screen the Dividend Contenders category by cheap stocks (forward P/E below 15) with the lowest debt ratios. For passive investors, it's very important to own low leveraged growth stocks because they can expect further dividend hikes. If you purchase them at reasonable prices, you can increase the possibility for a good return.

Twelve of the 20 cheap Contenders with very low debt to equity ratios have a buy or better rating and four yield over three percent. Many insurer and banks are on the list. The financial sector is very strong.

Here are the cheapest Dividend Contenders from the screen:
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RenaissanceRe (NYSE:RNR) has a market capitalization of $3.94 billion. The company employs 309 people, generates revenue of $1.405 billion and has a net income of $746.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $944.42 million. The EBITDA margin is 67.17 percent (the operating margin is 53.21 percent and the net profit margin 53.11 percent).

Financial Analysis: The total debt represents 4.44 percent of the company’s assets and the total debt in relation to the equity amounts to 10.04 percent. Due to the financial situation, a return on equity of 18.02 percent was realized. Twelve trailing months earnings per share reached a value of $11.36. Last fiscal year, the company paid $1.08 in the form of dividends to shareholders. Forward P/E: 9.46.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.80, the P/S ratio is 2.82 and the P/B ratio is finally 1.31. The dividend yield amounts to 1.26 percent and the beta ratio has a value of 0.40.


Long-Term Stock Price Chart Of RenaissanceRe (RNR)
Long-Term Dividend Payment History of RenaissanceRe (RNR)
Long-Term Dividend Yield History of RenaissanceRe (RNR)

Imperial Oil Limited (TSE:IMO) has a market capitalization of $37.24 billion. The company employs 5,263 people, generates revenue of $31.188 billion and has a net income of $3.766 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.681 billion. The EBITDA margin is 18.22 percent (the operating margin is 16.01 percent and the net profit margin 12.08 percent).

Financial Analysis: The total debt represents 5.61 percent of the company’s assets and the total debt in relation to the equity amounts to 10.06 percent. Due to the financial situation, a return on equity of 25.36 percent was realized. Twelve trailing months earnings per share reached a value of $4.17. Last fiscal year, the company paid $0.48 in the form of dividends to shareholders. Forward P/E: 9.54.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.53, the P/S ratio is 1.20 and the P/B ratio is finally 2.29. The dividend yield amounts to 1.08 percent and the beta ratio has a value of 0.72.


Long-Term Stock Price Chart Of Imperial Oil Limited (IMO)
Long-Term Dividend Payment History of Imperial Oil Limited (IMO)
Long-Term Dividend Yield History of Imperial Oil Limited (IMO)

Axis Capital Holdings (NYSE:AXS) has a market capitalization of $5.59 billion. The company employs 1,100 people, generates revenue of $3.926 billion and has a net income of $547.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.242 billion. The EBITDA margin is 31.65 percent (the operating margin is 14.02 percent and the net profit margin 13.94 percent).

Financial Analysis: The total debt represents 5.28 percent of the company’s assets and the total debt in relation to the equity amounts to 17.22 percent. Due to the financial situation, a return on equity of 9.69 percent was realized. Twelve trailing months earnings per share reached a value of $5.56. Last fiscal year, the company paid $0.97 in the form of dividends to shareholders. Forward P/E: 10.02.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.43, the P/S ratio is 1.43 and the P/B ratio is finally 1.05. The dividend yield amounts to 2.13 percent and the beta ratio has a value of 0.78.


Long-Term Stock Price Chart Of Axis Capital Holdings (AXS)
Long-Term Dividend Payment History of Axis Capital Holdings (AXS)
Long-Term Dividend Yield History of Axis Capital Holdings (AXS)


Take a closer look at the full list of cheap Dividend Contenders with very debt. The average P/E ratio amounts to 14.18 and forward P/E ratio is 11.92. The dividend yield has a value of 2.24 percent. Price to book ratio is 1.62 and price to sales ratio 2.10. The operating margin amounts to 28.44 percent and the beta ratio is 0.83. Stocks from the list have an average debt to equity ratio of 0.15.

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

20 Cheap Dividend Contenders With Very Low Debt (Click to enlarge)

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Related Stock Ticker Symbols:
DCM, MXIM, TSH, BHB, MSFT, THFF, OXY, PRE, EBMT, QCOM, ACE, AXS, MUR, SFG, CVS, HCC, RNR, IMO, FDX, AAN

Selected Articles:

*I am long QCOM. 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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