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Cheapest Dividend Paying Large Caps As of July 2013

Cheap large capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. Dividend stocks with lovely looking fundamentals and cheap price ratios can promise you a good return but they are also very rare. The higher the efforts of your screen are, the lower the number of results you get. Today I would like to update my monthly screen about the cheapest dividend paying stocks on the capital market. I use six very strong criteria and only around a dozen companies remain each month.

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

Thirteen companies fulfilled this time the criteria and nine of them have a current buy or better rating. One stock has a high yield on a twelve trailing month basis (5 percent dividend yield). To buy cheap stocks is no guarantee for a return but you get value for what you pay and the possibility to overpay a stock is also low is the business model is somehow stable.

Here are the four best yielding results:
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BP plc (NYSE:BP) has a market capitalization of $137.29 billion. The company employs 85,700 people, generates revenue of $388.285 billion and has a net income of $11.816 billion. BP plc’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39.891 billion. The EBITDA margin is 10.27 percent (the operating margin is 5.08 percent and the net profit margin 3.04 percent).


Financial Analysis: The total debt represents 16.26 percent of BP plc’s assets and the total debt in relation to the equity amounts to 41.21 percent. Due to the financial situation, a return on equity of 10.07 percent was realized by BP plc. Twelve trailing months earnings per share reached a value of $6.99. Last fiscal year, BP plc paid $1.98 in the form of dividends to shareholders. 

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.18, the P/S ratio is 0.35 and the P/B ratio is finally 1.16. The dividend yield amounts to 4.88 percent and the beta ratio has a value of 1.22.

Long-Term Stock Price Chart Of BP plc (BP)
Long-Term Dividend Payment History of BP plc (BP)
Long-Term Dividend Yield History of BP plc (BP)

Newmont Mining (NYSE:NEM) has a market capitalization of $15.09 billion. The company employs 16,400 people, generates revenue of $9.868 billion and has a net income of $2.245 billion. Newmont Mining’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.281 billion. The EBITDA margin is 53.52 percent (the operating margin is 30.79 percent and the net profit margin 22.75 percent).

Financial Analysis: The total debt represents 21.24 percent of Newmont Mining’s assets and the total debt in relation to the equity amounts to 45.73 percent. Due to the financial situation, a return on equity of 14.14 percent was realized by Newmont Mining. Twelve trailing months earnings per share reached a value of $3.24. Last fiscal year, Newmont Mining paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.38, the P/S ratio is 1.43 and the P/B ratio is finally 1.03. The dividend yield amounts to 4.88 percent and the beta ratio has a value of 0.36.

Long-Term Stock Price Chart Of Newmont Mining (NEM)
Long-Term Dividend Payment History of Newmont Mining (NEM)
Long-Term Dividend Yield History of Newmont Mining (NEM)

Freeport-McMoRan Copper & Gold (NYSE:FCX) has a market capitalization of $27.69 billion. The company employs 34,000 people, generates revenue of $18.010 billion and has a net income of $3.977 billion. Freeport-McMoRan Copper & Gold’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.927 billion. The EBITDA margin is 38.46 percent (the operating margin is 31.35 percent and the net profit margin 22.08 percent).

Financial Analysis: The total debt represents 9.95 percent of Freeport-McMoRan Copper & Gold’s assets and the total debt in relation to the equity amounts to 20.10 percent. Due to the financial situation, a return on equity of 18.33 percent was realized by Freeport-McMoRan Copper & Gold. Twelve trailing months earnings per share reached a value of $3.07. Last fiscal year, Freeport-McMoRan Copper & Gold paid $1.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.50, the P/S ratio is 1.51 and the P/B ratio is finally 1.54. The dividend yield amounts to 4.38 percent and the beta ratio has a value of 1.99.

Long-Term Stock Price Chart Of Freeport-McMoRan Copper & Gold (FCX)
Long-Term Dividend Payment History of Freeport-McMoRan Copper & Gold (FCX)
Long-Term Dividend Yield History of Freeport-McMoRan Copper & Gold (FCX)

POSCO (NYSE:PKX) has a market capitalization of $21.67 billion. The company employs 35,094 people, generates revenue of $56.767 billion and has a net income of $2.129 billion. POSCO’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.336 billion. The EBITDA margin is 9.40 percent (the operating margin is 5.18 percent and the net profit margin 3.75 percent).

Financial Analysis: The total debt represents 31.44 percent of POSCO’s assets and the total debt in relation to the equity amounts to 63.17 percent. Due to the financial situation, a return on equity of 6.33 percent was realized by POSCO. Twelve trailing months earnings per share reached a value of $6.10. Last fiscal year, POSCO paid $1.79 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.51, the P/S ratio is 0.42 and the P/B ratio is finally 0.61. The dividend yield amounts to 2.54 percent and the beta ratio has a value of 1.61.

Long-Term Stock Price Chart Of POSCO (PKX)
Long-Term Dividend Payment History of POSCO (PKX)
Long-Term Dividend Yield History of POSCO (PKX)

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 10.39 while the forward P/E ratio is 9.14. P/S ratio is 0.71 and P/B ratio 1.26. The expected earnings growth for next year amounts to 15.44 and 9.31 percent for the upcoming five years.

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

Cheapest Dividend Paying Large Cap Stocks (Click to enlarge)

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Related stock ticker symbols:
BP, NEM, FCX, PKX, AEG, PTR, KSS, VLO, MPC, MUR, MGA, NOV, LNC

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*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.