Dividend Aristocrats normally have a lower volatility than other stocks. This could also be an disadvantage because you give up performance in a strong up moving market. The solution is simple: Look at high beta stocks. They can give you a better return when the market is very bullish.
I observed all current 54 Dividend Aristocrats by the highest rate of beta, starting with a value above one. Only 16 of them are more volatile than the overall market. It’s how I told it: Only a few Dividend Aristocrats, around 30 percent, are riskier than the market but they can also deliver you a better performance in return. For the time being, twelve of the High Beta Dividend Aristocrats have a buy or better rating.
Here are my favorite stocks:
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Air Products & Chemicals (NYSE:APD) has a market capitalization of $22.40 billion. The company employs 20,900 people, generates revenue of $9.611 billion and has a net income of $1.025 billion. Air Products & Chemicals’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.359 billion. The EBITDA margin is 24.55 percent (the operating margin is 13.34 percent and the net profit margin 10.67 percent).
Financial Analysis: The total debt represents 31.39 percent of Air Products & Chemicals’s assets and the total debt in relation to the equity amounts to 82.11 percent. Due to the financial situation, a return on equity of 16.28 percent was realized by Air Products & Chemicals. Twelve trailing months earnings per share reached a value of $4.67. Last fiscal year, Air Products & Chemicals paid $2.50 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.89, the P/S ratio is 2.33 and the P/B ratio is finally 3.51. The dividend yield amounts to 2.66 percent and the beta ratio has a value of 1.24.
Long-Term Stock Price Chart Of Air Products & Chemicals (APD) |
Long-Term Dividend Payment History of Air Products & Chemicals (APD) |
Long-Term Dividend Yield History of Air Products & Chemicals (APD) |
Walgreen (NYSE:WAG) has a market capitalization of $47.48 billion. The company employs 171,000 people, generates revenue of $71.633 billion and has a net income of $2.127 billion. Walgreen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.672 billion. The EBITDA margin is 6.52 percent (the operating margin is 4.84 percent and the net profit margin 2.97 percent).
Financial Analysis: The total debt represents 16.11 percent of Walgreen’s assets and the total debt in relation to the equity amounts to 29.57 percent. Due to the financial situation, a return on equity of 12.86 percent was realized by Walgreen. Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, Walgreen paid $0.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.11, the P/S ratio is 0.66 and the P/B ratio is finally 2.60. The dividend yield amounts to 2.51 percent and the beta ratio has a value of 1.10.
Long-Term Stock Price Chart Of Walgreen (WAG) |
Long-Term Dividend Payment History of Walgreen (WAG) |
Long-Term Dividend Yield History of Walgreen (WAG) |
Illinois Tool Works (NYSE:ITW) has a market capitalization of $33.09 billion. The company employs 60,000 people, generates revenue of $17.924 billion and has a net income of $2.495 billion. Illinois Tool Works’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.462 billion. The EBITDA margin is 19.31 percent (the operating margin is 15.88 percent and the net profit margin 13.92 percent).
Financial Analysis: The total debt represents 26.14 percent of Illinois Tool Works’s assets and the total debt in relation to the equity amounts to 47.80 percent. Due to the financial situation, a return on equity of 24.25 percent was realized by Illinois Tool Works. Twelve trailing months earnings per share reached a value of $5.26. Last fiscal year, Illinois Tool Works paid $1.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.97, the P/S ratio is 1.84 and the P/B ratio is finally 3.17. The dividend yield amounts to 2.29 percent and the beta ratio has a value of 1.14.
Long-Term Stock Price Chart Of Illinois Tool Works (ITW) |
Long-Term Dividend Payment History of Illinois Tool Works (ITW) |
Long-Term Dividend Yield History of Illinois Tool Works (ITW) |
Dover (NYSE:DOV) has a market capitalization of $14.82 billion. The company employs 35,000 people, generates revenue of $8.104 billion and has a net income of $833.12 million. Dover’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.798 billion. The EBITDA margin is 22.19 percent (the operating margin is 15.61 percent and the net profit margin 10.28 percent).
Financial Analysis: The total debt represents 26.81 percent of Dover’s assets and the total debt in relation to the equity amounts to 56.92 percent. Due to the financial situation, a return on equity of 16.92 percent was realized by Dover. Twelve trailing months earnings per share reached a value of $5.32. Last fiscal year, Dover paid $1.33 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.27, the P/S ratio is 1.82 and the P/B ratio is finally 3.08. The dividend yield amounts to 1.73 percent and the beta ratio has a value of 1.36.
Long-Term Stock Price Chart Of Dover (DOV) |
Long-Term Dividend Payment History of Dover (DOV) |
Long-Term Dividend Yield History of Dover (DOV) |
Take a closer look at the full list of Dividend Aristocrats with high beta ratios. The average P/E ratio amounts to 21.12
and forward P/E ratio is 15.83. The dividend yield has a value of 2.33 percent.
Price to book ratio is 3.74 and price to sales ratio 2.54. The operating margin
amounts to 20.05 percent and the beta ratio is 1.29. Stocks from the list have
an average debt to equity ratio of 0.54.
Here is the full table with
some fundamentals (TTM):
16 High Beta Dividend Aristocrast (Click to enlarge) |
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Related Stock Ticker Symbols:
HCP, LEG, NUE,
APD, EMR, WAG, SWK, AFL, ITW, TROW, MHFI, DOV, LOW, PNR, PPG, BEN
Selected Articles:
*I am long WAG, ITW. 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.