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13 High Beta Dividend Champions With Cheap Forward P/E’s

Dividend Champions with high beta ratios and low valuation originally published at long-term-investments.blogspot.com. The Dividend Champions list is a compressed compilation of stocks with the longest dividend growth history. Those stocks raised their cash dividend payments over a period of more than 25 years.

In my current article serial, I write about high beta stocks and the possibility to make more money in a bullish market with high beta stocks. High beta stocks are stronger correlated with the market and can result in a higher performance.

Today I would like to observe those Dividend Champions with a beta ratio above one as well as a forward P/E below 15. It’s very important to make sure that the companies are cheap because only with a high initial earnings yield you can increase the possibility of a good long-term total return. Thirteen stocks fulfilled the above mentioned criteria of which ten are currently recommended to buy.

Here are the highest yielding results:
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Diebold (NYSE:DBD) has a market capitalization of $1.96 billion. The company employs 16,751 people, generates revenue of $2.991 billion and has a net income of $87.52 million. Diebold’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $276.80 million. The EBITDA margin is 9.25 percent (the operating margin is 4.17 percent and the net profit margin 2.93 percent).

Financial Analysis: The total debt represents 25.13 percent of Diebold’s assets and the total debt in relation to the equity amounts to 82.50 percent. Due to the financial situation, a return on equity of 10.09 percent was realized by Diebold. Twelve trailing months earnings per share reached a value of $-1.61. Last fiscal year, Diebold paid $1.14 in the form of dividends to shareholders. Forward P/E: 13.87.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.66 and the P/B ratio is finally 2.47. The dividend yield amounts to 3.73 percent and the beta ratio has a value of 1.01.

Long-Term Stock Price Chart Of Diebold (DBD)
Long-Term Dividend Payment History of Diebold (DBD)
Long-Term Dividend Yield History of Diebold (DBD)

Universal (NYSE:UVV) has a market capitalization of $1.38 billion. The company employs 25,000 people, generates revenue of $2.461 billion and has a net income of $140.92 million. Universal’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $269.12 million. The EBITDA margin is 10.93 percent (the operating margin is 9.06 percent and the net profit margin 5.72 percent).

Financial Analysis: The total debt represents 21.59 percent of Universal’s assets and the total debt in relation to the equity amounts to 39.55 percent. Due to the financial situation, a return on equity of 11.70 percent was realized by Universal. Twelve trailing months earnings per share reached a value of $5.89. Last fiscal year, Universal paid $1.98 in the form of dividends to shareholders. Forward P/E: 11.74.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.06, the P/S ratio is 0.56 and the P/B ratio is finally 1.32. The dividend yield amounts to 3.37 percent and the beta ratio has a value of 1.08.

Long-Term Stock Price Chart Of Universal (UVV)
Long-Term Dividend Payment History of Universal (UVV)
Long-Term Dividend Yield History of Universal (UVV)

Nucor (NYSE:NUE) has a market capitalization of $15.04 billion. The company employs 22,200 people, generates revenue of $19.429 billion and has a net income of $593.13 million. Nucor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.665 billion. The EBITDA margin is 8.57 percent (the operating margin is 4.39 percent and the net profit margin 3.05 percent).

Financial Analysis: The total debt represents 26.24 percent of Nucor’s assets and the total debt in relation to the equity amounts to 48.60 percent. Due to the financial situation, a return on equity of 6.65 percent was realized by Nucor. Twelve trailing months earnings per share reached a value of $1.30. Last fiscal year, Nucor paid $1.46 in the form of dividends to shareholders. Forward P/E: 13.93.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.26, the P/S ratio is 0.77 and the P/B ratio is finally 1.97. The dividend yield amounts to 3.11 percent and the beta ratio has a value of 1.12.

Long-Term Stock Price Chart Of Nucor (NUE)
Long-Term Dividend Payment History of Nucor (NUE)
Long-Term Dividend Yield History of Nucor (NUE)

Helmerich & Payne (NYSE:HP) has a market capitalization of $7.22 billion. The company employs 9,410 people, generates revenue of $3.151 billion and has a net income of $573.61 million. Helmerich & Payne’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.277 billion. The EBITDA margin is 40.55 percent (the operating margin is 28.86 percent and the net profit margin 18.20 percent).

Financial Analysis: The total debt represents 4.11 percent of Helmerich & Payne’s assets and the total debt in relation to the equity amounts to 6.13 percent. Due to the financial situation, a return on equity of 16.08 percent was realized by Helmerich & Payne. Twelve trailing months earnings per share reached a value of $6.57. Last fiscal year, Helmerich & Payne paid $0.28 in the form of dividends to shareholders. Forward P/E: 12.31.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.32, the P/S ratio is 2.29 and the P/B ratio is finally 1.87. The dividend yield amounts to 2.95 percent and the beta ratio has a value of 1.37.

Long-Term Stock Price Chart Of Helmerich & Payne (HP)
Long-Term Dividend Payment History of Helmerich & Payne (HP)
Long-Term Dividend Yield History of Helmerich & Payne (HP)

Take a closer look at the full list of cheap high beta Dividend Champions. The average P/E ratio amounts to 24.32 and forward P/E ratio is 13.18. The dividend yield has a value of 2.13 percent. Price to book ratio is 2.35 and price to sales ratio 1.32. The operating margin amounts to 13.69 percent and the beta ratio is 1.33. Stocks from the list have an average debt to equity ratio of 0.48.

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

Cheap High Beta Dividend Champions (Click to enlarge)

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Related Stock Ticker Symbols:
DBD, UVV, NUE, HP, WAG, SWK, AFL, PH, DOV, CSL, SCL, FUL, BEN

Selected Articles:

*I am long WAG. 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.