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9/11/2013

17 Cheap Dividend Achievers With Very Low P/S Ratios

Cheaply priced stocks traded below its own book values originally published at long-term-investments.blogspot.com. I love it to look for high quality dividend stocks with a proven long-term track record but one thing I often noticed in my research is that the market gets more and more expensive. But if you would like to make a solid return, you definitely need cheap stocks.

With low yields, the valuation rises in an inflationary environment. That's the key premise in our economy. 


Today I would like to try my best to discover some of the best dividend growth stocks with a current cheap valuation. I use two criteria for screening the Dividend Achievers database: A forward P/E below 15 as well as a price to sales ratio below one.

Exactly 17 dividend growth stocks fulfilled the mentioned criteria. Eight of them got a buy or better rating by brokerage firms. The yields are between 0.95 and 2.91 percent. That’s not much in my view but growth forecasts are positive for all of the results.

Here are the four highest yielding results:
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PartnerRe (NYSE:PRE) has a market capitalization of $4.75 billion. The company employs 1,217 people, generates revenue of $5,562.61 million and has a net income of $1,124.56 million. Partnerre’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,346.62 million. The EBITDA margin is 42.19 percent (the operating margin is 23.89 percent and the net profit margin 20.22 percent).

Financial Analysis: The total debt represents 3.57 percent of Partnerre’s assets and the total debt in relation to the equity amounts to 11.84 percent. Due to the financial situation, a return on equity of 16.10 percent was realized by Partnerre. Twelve trailing months earnings per share reached a value of $9.25. Last fiscal year, Partnerre paid $2.48 in the form of dividends to shareholders. Forward P/E: 10.24.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.50, the P/S ratio is 0.85 and the P/B ratio is finally 0.75. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.54.


Long-Term Stock Price Chart Of Partnerre (PRE)
Long-Term Dividend Payment History of Partnerre (PRE)
Long-Term Dividend Yield History of Partnerre (PRE)

UGI (NYSE:UGI) has a market capitalization of $4.43 billion. The company employs 8,660 people, generates revenue of $6,519.20 million and has a net income of $186.60 million. UGI’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $808.30 million. The EBITDA margin is 12.40 percent (the operating margin is 7.79 percent and the net profit margin 2.86 percent).

Financial Analysis: The total debt represents 37.89 percent of UGI’s assets and the total debt in relation to the equity amounts to 164.77 percent. Due to the financial situation, a return on equity of 9.47 percent was realized by UGI. Twelve trailing months earnings per share reached a value of $2.38. Last fiscal year, UGI paid $1.06 in the form of dividends to shareholders. Forward P/E: 13.88.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.29, the P/S ratio is 0.68 and the P/B ratio is finally 1.96. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.43.


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

Exxon Mobil (NYSE:XOM) has a market capitalization of $386.58 billion. The company employs 76,900 people, generates revenue of $467,285.00 million and has a net income of $47,681.00 million. Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $79,931.00 million. The EBITDA margin is 17.11 percent (the operating margin is 13.71 percent and the net profit margin 10.20 percent).

Financial Analysis: The total debt represents 3.47 percent of Exxon Mobil’s assets and the total debt in relation to the equity amounts to 6.98 percent. Due to the financial situation, a return on equity of 28.03 percent was realized by Exxon Mobil. Twelve trailing months earnings per share reached a value of $7.94. Last fiscal year, Exxon Mobil paid $2.18 in the form of dividends to shareholders. Forward P/E: 11.06.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.06, the P/S ratio is 0.83 and the P/B ratio is finally 2.38. The dividend yield amounts to 2.87 percent and the beta ratio has a value of 0.53.


Long-Term Stock Price Chart Of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

Caterpillar (NYSE:CAT) has a market capitalization of $56.09 billion. The company employs 122,402 people, generates revenue of $65,875.00 million and has a net income of $5,708.00 million. Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,167.00 million. The EBITDA margin is 18.47 percent (the operating margin is 13.01 percent and the net profit margin 8.66 percent).

Financial Analysis: The total debt represents 44.92 percent of Caterpillar’s assets and the total debt in relation to the equity amounts to 228.97 percent. Due to the financial situation, a return on equity of 37.36 percent was realized by Caterpillar. Twelve trailing months earnings per share reached a value of $6.34. Last fiscal year, Caterpillar paid $2.02 in the form of dividends to shareholders. Forward P/E: 13.66.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.66, the P/S ratio is 0.85 and the P/B ratio is finally 3.24. The dividend yield amounts to 2.77 percent and the beta ratio has a value of 1.89.


Long-Term Stock Price Chart Of Caterpillar (CAT)
Long-Term Dividend Payment History of Caterpillar (CAT)
Long-Term Dividend Yield History of Caterpillar (CAT)


Take a closer look at the full list of cheaply priced Dividend Achievers, traded below revenue levels. The average P/E ratio amounts to 19.36 and forward P/E ratio is 12.10. The dividend yield has a value of 2.09 percent. Price to book ratio is 2.07 and price to sales ratio 0.64. The operating margin amounts to 8.97 percent and the beta ratio is 0.98. Stocks from the list have an average debt to equity ratio of 0.66.

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

Cheap Dividend Achievers (Click to enlarge)

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Related Stock Ticker Symbols:
PRE, UGI, XOM, CAT, TGT, GD, WMT, WAG, CAH, ADM, MUR, SFG, BG, SCL, FUL, WRB, ANDE

Selected Articles:

*I am long WMT, WAG, ADM. 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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