Bookmark and Share

Cheapest Dividend Paying Large Caps As of September 2013

Cheap large capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. Cheap stocks, bargains or undervalued companies can promise you good returns if you believe that they receive a better valuation within the next months or years. It’s very difficult to discover those stocks because of the hundreds of thousands technical and fundamental measures.

I often used my static ratios like earnings multiples or book ratios to identify cheaply valuated stocks. Today I like to change my recent criteria about cheapest dividend paying large caps a little bit. I tighten the restriction Price-To-Sales to a value of less than one and look at forward P/E’s. In the past, I’ve looked at current earnings multiples.

These are the criteria for my cheapest dividend paying large cap screen:
- Market Capitalization over USD 10 billion
- Expected Earnings per share growth over 10 percent for the next five years
- Forward P/E ratio under 15
- P/S under 1 and P/B ratio under 2
- Positive Dividends

The number of my results rose. Eighteen stocks fulfilled these criteria of which one pays a high yield of more than five percent. Nearly all, fourteen in total, got a buy or better rating by brokerage firms.

Here are my favorites:
Subscribe my Blog via RSS Feed or E-Mail. Alternatively, you can follow me on Facebook or Twitter

Marathon Petroleum (NYSE:MPC) has a market capitalization of $20.20 billion. The company employs 25,985 people, generates revenue of $82.492 billion and has a net income of $3.393 billion. Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.106 billion. The EBITDA margin is 7.40 percent (the operating margin is 6.48 percent and the net profit margin 4.11 percent).


Financial Analysis: The total debt represents 12.35 percent of Marathon Petroleum’s assets and the total debt in relation to the equity amounts to 28.74 percent. Due to the financial situation, a return on equity of 31.92 percent was realized by Marathon Petroleum. Twelve trailing months earnings per share reached a value of $9.84. Last fiscal year, Marathon Petroleum paid $1.20 in the form of dividends to shareholders. Earnings of MPC are expected to grow by 11 percent over the next five years yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.56, the P/S ratio is 0.24 and the P/B ratio is finally 1.84. The dividend yield amounts to 2.60 percent and the beta ratio is not calculable.


Long-Term Stock Price Chart Of Marathon Petroleum (MPC)
Long-Term Dividend Payment History of Marathon Petroleum (MPC)
Long-Term Dividend Yield History of Marathon Petroleum (MPC)

Prudential Financial (NYSE:PRU) has a market capitalization of $36.54 billion. The company employs 48,498 people, generates revenue of $84.815 billion and has a net income of $472.00 million. Prudential Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $978.00 million. The EBITDA margin is 1.15 percent (the operating margin is 0.80 percent and the net profit margin 0.56 percent).

Financial Analysis: The total debt represents 4.06 percent of Prudential Financial’s assets and the total debt in relation to the equity amounts to 74.63 percent. Due to the financial situation, a return on equity of 1.23 percent was realized by Prudential Financial. Twelve trailing months earnings per share reached a value of $-4.33. Last fiscal year, Prudential Financial paid $1.60 in the form of dividends to shareholders. Earnings of PRU are expected to grow by 13.23 percent over the next five years yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.43 and the P/B ratio is finally 0.94. The dividend yield amounts to 2.04 percent and the beta ratio has a value of 2.49.


Long-Term Stock Price Chart Of Prudential Financial (PRU)
Long-Term Dividend Payment History of Prudential Financial (PRU)
Long-Term Dividend Yield History of Prudential Financial (PRU)

WellPoint (NYSE:WLP) has a market capitalization of $24.61 billion. The company employs 43,500 people, generates revenue of $61.71 billion and has a net income of $2.655 billion. WellPoint’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.118 billion. The EBITDA margin is 8.29 percent (the operating margin is 6.26 percent and the net profit margin 4.30 percent).

Financial Analysis: The total debt represents 25.41 percent of WellPoint’s assets and the total debt in relation to the equity amounts to 62.93 percent. Due to the financial situation, a return on equity of 11.28 percent was realized by WellPoint. Twelve trailing months earnings per share reached a value of $9.19. Last fiscal year, WellPoint paid $1.15 in the form of dividends to shareholders. Earnings of WLP are expected to grow by 11.50 percent over the next five years yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.96, the P/S ratio is 0.40 and the P/B ratio is finally 1.05. The dividend yield amounts to 1.82 percent and the beta ratio has a value of 0.81.


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

CVS Caremark (NYSE:CVS) has a market capitalization of $71.90 billion. The company employs 203,000 people, generates revenue of $123.133 billion and has a net income of $3.882 billion. CVS Caremark’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.014 billion. The EBITDA margin is 7.32 percent (the operating margin is 5.59 percent and the net profit margin 3.15 percent).

Financial Analysis: The total debt represents 14.91 percent of CVS Caremark’s assets and the total debt in relation to the equity amounts to 26.07 percent. Due to the financial situation, a return on equity of 10.25 percent was realized by CVS Caremark. Twelve trailing months earnings per share reached a value of $3.38. Last fiscal year, CVS Caremark paid $0.65 in the form of dividends to shareholders. Earnings of CVS are expected to grow by 14.05 percent over the next five years yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.34, the P/S ratio is 0.58 and the P/B ratio is finally 1.91. The dividend yield amounts to 1.54 percent and the beta ratio has a value of 0.77.


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


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 16.77 while the forward P/E ratio is 9.94. P/S ratio is 0.52 and P/B ratio 1.22. The expected earnings growth for next year amounts to 16.01 and 22.13 percent for the upcoming five years.

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

Cheap Dividend Paying Large Caps September (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment below!

Related stock ticker symbols:
HMC, MT, ORAN, PTR, SNP, HNP, TI, MPC, PRU, MUR, CHA, WLP, CVS, BG, AET, LUV, TM, GGB

Selected Articles:

*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.