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13 Industrials With Low Dividend Payouts And Little Debt To Boost Shareholder Values

Industrial dividend stocks with low dividend payout ratios and small debt figures originally published at long-term-investments.blogspot.com. Every corporation with small amounts of debt has a better flexibility to grow faster than other stocks with a similar size in the same industry. Corporate debt is a major source to boost growth without issuing new shares.

I’m a real dividend growth investor and I ever look for stocks that pay in 10 years a dividend that is twice as big as today. That’s the reason why I always look beside the growth possibilities also at the dividend payout and debt figures. A company with little debt, high cash and low dividend payouts has much to offer for current shareholders.


Today I would like to screen the industrial sector by stocks with low debt figures and dividend payouts. I selected only those stocks with a 20 percent dividend payout and a debt to equity ratio of less than 0.2.


Only thirteen stocks fulfilled these two criteria of which ten have a current buy or better ratio. The results are dominated by lower capitalized stocks. Only five have a market cap over a billion dollar.


Here are the biggest stocks:
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Babcock & Wilcox (NYSE:BWC) has a market capitalization of $3.68 billion. The company employs 14,000 people, generates revenue of $3.291 billion and has a net income of $217.56 million. Babcock & Wilcox’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $354.21 million. The EBITDA margin is 10.76 percent (the operating margin is 10.53 percent and the net profit margin 6.61 percent).


Financial Analysis: The total debt represents 0.16 percent of Babcock & Wilcox’s assets and the total debt in relation to the equity amounts to 0.46 percent. Due to the financial situation, a return on equity of 25.13 percent was realized by Babcock & Wilcox. Twelve trailing months earnings per share reached a value of $2.04. Last fiscal year, Babcock & Wilcox paid $0.00 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 1.12 and the P/B ratio is finally 3.89. The dividend yield amounts to 0.96 percent and the beta is not calculable.

Long-Term Stock Price Chart Of Babcock & Wilcox (BWC)
Long-Term Dividend Payment History of Babcock & Wilcox (BWC)
Long-Term Dividend Yield History of Babcock & Wilcox (BWC)

EnerSys (NYSE:ENS) has a market capitalization of $3.03 billion. The company employs 9,000 people, generates revenue of $2.277 billion and has a net income of $164.96 million. EnerSys’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $307.53 million. The EBITDA margin is 13.50 percent (the operating margin is 11.05 percent and the net profit margin 7.24 percent).

Financial Analysis: The total debt represents 8.98 percent of EnerSys’s assets and the total debt in relation to the equity amounts to 15.26 percent. Due to the financial situation, a return on equity of 15.13 percent was realized by EnerSys. Twelve trailing months earnings per share reached a value of $3.31. Last fiscal year, EnerSys paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.24, the P/S ratio is 1.31 and the P/B ratio is finally 2.56. The dividend yield amounts to 0.80 percent and the beta ratio has a value of 1.58.

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

Emcor Group (NYSE:EME) has a market capitalization of $2.65 billion. The company employs 26,000 people, generates revenue of $6.346 billion and has a net income of $148.89 million. Emcor Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $281.32 million. The EBITDA margin is 4.43 percent (the operating margin is 3.94 percent and the net profit margin 2.35 percent).

Financial Analysis: The total debt represents 5.02 percent of Emcor Group’s assets and the total debt in relation to the equity amounts to 11.58 percent. Due to the financial situation, a return on equity of 11.36 percent was realized by Emcor Group. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, Emcor Group paid $0.26 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.52, the P/S ratio is 0.41 and the P/B ratio is finally 1.92. The dividend yield amounts to 0.62 percent and the beta ratio has a value of 1.58.

Long-Term Stock Price Chart Of Emcor Group (EME)
Long-Term Dividend Payment History of Emcor Group (EME)
Long-Term Dividend Yield History of Emcor Group (EME)

Take a closer look at the full list of industrial stocks with potential to hike dividends. The average P/E ratio amounts to 20.49 and forward P/E ratio is 15.81. The dividend yield has a value of 0.76 percent. Price to book ratio is 3.12 and price to sales ratio 1.58. The operating margin amounts to 10.55 percent and the beta ratio is 1.41. Stocks from the list have an average debt to equity ratio of 0.06.

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

Industrials With Low Payouts And Debt Figures (Click to enlarge)

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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.