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3 Top Dividend Stocks With Low Payouts And Attractive Price Ratios

Cheap stocks are rare in a low interest environment. But cheap is also a question of the alternatives. You need to compare your investment with the industry average. 

Today I would like to present you three attractively valuated dividend growers with a very low dividend payout, all compared to their industry rivals. These are my criteria:



- Market cap is greater than $100 million.
- Dividend yield is greater than the dividend yield of the industry.
- The payout ratio is less than 100%.
- The annual rate of dividend growth over the past five years is greater than 5%.
- Annual rate of dividend growth over the past five years above the industry.
- Average annual earnings growth estimates for the next 5 years is greater than 5%.
- Average annual earnings growth for the past 5 years is greater than the average annual earnings growth of the industry.

20 companies fulfilled these criteria and some of them don't have a long dividend growth history. Below are some of my favorites, they are not selected by the longest dividend increases. 

I don't recommend them to buy or sell them. It's only a quick selection. Other stocks of interest are Dover, Deere, Medtronic, CSX, Illinois Tool Works and Coach.

Please don't be focused on a few stocks. A well diversification helps you to keep the big stock market risks small.

Agrium (NYSE:AGU) has a market capitalization of $12.88 billion. The company employs 14,500 people, generates revenue of $16.686 billion and has a net income of $1.498 billion. Agrium’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.637 billion. The EBITDA margin is 15.80 percent (the operating margin is 12.54 percent and the net profit margin 8.98 percent).

Financial Analysis: The total debt represents 24.79 percent of Agrium’s assets and the total debt in relation to the equity amounts to 57.27 percent. Due to the financial situation, a return on equity of 22.40 percent was realized by Agrium. Twelve trailing months earnings per share reached a value of $9.12. Last fiscal year, Agrium paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.75, the P/S ratio is 0.77 and the P/B ratio is finally 1.92. The dividend yield amounts to 3.38 percent and the beta ratio has a value of 1.43.


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

Helmerich & Payne (NYSE:HP) has a market capitalization of $8.41 billion. The company employs 9,410 people, generates revenue of $3.387 billion and has a net income of $721.45 million. Helmerich & Payne’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.393 billion. The EBITDA margin is 41.13 percent (the operating margin is 28.24 percent and the net profit margin 21.30 percent).

Financial Analysis: The total debt represents 1.28 percent of Helmerich & Payne’s assets and the total debt in relation to the equity amounts to 1.80 percent. Due to the financial situation, a return on equity of 17.43 percent was realized by Helmerich & Payne. Twelve trailing months earnings per share reached a value of $6.66. Last fiscal year, Helmerich & Payne paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.85, the P/S ratio is 2.48 and the P/B ratio is finally 1.89. The dividend yield amounts to 2.53 percent and the beta ratio has a value of 1.20.


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)

UnitedHealth Group (NYSE:UNH) has a market capitalization of $74.24 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. UnitedHealth Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).

Financial Analysis: The total debt represents 20.71 percent of UnitedHealth Group’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized by UnitedHealth Group. Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, UnitedHealth Group paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.94, the P/S ratio is 0.67 and the P/B ratio is finally 2.41. The dividend yield amounts to 1.52 percent and the beta ratio has a value of 0.76.


Long-Term Stock Price Chart Of UnitedHealth Group (UNH)
Long-Term Dividend Payment History of UnitedHealth Group (UNH)
Long-Term Dividend Yield History of UnitedHealth Group (UNH)

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