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15 Fastest Growing And Attractively Valueated Dividend Growth Stocks

Growth is very important for long-term investors. It doesn't make much sense to buy a stock and pay 20 times of earnings when growth is zero.

Today's stock markets are irrational valuated but you must pay this price if you don't get hurt by potential inflation.

Today I've created a small compilation of mid-term and long-term dividend growers with great sales growth over the past five years (over 10 percent annually). In addition, they have a low forward P/E as well as double-digit earnings growth forecasts for the next five years.

The list contains 15 stocks of which half are large capitalized and ten are recommended to buy.

4 attractive valuated dividend growth stocks...

QUALCOMM (NASDAQ:QCOM) has a market capitalization of $123.63 billion. The company employs 31,000 people, generates revenue of $24.866 billion and has a net income of $6.845 billion. QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.578 billion. The EBITDA margin is 34.50 percent (the operating margin is 28.78 percent and the net profit margin 27.53 percent).

Financial Analysis: The total debt represents 0.04 percent of QUALCOMM’s assets and the total debt in relation to the equity amounts to 0.05 percent. Due to the financial situation, a return on equity of 19.69 percent was realized by QUALCOMM. Twelve trailing months earnings per share reached a value of $3.91. Last fiscal year, QUALCOMM paid $1.20 in the form of dividends to shareholders. Forward P/E: 13.17. Sales increased by 17.40 percent while earnings increased by 15.50 percent during the same period. For the next five years, earnings are expected to grow by 16.67 percent yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.72, the P/S ratio is 4.97 and the P/B ratio is finally 3.42. The dividend yield amounts to 1.91 percent and the beta ratio has a value of 1.03.

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

CVS Caremark (NYSE:CVS) has a market capitalization of $79.61 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 $3.61. Last fiscal year, CVS Caremark paid $0.65 in the form of dividends to shareholders. Forward P/E: 14.82. Sales increased by 10.10 percent while earnings increased by 9.60 percent during the same period. For the next five years, earnings are expected to grow by 14.72 percent yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.31, the P/S ratio is 0.64 and the P/B ratio is finally 2.16. The dividend yield amounts to 1.36 percent and the beta ratio has a value of 0.85.

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)

Oracle (NYSE:ORCL) has a market capitalization of $162.94 billion. The company employs 120,000 people, generates revenue of $37.180 billion and has a net income of $10.925 billion. Oracle’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17.363 billion. The EBITDA margin is 46.70 percent (the operating margin is 39.49 percent and the net profit margin 29.38 percent).

Financial Analysis: The total debt represents 22.61 percent of Oracle’s assets and the total debt in relation to the equity amounts to 41.42 percent. Due to the financial situation, a return on equity of 24.74 percent was realized by Oracle. Twelve trailing months earnings per share reached a value of $2.32. Last fiscal year, Oracle paid $0.30 in the form of dividends to shareholders. Forward P/E: 11.06. Sales increased by 10.6 percent while earnings increased by 16.30 percent during the same period. For the next five years, earnings are expected to grow by 10.56 percent yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.12, the P/S ratio is 4.31 and the P/B ratio is finally 3.65. The dividend yield amounts to 1.37 percent and the beta ratio has a value of 1.16.

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

Rock-Tenn (NYSE:RKT) has a market capitalization of $6.72 billion. The company employs 26,300 people, generates revenue of $9.545 billion and has a net income of $732.50 million. Rock-Tenn’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.444 billion. The EBITDA margin is 15.13 percent (the operating margin is 8.53 percent and the net profit margin 7.67 percent).

Financial Analysis: The total debt represents 26.50 percent of Rock-Tenn’s assets and the total debt in relation to the equity amounts to 65.97 percent. Due to the financial situation, a return on equity of 18.84 percent was realized by Rock-Tenn. Twelve trailing months earnings per share reached a value of $9.92. Last fiscal year, Rock-Tenn paid $0.60 in the form of dividends to shareholders. Forward P/E: 9.60. Sales increased by 27.40 percent while earnings increased by 36.20 percent during the same period. For the next five years, earnings are expected to grow by 14.80 percent yearly.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.40, the P/S ratio is 0.70 and the P/B ratio is finally 1.56. The dividend yield amounts to 1.50 percent and the beta ratio has a value of 1.45.

Long-Term Stock Price Chart Of Rock-Tenn (RKT)
Long-Term Dividend Payment History of Rock-Tenn (RKT)
Long-Term Dividend Yield History of Rock-Tenn (RKT)

Take a closer look at the full list of 4 Attractively Valueated Dividend Growth Stocks With Solid Earnings Growth Predictions. The average P/E ratio amounts to 16.46 and forward P/E ratio is 12.28. The dividend yield has a value of 2.52 percent. Price to book ratio is 2.69 and price to sales ratio 1.57. The operating margin amounts to 16.41 percent and the beta ratio is 1.05. Stocks from the list have an average debt to equity ratio of 0.64.

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

4 Attractively Valueated Dividend Growth Stocks (Click to enlarge)


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*I am long ORCL. 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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