12/18/2013

6 Top Growth Heros With Potential To Lift Future Dividends

Only a growing dividend is a good dividend. That was one of my major rules when I started my dividend growth investing career. Since then, I quadrupled my net worth, only via dividend stock trading. That's a great feeling to see that it really works, but we must also consider that the markets are irrational valuated.

Today, I would like to share a new screen about dividend stocks that have beaten the market by sales and earnings growth numbers in the past. 


Not enough, they also have low debt, dividend payout ratios. Both are two major criteria to evaluate future dividend growth. These are the criteria in detail:

- Market cap is greater than USD 100 million
- Dividend yield is greater than 2%
- The payout ratio is less than 100%
- Total debt to equity is less than 1.00
- Average annual earnings growth for the past five years is greater than 25%
- Average annual sales growth for the past five years is greater than 10%

Six companies fulfilled the above mentioned criteria of which four have a current buy or better rating.

These are the results in detail...

Main Street Capital (NYSE:MAIN) has a market capitalization of $1.28 billion. The company employs 30 people, generates revenue of $90.52 million and has a net income of $104.44 million. Main Street Capital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.32 million. The EBITDA margin is 65.54 percent (the operating margin is 65.54 percent and the net profit margin 115.38 percent).

Financial Analysis: The total debt represents 33.15 percent of Main Street Capital’s assets and the total debt in relation to the equity amounts to 53.42 percent. Due to the financial situation, a return on equity of 19.91 percent was realized by Main Street Capital. Twelve trailing months earnings per share reached a value of $3.19. Last fiscal year, Main Street Capital paid $1.71 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.10, the P/S ratio is 14.06 and the P/B ratio is finally 1.72. The dividend yield amounts to 6.18 percent and the beta ratio has a value of 0.65.

Long-Term Stock Price Chart Of Main Street Capital (MAIN)
Long-Term Dividend Payment History of Main Street Capital (MAIN)
Long-Term Dividend Yield History of Main Street Capital (MAIN)

HCI Group (NYSE:HCI) has a market capitalization of $553.93 million. The company employs 239 people, generates revenue of $163.06 million and has a net income of $30.16 million. HCI Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51.33 million. The EBITDA margin is 31.48 percent (the operating margin is 30.41 percent and the net profit margin 18.49 percent).

Financial Analysis: The total debt represents 0.00 percent of HCI Group’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 31.71 percent was realized by HCI Group. Twelve trailing months earnings per share reached a value of $5.50. Last fiscal year, HCI Group paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.76, the P/S ratio is 3.23 and the P/B ratio is finally 4.11. The dividend yield amounts to 2.40 percent and the beta ratio has a value of 0.95.

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

RPC (NYSE:RES) has a market capitalization of $3.87 billion. The company employs 3,600 people, generates revenue of $1.945 billion and has a net income of $274.44 million. RPC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $663.39 million. The EBITDA margin is 34.11 percent (the operating margin is 22.74 percent and the net profit margin 14.11 percent).

Financial Analysis: The total debt represents 7.83 percent of RPC’s assets and the total debt in relation to the equity amounts to 11.90 percent. Due to the financial situation, a return on equity of 33.03 percent was realized by RPC. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, RPC paid $0.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.68, the P/S ratio is 1.98 and the P/B ratio is finally 4.31. The dividend yield amounts to 2.27 percent and the beta ratio has a value of 1.53.

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

Questcor Pharmaceutical (NASDAQ:QCOR) has a market capitalization of $3.29 billion. The company employs 557 people, generates revenue of $509.29 million and has a net income of $197.68 million. Questcor Pharmaceutical’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $299.03 million. The EBITDA margin is 58.72 percent (the operating margin is 58.22 percent and the net profit margin 38.81 percent).

Financial Analysis: The total debt represents 0.00 percent of Questcor Pharmaceutical’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 103.59 percent was realized by Questcor Pharmaceutical. Twelve trailing months earnings per share reached a value of $4.31. Last fiscal year, Questcor Pharmaceutical paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.54, the P/S ratio is 6.46 and the P/B ratio is finally 19.58. The dividend yield amounts to 2.22 percent and the beta ratio has a value of 1.29.

Long-Term Stock Price Chart Of Questcor Pharmaceutical (QCOR)
Long-Term Dividend Payment History of Questcor Pharmaceutical (QCOR)
Long-Term Dividend Yield History of Questcor Pharmaceutical (QCOR)

Apple (NASDAQ:AAPL) has a market capitalization of $499.35 billion. The company employs 80,300 people, generates revenue of $170.910 billion and has a net income of $37.037 billion. Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $55.759 billion. The EBITDA margin is 32.62 percent (the operating margin is 28.67 percent and the net profit margin 21.67 percent).

Financial Analysis: The total debt represents 8.19 percent of Apple’s assets and the total debt in relation to the equity amounts to 13.73 percent. Due to the financial situation, a return on equity of 30.64 percent was realized by Apple. Twelve trailing months earnings per share reached a value of $39.63. Last fiscal year, Apple paid $11.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.01, the P/S ratio is 2.92 and the P/B ratio is finally 4.04. The dividend yield amounts to 2.20 percent and the beta ratio has a value of 0.84.

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

Hallador Energy (NASDAQ:HNRG) has a market capitalization of $217.50 million. The company employs 330 people, generates revenue of $141.32 million and has a net income of $23.81 million. Hallador Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51.60 million. The EBITDA margin is 36.51 percent (the operating margin is 25.17 percent and the net profit margin 16.85 percent).

Financial Analysis: The total debt represents 4.97 percent of Hallador Energy’s assets and the total debt in relation to the equity amounts to 7.04 percent. Due to the financial situation, a return on equity of 14.74 percent was realized by Hallador Energy. Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, Hallador Energy 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 9.35, the P/S ratio is 1.54 and the P/B ratio is finally 1.34. The dividend yield amounts to 2.11 percent and the beta ratio has a value of 0.42.

Long-Term Stock Price Chart Of Hallador Energy (HNRG)
Long-Term Dividend Payment History of Hallador Energy (HNRG)
Long-Term Dividend Yield History of Hallador Energy (HNRG)

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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.

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