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20 Of The Safest Dividend Champions

20 Of The Safest Dividend Champions originally appeard on long-term-investments. More and more people talk about an overvaluation of the market. Sure P/E ratios skyrocket within the past five years but earnings did also improve.

You might agree with me that the risk of a market correction is improving with rising stock prices. What investors like you and me need to do is to hedge their risks.

I personally look for low beta stocks. Those have a lower correlation to the overall market and should fall less. Below are 20 of the safest Dividend Champions by beta ratio.

I've created a detailed snapshot of my 4 favorites and attached the full list. Let's go forward...

#1 McDonald's Corporation (NYSE:MCD) has a market capitalization of $94.09 billion. The company employs 440,000 people, generates revenue of $28,105.70 million and has a net income of $5,585.90 million.

McDonald's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,080.40 million. The EBITDA margin is 35.87 percent (the operating margin is 31.18 percent and the net profit margin 19.87 percent).

Financials: The total debt represents 38.58 percent of McDonald's Corporation’s assets and the total debt in relation to the equity amounts to 88.26 percent. Due to the financial situation, a return on equity of 35.69 percent was realized by McDonald's Corporation.

Twelve trailing months earnings per share reached a value of $5.09. Last fiscal year, McDonald's Corporation paid $3.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.99, the P/S ratio is 3.35 and the P/B ratio is finally 5.98. The dividend yield amounts to 3.52 percent and the beta ratio has a value of 0.33.

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Long-Term Stock Price Chart Of McDonald's Corporation (MCD)
Long-Term Dividend Payment History of McDonald's Corporation (MCD)
Long-Term Dividend Yield History of McDonald's Corporation (MCD)

Procter & Gamble (NYSE:PG) has a market capitalization of $239.41 billion. The company employs 118,000 people, generates revenue of $83,062.00 million and has a net income of $11,707.00 million.

Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,201.00 million. The EBITDA margin is 23.12 percent (the operating margin is 18.41 percent and the net profit margin 14.09 percent).

Financials: The total debt represents 24.55 percent of Procter & Gamble’s assets and the total debt in relation to the equity amounts to 51.17 percent. Due to the financial situation, a return on equity of 16.75 percent was realized by Procter & Gamble.

Twelve trailing months earnings per share reached a value of $3.54. Last fiscal year, Procter & Gamble paid $2.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.03, the P/S ratio is 2.88 and the P/B ratio is finally 3.53. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.37.

Long-Term Stock Price Chart Of Procter & Gamble (PG)
Long-Term Dividend Payment History of Procter & Gamble (PG)
Long-Term Dividend Yield History of Procter & Gamble (PG)

Coca-Cola (NYSE:KO) has a market capitalization of $194.92 billion. The company employs 130,600 people, generates revenue of $46,854.00 million and has a net income of $8,626.00 million.

Coca-Cola’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,144.00 million. The EBITDA margin is 28.05 percent (the operating margin is 22.90 percent and the net profit margin 18.41 percent).

Financials: The total debt represents 41.17 percent of Coca-Cola’s assets and the total debt in relation to the equity amounts to 111.77 percent. Due to the financial situation, a return on equity of 26.03 percent was realized by Coca-Cola.

Twelve trailing months earnings per share reached a value of $1.80. Last fiscal year, Coca-Cola paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.69, the P/S ratio is 4.16 and the P/B ratio is finally 5.91. The dividend yield amounts to 2.76 percent and the beta ratio has a value of 0.47.

Long-Term Stock Price Chart Of Coca-Cola (KO)
Long-Term Dividend Payment History of Coca-Cola (KO)
Long-Term Dividend Yield History of Coca-Cola (KO)

Johnson & Johnson (NYSE:JNJ) has a market capitalization of $301.91 billion. The company employs 128,100 people, generates revenue of $71,312.00 million and has a net income of $13,831.00 million.

Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,743.40 million. The EBITDA margin is 33.30 percent (the operating margin is 21.69 percent and the net profit margin 19.40 percent).

Financials: The total debt represents 13.70 percent of Johnson & Johnson’s assets and the total debt in relation to the equity amounts to 24.55 percent. Due to the financial situation, a return on equity of 19.92 percent was realized by Johnson & Johnson.

Twelve trailing months earnings per share reached a value of $6.04. Last fiscal year, Johnson & Johnson paid $2.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.86, the P/S ratio is 4.23 and the P/B ratio is finally 4.11. The dividend yield amounts to 2.59 percent and the beta ratio has a value of 0.56.

Long-Term Stock Price Chart Of Johnson & Johnson (JNJ)
Long-Term Dividend Payment History of Johnson & Johnson (JNJ)
Long-Term Dividend Yield History of Johnson & Johnson (JNJ)

Wal-Mart Stores (NYSE:WMT) has a market capitalization of $272.79 billion. The company employs 2,200,000 people, generates revenue of $476,294.00 million and has a net income of $16,551.00 million.

Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $35,742.00 million. The EBITDA margin is 7.50 percent (the operating margin is 5.64 percent and the net profit margin 3.47 percent).

Financials: The total debt represents 27.66 percent of Wal-Mart Stores’s assets and the total debt in relation to the equity amounts to 74.28 percent. Due to the financial situation, a return on equity of 20.81 percent was realized by Wal-Mart Stores.

Twelve trailing months earnings per share reached a value of $4.76. Last fiscal year, Wal-Mart Stores paid $1.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.79, the P/S ratio is 0.57 and the P/B ratio is finally 3.59. The dividend yield amounts to 2.27 percent and the beta ratio has a value of 0.46.

Long-Term Stock Price Chart Of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)


20 Safe Haven Dividend Champions

Here is the rest of the safest Dividend Champions, sorted by beta ratio.

The Safest Dividend Champions by Beta (click to enlarge),
Source: Blog long-term-investments

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*I am long WMT, MCD, PG, KO. 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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