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10 Undervalued Dividend Stocks With A High Degree Of Safeness

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk.

Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Each company suitable for the Defensive Investor is also suitable for Enterprising Investors.


If you are a defensive investor, you should look at the following selection of stocks. I've selected the highest dividend yields among the undervalued companies for defensive dividend stock investors. 


Yield was not a high-rated criterion. More important were a strong financial position and potential of growth in general. 


Here are the 10 results...


Helmerich & Payne -- Yield: 5.40%

Helmerich & Payne (NYSE:HP) employs 11,901 people, generates revenue of $3,719.71 million and has a net income of $708.77 million. The current market capitalization stands at $5.48 billion.

Helmerich & Payne’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,558.75 million. The EBITDA margin is 41.91% (the operating margin is 28.36% and the net profit margin 19.05%).

Financials: The total debt represents 1.18% of Helmerich & Payne assets and the total debt in relation to the equity amounts to 1.62%. Due to the financial situation, a return on equity of 15.10% was realized by Helmerich & Payne.

Twelve trailing months earnings per share reached a value of $5.60. Last fiscal year, Helmerich & Payne paid $2.62 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.13, the P/S ratio is 1.47 and the P/B ratio is finally 1.13. The dividend yield amounts to 5.40%.

Stock Charts:


Long-Term Stock Price Chart of Helmerich & Payne (HP)
Long-Term Stock Price Chart of Helmerich & Payne (HP)
Long-Term Dividend Payment History of Helmerich & Payne (HP)
Long-Term Dividend Payment History of Helmerich & Payne (HP)
Long-Term Dividend Yield History of Helmerich & Payne (HP)
Long-Term Dividend Yield History of Helmerich & Payne (HP)


People's United Financial -- Yield: 4.56%

People's United Financial (NASDAQ:PBCT) employs 4,856 people, generates revenue of $1,030.60 million and has a net income of $251.70 million. The current market capitalization stands at $4.61 billion.

People's United Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $492.30 million. The EBITDA margin is 38.99% (the operating margin is 30.14% and the net profit margin 19.93%).

Financials: The total debt represents 6.76% of People's United Financial assets and the total debt in relation to the equity amounts to 52.52%. Due to the financial situation, a return on equity of 5.44% was realized by People's United Financial.

Twelve trailing months earnings per share reached a value of $0.82. Last fiscal year, People's United Financial paid $0.66 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.19, the P/S ratio is 3.61 and the P/B ratio is finally 0.98. The dividend yield amounts to 4.56%.

Stock Charts:


Long-Term Stock Price Chart of People's United Financial (PBCT)
Long-Term Stock Price Chart of People's United Financial (PBCT)
Long-Term Dividend Payment History of People's United Financial (PBCT)
Long-Term Dividend Payment History of People's United Financial (PBCT)
Long-Term Dividend Yield History of People's United Financial (PBCT)
Long-Term Dividend Yield History of People's United Financial (PBCT)


CA -- Yield: 3.91%

CA (NASDAQ:CA) employs 11,600 people, generates revenue of $4,262.00 million and has a net income of $810.00 million. The current market capitalization stands at $11.46 billion.

CA’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,582.00 million. The EBITDA margin is 37.12% (the operating margin is 27.26% and the net profit margin 19.01%).

Financials: The total debt represents 11.50% of CA assets and the total debt in relation to the equity amounts to 22.45%. Due to the financial situation, a return on equity of 14.33% was realized by CA.

Twelve trailing months earnings per share reached a value of $1.81. Last fiscal year, CA 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 14.53, the P/S ratio is 2.65 and the P/B ratio is finally 1.98. The dividend yield amounts to 3.91%.

Stock Charts:


Long-Term Stock Price Chart of CA (CA)
Long-Term Stock Price Chart of CA (CA)
Long-Term Dividend Payment History of CA (CA)
Long-Term Dividend Payment History of CA (CA)
Long-Term Dividend Yield History of CA (CA)
Long-Term Dividend Yield History of CA (CA)


Macerich -- Yield: 3.57%

Macerich (NYSE:MAC) employs 1,117 people, generates revenue of $1,105.25 million and has a net income of $1,606.93 million. The current market capitalization stands at $11.54 billion.

Macerich’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $597.04 million. The EBITDA margin is 54.02% (the operating margin is 4.97% and the net profit margin 145.39%).

Financials: The total debt represents 47.95% of Macerich assets and the total debt in relation to the equity amounts to 111.56%. Due to the financial situation, a return on equity of 33.28% was realized by Macerich.

Twelve trailing months earnings per share reached a value of $10.00. Last fiscal year, Macerich paid $2.51 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.42, the P/S ratio is 10.42 and the P/B ratio is finally 2.04. The dividend yield amounts to 3.57%.

Stock Charts:


Long-Term Stock Price Chart of Macerich (MAC)
Long-Term Stock Price Chart of Macerich (MAC)
Long-Term Dividend Payment History of Macerich (MAC)
Long-Term Dividend Payment History of Macerich (MAC)
Long-Term Dividend Yield History of Macerich (MAC)
Long-Term Dividend Yield History of Macerich (MAC)


QUALCOMM -- Yield: 3.56%

QUALCOMM (NASDAQ:QCOM) employs 31,300 people, generates revenue of $26,487.00 million and has a net income of $7,534.00 million. The current market capitalization stands at $85.54 billion.

QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,008.00 million. The EBITDA margin is 34.01% (the operating margin is 27.84% and the net profit margin 28.44%).

Financials: The total debt represents 0.00% of QUALCOMM assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 20.03% was realized by QUALCOMM.

Twelve trailing months earnings per share reached a value of $3.64. Last fiscal year, QUALCOMM paid $1.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.26, the P/S ratio is 3.20 and the P/B ratio is finally 2.30. The dividend yield amounts to 3.56%.

Stock Charts:


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


Cummins -- Yield: 3.40%

Cummins (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $20.53 billion.

Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).

Financials: The total debt represents 10.76% of Cummins assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins.

Twelve trailing months earnings per share reached a value of $9.52. Last fiscal year, Cummins paid $2.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.24, the P/S ratio is 1.07 and the P/B ratio is finally 2.70. The dividend yield amounts to 3.40%.

Stock Charts:


Long-Term Stock Price Chart of Cummins (CMI)
Long-Term Stock Price Chart of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)


Invesco -- Yield: 3.37%

Invesco (NYSE:IVZ) employs 6,431 people, generates revenue of $5,147.10 million and has a net income of $1,004.50 million. The current market capitalization stands at $13.77 billion.

Invesco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,366.30 million. The EBITDA margin is 26.55% (the operating margin is 24.81% and the net profit margin 19.52%).

Financials: The total debt represents 7.77% of Invesco assets and the total debt in relation to the equity amounts to 19.09%. Due to the financial situation, a return on equity of 11.86% was realized by Invesco.

Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, Invesco paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.52, the P/S ratio is 2.67 and the P/B ratio is finally 1.62. The dividend yield amounts to 3.37%.

Stock Charts:


Long-Term Stock Price Chart of Invesco (IVZ)
Long-Term Stock Price Chart of Invesco (IVZ)
Long-Term Dividend Payment History of Invesco (IVZ)
Long-Term Dividend Payment History of Invesco (IVZ)
Long-Term Dividend Yield History of Invesco (IVZ)
Long-Term Dividend Yield History of Invesco (IVZ)


T. Rowe Price Group -- Yield: 3.04%

T. Rowe Price Group (NASDAQ:TROW) employs 5,991 people, generates revenue of $3,982.10 million and has a net income of $1,229.60 million. The current market capitalization stands at $17.72 billion.

T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,002.60 million. The EBITDA margin is 50.29% (the operating margin is 47.48% and the net profit margin 30.88%).

Financials: The total debt represents 0.00% of T. Rowe Price Group assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 23.80% was realized by T. Rowe Price Group.

Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, T. Rowe Price Group paid $1.76 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.43, the P/S ratio is 4.40 and the P/B ratio is finally 3.31. The dividend yield amounts to 3.04%.

Stock Charts:


Long-Term Stock Price Chart of T. Rowe Price Group (TROW)
Long-Term Stock Price Chart of T. Rowe Price Group (TROW)
Long-Term Dividend Payment History of T. Rowe Price Group (TROW)
Long-Term Dividend Payment History of T. Rowe Price Group (TROW)
Long-Term Dividend Yield History of T. Rowe Price Group (TROW)
Long-Term Dividend Yield History of T. Rowe Price Group (TROW)


Wells Fargo -- Yield: 3.00%

Wells Fargo (NYSE:WFC) employs 265,800 people, generates revenue of $47,552.00 million and has a net income of $23,608.00 million. The current market capitalization stands at $257.22 billion.

Wells Fargo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39,736.00 million. The EBITDA margin is 47.11% (the operating margin is 40.21% and the net profit margin 27.99%).

Financials: The total debt represents 14.67% of Wells Fargo assets and the total debt in relation to the equity amounts to 134.20%. Due to the financial situation, a return on equity of 13.68% was realized by Wells Fargo.

Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, Wells Fargo paid $1.35 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.52, the P/S ratio is 3.04 and the P/B ratio is finally 1.57. The dividend yield amounts to 3.00%.

Stock Charts:


Long-Term Stock Price Chart of Wells Fargo (WFC)
Long-Term Stock Price Chart of Wells Fargo (WFC)
Long-Term Dividend Payment History of Wells Fargo (WFC)
Long-Term Dividend Payment History of Wells Fargo (WFC)
Long-Term Dividend Yield History of Wells Fargo (WFC)
Long-Term Dividend Yield History of Wells Fargo (WFC)


BlackRock -- Yield: 2.96%

BlackRock (NYSE:BLK) employs 12,200 people, generates revenue of $11,081.00 million and has a net income of $3,264.00 million. The current market capitalization stands at $48.24 billion.

BlackRock’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,727.00 million. The EBITDA margin is 42.66% (the operating margin is 40.38% and the net profit margin 29.46%).

Financials: The total debt represents 3.47% of BlackRock assets and the total debt in relation to the equity amounts to 30.37%. Due to the financial situation, a return on equity of 12.24% was realized by BlackRock.

Twelve trailing months earnings per share reached a value of $19.83. Last fiscal year, BlackRock paid $7.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.13, the P/S ratio is 4.35 and the P/B ratio is finally 1.77. The dividend yield amounts to 2.96%.

Stock Charts:


Long-Term Stock Price Chart of BlackRock (BLK)
Long-Term Stock Price Chart of BlackRock (BLK)
Long-Term Dividend Payment History of BlackRock (BLK)
Long-Term Dividend Payment History of BlackRock (BLK)
Long-Term Dividend Yield History of BlackRock (BLK)
Long-Term Dividend Yield History of BlackRock (BLK)

1 comment:

  1. Howard8/28/2015

    Good list, Tom. I got a couple of new possibilities from it. (especially CMI, CA, and PBCT). Thanks!

    ReplyDelete

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