Bookmark and Share

6 Dividend Growth Stocks With A Cheap P/E Ratio

Investing in cheap stocks is popular because investors believe that the market will clarify one day the mispricing of a stock.

Attached is a compilation of the 6 cheapest stocks with a single-digit price-to-earnings ratio. Only six companies have a forward P/E ratio of less than 10.

Cheap for a resaon or not? That's the 100 million dollar question. If you're right, you will make money, if not, you lose some.

If I look at the results, there are some great picks like IBM on it. Attached is a full list of the results with more fundamental details in a quick list.

These are the results:

Alliance Resource Partners -- Yield: 11.48%
Alliance Resource Partners (NASDAQ:ARLP) employs 4,439 people, generates revenue of $2,300.72 million and has a net income of $497.21 million. The current market capitalization stands at $1.74 billion.

Alliance Resource Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $821.77 million. The EBITDA margin is 35.72% (the operating margin is 23.65% and the net profit margin 21.61%).

Financials: The total debt represents 36.68% of Alliance Resource Partners assets and the total debt in relation to the equity amounts to 82.61%. Due to the financial situation, a return on equity of 29.52% was realized by Alliance Resource Partners.

Twelve trailing months earnings per share reached a value of $4.00. Last fiscal year, Alliance Resource Partners paid $2.47 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.91, the P/S ratio is 0.76 and the P/B ratio is finally 1.37. The dividend yield amounts to 11.48%.

Stock Charts:


Long-Term Stock Price Chart of Alliance Resource Partners (ARLP)
Long-Term Stock Price Chart of Alliance Resource Partners (ARLP)
Long-Term Dividend Payment History of Alliance Resource Partners (ARLP)
Long-Term Dividend Payment History of Alliance Resource Partners (ARLP)
Long-Term Dividend Yield History of Alliance Resource Partners (ARLP)
Long-Term Dividend Yield History of Alliance Resource Partners (ARLP)


Alliance Holdings -- Yield: 10.29%

Alliance Holdings (NASDAQ:AHGP) employs 4,439 people, generates revenue of $2,300.32 million and has a net income of $492.67 million. The current market capitalization stands at $2.23 billion.

Alliance Holdings’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $814.23 million. The EBITDA margin is 35.40% (the operating margin is 23.46% and the net profit margin 21.42%).

Financials: The total debt represents 36.62% of Alliance Holdings assets and the total debt in relation to the equity amounts to 148.41%. Due to the financial situation, a return on equity of 53.62% was realized by Alliance Holdings.

Twelve trailing months earnings per share reached a value of $4.44. Last fiscal year, Alliance Holdings paid $3.44 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.32, the P/S ratio is 0.97 and the P/B ratio is finally 3.95. The dividend yield amounts to 10.29%.

Stock Charts:


Long-Term Stock Price Chart of Alliance Holdings (AHGP)
Long-Term Stock Price Chart of Alliance Holdings (AHGP)
Long-Term Dividend Payment History of Alliance Holdings (AHGP)
Long-Term Dividend Payment History of Alliance Holdings (AHGP)
Long-Term Dividend Yield History of Alliance Holdings (AHGP)
Long-Term Dividend Yield History of Alliance Holdings (AHGP)


Donegal Group -- Yield: 3.73%

Donegal Group (NASDAQ:DGICA) employs 410 people, generates revenue of $586.55 million and has a net income of $14.54 million. The current market capitalization stands at $437.77 million.

Donegal Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $111.47 million. The EBITDA margin is 19.00% (the operating margin is 3.03% and the net profit margin 2.48%).

Financials: The total debt represents 4.14% of Donegal Group assets and the total debt in relation to the equity amounts to 14.53%. Due to the financial situation, a return on equity of 3.58% was realized by Donegal Group.

Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, Donegal Group paid $0.53 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.87, the P/S ratio is 0.75 and the P/B ratio is finally 0.94. The dividend yield amounts to 3.73%.

Stock Charts:


Long-Term Stock Price Chart of Donegal Group (DGICA)
Long-Term Stock Price Chart of Donegal Group (DGICA)
Long-Term Dividend Payment History of Donegal Group (DGICA)
Long-Term Dividend Payment History of Donegal Group (DGICA)
Long-Term Dividend Yield History of Donegal Group (DGICA)
Long-Term Dividend Yield History of Donegal Group (DGICA)


Nu Skin Enterprises -- Yield: 3.45%

Nu Skin Enterprises (NYSE:NUS) employs 5,000 people, generates revenue of $2,569.50 million and has a net income of $189.18 million. The current market capitalization stands at $2.38 billion.

Nu Skin Enterprises’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $407.11 million. The EBITDA margin is 15.84% (the operating margin is 13.71% and the net profit margin 7.36%).

Financials: The total debt represents 15.32% of Nu Skin Enterprises assets and the total debt in relation to the equity amounts to 26.24%. Due to the financial situation, a return on equity of 21.01% was realized by Nu Skin Enterprises.

Twelve trailing months earnings per share reached a value of $2.81. Last fiscal year, Nu Skin Enterprises paid $1.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.92, the P/S ratio is 0.93 and the P/B ratio is finally 2.54. The dividend yield amounts to 3.45%.

Stock Charts:


Long-Term Stock Price Chart of Nu Skin Enterprises (NUS)
Long-Term Stock Price Chart of Nu Skin Enterprises (NUS)
Long-Term Dividend Payment History of Nu Skin Enterprises (NUS)
Long-Term Dividend Payment History of Nu Skin Enterprises (NUS)
Long-Term Dividend Yield History of Nu Skin Enterprises (NUS)
Long-Term Dividend Yield History of Nu Skin Enterprises (NUS)


Intl. Business Machines -- Yield: 3.29%

Intl. Business Machines (NYSE:IBM) employs 379,592 people, generates revenue of $92,793.00 million and has a net income of $15,752.00 million. The current market capitalization stands at $154.71 billion.

Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25,350.00 million. The EBITDA margin is 27.32% (the operating margin is 21.54% and the net profit margin 16.98%).

Financials: The total debt represents 34.72% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 343.82%. Due to the financial situation, a return on equity of 90.89% was realized by Intl. Business Machines.

Twelve trailing months earnings per share reached a value of $15.01. Last fiscal year, Intl. Business Machines paid $1.10 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.42, the P/S ratio is 1.67 and the P/B ratio is finally 13.18. The dividend yield amounts to 3.29%.

Stock Charts:


Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)


American Equity Investment Life Holding -- Yield: 0.71%

American Equity Investment Life Holding (NYSE:AEL) employs 418 people, generates revenue of $2,181.48 million and has a net income of $126.02 million. The current market capitalization stands at $2.16 billion.

American Equity Investment Life Holding’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $462.45 million. The EBITDA margin is 21.20% (the operating margin is 12.69% and the net profit margin 5.78%).

Financials: The total debt represents 1.52% of American Equity Investment Life Holding assets and the total debt in relation to the equity amounts to 31.21%. Due to the financial situation, a return on equity of 7.15% was realized by American Equity Investment Life Holding.

Twelve trailing months earnings per share reached a value of $2.43. Last fiscal year, American Equity Investment Life Holding 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 10.69, the P/S ratio is 0.99 and the P/B ratio is finally 1.00. The dividend yield amounts to 0.71%.

Stock Charts:


Long-Term Stock Price Chart of American Equity Investment Life Holding (AEL)
Long-Term Stock Price Chart of American Equity Investment Life Holding (AEL)
Long-Term Dividend Payment History of American Equity Investment Life Holding (AEL)
Long-Term Dividend Payment History of American Equity Investment Life Holding (AEL)
Long-Term Dividend Yield History of American Equity Investment Life Holding (AEL)
Long-Term Dividend Yield History of American Equity Investment Life Holding (AEL)


No comments:

Post a Comment

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.