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19 Cheap Dividend Achievers With 10%+ Earnings Growth Forecast

Dividend investing is a great strategy if you’re investing for the long term but you need to have a strong focus on growth in order to gain a change of a return in the future. A decreasing business has no chance to create values in the future.

Businesses that have a long-term trend of growing earnings are businesses that become more profitable and valuable over time. Sure, dividends can pay us while we hold on to the shares of the business, but capital growth of the shares is nice to see over time as well. And price appreciation is spurred by consistent earnings growth. More importantly, though, as mentioned in tip three, dividends come from earnings. So, earnings growth implies a safer dividend.

Earnings growth is good but the company should also consider sharing this success with its shareholder by paying higher dividends or starting a share buyback in order to get money back to the owners of the corporate.

So, we want to invest in companies that tend to grow their earnings, but it doesn’t make sense for dividend investors if the company doesn’t increase its dividend. 

After all, the safest dividend is the one that was just raised. So, it benefits dividend investors to look for companies that have a history of growing dividends. If it’s already ingrained in the culture of the company to increase dividends each year, they’re likely to continue doing so.

Attached are 19 stocks with double digit earnings growth forecasts and attractive valuation figures. Earnings growth is estimated at 10% plus for the next five years while forward P/E is under 15.

These are my 5 top results...


Microchip Technology -- Yield: 3.26%

Microchip Technology (NASDAQ:MCHP) employs 9,449 people, generates revenue of $2,147.04 million and has a net income of $365.32 million. The current market capitalization stands at $9.27 billion.

Microchip Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $706.76 million. The EBITDA margin is 32.92% (the operating margin is 19.82% and the net profit margin 17.02%).

Financials: The total debt represents 38.21% of Microchip Technology assets and the total debt in relation to the equity amounts to 89.35%. Due to the financial situation, a return on equity of 17.66% was realized by Microchip Technology.

Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, Microchip Technology paid $1.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.38, the P/S ratio is 4.32 and the P/B ratio is finally 4.34. The dividend yield amounts to 3.26%.

Stock Charts:


Long-Term Stock Price Chart of Microchip Technology (MCHP)
Long-Term Stock Price Chart of Microchip Technology (MCHP)
Long-Term Dividend Payment History of Microchip Technology (MCHP)
Long-Term Dividend Payment History of Microchip Technology (MCHP)
Long-Term Dividend Yield History of Microchip Technology (MCHP)
Long-Term Dividend Yield History of Microchip Technology (MCHP)


Cummins -- Yield: 3.17%

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 $21.95 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 12.63, the P/S ratio is 1.14 and the P/B ratio is finally 2.89. The dividend yield amounts to 3.17%.

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)


Monsanto Company -- Yield: 2.39%

Monsanto Company (NYSE:MON) employs 22,400 people, generates revenue of $15,855.00 million and has a net income of $2,749.00 million. The current market capitalization stands at $42.29 billion.

Monsanto Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,766.00 million. The EBITDA margin is 30.06% (the operating margin is 25.70% and the net profit margin 17.34%).

Financials: The total debt represents 35.31% of Monsanto Company assets and the total debt in relation to the equity amounts to 98.55%. Due to the financial situation, a return on equity of 26.69% was realized by Monsanto Company.

Twelve trailing months earnings per share reached a value of $5.45. Last fiscal year, Monsanto Company paid $1.78 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.52, the P/S ratio is 2.67 and the P/B ratio is finally 5.57. The dividend yield amounts to 2.39%.

Stock Charts:


Long-Term Stock Price Chart of Monsanto Company (MON)
Long-Term Stock Price Chart of Monsanto Company (MON)
Long-Term Dividend Payment History of Monsanto Company (MON)
Long-Term Dividend Payment History of Monsanto Company (MON)
Long-Term Dividend Yield History of Monsanto Company (MON)
Long-Term Dividend Yield History of Monsanto Company (MON)


AmTrust Financial -- Yield: 1.96%

AmTrust Financial (NASDAQ:AFSI) employs 5,100 people, generates revenue of $4,092.37 million and has a net income of $418.25 million. The current market capitalization stands at $5.05 billion.

AmTrust Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $979.58 million. The EBITDA margin is 23.94% (the operating margin is 10.88% and the net profit margin 10.22%).

Financials: The total debt represents 6.69% of AmTrust Financial assets and the total debt in relation to the equity amounts to 45.45%. Due to the financial situation, a return on equity of 28.28% was realized by AmTrust Financial.

Twelve trailing months earnings per share reached a value of $5.54. Last fiscal year, AmTrust Financial paid $0.85 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.07, the P/S ratio is 1.23 and the P/B ratio is finally 2.73. The dividend yield amounts to 1.96%.

Stock Charts:


Long-Term Stock Price Chart of AmTrust Financial (AFSI)
Long-Term Stock Price Chart of AmTrust Financial (AFSI)
Long-Term Dividend Payment History of AmTrust Financial (AFSI)
Long-Term Dividend Payment History of AmTrust Financial (AFSI)
Long-Term Dividend Yield History of AmTrust Financial (AFSI)
Long-Term Dividend Yield History of AmTrust Financial (AFSI)


General Dynamics -- Yield: 1.95%

General Dynamics (NYSE:GD) employs 99,500 people, generates revenue of $30,852.00 million and has a net income of $2,673.00 million. The current market capitalization stands at $45.78 billion.

General Dynamics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,385.00 million. The EBITDA margin is 14.21% (the operating margin is 12.61% and the net profit margin 8.66%).

Financials: The total debt represents 11.06% of General Dynamics assets and the total debt in relation to the equity amounts to 33.06%. Due to the financial situation, a return on equity of 20.30% was realized by General Dynamics.

Twelve trailing months earnings per share reached a value of $8.66. Last fiscal year, General Dynamics paid $2.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.36, the P/S ratio is 1.48 and the P/B ratio is finally 3.98. The dividend yield amounts to 1.95%.

Stock Charts:


Long-Term Stock Price Chart of General Dynamics (GD)
Long-Term Stock Price Chart of General Dynamics (GD)
Long-Term Dividend Payment History of General Dynamics (GD)
Long-Term Dividend Payment History of General Dynamics (GD)
Long-Term Dividend Yield History of General Dynamics (GD)
Long-Term Dividend Yield History of General Dynamics (GD)


19 Cheap Dividend Achievers With 10%+ Earnings Growth Forecast
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1 comment:

  1. Before presenting a case for Monsanto, it would make sense to consider Nassim Taleb's perspective...

    http://fool.com/investing/general/2014/03/09/is-nassim-taleb-right-about-monsanto-company-and -g.aspx

    ReplyDelete

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