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20 Nearly Debt-Free Dividend Growth Stocks

In our personal finance lives we take great caution to eliminate debt. Whether that means paying down the mortgage, eliminating student loans or paying off your credit card balance in full each month, the message is clear: debt is the opponent. 

If you get in too deep, non-trivial matters start to occur like bankruptcy and consistent worry. 


Successful corporations are a bit different. Many of the most storied names routinely carry billions of dollars of debt. 

They use debt wisely for growth or return on investment optimization.


However, I believe that it could be good to have normal or low debt ratios due to a higher flexibility in the future. Non-debt companies don't need to use human resources for debt departments.


Attached is a nice selection of 20 stocks that work with nearly debt-free ratios in relation to equity. It's a great sign for long-term orientated investors.


Here are the biggest debt-free dividend growth companies....


Linear Technology -- Yield: 3.02%

Linear Technology (NASDAQ:LLTC) employs 4,868 people, generates revenue of $1,475.14 million and has a net income of $520.96 million. The current market capitalization stands at $9.72 billion.

Linear Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $736.80 million. The EBITDA margin is 49.95% (the operating margin is 46.28% and the net profit margin 35.32%).

Financials: The total debt represents 0.00% of Linear Technology assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 35.81% was realized by Linear Technology.

Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, Linear Technology paid $1.14 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.26, the P/S ratio is 6.59 and the P/B ratio is finally 6.04. The dividend yield amounts to 3.02%.

Stock Charts:

Long-Term Stock Price Chart of Linear Technology (LLTC)
Long-Term Stock Price Chart of Linear Technology (LLTC)
Long-Term Dividend Payment History of Linear Technology (LLTC)
Long-Term Dividend Payment History of Linear Technology (LLTC)
Long-Term Dividend Yield History of Linear Technology (LLTC)
Long-Term Dividend Yield History of Linear Technology (LLTC)

T. Rowe Price Group -- Yield: 2.96%

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 $17.99 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 15.15, the P/S ratio is 4.52 and the P/B ratio is finally 3.40. The dividend yield amounts to 2.96%.

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)

Automatic Data Processing -- Yield: 2.45%

Automatic Data Processing (NASDAQ:ADP) employs 55,000 people, generates revenue of $10,938.50 million and has a net income of $1,376.50 million. The current market capitalization stands at $37.22 billion.

Automatic Data Processing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,293.30 million. The EBITDA margin is 20.97% (the operating margin is 18.42% and the net profit margin 12.58%).

Financials: The total debt represents 0.03% of Automatic Data Processing assets and the total debt in relation to the equity amounts to 0.19%. Due to the financial situation, a return on equity of 23.98% was realized by Automatic Data Processing.

Twelve trailing months earnings per share reached a value of $2.89. Last fiscal year, Automatic Data Processing paid $1.95 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.39, the P/S ratio is 3.40 and the P/B ratio is finally 7.75. The dividend yield amounts to 2.45%.

Stock Charts:

Long-Term Stock Price Chart of Automatic Data Processing (ADP)
Long-Term Stock Price Chart of Automatic Data Processing (ADP)
Long-Term Dividend Payment History of Automatic Data Processing (ADP)
Long-Term Dividend Payment History of Automatic Data Processing (ADP)
Long-Term Dividend Yield History of Automatic Data Processing (ADP)
Long-Term Dividend Yield History of Automatic Data Processing (ADP)

Accenture -- Yield: 2.07%

Accenture (NYSE:ACN) employs 305,000 people, generates revenue of $31,874.68 million and has a net income of $3,175.96 million. The current market capitalization stands at $64.86 billion.

Accenture’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,903.24 million. The EBITDA margin is 15.38% (the operating margin is 13.49% and the net profit margin 9.96%).

Financials: The total debt represents 0.15% of Accenture assets and the total debt in relation to the equity amounts to 0.47%. Due to the financial situation, a return on equity of 55.02% was realized by Accenture.

Twelve trailing months earnings per share reached a value of $4.63. Last fiscal year, Accenture paid $1.86 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.10, the P/S ratio is 2.03 and the P/B ratio is finally 11.27. The dividend yield amounts to 2.07%.

Stock Charts:

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

Expeditors International -- Yield: 1.52%

Expeditors International (NASDAQ:EXPD) employs 14,670 people, generates revenue of $6,564.72 million and has a net income of $379.46 million. The current market capitalization stands at $8.95 billion.

Expeditors International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $643.94 million. The EBITDA margin is 9.81% (the operating margin is 9.06% and the net profit margin 5.78%).

Financials: The total debt represents 0.00% of Expeditors International assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 19.07% was realized by Expeditors International.

Twelve trailing months earnings per share reached a value of $2.21. Last fiscal year, Expeditors International paid $0.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.95, the P/S ratio is 1.36 and the P/B ratio is finally 4.85. The dividend yield amounts to 1.52%.

Stock Charts:

Long-Term Stock Price Chart of Expeditors International (EXPD)
Long-Term Stock Price Chart of Expeditors International (EXPD)
Long-Term Dividend Payment History of Expeditors International (EXPD)
Long-Term Dividend Payment History of Expeditors International (EXPD)
Long-Term Dividend Yield History of Expeditors International (EXPD)
Long-Term Dividend Yield History of Expeditors International (EXPD)

Nike -- Yield: 0.96%

Nike (NYSE:NKE) employs 62,600 people, generates revenue of $30,601.00 million and has a net income of $3,273.00 million. The current market capitalization stands at $99.70 billion.

Nike’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,824.00 million. The EBITDA margin is 15.76% (the operating margin is 13.64% and the net profit margin 10.70%).

Financials: The total debt represents 5.83% of Nike assets and the total debt in relation to the equity amounts to 9.92%. Due to the financial situation, a return on equity of 27.82% was realized by Nike.

Twelve trailing months earnings per share reached a value of $3.71. Last fiscal year, Nike paid $1.08 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.28, the P/S ratio is 3.26 and the P/B ratio is finally 7.86. The dividend yield amounts to 0.96%.

Stock Charts:

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

20 Nearly Debt-Free Dividend Growth Stocks (click to enlarge)

3 comments:

  1. very informative post for me as I am always looking for new content that can help me and my knowledge grow better.

    ReplyDelete
  2. Me too! Thanks for the detailed post - nice graphs on some good looking dividend payers!

    ReplyDelete
  3. Very interesting tips shared by you. I really like to read your blogs as they contains very important and informative content. I appreciate your efforts. Cheers.

    ReplyDelete

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