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High-Yield Low Growth Against Low Yield High Growth: Here Is The Best Balance

When you buy a stock it gives you a steady stream of funds in the form of sizeable yields on a regular basis. They are a comparatively safer bet in the present low-rate environment and at a time when the market is under tremendous pressure from various other forces. Time and again it has been proved that a stock that pays dividends is actually “one of the best” -- if not “the best" -- way to build wealth over time.

It also provides a cushion during economic uncertainties. Shrewd investors and those who crave to see their wealth increase have always looked for dividend stocks. But they’re often in a dilemma when given to choose between stocks with low-yield, consistent dividend paying stocks or high-yield stocks that could bring fast cash but are not very consistent.

Gauging good dividend stocks that can boost return is difficult because reliability is more important than a high payout.  The balance between yield and growth is very important. Therefore, it rests on the individual investor to decide on a stock based upon one's requirements, but it is always wise to choose a consistent performer with strong fundamentals. And one should not forget the merit of diversification – diversify your portfolio across industries to minimize risk.

Today I like to introduce those stocks that have risen dividends over the past 25 years without a beak at the fastest pace. In addition, I've only included stocks with a positive earnings growth for the next five years. You can find a full list of the 20 top results attached.

These are some of my favorites:

Altria Group -- Yield: 4.25%

Altria Group (NYSE:MO) employs 9,000 people, generates revenue of $24,522.00 million and has a net income of $5,070.00 million. The current market capitalization stands at $104.17 billion.

Altria Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,874.00 million. The EBITDA margin is 32.11% (the operating margin is 30.89% and the net profit margin 20.68%).

Financials: The total debt represents 42.62% of Altria Group assets and the total debt in relation to the equity amounts to 487.49%. Due to the financial situation, a return on equity of 141.82% was realized by Altria Group.

Twelve trailing months earnings per share reached a value of $2.58. Last fiscal year, Altria Group paid $2.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.74, the P/S ratio is 4.25 and the P/B ratio is finally 34.75. The dividend yield amounts to 4.25%.

Stock Charts:


Long-Term Stock Price Chart of Altria Group (MO)
Long-Term Stock Price Chart of Altria Group (MO)
Long-Term Dividend Payment History of Altria Group (MO)
Long-Term Dividend Payment History of Altria Group (MO)
Long-Term Dividend Yield History of Altria Group (MO)
Long-Term Dividend Yield History of Altria Group (MO)


McDonald's Corporation -- Yield: 3.54%

McDonald's Corporation (NYSE:MCD) employs 420,000 people, generates revenue of $27,441.30 million and has a net income of $4,757.80 million. The current market capitalization stands at $90.45 billion.

McDonald's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,588.80 million. The EBITDA margin is 34.94% (the operating margin is 28.97% and the net profit margin 17.34%).

Financials: The total debt represents 43.73% of McDonald's Corporation assets and the total debt in relation to the equity amounts to 116.62%. Due to the financial situation, a return on equity of 32.97% was realized by McDonald's Corporation.

Twelve trailing months earnings per share reached a value of $4.31. Last fiscal year, McDonald's Corporation paid $3.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.27, the P/S ratio is 3.30 and the P/B ratio is finally 7.19. The dividend yield amounts to 3.54%.

Stock Charts:


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


PepsiCo -- Yield: 3.07%

PepsiCo (NYSE:PEP) employs 271,000 people, generates revenue of $66,683.00 million and has a net income of $6,558.00 million. The current market capitalization stands at $134.62 billion.

PepsiCo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,901.00 million. The EBITDA margin is 19.35% (the operating margin is 14.37% and the net profit margin 9.83%).

Financials: The total debt represents 40.98% of PepsiCo assets and the total debt in relation to the equity amounts to 165.71%. Due to the financial situation, a return on equity of 30.98% was realized by PepsiCo.

Twelve trailing months earnings per share reached a value of $4.33. Last fiscal year, PepsiCo paid $2.53 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.30, the P/S ratio is 2.02 and the P/B ratio is finally 7.76. The dividend yield amounts to 3.07%.

Stock Charts:


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


T. Rowe Price Group -- Yield: 2.98%

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 $17.91 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 4.50 and the P/B ratio is finally 3.38. The dividend yield amounts to 2.98%.

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)


Target Corporation -- Yield: 2.91%

Target Corporation (NYSE:TGT) employs 347,000 people, generates revenue of $72,618.00 million and has a net income of $2,449.00 million. The current market capitalization stands at $48.42 billion.

Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,665.00 million. The EBITDA margin is 9.18% (the operating margin is 6.25% and the net profit margin 3.37%).

Financials: The total debt represents 30.91% of Target Corporation assets and the total debt in relation to the equity amounts to 91.42%. Due to the financial situation, a return on equity of 16.20% was realized by Target Corporation.

Twelve trailing months earnings per share reached a value of $4.52. Last fiscal year, Target Corporation paid $1.99 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.15, the P/S ratio is 0.67 and the P/B ratio is finally 3.52. The dividend yield amounts to 2.91%.

Stock Charts:


Long-Term Stock Price Chart of Target Corporation (TGT)
Long-Term Stock Price Chart of Target Corporation (TGT)
Long-Term Dividend Payment History of Target Corporation (TGT)
Long-Term Dividend Payment History of Target Corporation (TGT)
Long-Term Dividend Yield History of Target Corporation (TGT)
Long-Term Dividend Yield History of Target Corporation (TGT)


Dover -- Yield: 2.82%

Dover (NYSE:DOV) employs 27,000 people, generates revenue of $7,752.73 million and has a net income of $778.14 million. The current market capitalization stands at $9.32 billion.

Dover’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,567.48 million. The EBITDA margin is 20.22% (the operating margin is 15.68% and the net profit margin 10.04%).

Financials: The total debt represents 33.34% of Dover assets and the total debt in relation to the equity amounts to 81.90%. Due to the financial situation, a return on equity of 17.14% was realized by Dover.

Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, Dover paid $1.55 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.64, the P/S ratio is 1.20 and the P/B ratio is finally 2.62. The dividend yield amounts to 2.82%.

Stock Charts:


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


Illinois Tool Works -- Yield: 2.66%

Illinois Tool Works (NYSE:ITW) employs 49,000 people, generates revenue of $14,484.00 million and has a net income of $1,890.00 million. The current market capitalization stands at $30.27 billion.

Illinois Tool Works’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,398.00 million. The EBITDA margin is 23.46% (the operating margin is 19.94% and the net profit margin 13.05%).

Financials: The total debt represents 42.18% of Illinois Tool Works assets and the total debt in relation to the equity amounts to 109.36%. Due to the financial situation, a return on equity of 22.88% was realized by Illinois Tool Works.

Twelve trailing months earnings per share reached a value of $4.97. Last fiscal year, Illinois Tool Works paid $1.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.74, the P/S ratio is 2.09 and the P/B ratio is finally 4.64. The dividend yield amounts to 2.66%.

Stock Charts:


Long-Term Stock Price Chart of Illinois Tool Works (ITW)
Long-Term Stock Price Chart of Illinois Tool Works (ITW)
Long-Term Dividend Payment History of Illinois Tool Works (ITW)
Long-Term Dividend Payment History of Illinois Tool Works (ITW)
Long-Term Dividend Yield History of Illinois Tool Works (ITW)
Long-Term Dividend Yield History of Illinois Tool Works (ITW)


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