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8 Dividend Growth-Oriented Companies With Better Prospects On Rising Rates

Yieldcos are pitched to investors as dividend growth-oriented companies which distribute predictable cash-flows to investors on tax efficient terms.

The low interest rate environment has increased the attractiveness to investors because yieldcos have promised a higher return compared with mainstream investment products.

In addition, low interest rates helped yieldcos to borrow at lower costs in order to invest in more renewable projects. An increase in interest rates would not only raise yieldcos’ borrowing costs, but it could also make them less attractive compared with other investment products. The majority of yieldcos are based in the United States and the United Kingdom, where interest rates are expected to increase over the short and medium term.

In order to anticipate a rate hike, investors should look at the debt and cash situation of a corporate. A high debt loaded stocks should get some headwinds from the finance department of the corporate. Each quarter-percent should weight on earnings and slow down earnings growth.

Attached you can find a 20 stocks which should benefit from rising rates because they own only a little amonunt of debt and serve cash on hands and bank balance.

Here are the best yielding results...

Cullen/Frost Bankers -- Yield: 3.30%

Cullen/Frost Bankers (NYSE:CFR) employs 4,154 people, generates revenue of $701.47 million and has a net income of $277.98 million. The current market capitalization stands at $4.06 billion.

Cullen/Frost Bankers’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $379.23 million. The EBITDA margin is 37.66% (the operating margin is 33.37% and the net profit margin 27.60%).

Financials: The total debt represents 3.68% of Cullen/Frost Bankers assets and the total debt in relation to the equity amounts to 36.48%. Due to the financial situation, a return on equity of 10.59% was realized by Cullen/Frost Bankers.

Twelve trailing months earnings per share reached a value of $4.49. Last fiscal year, Cullen/Frost Bankers paid $2.03 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.46, the P/S ratio is 4.03 and the P/B ratio is finally 1.50. The dividend yield amounts to 3.30%.

Stock Charts:

Long-Term Stock Price Chart of Cullen/Frost Bankers (CFR)
Long-Term Stock Price Chart of Cullen/Frost Bankers (CFR)
Long-Term Dividend Payment History of Cullen/Frost Bankers (CFR)
Long-Term Dividend Payment History of Cullen/Frost Bankers (CFR)
Long-Term Dividend Yield History of Cullen/Frost Bankers (CFR)
Long-Term Dividend Yield History of Cullen/Frost Bankers (CFR)

Erie Indemnity -- Yield: 3.29%

Erie Indemnity (NASDAQ:ERIE) employs 4,700 people, generates revenue of $6,128.00 million and has a net income of $573.00 million. The current market capitalization stands at $4.34 billion.

Erie Indemnity’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $857.00 million. The EBITDA margin is 13.98% (the operating margin is 13.54% and the net profit margin 9.35%).

Financials: The total debt represents 0.00% of Erie Indemnity assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 23.38% was realized by Erie Indemnity.

Twelve trailing months earnings per share reached a value of $3.20. Last fiscal year, Erie Indemnity paid $2.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.79, the P/S ratio is 0.71 and the P/B ratio is finally 5.45. The dividend yield amounts to 3.29%.

Stock Charts:

Long-Term Stock Price Chart of Erie Indemnity (ERIE)
Long-Term Stock Price Chart of Erie Indemnity (ERIE)
Long-Term Dividend Payment History of Erie Indemnity (ERIE)
Long-Term Dividend Payment History of Erie Indemnity (ERIE)
Long-Term Dividend Yield History of Erie Indemnity (ERIE)
Long-Term Dividend Yield History of Erie Indemnity (ERIE)

T. Rowe Price Group -- Yield: 2.94%

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 $18.13 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 15.49, the P/S ratio is 4.55 and the P/B ratio is finally 3.42. The dividend yield amounts to 2.94%.

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)

Linear Technology -- Yield: 2.87%

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 $10.22 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 19.68, the P/S ratio is 6.93 and the P/B ratio is finally 6.35. The dividend yield amounts to 2.87%.

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)

BOK Financial -- Yield: 2.63%

BOK Financial (NASDAQ:BOKF) employs 4,743 people, generates revenue of $732.24 million and has a net income of $295.48 million. The current market capitalization stands at $4.41 billion.

BOK Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $502.72 million. The EBITDA margin is 39.34% (the operating margin is 33.68% and the net profit margin 23.12%).

Financials: The total debt represents 5.58% of BOK Financial assets and the total debt in relation to the equity amounts to 49.15%. Due to the financial situation, a return on equity of 9.15% was realized by BOK Financial.

Twelve trailing months earnings per share reached a value of $4.25. Last fiscal year, BOK Financial paid $1.62 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.25, the P/S ratio is 3.45 and the P/B ratio is finally 1.34. The dividend yield amounts to 2.63%.

Stock Charts:

Long-Term Stock Price Chart of BOK Financial (BOKF)
Long-Term Stock Price Chart of BOK Financial (BOKF)
Long-Term Dividend Payment History of BOK Financial (BOKF)
Long-Term Dividend Payment History of BOK Financial (BOKF)
Long-Term Dividend Yield History of BOK Financial (BOKF)
Long-Term Dividend Yield History of BOK Financial (BOKF)

Automatic Data Processing -- Yield: 2.37%

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 $38.48 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 28.51, the P/S ratio is 3.52 and the P/B ratio is finally 8.02. The dividend yield amounts to 2.37%.

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)

20 Dividend Achievers With The Lowest Debt Ratios (click to enlarge)

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