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20 Stocks With Sustainable Dividend Growth Potential And Yields Up To 5.17%

Did you ever wonder why some companies pay dividends while others don't? 

There are several factors that influence whether or not a company pays a dividend and how much it chooses to pay. 

While there are too many possible factors to list here, these are some of the most influential.

- Payout Ratio
- Debt Level
- Growth (growing profits)
- Economic Environment
- Busines Model
- Less need of investment

Dividend payments are very complicated. These are a few hundrets that pay dividends regular over decades. A fewer number of stocks have grown dividends over decades.

Income stability is one of the top factors in determining dividend policies. Specifically, established companies with stable, predictable income streams are more likely to pay dividends than companies with growing or volatile income.

Newer and rapidly growing companies rarely pay dividends, as they prefer to invest their profits back into the company to fuel even more future growth. And, companies with unstable revenue streams often choose not to pay dividends, or pay small dividends in order to make sure the payout will be sustainable.

It looks terrible to investors when companies are forced to suspend or reduce dividend payments, so most like to err on the side of caution when deciding to implement a new dividend, waiting for several years of stable profits before doing so.

I think that a comibation of dividend growth on a sustainable dividend output could give all interest groups of the company large benefits.

Attached I've compiled a couple of great dividend stocks with a big potential to hike dividends in the future.

Here are my 10 favorite stocks from the screen in detail...

Cummins -- Yield: 3.95%

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 $17.53 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 $9.34. 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 10.56, the P/S ratio is 0.91 and the P/B ratio is finally 2.32. The dividend yield amounts to 3.95%.

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)


Cal-Maine Foods -- Yield: 3.86%

Cal-Maine Foods (NASDAQ:CALM) employs 2,872 people, generates revenue of $1,576.13 million and has a net income of $162.28 million. The current market capitalization stands at $2.63 billion.

Cal-Maine Foods’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $275.54 million. The EBITDA margin is 17.48% (the operating margin is 14.93% and the net profit margin 10.30%).

Financials: The total debt represents 5.48% of Cal-Maine Foods assets and the total debt in relation to the equity amounts to 7.23%. Due to the financial situation, a return on equity of 24.86% was realized by Cal-Maine Foods.

Twelve trailing months earnings per share reached a value of $5.71. Last fiscal year, Cal-Maine Foods paid $1.11 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.49, the P/S ratio is 1.67 and the P/B ratio is finally 3.73. The dividend yield amounts to 3.86%.

Stock Charts:

Long-Term Stock Price Chart of Cal-Maine Foods (CALM)
Long-Term Stock Price Chart of Cal-Maine Foods (CALM)
Long-Term Dividend Payment History of Cal-Maine Foods (CALM)
Long-Term Dividend Payment History of Cal-Maine Foods (CALM)
Long-Term Dividend Yield History of Cal-Maine Foods (CALM)
Long-Term Dividend Yield History of Cal-Maine Foods (CALM)


Intel Corporation -- Yield: 2.99%

Intel Corporation (NASDAQ:INTC) employs 106,700 people, generates revenue of $55,870.00 million and has a net income of $11,704.00 million. The current market capitalization stands at $151.53 billion.

Intel Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24,191.00 million. The EBITDA margin is 43.30% (the operating margin is 27.21% and the net profit margin 20.95%).

Financials: The total debt represents 14.86% of Intel Corporation assets and the total debt in relation to the equity amounts to 24.44%. Due to the financial situation, a return on equity of 20.51% was realized by Intel Corporation.

Twelve trailing months earnings per share reached a value of $2.34. Last fiscal year, Intel Corporation paid $0.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.72, the P/S ratio is 2.71 and the P/B ratio is finally 2.73. The dividend yield amounts to 2.99%.

Stock Charts:

Long-Term Stock Price Chart of Intel Corporation (INTC)
Long-Term Stock Price Chart of Intel Corporation (INTC)
Long-Term Dividend Payment History of Intel Corporation (INTC)
Long-Term Dividend Payment History of Intel Corporation (INTC)
Long-Term Dividend Yield History of Intel Corporation (INTC)
Long-Term Dividend Yield History of Intel Corporation (INTC)


Valero Energy -- Yield: 2.90%

Valero Energy (NYSE:VLO) employs 10,065 people, generates revenue of $130,844.00 million and has a net income of $3,775.00 million. The current market capitalization stands at $33.20 billion.

Valero Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,362.00 million. The EBITDA margin is 6.39% (the operating margin is 4.51% and the net profit margin 2.89%).

Financials: The total debt represents 14.02% of Valero Energy assets and the total debt in relation to the equity amounts to 30.88%. Due to the financial situation, a return on equity of 18.40% was realized by Valero Energy.

Twelve trailing months earnings per share reached a value of $9.51. Last fiscal year, Valero Energy paid $1.05 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.25, the P/S ratio is 0.25 and the P/B ratio is finally 1.72. The dividend yield amounts to 2.90%.

Stock Charts:

Long-Term Stock Price Chart of Valero Energy (VLO)
Long-Term Stock Price Chart of Valero Energy (VLO)
Long-Term Dividend Payment History of Valero Energy (VLO)
Long-Term Dividend Payment History of Valero Energy (VLO)
Long-Term Dividend Yield History of Valero Energy (VLO)
Long-Term Dividend Yield History of Valero Energy (VLO)


T. Rowe Price Group -- Yield: 2.80%

T. Rowe Price Group (NASDAQ:TROW) employs 5,908 people, generates revenue of $3,982.10 million and has a net income of $1,229.60 million. The current market capitalization stands at $18.67 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 $4.51. 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 16.48, the P/S ratio is 4.69 and the P/B ratio is finally 3.60. The dividend yield amounts to 2.80%.

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)


Keurig Green Mountain -- Yield: 2.64%

Keurig Green Mountain (NASDAQ:GMCR) employs 6,600 people, generates revenue of $4,707.68 million and has a net income of $597.41 million. The current market capitalization stands at $6.70 billion.

Keurig Green Mountain’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,193.20 million. The EBITDA margin is 25.35% (the operating margin is 20.12% and the net profit margin 12.69%).

Financials: The total debt represents 5.80% of Keurig Green Mountain assets and the total debt in relation to the equity amounts to 8.05%. Due to the financial situation, a return on equity of 19.58% was realized by Keurig Green Mountain.

Twelve trailing months earnings per share reached a value of $3.39. Last fiscal year, Keurig Green Mountain paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.82, the P/S ratio is 1.42 and the P/B ratio is finally 2.04. The dividend yield amounts to 2.64%.

Stock Charts:

Long-Term Stock Price Chart of Keurig Green Mountain (GMCR)
Long-Term Stock Price Chart of Keurig Green Mountain (GMCR)
Long-Term Dividend Payment History of Keurig Green Mountain (GMCR)
Long-Term Dividend Payment History of Keurig Green Mountain (GMCR)
Long-Term Dividend Yield History of Keurig Green Mountain (GMCR)
Long-Term Dividend Yield History of Keurig Green Mountain (GMCR)


BlackRock -- Yield: 2.54%

BlackRock (NYSE:BLK) employs 12,200 people, generates revenue of $11,081.00 million and has a net income of $3,264.00 million. The current market capitalization stands at $56.29 billion.

BlackRock’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,727.00 million. The EBITDA margin is 42.66% (the operating margin is 40.38% and the net profit margin 29.46%).

Financials: The total debt represents 3.47% of BlackRock assets and the total debt in relation to the equity amounts to 30.37%. Due to the financial situation, a return on equity of 12.24% was realized by BlackRock.

Twelve trailing months earnings per share reached a value of $19.46. Last fiscal year, BlackRock paid $7.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.64, the P/S ratio is 5.08 and the P/B ratio is finally 2.07. The dividend yield amounts to 2.54%.

Stock Charts:

Long-Term Stock Price Chart of BlackRock (BLK)
Long-Term Stock Price Chart of BlackRock (BLK)
Long-Term Dividend Payment History of BlackRock (BLK)
Long-Term Dividend Payment History of BlackRock (BLK)
Long-Term Dividend Yield History of BlackRock (BLK)
Long-Term Dividend Yield History of BlackRock (BLK)


Phillips 66 -- Yield: 2.51%

Phillips 66 (NYSE:PSX) employs 14,000 people, generates revenue of $161,212.00 million and has a net income of $4,091.00 million. The current market capitalization stands at $47.52 billion.

Phillips 66’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,302.00 million. The EBITDA margin is 2.67% (the operating margin is 1.96% and the net profit margin 2.54%).

Financials: The total debt represents 17.82% of Phillips 66 assets and the total debt in relation to the equity amounts to 40.22%. Due to the financial situation, a return on equity of 18.60% was realized by Phillips 66.

Twelve trailing months earnings per share reached a value of $8.57. Last fiscal year, Phillips 66 paid $1.89 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.40, the P/S ratio is 0.29 and the P/B ratio is finally 2.25. The dividend yield amounts to 2.51%.

Stock Charts:

Long-Term Stock Price Chart of Phillips 66 (PSX)
Long-Term Stock Price Chart of Phillips 66 (PSX)
Long-Term Dividend Payment History of Phillips 66 (PSX)
Long-Term Dividend Payment History of Phillips 66 (PSX)
Long-Term Dividend Yield History of Phillips 66 (PSX)
Long-Term Dividend Yield History of Phillips 66 (PSX)


NetApp -- Yield: 2.30%

NetApp (NASDAQ:NTAP) employs 12,810 people, generates revenue of $6,122.70 million and has a net income of $559.90 million. The current market capitalization stands at $9.23 billion.

NetApp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,023.70 million. The EBITDA margin is 16.72% (the operating margin is 11.70% and the net profit margin 9.14%).

Financials: The total debt represents 15.82% of NetApp assets and the total debt in relation to the equity amounts to 43.56%. Due to the financial situation, a return on equity of 15.55% was realized by NetApp.

Twelve trailing months earnings per share reached a value of $1.39. Last fiscal year, NetApp paid $0.66 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.55, the P/S ratio is 1.51 and the P/B ratio is finally 2.81. The dividend yield amounts to 2.30%.

Stock Charts:

Long-Term Stock Price Chart of NetApp (NTAP)
Long-Term Stock Price Chart of NetApp (NTAP)
Long-Term Dividend Payment History of NetApp (NTAP)
Long-Term Dividend Payment History of NetApp (NTAP)
Long-Term Dividend Yield History of NetApp (NTAP)
Long-Term Dividend Yield History of NetApp (NTAP)


Infosys Ltd -- Yield: 2.26%

Infosys Ltd (NYSE:INFY) employs 176,187 people, generates revenue of $8,711.00 million and has a net income of $2,013.00 million. The current market capitalization stands at $38.10 billion.

Infosys Ltd’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,474.00 million. The EBITDA margin is 28.40% (the operating margin is 25.92% and the net profit margin 23.11%).

Financials: The total debt represents 0.00% of Infosys Ltd assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 24.12% was realized by Infosys Ltd.

Twelve trailing months earnings per share reached a value of $0.88. Last fiscal year, Infosys Ltd paid $0.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.30, the P/S ratio is 4.37 and the P/B ratio is finally 4.44. The dividend yield amounts to 2.26%.

Stock Charts:

Long-Term Stock Price Chart of Infosys Ltd (INFY)
Long-Term Stock Price Chart of Infosys Ltd (INFY)
Long-Term Dividend Payment History of Infosys Ltd (INFY)
Long-Term Dividend Payment History of Infosys Ltd (INFY)
Long-Term Dividend Yield History of Infosys Ltd (INFY)
Long-Term Dividend Yield History of Infosys Ltd (INFY)


20 Stocks With Sustainable Dividend Growth Potential
And Yields Up To 5.17% (click to enlarge)

2 comments:

  1. I am a proud owner of intel (INTC) stock. I am glad it made your list :-)

    ReplyDelete
  2. Nice list. CMI and PSX are my favorites of the stocks you listed.

    ReplyDelete

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