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6 Mid-Cap Dividend Growth Stocks With Return Potential

When investors consider financial ratios individually, they may put their money in stocks that do not really fit in their profile. 

For instance, a high EPS alone doesn’t say too much about a company, if one doesn’t look into the company’s revenues, net income, and sustained dividend payments and so on.

Conversely, a high EPS combined with a good dividend yield above 3% and consistency in good, strong financial results, may suggest a great investment.


The article introduces 6 mid-capitalized stocks with fast growing earnings while price multiples for 2015 earnings are still low. The main focus is on smaller capitalized stocks, companies with a market cap below 2 billion and a consistent dividend growth history of more than a decade.

Here are the top results, sorted by yield...


Daktronics -- Yield: 4.12%

Daktronics (NASDAQ:DAKT) employs 2,420 people, generates revenue of $615.94 million and has a net income of $20.88 million. The current market capitalization stands at $424.50 million.

DAKT increased dividends 7 out of the last 8 years. In 2014 the dividend yield was 2.6%. Dividend distributions were in March, May, September and December. The dividend payout ratio is 79%. In the last 10 years, the stock had an annual compounded return of 3% including dividends and stock price appreciation. This is 2.4% lower than the S&P 500 return of 5.4%. The company operates in the Technology sector. 

Daktronics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46.25 million. The EBITDA margin is 7.51% (the operating margin is 5.08% and the net profit margin 3.39%).

Financials: The total debt represents 1.00% of Daktronics assets and the total debt in relation to the equity amounts to 1.78%. Due to the financial situation, a return on equity of 10.06% was realized by Daktronics.

Twelve trailing months earnings per share reached a value of $0.36. Last fiscal year, Daktronics paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.94, the P/S ratio is 0.69 and the P/B ratio is finally 2.00. The dividend yield amounts to 4.12%.

Stock Charts:


Long-Term Stock Price Chart of Daktronics (DAKT)
Long-Term Stock Price Chart of Daktronics (DAKT)
Long-Term Dividend Payment History of Daktronics (DAKT)
Long-Term Dividend Payment History of Daktronics (DAKT)
Long-Term Dividend Yield History of Daktronics (DAKT)
Long-Term Dividend Yield History of Daktronics (DAKT)



BancFirst Corporation -- Yield: 2.34%

BancFirst Corporation (NASDAQ:BANF) employs 1,688 people, generates revenue of $194.15 million and has a net income of $63.89 million. The current market capitalization stands at $960.91 million.

BANF increased dividends 20 out of the last 22 years. In 2014 the dividend yield was 2.4%. Dividend distributions were in March, June, September and December. The dividend payout ratio is 32%. In the last 10 years, the stock had an annual compounded return of 7.1% including dividends and stock price appreciation. This is 1.6% higher than the S&P 500 return of 5.4%. The company operates in the Financial sector.

BancFirst Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $104.53 million. The EBITDA margin is 37.63% (the operating margin is 32.82% and the net profit margin 23.00%).

Financials: The total debt represents 0.47% of BancFirst Corporation assets and the total debt in relation to the equity amounts to 5.05%. Due to the financial situation, a return on equity of 10.96% was realized by BancFirst Corporation.

Twelve trailing months earnings per share reached a value of $4.17. Last fiscal year, BancFirst Corporation paid $1.30 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.77, the P/S ratio is 3.46 and the P/B ratio is finally 1.57. The dividend yield amounts to 2.34%.

Stock Charts:


Long-Term Stock Price Chart of BancFirst Corporation (BANF)
Long-Term Stock Price Chart of BancFirst Corporation (BANF)
Long-Term Dividend Payment History of BancFirst Corporation (BANF)
Long-Term Dividend Payment History of BancFirst Corporation (BANF)
Long-Term Dividend Yield History of BancFirst Corporation (BANF)
Long-Term Dividend Yield History of BancFirst Corporation (BANF)



Andersons -- Yield: 1.58%

Andersons (NASDAQ:ANDE) employs 2,214 people, generates revenue of $4,540.07 million and has a net income of $122.64 million. The current market capitalization stands at $991.20 million.

ANDE increased dividends 17 out of the last 17 years. In 2014 the dividend yield was 0.8%. Dividend distributions were in March, June, September and December. The dividend payout ratio is 11%. In the last 10 years, the stock had an annual compounded return of 21.4% including dividends and stock price appreciation. This is 15.9% higher than the S&P 500 return of 5.4%. The company operates in the Consumer Goods sector. 

Andersons’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $140.26 million. The EBITDA margin is 3.09% (the operating margin is 1.72% and the net profit margin 2.70%).

Financials: The total debt represents 15.95% of Andersons assets and the total debt in relation to the equity amounts to 46.97%. Due to the financial situation, a return on equity of 14.51% was realized by Andersons.

Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, Andersons paid $0.47 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.04, the P/S ratio is 0.22 and the P/B ratio is finally 1.28. The dividend yield amounts to 1.58%.

Stock Charts:


Long-Term Stock Price Chart of Andersons (ANDE)
Long-Term Stock Price Chart of Andersons (ANDE)
Long-Term Dividend Payment History of Andersons (ANDE)
Long-Term Dividend Payment History of Andersons (ANDE)
Long-Term Dividend Yield History of Andersons (ANDE)
Long-Term Dividend Yield History of Andersons (ANDE)



Stepan Company -- Yield: 1.44%

Stepan Company (NYSE:SCL) employs 2,024 people, generates revenue of $1,927.21 million and has a net income of $57.08 million. The current market capitalization stands at $1.18 billion.

SCL increased dividends 21 out of the last 21 years. In 2014 the dividend yield was 1.1%. Dividend distributions were in February, May, August and November. The dividend payout ratio is 28%. In the last 10 years, the stock had an annual compounded return of 14.9% including dividends and stock price appreciation. This is 9.5% higher than the S&P 500 return of 5.4%. The company operates in the Consumer Goods sector. 

Stepan Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $158.51 million. The EBITDA margin is 8.22% (the operating margin is 4.71% and the net profit margin 2.96%).

Financials: The total debt represents 23.57% of Stepan Company assets and the total debt in relation to the equity amounts to 51.15%. Due to the financial situation, a return on equity of 10.50% was realized by Stepan Company.

Twelve trailing months earnings per share reached a value of $3.03. Last fiscal year, Stepan Company paid $0.69 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.45, the P/S ratio is 0.61 and the P/B ratio is finally 2.20. The dividend yield amounts to 1.44%.

Stock Charts:


Long-Term Stock Price Chart of Stepan Company (SCL)
Long-Term Stock Price Chart of Stepan Company (SCL)
Long-Term Dividend Payment History of Stepan Company (SCL)
Long-Term Dividend Payment History of Stepan Company (SCL)
Long-Term Dividend Yield History of Stepan Company (SCL)
Long-Term Dividend Yield History of Stepan Company (SCL)



HB Fuller -- Yield: 1.37%

HB Fuller (NYSE:FUL) employs 3,700 people, generates revenue of $2,104.45 million and has a net income of $44.96 million. The current market capitalization stands at $1.92 billion.

FUL increased dividends 23 out of the last 23 years. In 2014 the dividend yield was 0.9%. Dividend distributions were in February, April, July and October. The dividend payout ratio is 47%. In the last 10 years, the stock had an annual compounded return of 13.4% including dividends and stock price appreciation. This is 8% higher than the S&P 500 return of 5.4%. The company operates in the Basic Materials sector.

HB Fuller’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $220.34 million. The EBITDA margin is 10.47% (the operating margin is 4.67% and the net profit margin 2.14%).

Financials: The total debt represents 30.76% of HB Fuller assets and the total debt in relation to the equity amounts to 64.59%. Due to the financial situation, a return on equity of 5.47% was realized by HB Fuller.

Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, HB Fuller paid $0.46 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.52, the P/S ratio is 0.91 and the P/B ratio is finally 2.15. The dividend yield amounts to 1.37%.

Stock Charts:


Long-Term Stock Price Chart of HB Fuller (FUL)
Long-Term Stock Price Chart of HB Fuller (FUL)
Long-Term Dividend Payment History of HB Fuller (FUL)
Long-Term Dividend Payment History of HB Fuller (FUL)
Long-Term Dividend Yield History of HB Fuller (FUL)
Long-Term Dividend Yield History of HB Fuller (FUL)



Aaron's Incorporation -- Yield: 0.37%

Aaron's Incorporation (NYSE:AAN) employs 12,400 people, generates revenue of $2,725.24 million and has a net income of $78.23 million. The current market capitalization stands at $1.79 billion.

AAN increased dividends 16 out of the last 23 years. In 2014 the dividend yield was 0.3%. Dividend distributions were in February, June, August and November. In the last 10 years, the stock had an annual compounded return of 7.8% including dividends and stock price appreciation. This is 2.3% higher than the S&P 500 return of 5.4%.

Aaron's Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,142.23 million. The EBITDA margin is 41.91% (the operating margin is 5.13% and the net profit margin 2.87%).

Financials: The total debt represents 21.86% of Aaron's Incorporation assets and the total debt in relation to the equity amounts to 43.89%. Due to the financial situation, a return on equity of 6.62% was realized by Aaron's Incorporation.

Twelve trailing months earnings per share reached a value of $1.66. Last fiscal year, Aaron's Incorporation paid $0.09 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.84, the P/S ratio is 0.66 and the P/B ratio is finally 1.46. The dividend yield amounts to 0.37%.

Stock Charts:


Long-Term Stock Price Chart of Aaron's Incorporation (AAN)
Long-Term Stock Price Chart of Aaron's Incorporation (AAN)
Long-Term Dividend Payment History of Aaron's Incorporation (AAN)
Long-Term Dividend Payment History of Aaron's Incorporation (AAN)
Long-Term Dividend Yield History of Aaron's Incorporation (AAN)
Long-Term Dividend Yield History of Aaron's Incorporation (AAN)




Portfolio Total Return: 166.7%
The above portfolio's total return was 166.7%, outperforming the SPDR S&P 500 ETF's total return of 91.1%. The total return includes stock price appreciation and dividends.

Portfolio Volatility: 23.3%
The portfolio's volatility was 23.3% which was higher than the S&P 500 volatility of 14.9%.

Portfolio Diversification: 
The portfolio's average correlation value is 0.51.