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8 Cheap Dividend Growth Stocks With Yields Over 4% And Decent Growth Potential

It’s true that rising bond yields provide more competition for stocks when it comes to luring income investors, and that income stocks tend to lose the most relative appeal.

It’s also true that the Federal Reserve has hinted it could raise its Fed funds rate soon, perhaps by year’s end.

The rate has been targeted at a historic low of 0% to 0.25% since late 2008, and recently hovered around an effective rate of 0.12%. What’s not clear is that a rise in the Fed funds rate would push yields on bonds substantially higher.

Don’t shy away from stocks with high dividend yields because of a looming interest rate hike. Do, however, favor companies with decent growth potential to complement their cash payouts. Below are three that yield over 4%.

Here are the results...

Alliance Holdings -- Yield: 15.76%

Alliance Holdings (NASDAQ:AHGP) employs 4,439 people, generates revenue of $2,300.32 million and has a net income of $492.67 million. The current market capitalization stands at $1.46 billion.

Alliance Holdings’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $814.23 million. The EBITDA margin is 35.40% (the operating margin is 23.46% and the net profit margin 21.42%).

Financials: The total debt represents 36.62% of Alliance Holdings assets and the total debt in relation to the equity amounts to 148.41%. Due to the financial situation, a return on equity of 53.62% was realized by Alliance Holdings.

Twelve trailing months earnings per share reached a value of $4.24. Last fiscal year, Alliance Holdings paid $3.44 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.77, the P/S ratio is 0.63 and the P/B ratio is finally 2.58. The dividend yield amounts to 15.76%.

Stock Charts:


Long-Term Stock Price Chart of Alliance Holdings (AHGP)
Long-Term Stock Price Chart of Alliance Holdings (AHGP)
Long-Term Dividend Payment History of Alliance Holdings (AHGP)
Long-Term Dividend Payment History of Alliance Holdings (AHGP)
Long-Term Dividend Yield History of Alliance Holdings (AHGP)
Long-Term Dividend Yield History of Alliance Holdings (AHGP)



Plains All American Pipeline -- Yield: 10.87%

Plains All American Pipeline (NYSE:PAA) employs 5,300 people, generates revenue of $43,464.00 million and has a net income of $1,386.00 million. The current market capitalization stands at $10.25 billion.

Plains All American Pipeline’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,193.00 million. The EBITDA margin is 5.05% (the operating margin is 4.12% and the net profit margin 3.19%).

Financials: The total debt represents 45.15% of Plains All American Pipeline assets and the total debt in relation to the equity amounts to 123.56%. Due to the financial situation, a return on equity of 11.60% was realized by Plains All American Pipeline.

Twelve trailing months earnings per share reached a value of $1.21. Last fiscal year, Plains All American Pipeline paid $2.55 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.12, the P/S ratio is 0.24 and the P/B ratio is finally 1.24. The dividend yield amounts to 10.87%.

Stock Charts:


Long-Term Stock Price Chart of Plains All American Pipeline (PAA)
Long-Term Stock Price Chart of Plains All American Pipeline (PAA)
Long-Term Dividend Payment History of Plains All American Pipeline (PAA)
Long-Term Dividend Payment History of Plains All American Pipeline (PAA)
Long-Term Dividend Yield History of Plains All American Pipeline (PAA)
Long-Term Dividend Yield History of Plains All American Pipeline (PAA)



AmeriGas Partners L.P. -- Yield: 8.93%

AmeriGas Partners L.P. (NYSE:APU) employs 8,000 people, generates revenue of $2,885.32 million and has a net income of $214.97 million. The current market capitalization stands at $3.83 billion.

AmeriGas Partners L.P.’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $575.59 million. The EBITDA margin is 19.95% (the operating margin is 13.19% and the net profit margin 7.45%).

Financials: The total debt represents % of AmeriGas Partners L.P. assets and the total debt in relation to the equity amounts to %. Due to the financial situation, a return on equity of % was realized by AmeriGas Partners L.P..

Twelve trailing months earnings per share reached a value of $1.92. Last fiscal year, AmeriGas Partners L.P. paid $3.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.18, the P/S ratio is 1.33 and the P/B ratio is finally . The dividend yield amounts to 8.93%.

Stock Charts:


Long-Term Stock Price Chart of AmeriGas Partners L.P. (APU)
Long-Term Stock Price Chart of AmeriGas Partners L.P. (APU)
Long-Term Dividend Payment History of AmeriGas Partners L.P. (APU)
Long-Term Dividend Payment History of AmeriGas Partners L.P. (APU)
Long-Term Dividend Yield History of AmeriGas Partners L.P. (APU)
Long-Term Dividend Yield History of AmeriGas Partners L.P. (APU)



Energy Transfer Equity -- Yield: 6.25%

Energy Transfer Equity (NYSE:ETE) employs 1,609 people, generates revenue of $55,691.00 million and has a net income of $1,060.00 million. The current market capitalization stands at $19.07 billion.

Energy Transfer Equity’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,379.00 million. The EBITDA margin is 7.86% (the operating margin is 4.39% and the net profit margin 1.90%).

Financials: The total debt represents 47.56% of Energy Transfer Equity assets and the total debt in relation to the equity amounts to 4,617.62%. Due to the financial situation, a return on equity of 71.25% was realized by Energy Transfer Equity.

Twelve trailing months earnings per share reached a value of $0.97. Last fiscal year, Energy Transfer Equity paid $0.75 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.43, the P/S ratio is 0.34 and the P/B ratio is finally 29.56. The dividend yield amounts to 6.25%.

Stock Charts:


Long-Term Stock Price Chart of Energy Transfer Equity (ETE)
Long-Term Stock Price Chart of Energy Transfer Equity (ETE)
Long-Term Dividend Payment History of Energy Transfer Equity (ETE)
Long-Term Dividend Payment History of Energy Transfer Equity (ETE)
Long-Term Dividend Yield History of Energy Transfer Equity (ETE)
Long-Term Dividend Yield History of Energy Transfer Equity (ETE)



AT&T -- Yield: 5.82%

AT&T (NYSE:T) employs 281,240 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $198.77 billion.

AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).

Financials: The total debt represents 27.61% of AT&T assets and the total debt in relation to the equity amounts to 91.47%. Due to the financial situation, a return on equity of 6.89% was realized by AT&T.

Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 38.58, the P/S ratio is 1.50 and the P/B ratio is finally 1.87. The dividend yield amounts to 5.82%.

Stock Charts:


Long-Term Stock Price Chart of AT&T (T)
Long-Term Stock Price Chart of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)



Verizon Communications -- Yield: 5.11%

Verizon Communications (NYSE:VZ) employs 177,900 people, generates revenue of $127,079.00 million and has a net income of $11,956.00 million. The current market capitalization stands at $179.97 billion.

Verizon Communications’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43,239.00 million. The EBITDA margin is 34.03% (the operating margin is 15.42% and the net profit margin 9.41%).

Financials: The total debt represents 48.68% of Verizon Communications assets and the total debt in relation to the equity amounts to 921.05%. Due to the financial situation, a return on equity of 37.65% was realized by Verizon Communications.

Twelve trailing months earnings per share reached a value of $2.51. Last fiscal year, Verizon Communications paid $2.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.92, the P/S ratio is 1.42 and the P/B ratio is finally 14.94. The dividend yield amounts to 5.11%.

Stock Charts:


Long-Term Stock Price Chart of Verizon Communications (VZ)
Long-Term Stock Price Chart of Verizon Communications (VZ)
Long-Term Dividend Payment History of Verizon Communications (VZ)
Long-Term Dividend Payment History of Verizon Communications (VZ)
Long-Term Dividend Yield History of Verizon Communications (VZ)
Long-Term Dividend Yield History of Verizon Communications (VZ)



South Jersey Industries -- Yield: 4.26%

South Jersey Industries (NYSE:SJI) employs 700 people, generates revenue of $887.00 million and has a net income of $105.41 million. The current market capitalization stands at $1.64 billion.

South Jersey Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $206.11 million. The EBITDA margin is 23.24% (the operating margin is 14.39% and the net profit margin 11.88%).

Financials: The total debt represents 38.06% of South Jersey Industries assets and the total debt in relation to the equity amounts to 136.71%. Due to the financial situation, a return on equity of 11.10% was realized by South Jersey Industries.

Twelve trailing months earnings per share reached a value of $1.45. Last fiscal year, South Jersey Industries paid $0.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.49, the P/S ratio is 1.84 and the P/B ratio is finally 1.73. The dividend yield amounts to 4.26%.

Stock Charts:


Long-Term Stock Price Chart of South Jersey Industries (SJI)
Long-Term Stock Price Chart of South Jersey Industries (SJI)
Long-Term Dividend Payment History of South Jersey Industries (SJI)
Long-Term Dividend Payment History of South Jersey Industries (SJI)
Long-Term Dividend Yield History of South Jersey Industries (SJI)
Long-Term Dividend Yield History of South Jersey Industries (SJI)



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 $426.25 million.

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)


8 Cheap Dividend Growth Stocks With Yields Over 4%
And Decent Growth Potential (click to enlarge)

5 comments:

  1. Interesting write up. Of these, AT&T and Verizon are certainly my favorites.

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  2. You covered all the points of this topic with informative charts.

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