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11 Dividend Growth Stocks With Low Debt, Solid Growth And Yields Over 4%

All too often, yield-starved investors give in to the temptation of high yield dividend stocks. Dividend yields greater than 5% look like an easy way to grab more current income on the surface, but dividend income is just part of the total return equation.

If a stock with a 6% dividend yield sees its price cut in half, an investor living off dividends in retirement would have been better off purchasing a lower yielding stock with less business risk and volatility, occasionally selling shares to meet his or her cash flow needs.

That's the reason for my today's screen. I've tried to catch some companies with high dividends which are not at risk to cut.

The total amount of debt is one important criterion for a dividend cut. Growth is also an important issue.

Each stock I've researched has a dividend yield over 4% and positive 5 year EPS growth forecasts. In addition, debt-to-equity ratios are under 0.4. Eleven stocks fulfilled my tight criteria of which 3 got a buy or better rating by analysts.

Here are the best yielding results from my research...

Stage Stores -- Yield: 7.19%

Stage Stores (NYSE:SSI) employs 14,300 people, generates revenue of $1,638.57 million and has a net income of $37.85 million. The current market capitalization stands at $267.02 million.

Stage Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $127.75 million. The EBITDA margin is 7.80% (the operating margin is 3.89% and the net profit margin 2.31%).

Financials: The total debt represents 5.75% of Stage Stores assets and the total debt in relation to the equity amounts to 9.96%. Due to the financial situation, a return on equity of 8.03% was realized by Stage Stores.

Twelve trailing months earnings per share reached a value of $0.82. Last fiscal year, Stage Stores paid $0.53 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.12, the P/S ratio is 0.16 and the P/B ratio is finally 0.55. The dividend yield amounts to 7.19%.

Stock Charts:


Long-Term Stock Price Chart of Stage Stores (SSI)
Long-Term Stock Price Chart of Stage Stores (SSI)
Long-Term Dividend Payment History of Stage Stores (SSI)
Long-Term Dividend Payment History of Stage Stores (SSI)
Long-Term Dividend Yield History of Stage Stores (SSI)
Long-Term Dividend Yield History of Stage Stores (SSI)



Waddell & Reed Financial -- Yield: 5.58%

Waddell & Reed Financial (NYSE:WDR) employs 1,648 people, generates revenue of $1,597.76 million and has a net income of $313.33 million. The current market capitalization stands at $2.74 billion.

Waddell & Reed Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $507.07 million. The EBITDA margin is 31.74% (the operating margin is 30.32% and the net profit margin 19.61%).

Financials: The total debt represents 12.57% of Waddell & Reed Financial assets and the total debt in relation to the equity amounts to 24.17%. Due to the financial situation, a return on equity of 42.53% was realized by Waddell & Reed Financial.

Twelve trailing months earnings per share reached a value of $3.15. Last fiscal year, Waddell & Reed Financial paid $1.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.48, the P/S ratio is 1.71 and the P/B ratio is finally 3.51. The dividend yield amounts to 5.58%.

Stock Charts:


Long-Term Stock Price Chart of Waddell & Reed Financial (WDR)
Long-Term Stock Price Chart of Waddell & Reed Financial (WDR)
Long-Term Dividend Payment History of Waddell & Reed Financial (WDR)
Long-Term Dividend Payment History of Waddell & Reed Financial (WDR)
Long-Term Dividend Yield History of Waddell & Reed Financial (WDR)
Long-Term Dividend Yield History of Waddell & Reed Financial (WDR)



Garmin -- Yield: 5.46%

Garmin (NASDAQ:GRMN) employs 11,185 people, generates revenue of $2,870.66 million and has a net income of $364.21 million. The current market capitalization stands at $7.11 billion.

Garmin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $767.64 million. The EBITDA margin is 26.74% (the operating margin is 24.06% and the net profit margin 12.69%).

Financials: The total debt represents 0.00% of Garmin assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 10.31% was realized by Garmin.

Twelve trailing months earnings per share reached a value of $2.78. Last fiscal year, Garmin 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 13.42, the P/S ratio is 2.48 and the P/B ratio is finally 2.11. The dividend yield amounts to 5.46%.

Stock Charts:


Long-Term Stock Price Chart of Garmin (GRMN)
Long-Term Stock Price Chart of Garmin (GRMN)
Long-Term Dividend Payment History of Garmin (GRMN)
Long-Term Dividend Payment History of Garmin (GRMN)
Long-Term Dividend Yield History of Garmin (GRMN)
Long-Term Dividend Yield History of Garmin (GRMN)



Safety Insurance -- Yield: 5.13%

Safety Insurance (NASDAQ:SAFT) employs 610 people, generates revenue of $778.80 million and has a net income of $59.35 million. The current market capitalization stands at $824.53 million.

Safety Insurance’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $96.53 million. The EBITDA margin is 12.39% (the operating margin is 10.71% and the net profit margin 7.62%).

Financials: The total debt represents 0.00% of Safety Insurance assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 8.46% was realized by Safety Insurance.

Twelve trailing months earnings per share reached a value of $-0.94. Last fiscal year, Safety Insurance paid $2.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is , the P/S ratio is 1.06 and the P/B ratio is finally 1.16. The dividend yield amounts to 5.13%.

Stock Charts:


Long-Term Stock Price Chart of Safety Insurance (SAFT)
Long-Term Stock Price Chart of Safety Insurance (SAFT)
Long-Term Dividend Payment History of Safety Insurance (SAFT)
Long-Term Dividend Payment History of Safety Insurance (SAFT)
Long-Term Dividend Yield History of Safety Insurance (SAFT)
Long-Term Dividend Yield History of Safety Insurance (SAFT)



Mercury General -- Yield: 4.90%

Mercury General (NYSE:MCY) employs 4,400 people, generates revenue of $3,011.77 million and has a net income of $177.95 million. The current market capitalization stands at $2.79 billion.

Mercury General’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $804.37 million. The EBITDA margin is 26.71% (the operating margin is 8.30% and the net profit margin 5.91%).

Financials: The total debt represents 6.30% of Mercury General assets and the total debt in relation to the equity amounts to 15.46%. Due to the financial situation, a return on equity of 9.62% was realized by Mercury General.

Twelve trailing months earnings per share reached a value of $0.55. Last fiscal year, Mercury General paid $2.46 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 92.89, the P/S ratio is 0.93 and the P/B ratio is finally 1.49. The dividend yield amounts to 4.90%.

Stock Charts:


Long-Term Stock Price Chart of Mercury General (MCY)
Long-Term Stock Price Chart of Mercury General (MCY)
Long-Term Dividend Payment History of Mercury General (MCY)
Long-Term Dividend Payment History of Mercury General (MCY)
Long-Term Dividend Yield History of Mercury General (MCY)
Long-Term Dividend Yield History of Mercury General (MCY)



PacWest Bancorp -- Yield: 4.47%

PacWest Bancorp (NASDAQ:PACW) employs 1,443 people, generates revenue of $704.78 million and has a net income of $170.47 million. The current market capitalization stands at $5.38 billion.

PacWest Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $439.56 million. The EBITDA margin is 62.39% (the operating margin is 40.35% and the net profit margin 24.19%).

Financials: The total debt represents 5.03% of PacWest Bancorp assets and the total debt in relation to the equity amounts to 23.30%. Due to the financial situation, a return on equity of 7.81% was realized by PacWest Bancorp.

Twelve trailing months earnings per share reached a value of $2.90. Last fiscal year, PacWest Bancorp paid $1.25 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 7.63 and the P/B ratio is finally 1.31. The dividend yield amounts to 4.47%.

Stock Charts:


Long-Term Stock Price Chart of PacWest Bancorp (PACW)
Long-Term Stock Price Chart of PacWest Bancorp (PACW)
Long-Term Dividend Payment History of PacWest Bancorp (PACW)
Long-Term Dividend Payment History of PacWest Bancorp (PACW)
Long-Term Dividend Yield History of PacWest Bancorp (PACW)
Long-Term Dividend Yield History of PacWest Bancorp (PACW)



Daktronics -- Yield: 4.41%

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 $398.68 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 $0.26. 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 35.53, the P/S ratio is 0.65 and the P/B ratio is finally 1.87. The dividend yield amounts to 4.41%.

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)



CMI Corporation -- Yield: 4.34%

CMI Corporation (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 $15.97 billion.

CMI Corporation’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 CMI Corporation 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 CMI Corporation.

Twelve trailing months earnings per share reached a value of $9.34. Last fiscal year, CMI Corporation 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 9.62, the P/S ratio is 0.83 and the P/B ratio is finally 2.11. The dividend yield amounts to 4.34%.

Stock Charts:


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


11 Dividend Growth Stocks With Low Debt,
Solid Growth And Yields Over 4%

1 comment:

  1. Thnx for the list, some stocks to consider.

    Great job and info!

    ReplyDelete

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