Dividend stocks can be the foundation of a great retirement portfolio. Dividend payments put money into your pocket, which can help hedge against any dips in the stock market, but they're usually a sign of a financially sound company.Dividends also give investors a painless opportunity to reinvest in a stock, thus boosting future payouts and compounding gains over time. Yet not all income stocks live up to their full potential.
Using the payout ratio, or the percentage of profits a company returns in the form of a dividend to its shareholders, we can get a good bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios between 50% and 75%.
I rund a screen in order to find a few attractive dividend growth stocks that could grow earnings and dividends for the years the come.
Leading criteria in my screen are debt-to-equity, 5-Year EPS growth, payout ratio and past sales growth as indicator for the future.
6 income stocks with payout ratios currently below 50% poped on and each of them could potentially double their dividends in the following years.
Here are the results in detail...
Williams-Sonoma -- Yield: 2.49%
Williams-Sonoma (NYSE:WSM) employs 8,700 people, generates revenue of $4,698.72 million and has a net income of $308.85 million. The current market capitalization stands at $5.09 billion.Williams-Sonoma’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $664.54 million. The EBITDA margin is 14.14% (the operating margin is 10.69% and the net profit margin 6.57%).
Financials: The total debt represents 0.08% of Williams-Sonoma assets and the total debt in relation to the equity amounts to 0.16%. Due to the financial situation, a return on equity of 24.90% was realized by Williams-Sonoma.
Twelve trailing months earnings per share reached a value of $3.39. Last fiscal year, Williams-Sonoma paid $1.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.57, the P/S ratio is 1.07 and the P/B ratio is finally 4.22. The dividend yield amounts to 2.49%.
Stock Charts:
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| Long-Term Stock Price Chart of Williams-Sonoma (WSM) |
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| Long-Term Dividend Payment History of Williams-Sonoma (WSM) |
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| Long-Term Dividend Yield History of Williams-Sonoma (WSM) |
Polaris Industries -- Yield: 2.39%
Polaris Industries (NYSE:PII) employs 8,100 people, generates revenue of $4,719.29 million and has a net income of $455.36 million. The current market capitalization stands at $5.97 billion.Polaris Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $798.97 million. The EBITDA margin is 16.93% (the operating margin is 15.17% and the net profit margin 9.65%).
Financials: The total debt represents 19.40% of Polaris Industries assets and the total debt in relation to the equity amounts to 47.20%. Due to the financial situation, a return on equity of 49.42% was realized by Polaris Industries.
Twelve trailing months earnings per share reached a value of $6.75. Last fiscal year, Polaris Industries paid $2.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.63, the P/S ratio is 1.27 and the P/B ratio is finally 6.12. The dividend yield amounts to 2.39%.
Stock Charts:
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| Long-Term Stock Price Chart of Polaris Industries (PII) |
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| Long-Term Dividend Payment History of Polaris Industries (PII) |
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| Long-Term Dividend Yield History of Polaris Industries (PII) |
AmTrust Financial -- Yield: 2.33%
AmTrust Financial (NASDAQ:AFSI) employs 5,100 people, generates revenue of $4,683.50 million and has a net income of $485.14 million. The current market capitalization stands at $4.53 billion.AmTrust Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,100.98 million. The EBITDA margin is 23.51% (the operating margin is 11.45% and the net profit margin 10.36%).
Financials: The total debt represents 6.88% of AmTrust Financial assets and the total debt in relation to the equity amounts to 40.49%. Due to the financial situation, a return on equity of 22.66% was realized by AmTrust Financial.
Twelve trailing months earnings per share reached a value of $2.80. Last fiscal year, AmTrust Financial paid $0.55 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.19, the P/S ratio is 0.97 and the P/B ratio is finally 1.87. The dividend yield amounts to 2.33%.
Stock Charts:
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| Long-Term Stock Price Chart of AmTrust Financial (AFSI) |
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| Long-Term Dividend Payment History of AmTrust Financial (AFSI) |
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| Long-Term Dividend Yield History of AmTrust Financial (AFSI) |
Robert Half -- Yield: 2.10%
Robert Half (NYSE:RHI) employs 16,100 people, generates revenue of $5,094.93 million and has a net income of $357.80 million. The current market capitalization stands at $5.52 billion.Robert Half’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $633.94 million. The EBITDA margin is 12.44% (the operating margin is 11.39% and the net profit margin 7.02%).
Financials: The total debt represents 0.07% of Robert Half assets and the total debt in relation to the equity amounts to 0.12%. Due to the financial situation, a return on equity of 36.07% was realized by Robert Half.
Twelve trailing months earnings per share reached a value of $2.69. Last fiscal year, Robert Half paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.55, the P/S ratio is 1.08 and the P/B ratio is finally 5.47. The dividend yield amounts to 2.10%.
Stock Charts:
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| Long-Term Stock Price Chart of Robert Half (RHI) |
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| Long-Term Dividend Payment History of Robert Half (RHI) |
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| Long-Term Dividend Yield History of Robert Half (RHI) |
Bank of Marin Bancorp -- Yield: 2.04%
Bank of Marin Bancorp (NASDAQ:BMRC) employs 260 people, generates revenue of $69.44 million and has a net income of $18.44 million. The current market capitalization stands at $293.45 million.Bank of Marin Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.64 million. The EBITDA margin is 41.42% (the operating margin is 37.88% and the net profit margin 24.14%).
Financials: The total debt represents 0.27% of Bank of Marin Bancorp assets and the total debt in relation to the equity amounts to 2.52%. Due to the financial situation, a return on equity of 8.90% was realized by Bank of Marin Bancorp.
Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, Bank of Marin Bancorp 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 16.10, the P/S ratio is 3.88 and the P/B ratio is finally 1.38. The dividend yield amounts to 2.04%.
Stock Charts:
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| Long-Term Stock Price Chart of Bank of Marin Bancorp (BMRC) |
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| Long-Term Dividend Payment History of Bank of Marin Bancorp (BMRC) |
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| Long-Term Dividend Yield History of Bank of Marin Bancorp (BMRC) |
Aaron's Incorporation -- Yield: 0.43%
Aaron's Incorporation (NYSE:AAN) employs 12,400 people, generates revenue of $3,179.76 million and has a net income of $135.71 million. The current market capitalization stands at $1.70 billion.Aaron's Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,449.91 million. The EBITDA margin is 45.60% (the operating margin is 7.42% and the net profit margin 4.27%).
Financials: The total debt represents 22.96% of Aaron's Incorporation assets and the total debt in relation to the equity amounts to 44.67%. Due to the financial situation, a return on equity of 10.48% was realized by Aaron's Incorporation.
Twelve trailing months earnings per share reached a value of $1.86. 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 12.61, the P/S ratio is 0.54 and the P/B ratio is finally 1.25. The dividend yield amounts to 0.43%.
Stock Charts:
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| Long-Term Stock Price Chart of Aaron's Incorporation (AAN) |
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| Long-Term Dividend Payment History of Aaron's Incorporation (AAN) |
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| Long-Term Dividend Yield History of Aaron's Incorporation (AAN) |
