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10 Dividend Growth Proven Stocks With Really Cheap PEG Ratios

While the market was in nearly nonstop rally mode for most of the past six years, investors didn't need to look far to uncover an abundance of growth stocks. But not all growth stocks are created equal.

While some look poised to deliver extraordinary gains going forward, the recent market turbulence has crushed some that were overvalued, burdening their shareholders with hefty losses.

What exactly is a growth stock? I'll define it as any company forecast to grow profits by an average of 10% or more annually during the next five years -- although that's an arbitrary number.

To gauge what's "cheap," I'll use the PEG ratio, which compares a company's price-to-earnings ratio to its forecast future growth rate. A PEG of around one or less could signal a cheap stock.

Attached I've compiled the results of my screen about the cheapest dividend growth stocks in terms of price to growth.

Here are the results...

Alliance Holdings GP -- Yield: 24.52%

Alliance Holdings GP (NASDAQ:AHGP) employs 4,243 people, generates revenue of $2,273.31 million and has a net income of $304.16 million. The current market capitalization stands at $990.83 million.

Alliance Holdings GP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $793.26 million. The EBITDA margin is 34.89% (the operating margin is 16.80% and the net profit margin 13.38%).

Financials: The total debt represents 38.81% of Alliance Holdings GP assets and the total debt in relation to the equity amounts to 166.42%. Due to the financial situation, a return on equity of 37.83% was realized by Alliance Holdings GP.

Twelve trailing months earnings per share reached a value of $3.53. Last fiscal year, Alliance Holdings GP paid $3.77 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.58, the P/S ratio is 0.41 and the P/B ratio is finally 1.70. The dividend yield amounts to 24.52%.

Stock Charts:

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


Energy Transfer Equity -- Yield: 13.26%

Energy Transfer Equity (NYSE:ETE) employs 30,078 people, generates revenue of $42,126.00 million and has a net income of $1,093.00 million. The current market capitalization stands at $9.86 billion.

Energy Transfer Equity’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,822.00 million. The EBITDA margin is 11.45% (the operating margin is 5.59% and the net profit margin 2.59%).

Financials: The total debt represents 51.93% of Energy Transfer Equity assets and the total debt in relation to the equity amounts to not calculable%. Due to the financial situation, a return on equity of not calculable% was realized by Energy Transfer Equity.

Twelve trailing months earnings per share reached a value of $1.12. Last fiscal year, Energy Transfer Equity paid $1.02 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.36, the P/S ratio is 0.21 and the P/B ratio is finally not calculable. The dividend yield amounts to 13.26%.

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)


Genesis Energy -- Yield: 8.31%

Genesis Energy (NYSE:GEL) employs 1,400 people, generates revenue of $2,246.53 million and has a net income of $421.58 million. The current market capitalization stands at $3.68 billion.

Genesis Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $290.98 million. The EBITDA margin is 12.95% (the operating margin is 21.78% and the net profit margin 18.77%).

Financials: The total debt represents 53.52% of Genesis Energy assets and the total debt in relation to the equity amounts to 144.01%. Due to the financial situation, a return on equity of 25.94% was realized by Genesis Energy.

Twelve trailing months earnings per share reached a value of $3.95. Last fiscal year, Genesis Energy paid $2.47 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.07, the P/S ratio is 1.54 and the P/B ratio is finally 1.71. The dividend yield amounts to 8.31%.

Stock Charts:

Long-Term Stock Price Chart of Genesis Energy (GEL)
Long-Term Stock Price Chart of Genesis Energy (GEL)
Long-Term Dividend Payment History of Genesis Energy (GEL)
Long-Term Dividend Payment History of Genesis Energy (GEL)
Long-Term Dividend Yield History of Genesis Energy (GEL)
Long-Term Dividend Yield History of Genesis Energy (GEL)


Ameriprise Financial -- Yield: 2.85%

Ameriprise Financial (NYSE:AMP) employs 13,000 people, generates revenue of $12,200.00 million and has a net income of $1,687.00 million. The current market capitalization stands at $16.72 billion.

Ameriprise Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,928.00 million. The EBITDA margin is 24.00% (the operating margin is 20.73% and the net profit margin 13.83%).

Financials: The total debt represents 13.13% of Ameriprise Financial assets and the total debt in relation to the equity amounts to 264.38%. Due to the financial situation, a return on equity of 20.36% was realized by Ameriprise Financial.

Twelve trailing months earnings per share reached a value of $8.48. Last fiscal year, Ameriprise Financial paid $2.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.52, the P/S ratio is 1.30 and the P/B ratio is finally 2.23. The dividend yield amounts to 2.85%.

Stock Charts:

Long-Term Stock Price Chart of Ameriprise Financial (AMP)
Long-Term Stock Price Chart of Ameriprise Financial (AMP)
Long-Term Dividend Payment History of Ameriprise Financial (AMP)
Long-Term Dividend Payment History of Ameriprise Financial (AMP)
Long-Term Dividend Yield History of Ameriprise Financial (AMP)
Long-Term Dividend Yield History of Ameriprise Financial (AMP)


Bunge -- Yield: 2.69%

Bunge (NYSE:BG) employs 33,000 people, generates revenue of $43,455.00 million and has a net income of $755.00 million. The current market capitalization stands at $8.01 billion.

Bunge’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,803.00 million. The EBITDA margin is 4.15% (the operating margin is 2.87% and the net profit margin 1.74%).

Financials: The total debt represents 26.65% of Bunge assets and the total debt in relation to the equity amounts to 74.15%. Due to the financial situation, a return on equity of 10.41% was realized by Bunge.

Twelve trailing months earnings per share reached a value of $4.64. Last fiscal year, Bunge paid $1.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.18, the P/S ratio is 0.18 and the P/B ratio is finally 1.40. The dividend yield amounts to 2.69%.

Stock Charts:

Long-Term Stock Price Chart of Bunge (BG)
Long-Term Stock Price Chart of Bunge (BG)
Long-Term Dividend Payment History of Bunge (BG)
Long-Term Dividend Payment History of Bunge (BG)
Long-Term Dividend Yield History of Bunge (BG)
Long-Term Dividend Yield History of Bunge (BG)


AmTrust Financial Services -- Yield: 2.43%

AmTrust Financial Services (NASDAQ:AFSI) employs 6,200 people, generates revenue of $4,683.50 million and has a net income of $485.14 million. The current market capitalization stands at $4.45 billion.

AmTrust Financial Services’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 Services 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 Services.

Twelve trailing months earnings per share reached a value of $2.80. Last fiscal year, AmTrust Financial Services 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 9.00, the P/S ratio is 0.92 and the P/B ratio is finally 1.79. The dividend yield amounts to 2.43%.

Stock Charts:

Long-Term Stock Price Chart of AmTrust Financial Services (AFSI)
Long-Term Stock Price Chart of AmTrust Financial Services (AFSI)
Long-Term Dividend Payment History of AmTrust Financial Services (AFSI)
Long-Term Dividend Payment History of AmTrust Financial Services (AFSI)
Long-Term Dividend Yield History of AmTrust Financial Services (AFSI)
Long-Term Dividend Yield History of AmTrust Financial Services (AFSI)


Telephone & Data Systems -- Yield: 2.04%

Telephone & Data Systems (NYSE:TDS) employs 10,400 people, generates revenue of $5,176.24 million and has a net income of $262.61 million. The current market capitalization stands at $3.22 billion.

Telephone & Data Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $980.84 million. The EBITDA margin is 18.95% (the operating margin is 7.67% and the net profit margin 5.07%).

Financials: The total debt represents 26.05% of Telephone & Data Systems assets and the total debt in relation to the equity amounts to 59.47%. Due to the financial situation, a return on equity of 5.44% was realized by Telephone & Data Systems.

Twelve trailing months earnings per share reached a value of $2.00. Last fiscal year, Telephone & Data Systems paid $0.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.69, the P/S ratio is 0.61 and the P/B ratio is finally 0.77. The dividend yield amounts to 2.04%.

Stock Charts:

Long-Term Stock Price Chart of Telephone & Data Systems (TDS)
Long-Term Stock Price Chart of Telephone & Data Systems (TDS)
Long-Term Dividend Payment History of Telephone & Data Systems (TDS)
Long-Term Dividend Payment History of Telephone & Data Systems (TDS)
Long-Term Dividend Yield History of Telephone & Data Systems (TDS)
Long-Term Dividend Yield History of Telephone & Data Systems (TDS)


American Equity Investment Life Holding -- Yield: 1.55%

American Equity Investment Life Holding (NYSE:AEL) employs 490 people, generates revenue of $1,518.94 million and has a net income of $219.83 million. The current market capitalization stands at $1.25 billion.

American Equity Investment Life Holding’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $204.43 million. The EBITDA margin is 13.46% (the operating margin is -5.68% and the net profit margin 14.47%).

Financials: The total debt represents 1.32% of American Equity Investment Life Holding assets and the total debt in relation to the equity amounts to 33.24%. Due to the financial situation, a return on equity of 10.76% was realized by American Equity Investment Life Holding.

Twelve trailing months earnings per share reached a value of $2.72. Last fiscal year, American Equity Investment Life Holding paid $0.22 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.41, the P/S ratio is 0.77 and the P/B ratio is finally 0.59. The dividend yield amounts to 1.55%.

Stock Charts:

Long-Term Stock Price Chart of American Equity Investment Life Holding (AEL)
Long-Term Stock Price Chart of American Equity Investment Life Holding (AEL)
Long-Term Dividend Payment History of American Equity Investment Life Holding (AEL)
Long-Term Dividend Payment History of American Equity Investment Life Holding (AEL)
Long-Term Dividend Yield History of American Equity Investment Life Holding (AEL)
Long-Term Dividend Yield History of American Equity Investment Life Holding (AEL)


Stepan Company -- Yield: 1.34%

Stepan Company (NYSE:SCL) employs 2,073 people, generates revenue of $1,776.17 million and has a net income of $76.04 million. The current market capitalization stands at $1.31 billion.

Stepan Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $186.91 million. The EBITDA margin is 10.52% (the operating margin is 6.91% and the net profit margin 4.28%).

Financials: The total debt represents 26.83% of Stepan Company assets and the total debt in relation to the equity amounts to 59.72%. Due to the financial situation, a return on equity of 13.91% was realized by Stepan Company.

Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, Stepan Company paid $0.73 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.30, the P/S ratio is 0.71 and the P/B ratio is finally 2.27. The dividend yield amounts to 1.34%.

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)


Franklin Electric -- Yield: 1.26%

Franklin Electric (NASDAQ:FELE) employs 4,900 people, generates revenue of $924.92 million and has a net income of $73.69 million. The current market capitalization stands at $1.52 billion.

Franklin Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $129.03 million. The EBITDA margin is 13.95% (the operating margin is 9.77% and the net profit margin 7.97%).

Financials: The total debt represents 22.18% of Franklin Electric assets and the total debt in relation to the equity amounts to 39.64%. Due to the financial situation, a return on equity of 12.38% was realized by Franklin Electric.

Twelve trailing months earnings per share reached a value of $1.53. Last fiscal year, Franklin Electric paid $0.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.25, the P/S ratio is 1.55 and the P/B ratio is finally 2.57. The dividend yield amounts to 1.26%.

Stock Charts:

Long-Term Stock Price Chart of Franklin Electric (FELE)
Long-Term Stock Price Chart of Franklin Electric (FELE)
Long-Term Dividend Payment History of Franklin Electric (FELE)
Long-Term Dividend Payment History of Franklin Electric (FELE)
Long-Term Dividend Yield History of Franklin Electric (FELE)
Long-Term Dividend Yield History of Franklin Electric (FELE)


10 Dividend Growth Proven Stocks
With Really Cheap PEG Ratios
(click to enlarge)

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