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:
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| Long-Term Stock Price Chart of Alliance Holdings GP (AHGP) |
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| Long-Term Dividend Payment History of Alliance Holdings GP (AHGP) |
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| 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:
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| Long-Term Stock Price Chart of Energy Transfer Equity (ETE) |
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| Long-Term Dividend Payment History of Energy Transfer Equity (ETE) |
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| 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:
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| Long-Term Stock Price Chart of Genesis Energy (GEL) |
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| Long-Term Dividend Payment History of Genesis Energy (GEL) |
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| 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:
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| Long-Term Stock Price Chart of Ameriprise Financial (AMP) |
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| Long-Term Dividend Payment History of Ameriprise Financial (AMP) |
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| 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:
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| Long-Term Stock Price Chart of Bunge (BG) |
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| Long-Term Dividend Payment History of Bunge (BG) |
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| 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:
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| Long-Term Stock Price Chart of AmTrust Financial Services (AFSI) |
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| Long-Term Dividend Payment History of AmTrust Financial Services (AFSI) |
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| 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:
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| Long-Term Stock Price Chart of Telephone & Data Systems (TDS) |
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| Long-Term Dividend Payment History of Telephone & Data Systems (TDS) |
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| 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:
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| Long-Term Stock Price Chart of American Equity Investment Life Holding (AEL) |
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| Long-Term Dividend Payment History of American Equity Investment Life Holding (AEL) |
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| 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:
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| Long-Term Stock Price Chart of Stepan Company (SCL) |
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| Long-Term Dividend Payment History of Stepan Company (SCL) |
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| 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:
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| Long-Term Stock Price Chart of Franklin Electric (FELE) |
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| Long-Term Dividend Payment History of Franklin Electric (FELE) |
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| Long-Term Dividend Yield History of Franklin Electric (FELE) |
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| 10 Dividend Growth Proven Stocks With Really Cheap PEG Ratios (click to enlarge) |
