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9 Attractively Priced, High Quality Dividend Growth Stocks To Consider Now

If you are looking for an attractive investment with income for your portfolio, you should look for cheaply valuated dividend growth stocks with potential to grow in the near term.

What Do I Mean by an Attractively Priced, High Quality DGI Stock?
To preface my choices, I define high quality DGI stocks as those having:
  • Solid financial strength - I require an S&P credit rating of at least BBB or better and a debt-to-total capital ratio of less than 50%.
  • A consistent track record of growing dividends - I prefer 10 years of dividend growth, but I will consider relatively new DGI stocks with shorter records. In addition, I look for an historical 5-year dividend compound annual growth rate (i.e., CAGR) of at least 4%.
  • The ability to continue to grow the dividend in the future - I look for a forecast 3-year dividend CAGR of at least 4% and a dividend payout ratio of less than 80%.
In terms of value, I look for the following:
  • Is the stock trading at or below its historical 10-year P/E?
  • Is the stock's dividend yield at or near its 5-year high?
  • Is the stock trading at or below Morningstar's fair value estimate? S&P's fair value estimate? Valuentum's fair value estimate?
  • Is the stock trading below S&P's 12-month target?
There are nine top results that came into my minds. For sure I've not included long-term dividend growth as essential criteria. That's the reason why you might find Apple and Gilead in the results.

These are the results from the screen...

Care Capital Properties -- Yield: 8.97%

Care Capital Properties (NYSE:CCP) employs 56 people, generates revenue of $324.03 million and has a net income of $143.36 million. The current market capitalization stands at $2.14 billion.

Care Capital Properties’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $316.25 million. The EBITDA margin is 97.60% (the operating margin is 46.94% and the net profit margin 44.24%).

Financials: The total debt represents 51.60% of Care Capital Properties assets and the total debt in relation to the equity amounts to 125.56%. Due to the financial situation, a return on equity of 8.59% was realized by Care Capital Properties.

Twelve trailing months earnings per share reached a value of $1.63. Last fiscal year, Care Capital Properties paid $1.14 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.85, the P/S ratio is 6.58 and the P/B ratio is finally 1.75. The dividend yield amounts to 8.97%.

Stock Charts:

Long-Term Stock Price Chart of Care Capital Properties (CCP)
Long-Term Stock Price Chart of Care Capital Properties (CCP)
Long-Term Dividend Payment History of Care Capital Properties (CCP)
Long-Term Dividend Payment History of Care Capital Properties (CCP)
Long-Term Dividend Yield History of Care Capital Properties (CCP)
Long-Term Dividend Yield History of Care Capital Properties (CCP)


Omega Healthcare -- Yield: 7.03%

Omega Healthcare (NYSE:OHI) employs 58 people, generates revenue of $743.62 million and has a net income of $233.32 million. The current market capitalization stands at $6.19 billion.

Omega Healthcare’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $697.18 million. The EBITDA margin is 93.75% (the operating margin is 55.31% and the net profit margin 31.38%).

Financials: The total debt represents 44.51% of Omega Healthcare assets and the total debt in relation to the equity amounts to 95.48%. Due to the financial situation, a return on equity of 8.74% was realized by Omega Healthcare.

Twelve trailing months earnings per share reached a value of $1.21. Last fiscal year, Omega Healthcare paid $2.18 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.38, the P/S ratio is 8.36 and the P/B ratio is finally 1.66. The dividend yield amounts to 7.03%.

Stock Charts:

Long-Term Stock Price Chart of Omega Healthcare (OHI)
Long-Term Stock Price Chart of Omega Healthcare (OHI)
Long-Term Dividend Payment History of Omega Healthcare (OHI)
Long-Term Dividend Payment History of Omega Healthcare (OHI)
Long-Term Dividend Yield History of Omega Healthcare (OHI)
Long-Term Dividend Yield History of Omega Healthcare (OHI)


HCP -- Yield: 6.67%

HCP (NYSE:HCP) employs 187 people, generates revenue of $2,544.31 million and has a net income of $-557.84 million. The current market capitalization stands at $16.21 billion.

HCP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,833.92 million. The EBITDA margin is 72.08% (the operating margin is -4.25% and the net profit margin -21.92%).

Financials: The total debt represents 51.60% of HCP assets and the total debt in relation to the equity amounts to 118.47%. Due to the financial situation, a return on equity of -5.58% was realized by HCP.

Twelve trailing months earnings per share reached a value of $-0.44. Last fiscal year, HCP paid $2.26 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 6.33 and the P/B ratio is finally 1.72. The dividend yield amounts to 6.67%.

Stock Charts:

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


Spectra Energy Partners -- Yield: 5.59%

Spectra Energy Partners (NYSE:SEP) employs 2,400 people, generates revenue of $2,455.00 million and has a net income of $1,265.00 million. The current market capitalization stands at $13.47 billion.

Spectra Energy Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,577.00 million. The EBITDA margin is 64.24% (the operating margin is 51.85% and the net profit margin 51.53%).

Financials: The total debt represents 35.03% of Spectra Energy Partners assets and the total debt in relation to the equity amounts to 61.07%. Due to the financial situation, a return on equity of 9.06% was realized by Spectra Energy Partners.

Twelve trailing months earnings per share reached a value of $3.30. Last fiscal year, Spectra Energy Partners paid $2.43 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.02, the P/S ratio is 5.56 and the P/B ratio is finally 1.25. The dividend yield amounts to 5.59%.

Stock Charts:

Long-Term Stock Price Chart of Spectra Energy Partners (SEP)
Long-Term Stock Price Chart of Spectra Energy Partners (SEP)
Long-Term Dividend Payment History of Spectra Energy Partners (SEP)
Long-Term Dividend Payment History of Spectra Energy Partners (SEP)
Long-Term Dividend Yield History of Spectra Energy Partners (SEP)
Long-Term Dividend Yield History of Spectra Energy Partners (SEP)


United Technologies -- Yield: 2.61%

United Technologies (NYSE:UTX) employs 197,000 people, generates revenue of $56,098.00 million and has a net income of $4,356.00 million. The current market capitalization stands at $84.81 billion.

United Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,613.00 million. The EBITDA margin is 17.14% (the operating margin is 13.00% and the net profit margin 7.76%).

Financials: The total debt represents 23.35% of United Technologies assets and the total debt in relation to the equity amounts to 74.66%. Due to the financial situation, a return on equity of 13.64% was realized by United Technologies.

Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, United Technologies paid $2.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.05, the P/S ratio is 1.51 and the P/B ratio is finally 3.10. The dividend yield amounts to 2.61%.

Stock Charts:

Long-Term Stock Price Chart of United Technologies (UTX)
Long-Term Stock Price Chart of United Technologies (UTX)
Long-Term Dividend Payment History of United Technologies (UTX)
Long-Term Dividend Payment History of United Technologies (UTX)
Long-Term Dividend Yield History of United Technologies (UTX)
Long-Term Dividend Yield History of United Technologies (UTX)


Union Pacific -- Yield: 2.48%

Union Pacific (NYSE:UNP) employs 43,655 people, generates revenue of $21,813.00 million and has a net income of $4,772.00 million. The current market capitalization stands at $73.34 billion.

Union Pacific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,064.00 million. The EBITDA margin is 46.14% (the operating margin is 36.91% and the net profit margin 21.88%).

Financials: The total debt represents 26.01% of Union Pacific assets and the total debt in relation to the equity amounts to 68.60%. Due to the financial situation, a return on equity of 22.78% was realized by Union Pacific.

Twelve trailing months earnings per share reached a value of $5.34. Last fiscal year, Union Pacific paid $2.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.46, the P/S ratio is 3.42 and the P/B ratio is finally 3.64. The dividend yield amounts to 2.48%.

Stock Charts:

Long-Term Stock Price Chart of Union Pacific (UNP)
Long-Term Stock Price Chart of Union Pacific (UNP)
Long-Term Dividend Payment History of Union Pacific (UNP)
Long-Term Dividend Payment History of Union Pacific (UNP)
Long-Term Dividend Yield History of Union Pacific (UNP)
Long-Term Dividend Yield History of Union Pacific (UNP)


Apple -- Yield: 2.34%

Apple (NASDAQ:AAPL) employs 110,000 people, generates revenue of $233,715.00 million and has a net income of $53,394.00 million. The current market capitalization stands at $538.38 billion.

Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $81,730.00 million. The EBITDA margin is 34.97% (the operating margin is 30.48% and the net profit margin 22.85%).

Financials: The total debt represents 22.19% of Apple assets and the total debt in relation to the equity amounts to 54.01%. Due to the financial situation, a return on equity of 46.25% was realized by Apple.

Twelve trailing months earnings per share reached a value of $8.99. Last fiscal year, Apple paid $1.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.92, the P/S ratio is 2.28 and the P/B ratio is finally 4.55. The dividend yield amounts to 2.34%.

Stock Charts:

Long-Term Stock Price Chart of Apple (AAPL)
Long-Term Stock Price Chart of Apple (AAPL)
Long-Term Dividend Payment History of Apple (AAPL)
Long-Term Dividend Payment History of Apple (AAPL)
Long-Term Dividend Yield History of Apple (AAPL)
Long-Term Dividend Yield History of Apple (AAPL)


Cardinal Health -- Yield: 2.30%

Cardinal Health (NYSE:CAH) employs 34,500 people, generates revenue of $102,531.00 million and has a net income of $1,212.00 million. The current market capitalization stands at $24.96 billion.

Cardinal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,913.00 million. The EBITDA margin is 2.84% (the operating margin is 2.05% and the net profit margin 1.18%).

Financials: The total debt represents 18.22% of Cardinal Health assets and the total debt in relation to the equity amounts to 87.79%. Due to the financial situation, a return on equity of 19.15% was realized by Cardinal Health.

Twelve trailing months earnings per share reached a value of $4.18. Last fiscal year, Cardinal Health paid $1.37 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.37, the P/S ratio is 0.25 and the P/B ratio is finally 4.09. The dividend yield amounts to 2.30%.

Stock Charts:

Long-Term Stock Price Chart of Cardinal Health (CAH)
Long-Term Stock Price Chart of Cardinal Health (CAH)
Long-Term Dividend Payment History of Cardinal Health (CAH)
Long-Term Dividend Payment History of Cardinal Health (CAH)
Long-Term Dividend Yield History of Cardinal Health (CAH)
Long-Term Dividend Yield History of Cardinal Health (CAH)


Gilead Sciences -- Yield: 2.25%

Gilead Sciences (NASDAQ:GILD) employs 8,000 people, generates revenue of $32,639.00 million and has a net income of $18,106.00 million. The current market capitalization stands at $110.86 billion.

Gilead Sciences’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,221.00 million. The EBITDA margin is 71.14% (the operating margin is 68.00% and the net profit margin 55.47%).

Financials: The total debt represents 42.65% of Gilead Sciences assets and the total debt in relation to the equity amounts to 119.01%. Due to the financial situation, a return on equity of 106.64% was realized by Gilead Sciences.

Twelve trailing months earnings per share reached a value of $11.69. Last fiscal year, Gilead Sciences paid $1.29 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.16, the P/S ratio is 3.41 and the P/B ratio is finally 6.41. The dividend yield amounts to 2.25%.

Stock Charts:

Long-Term Stock Price Chart of Gilead Sciences (GILD)
Long-Term Stock Price Chart of Gilead Sciences (GILD)
Long-Term Dividend Payment History of Gilead Sciences (GILD)
Long-Term Dividend Payment History of Gilead Sciences (GILD)
Long-Term Dividend Yield History of Gilead Sciences (GILD)
Long-Term Dividend Yield History of Gilead Sciences (GILD)


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