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The Cheapest Dividend Contenders With Lowest PEG-Ratio

Dividend Contender With Cheap Price-Earnings To Growth Ratio Researched by Dividend Yield - Stock, Capital, Investment. Dividend Contenders are stocks that have raised their distributions for at least 10 years but not more than 24 years. They have a long history of dividend payments and created a lot of trust to shareholders. Out there are 146 stocks with such an impressive development but not all of them are still growing and expensive in terms of growth. I screened all Dividend Contenders by stocks with a low price-earnings to growth ratio (PEG), stocks that have a ratio of less than one. Twelve stocks fulfilled my criteria of which one have a yield above five percent. Ten have a buy or better recommendation.

Here are my favorite stocks:
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Norfolk Southern (NYSE:NSC) has a market capitalization of $23.97 billion. The company employs 28,559 people, generates revenues of $11,172.00 million and has a net income of $1,916.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,075.00 million. Because of these figures, the EBITDA margin is 36.48 percent (operating margin 28.76 percent and the net profit margin finally 17.15 percent).


Financial Analysis:
The total debt representing 26.42 percent of the company’s assets and the total debt in relation to the equity amounts to 76.08 percent. Due to the financial situation, a return on equity of 18.53 percent was realized. Twelve trailing months earnings per share reached a value of $5.44. Last fiscal year, the company paid $1.66 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 13.34, Price/Sales 2.17 and Price/Book ratio 2.40. Dividend Yield: 2.61 percent. The beta ratio is 1.09.


Long-Term Stock History Chart Of Norfolk Southern Corp. (Click to enlarge)


Long-Term Dividends History of Norfolk Southern Corp. (NSC) (Click to enlarge)


Long-Term Dividend Yield History of Norfolk Southern Corp. (NYSE: NSC) (Click to enlarge)


Bunge Limited (NYSE:BG) has a market capitalization of $8.69 billion. The company employs 32,000 people, generates revenues of $45,707.00 million and has a net income of $2,361.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,720.00 million. Because of these figures, the EBITDA margin is 8.14 percent (operating margin 6.67 percent and the net profit margin finally 5.17 percent).


Financial Analysis:
The total debt representing 18.77 percent of the company’s assets and the total debt in relation to the equity amounts to 39.94 percent. Due to the financial situation, a return on equity of 23.49 percent was realized. Twelve trailing months earnings per share reached a value of $6.30. Last fiscal year, the company paid $0.90 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 9.48, Price/Sales 0.19 and Price/Book ratio 0.74. Dividend Yield: 1.72 percent. The beta ratio is 1.13.


Long-Term Stock History Chart Of Bunge Limited (Click to enlarge)


Long-Term Dividends History of Bunge Limited (BG) (Click to enlarge)


Long-Term Dividend Yield History of Bunge Limited (NYSE: BG) (Click to enlarge)


Caterpillar (NYSE:CAT) has a market capitalization of $73.74 billion. The company employs 125,099 people, generates revenues of $60,138.00 million and has a net income of $5,005.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,680.00 million. Because of these figures, the EBITDA margin is 16.10 percent (operating margin 11.89 percent and the net profit margin finally 8.32 percent).


Financial Analysis:
The total debt representing 42.47 percent of the company’s assets and the total debt in relation to the equity amounts to 268.51 percent. Due to the financial situation, a return on equity of 41.57 percent was realized. Twelve trailing months earnings per share reached a value of $7.40. Last fiscal year, the company paid $1.82 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.41, Price/Sales 1.22 and Price/Book ratio 5.71. Dividend Yield: 1.62 percent. The beta ratio is 1.88.


Long-Term Stock History Chart Of Caterpillar Inc. (Click to enlarge)


Long-Term Dividends History of Caterpillar Inc. (CAT) (Click to enlarge)


Long-Term Dividend Yield History of Caterpillar Inc. (NYSE: CAT) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 18.35 and forward P/E ratio is 13.26. The dividend yield has a value of 1.20 percent. Price to book ratio is 2.54 and price to sales ratio 1.78. The operating margin amounts to 13.88 percent.

Here is the full table with some fundamentals (TTM):

The Cheapest Dividend Contenders With Lowest PEG-Ratio (Click to enlarge)

Related stock ticker symbols:
ARLP, MXIM, NSC, RBCAA, BG, CAT, AOS, ANDE, CRR, FELE, CNQ, EOG

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* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.