Large Capitalized Dividend Stocks With Low Debt To Equity Ratio Researched By Dividend Yield - Stock, Capital, Investment. Debt matters. The higher the debt ratio, the higher the possibility for a dividend cut. On the other hand: If a company has only low debt ratios, there should be some fender to pay stable dividends as well as space to increase dividends over the next years. Depending on the amount of cash and the operating cash flow (EBITDA), an unleveraged company could double its balance sheet in a very short time.
In order to find some opportunities, I screened the market by large capitalized stocks (market capitalization over USD 10 billion) with very low debt to equity ratios of less than 0.1. In addition, the dividend yield should have a nice value of at least two percent. Eleven companies fulfilled the mentioned criteria of which one stock is a high yield; four stocks are recommended to buy.
Here are my favorite stocks:
Paychex (NASDAQ:PAYX) has a market capitalization of $11.36 billion. The company employs 12,400 people, generates revenues of $2,084.30 million and has a net income of $515.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $875.10 million. Because of these figures, the EBITDA margin is 41.99 percent (operating margin 37.73 percent and the net profit margin finally 24.72 percent).
Financial Analysis:
The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 35.56 percent was realized. Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, the company paid $1.24 in form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 21.11, P/S ratio 5.56 and P/B ratio 7.74. Dividend Yield: 4.00 percent. The beta ratio is 0.84.
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| Long-Term Stock History Chart Of Paychex, Inc. (Click to enlarge) |
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| Long-Term Dividends History of Paychex, Inc. (PAYX) (Click to enlarge) |
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| Long-Term Dividend Yield History of Paychex, Inc. (NASDAQ: PAYX) (Click to enlarge) |
Public Storage (NYSE:PSA) has a market capitalization of $23.56 billion. The company employs 5,000 people, generates revenues of $1,752.10 million and has a net income of $834.04 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,165.28 million. Because of these figures, the EBITDA margin is 66.51 percent (operating margin 47.60 percent and the net profit margin finally 47.60 percent).
Financial Analysis:
The total debt representing 4.46 percent of the company’s assets and the total debt in relation to the equity amounts to 4.81 percent. Due to the financial situation, a return on equity of 10.70 percent was realized. Twelve trailing months earnings per share reached a value of $3.28. Last fiscal year, the company paid $3.65 in form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 41.98, P/S ratio 13.40 and P/B ratio 4.51. Dividend Yield: 3.21 percent. The beta ratio is 0.89.
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| Long-Term Stock History Chart Of Public Storage (Click to enlarge) |
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| Long-Term Dividends History of Public Storage (PSA) (Click to enlarge) |
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| Long-Term Dividend Yield History of Public Storage (NYSE: PSA) (Click to enlarge) |
Automatic Data Processing (NASDAQ:ADP) has a market capitalization of $27.00 billion. The company employs 51,000 people, generates revenues of $9,879.50 million and has a net income of $1,254.20 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,133.00 million. Because of these figures, the EBITDA margin is 21.59 percent (operating margin 19.54 percent and the net profit margin finally 12.69 percent).
Financial Analysis:
The total debt representing 0.10 percent of the company’s assets and the total debt in relation to the equity amounts to 0.57 percent. Due to the financial situation, a return on equity of 21.83 percent was realized. Twelve trailing months earnings per share reached a value of $2.70. Last fiscal year, the company paid $1.42 in form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 20.35, P/S ratio 2.75 and P/B ratio 4.53. Dividend Yield: 2.85 percent. The beta ratio is 0.70.
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| Long-Term Stock History Chart Of Automatic Data Processing (Click to enlarge) |
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| Long-Term Dividends History of Automatic Data Processing (ADP) (Click to enlarge) |
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| Long-Term Dividend Yield History of Automatic Data Processing (NASDAQ: ADP) (Click to enlarge) |
Accenture (NYSE:ACN) has a market capitalization of $44.61 billion. The company employs 244,000 people, generates revenues of $27,352.91 million and has a net income of $2,553.24 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,983.71 million. Because of these figures, the EBITDA margin is 14.56 percent (operating margin 12.69 percent and the net profit margin finally 9.33 percent).
Financial Analysis:
The total debt representing 0.03 percent of the company’s assets and the total debt in relation to the equity amounts to 0.11 percent. Due to the financial situation, a return on equity of 67.84 percent was realized. Twelve trailing months earnings per share reached a value of $3.77. 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 17.11, P/S ratio 1.66 and P/B ratio 11.49. Dividend Yield: 2.09 percent. The beta ratio is 0.81.
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| Long-Term Stock History Chart Of Accenture Plc (Click to enlarge) |
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| Long-Term Dividends History of Accenture Plc (ACN) (Click to enlarge) |
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| Long-Term Dividend Yield History of Accenture Plc (NYSE: ACN) (Click to enlarge) |
Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 20.85 and forward P/E ratio is 17.39. The dividend yield has a value of 3.14 percent. Price to book ratio is 4.67 and price to sales ratio 3.55. The operating margin amounts to 21.73 percent. The earnings per share is expected to grow 13.94 percent for the next year and 8.64 percent for the upcoming five years.
Here is the full table with some fundamentals (TTM):
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| Best Yielding Large Cap Dividends with Lowest Debt (Click to enlarge) |
Related stock ticker symbols:
CHT, PAYX, RUK, CAJ, PSA, ADP, LFC, MGA, TROW, ACN, CHRW
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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.