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10 Most Profitable Dividend Challengers To Consider

Dividend Challengers With Highest Return On Investment Researched By Dividend Yield - Stock, Capital, Investment. Dividend Challengers are stocks with a history of rising dividend of more than 5 years in a row but less than 10 years. Stocks with such a long dividend growth history have a high reliability but which one are currently the best in terms of profitability?

I screened the 189 Dividend Challengers by the highest return on investment (ROI) and observed only the stocks with the highest figures. Ten companies have currently the highest ROI of more than 25 percent.

Here are my favorite stocks:
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Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $246.48 billion. The company employs 90,000 people, generates revenues of $69,943.00 million and has a net income of $23,150.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,927.00 million. Because of these figures, the EBITDA margin is 42.79 percent (operating margin 38.83 percent and the net profit margin finally 33.10 percent). 


Financial Analysis: The total debt representing 10.97 percent of the company’s assets and the total debt in relation to the equity amounts to 20.88 percent. Due to the financial situation, a return on equity of 44.84 percent was realized. Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, the company paid $0.64 in form of dividends to shareholders. The company raised dividends over a period of 7 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.67, P/S ratio 3.50 and P/B ratio 4.27. Dividend Yield: 2.75 percent. The beta ratio is 1.01.


Long-Term Stock History Chart Of Microsoft Corpora... (Click to enlarge)
Long-Term Dividends History of Microsoft Corpora... (MSFT) (Click to enlarge)
Long-Term Dividend Yield History of Microsoft Corpora... (NASDAQ: MSFT) (Click to enlarge)


Accenture (NYSE:ACN) has a market capitalization of $40.00 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. The company raised dividends over a period of 6 consecutive years.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.34, P/S ratio 1.47 and P/B ratio 10.14. Dividend Yield: 2.37 percent. The beta ratio is 0.84.


Long-Term Stock History Chart Of Accenture Plc (Click to enlarge)
Long-Term Dividends History of Accenture Plc (ACN) (Click to enlarge)
Long-Term Dividend Yield History of Accenture Plc (NYSE: ACN) (Click to enlarge)


Cummins (NYSE:CMI) has a market capitalization of $17.90 billion. The company employs 43,900 people, generates revenues of $18,048.00 million and has a net income of $1,946.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,586.00 million. Because of these figures, the EBITDA margin is 14.33 percent (operating margin 14.85 percent and the net profit margin finally 10.78 percent).


Financial Analysis: The total debt representing 5.88 percent of the company’s assets and the total debt in relation to the equity amounts to 12.49 percent. Due to the financial situation, a return on equity of 36.37 percent was realized. Twelve trailing months earnings per share reached a value of $10.19. Last fiscal year, the company paid $1.32 in form of dividends to shareholders. The company raised dividends over a period of 6 consecutive years. 


Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.14, P/S ratio 1.00 and P/B ratio 3.27. Dividend Yield: 1.71 percent. The beta ratio is 2.00.


Long-Term Stock History Chart Of Cummins Inc. (Click to enlarge)
Long-Term Dividends History of Cummins Inc. (CMI) (Click to enlarge)
Long-Term Dividend Yield History of Cummins Inc. (NYSE: CMI) (Click to enlarge)


Take a closer look at the full table of the most profitable Dividend Challengers. The average price to earnings ratio (P/E ratio) amounts to 15.29 and forward P/E ratio is 12.92. The dividend yield has a value of 2.77 percent. Price to book ratio is 10.44 and price to sales ratio 3.40. The operating margin amounts to 30.77 percent and the beta ratio is 0.99. The average stock has a ROI of 45.66 percent.

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

Most Profitable Dividend Challengers (Click to enlarge)
Related stock ticker symbols:
AHGP, LO, STRA, MSFT, ACN, DNB, CMI, EPHC, LSTR, TPL

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I am long LO. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.