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12 Best Dividend Contenders With High Growth And Low Debt

Best Dividend Contenders Researched By “long-term-investments.blogspot.com. Dividend Growth Stocks create value in the long-run with rising dividends. A major group of stocks have a fantastic dividend growth history. But stocks with a very long history are also highly priced. Today, we like to focus on dividend stocks from the second circle, named Dividend Contenders. Such stocks increased dividends over a period of more than 10 years but less than 25. Exactly 176 Contenders are trade able.

In order to find the best dividend paying growth stocks from the investment class, I screened all companies with a positive dividend yield, great earnings per share growth of more than 10 percent and an operating margin over 20 percent. To get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.5. Twenty-four Contenders remained of which three stocks yielding over three percent and fifteen are currently recommended to buy.


Here are my favorite stocks:
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Tiffany & Co. (NYSE:TIF) has a market capitalization of $7.98 billion. The company employs 9,800 people, generates revenue of $3,642.94 million and has a net income of $439.19 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $858.55 million. The EBITDA margin is 23.57 percent (operating margin 19.45 percent and net profit margin 12.06 percent).

Financial Analysis: The total debt represents 17.12 percent of the company’s assets and the total debt in relation to the equity amounts to 30.32 percent. Due to the financial situation, a return on equity of 19.41 percent was realized. Twelve trailing months earnings per share reached a value of $3.44. Last fiscal year, the company paid $1.12 in form of dividends to shareholders. The company raised dividends over a period of 10 consecutive years and the earnings are expected to grow by 12.57 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.32, P/S ratio 2.18 and P/B ratio 3.38. Dividend Yield: 2.04 percent. The beta ratio is 1.81.


Long-Term Stock History Chart Of Tiffany & Co. (Click to enlarge)
Long-Term Dividends History of Tiffany & Co. (TIF) (Click to enlarge)
Long-Term Dividend Yield History of Tiffany & Co. (NYSE: TIF) (Click to enlarge)

Nu Skin Enterprises (NYSE:NUS) has a market capitalization of $2.64 billion. The company employs 3,420 people, generates revenue of $1,743.99 million and has a net income of $153.33 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $266.54 million. The EBITDA margin is 15.28 percent (operating margin 13.40 percent and net profit margin 8.79 percent). 


Financial Analysis: The total debt represents 13.78 percent of the company’s assets and the total debt in relation to the equity amounts to 23.78 percent. Due to the financial situation, a return on equity of 29.33 percent was realized. Twelve trailing months earnings per share reached a value of $3.16. Last fiscal year, the company paid $0.59 in form of dividends to shareholders. The company raised dividends over a period of 12 consecutive years and the earnings are expected to grow by 14.10 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.95, P/S ratio 1.48 and P/B ratio 4.69. Dividend Yield: 1.85 percent. The beta ratio is 1.25.


Long-Term Stock History Chart Of Nu Skin Enterprises (Click to enlarge)
Long-Term Dividends History of Nu Skin Enterprises (NUS) (Click to enlarge)
Long-Term Dividend Yield History of Nu Skin Enterprises (NYSE: NUS) (Click to enlarge)

QUALCOMM (NASDAQ:QCOM) has a market capitalization of $104.40 billion. The company employs 21,200 people, generates revenue of $14,957.00 million and has a net income of $4,555.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,035.00 million. The EBITDA margin is 40.35 percent (operating margin 33.26 percent and net profit margin 30.45 percent).


Financial Analysis: The total debt represents 3.20 percent of the company’s assets and the total debt in relation to the equity amounts to 4.32 percent. Due to the financial situation, a return on equity of 19.13 percent was realized. Twelve trailing months earnings per share reached a value of $2.97. Last fiscal year, the company paid $0.81 in form of dividends to shareholders. The company raised dividends over a period of 10 consecutive years and the earnings are expected to grow by 14.30 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.66, P/S ratio 7.05 and P/B ratio 3.86. Dividend Yield: 1.61 percent. The beta ratio is 0.99.


Long-Term Stock History Chart Of QUALCOMM (Click to enlarge)
Long-Term Dividends History of QUALCOMM (QCOM) (Click to enlarge)
Long-Term Dividend Yield History of QUALCOMM (NASDAQ: QCOM) (Click to enlarge)

Stryker Corporation (NYSE:SYK) has a market capitalization of $20.37 billion. The company employs 21,241 people, generates revenue of $8,307.00 million and has a net income of $1,345.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,167.00 million. The EBITDA margin is 26.09 percent (operating margin 20.30 percent and net profit margin 16.19 percent).


Financial Analysis: The total debt represents 14.25 percent of the company’s assets and the total debt in relation to the equity amounts to 23.01 percent. Due to the financial situation, a return on equity of 18.11 percent was realized. Twelve trailing months earnings per share reached a value of $3.65. Last fiscal year, the company paid $0.75 in form of dividends to shareholders. The company raised dividends over a period of 19 consecutive years and the earnings are expected to grow by 10.84 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.68, P/S ratio 2.48 and P/B ratio 2.69. Dividend Yield: 1.57 percent. The beta ratio is 0.88.


Long-Term Stock History Chart Of Stryker Corporation (Click to enlarge)
Long-Term Dividends History of Stryker Corporation (SYK) (Click to enlarge)
Long-Term Dividend Yield History of Stryker Corporation (NYSE: SYK) (Click to enlarge)


Take a closer look at the full table of the best growing Dividend Contenders with low debt. The average price to earnings ratio (P/E ratio) amounts to 19.88 and forward P/E ratio is 15.74. The dividend yield has a value of 1.99 percent. Price to book ratio is 4.00 and price to sales ratio 3.50. The operating margin amounts to 26.16 percent and the beta ratio is 1.01. The average stock has a debt to equity ratio of 0.20.

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

Best Dividend Contenders (Click to enlarge)

Related stock ticker symbols:
PBCT, MXIM, BHP, ADI, RBA, XLNX, OXY, TIF, NUS, FAST, CHD, MON, QCOM, NVO, SYK, CRR, SEIC, BRO, CNQ, FDS, JKHY, EOG, ROP

Selected Articles:

I am long NUS. 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.