In order to find the best dividend paying large cap 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 15 percent. To get the best results in terms of low debt and high cash,
the debt to equity ratio should be under 0.5. Finally, the market capitalization
should be above USD 2 billion. Thirteen services stocks remained of which eleven
are currently recommended to buy.
Here are my favorite
stocks:
Paychex (NASDAQ:PAYX) has a market capitalization of $12.37 billion. The company employs 12,400 people, generates revenue of $2,229.80 million and has a net income of $548.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $951.70 million. The EBITDA margin is 42.68 percent (operating margin 38.29 percent and net profit margin 24.58 percent).
Financial Analysis: The total debt represents 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 35.35 percent was realized. Twelve trailing months earnings per share reached a value of $1.51. Last fiscal year, the company paid $1.27 in form of dividends to shareholders. The earnings per share are expected to grow by 10.40 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.60, P/S ratio 5.55 and P/B ratio 7.71. Dividend Yield: 3.75 percent. The beta ratio is 0.87.
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| Long-Term Stock History Chart Of Paychex (Click to enlarge) |
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| Long-Term Dividends History of Paychex (PAYX) (Click to enlarge) |
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| Long-Term Dividend Yield History of Paychex (NASDAQ: PAYX) (Click to enlarge) |
Union Pacific (NYSE:UNP) has a market capitalization of $58.82 billion. The company employs 45,797 people, generates revenue of $19,557.00 million and has a net income of $3,292.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,336.00 million. The EBITDA margin is 37.51 percent (operating margin 29.24 percent and net profit margin 16.83 percent).
Financial Analysis: The total debt represents 19.75 percent of the company’s assets and the total debt in relation to the equity amounts to 47.94 percent. Due to the financial situation, a return on equity of 18.12 percent was realized. Twelve trailing months earnings per share reached a value of $7.73. Last fiscal year, the company paid $1.93 in form of dividends to shareholders. The earnings per share are expected to grow by 13.88 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.06, P/S ratio 2.98 and P/B ratio 3.17. Dividend Yield: 1.95 percent. The beta ratio is 1.17.
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| Long-Term Stock History Chart Of Union Pacific (Click to enlarge) |
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| Long-Term Dividends History of Union Pacific (UNP) (Click to enlarge) |
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| Long-Term Dividend Yield History of Union Pacific (NYSE: UNP) (Click to enlarge) |
Walt Disney (NYSE:DIS) has a market capitalization of $92.51 billion. The company employs 156,000 people, generates revenue of $40,893.00 million and has a net income of $5,258.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,642.00 million. The EBITDA margin is 23.58 percent (operating margin 19.67 percent and net profit margin 12.86 percent).
Financial Analysis: The total debt represents 19.78 percent of the company’s assets and the total debt in relation to the equity amounts to 38.16 percent. Due to the financial situation, a return on equity of 12.84 percent was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The earnings per share are expected to grow by 13.01 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.04, P/S ratio 2.26 and P/B ratio 2.43. Dividend Yield: 1.16 percent. The beta ratio is 1.17.
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| Long-Term Stock History Chart Of Walt Disney (Click to enlarge) |
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| Long-Term Dividends History of Walt Disney (DIS) (Click to enlarge) |
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| Long-Term Dividend Yield History of Walt Disney (NYSE: DIS) (Click to enlarge) |
Visa (NYSE:V) has a market capitalization of $106.66 billion. The company employs 7,500 people, generates revenue of $9,188.00 million and has a net income of $3,646.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,744.00 million. The EBITDA margin is 62.52 percent (operating margin 59.38 percent and net profit margin 39.68 percent).
Financial Analysis: The total debt represents 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 14.19 percent was realized. Twelve trailing months earnings per share reached a value of $1.01. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The earnings per share are expected to grow by 19.68 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 129.84, P/S ratio 11.36 and P/B ratio 3.95. Dividend Yield: 0.68 percent. The beta ratio is 0.77.
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| Long-Term Stock History Chart Of Visa (Click to enlarge) |
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| Long-Term Dividends History of Visa (V) (Click to enlarge) |
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| Long-Term Dividend Yield History of Visa (NYSE: V) (Click to enlarge) |
Mastercard (NYSE:MA) has a market capitalization of $55.27 billion. The company employs 6,700 people, generates revenue of $6,714.00 million and has a net income of $1,904.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,907.00 million. The EBITDA margin is 43.30 percent (operating margin 40.41 percent and net profit margin 28.36 percent).
Financial Analysis: The total debt represents 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 34.43 percent was realized. Twelve trailing months earnings per share reached a value of $16.73. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The earnings per share are expected to grow by 19.05 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.47, P/S ratio 8.13 and P/B ratio 9.46. Dividend Yield: 0.27 percent. The beta ratio is 0.90.
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| Long-Term Stock History Chart Of Mastercard (Click to enlarge) |
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| Long-Term Dividends History of Mastercard (MA) (Click to enlarge) |
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| Long-Term Dividend Yield History of Mastercard (NYSE: MA) (Click to enlarge) |
Take a closer look at the full table of the best dividend paying services stocks. The average price to earnings
ratio (P/E ratio) amounts to 20.55 and forward P/E ratio is 16.68. The dividend
yield has a value of 1.50 percent. Price to book ratio is 5.09 and price to
sales ratio 4.57. The operating margin amounts to 26.54 percent and the beta
ratio is 1.37. The average stock has a debt to equity ratio of 0.23.
Here is the full table with
some fundamentals (TTM):
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| Best Dividend Paying Services Stocks (Click to enlarge) |
Related stock
ticker symbols:
PAYX, RBA, FMCN,
TIF, UNP, THI, MSM, DIS, BID, V, MELI, MA, WAB
Selected Articles:
* 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.