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The Best Consumer Goods Stocks To Buy | 10 Cheap Dividend Stocks

The Best Yielding Consumer Goods Shares With Low P/E ratio Originally Published At “long-term-investments.blogspot.com”. I personally like consumer goods stocks because they have a deep relationship to the customer, directly and not indirect. My most favorite stocks produce daily goods like food or toothpaste maybe beauty or health products. They are well diversified and generate ideally more than 50 percent of their revenues outside the United States. I think about companies like Procter and Gamble or ColgatePalmolive. Other stocks are PepsiCo and Coca Cola. They all raised dividends over a very long period and helped to boost my dividend income. Let’s take a look into the sector and hunt for some bargains.

I screened the sector by the best yielding stocks with a low P/E ratio (value of less than 15). As result, ten stocks remain of which two are high-yields and seven are recommended to buy. The dominant industry in the screen is the auto manufacturing industry. The market sees a high profit slowdown. For the time being, earnings growth rate for those auto stocks are still attractive. But the time will change. Also remarkable is the high debt ratios of the car stocks. I personally don’t like those companies and wouldn’t recommend them to buy.

Here are my favorite stocks:
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Mattel (NASDAQ:MAT) has a market capitalization of $12.18 billion. The company employs 28,000 people, generates revenue of $6.266 billion and has a net income of $768.51 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.202 billion. The EBITDA margin is 19.19 percent (the operating margin is 16.61 percent and the net profit margin 12.26 percent).

Financial Analysis: The total debt represents 27.47 percent of the company’s assets and the total debt in relation to the equity amounts to 59.68 percent. Due to the financial situation, a return on equity of 29.00 percent was realized. Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, the company paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.73, the P/S ratio is 1.94 and the P/B ratio is finally 4.58. The dividend yield amounts to 3.49 percent and the beta ratio has a value of 0.92.


”Long-Term
Long-Term Stock History Chart Of Mattel (Click to enlarge)
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Long-Term Dividends History of Mattel (MAT) (Click to enlarge)
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Long-Term Dividend Yield History of Mattel (NASDAQ: MAT) (Click to enlarge)

Mondelez International (NASDAQ:MDLZ) has a market capitalization of $45.74 billion. The company employs 126,000 people, generates revenue of $54.365 billion and has a net income of $3.547 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.142 billion. The EBITDA margin is 14.98 percent (the operating margin is 12.25 percent and the net profit margin 6.52 percent).

Financial Analysis: The total debt represents 28.70 percent of the company’s assets and the total debt in relation to the equity amounts to 76.47 percent. Due to the financial situation, a return on equity of 9.93 percent was realized. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, the company paid $1.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.82, the P/S ratio is 0.84 and the P/B ratio is finally 1.29. The dividend yield amounts to 2.02 percent and the beta ratio has a value of 0.54.


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Long-Term Stock History Chart Of Mondelez International (Click to enlarge)
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Long-Term Dividends History of Mondelez International (MDLZ) (Click to enlarge)
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Long-Term Dividend Yield History of Mondelez International (NASDAQ: MDLZ) (Click to enlarge)

Bunge Limited (NYSE:BG) has a market capitalization of $10.52 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.60 percent and the net profit margin 1.53 percent).

Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.27, the P/S ratio is 0.18 and the P/B ratio is finally 0.95. The dividend yield amounts to 1.50 percent and the beta ratio has a value of 1.18.


”Long-Term
Long-Term Stock History Chart Of Bunge Limited (Click to enlarge)
”Long-Term
Long-Term Dividends History of Bunge Limited (BG) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Bunge Limited (NYSE: BG) (Click to enlarge)


Take a closer look at the full table of cheap consumer goods stocks. The average P/E ratio amounts to 12.15 and forward P/E ratio is 10.87. The dividend yield has a value of 2.73 percent. Price to book ratio is 1.75 and price to sales ratio 0.87. The operating margin amounts to 9.92 percent. The average stock has a debt to equity ratio of 1.25. The high leverage is explainable with Fords figure of 5.34. If we exclude this value, the average leverage amounts to 0.74.

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

Best Consumer Goods Stocks To Buy (Click to enlarge)

Related stock ticker symbols:
LO, CAJ, MAT, JCI, MDLZ, PCAR, F, HMC, TM, BG

Selected Articles:
  
I am long MAT, MDLZ and 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.