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The Best Dividend Stocks from the Business Service Industry To Buy Now

The Best Yielding Shares from the Business Services Sector Originally At “long-term-investments.blogspot.com”. An interesting industry is in my view the business services industry. Nearly 100 companies are related to the sector of which only 30 pay dividends to its shareholders. The total capitalization of the sector amounts to $7.25 trillion. The average dividend yield within the industry amounts to 25.4 and the yield reach 1.1 percent.

I like the industry because of the high profit margins, which corresponds at 10.20 percent and is one of the highest values in the sector. The most known stocks are Visa (V), MasterCard (MA) and Moody’s (MCO). Business service is often financial networked.

I made a screen of the best yielding stocks within the business services industry. In order to reduce the huge amount of 30 dividend paying business service stocks, I selected only those with double-digit earnings per share growth. As a result, sixteen stocks remain of which market analysts trust in eleven companies and recommend them to buy now.

Here are my favorite stocks:
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Western Union (NYSE:WU) has a market capitalization of $7.37 billion. The company employs 8,000 people, generates revenue of $5.491 billion and has a net income of $1.165 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.577 billion. The EBITDA margin is 28.73 percent (the operating margin is 25.22 percent and the net profit margin 21.22 percent).

Financial Analysis: The total debt represents 39.51 percent of the company’s assets and the total debt in relation to the equity amounts to 400.45 percent. Due to the financial situation, a return on equity of 157.75 percent was realized. Twelve trailing months earnings per share reached a value of $2.01. Last fiscal year, the company paid $0.31 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.13, the P/S ratio is 1.34 and the P/B ratio is finally 8.55. The dividend yield amounts to 4.05 percent and the beta ratio has a value of 1.44.


”Long-Term
Long-Term Stock History Chart Of Western Union (Click to enlarge)
”Long-Term
Long-Term Dividends History of Western Union (WU) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Western Union (NYSE: WU) (Click to enlarge)

Mercadolibre (NASDAQ:MELI) has a market capitalization of $3.37 billion. The company employs 1,633 people, generates revenue of $298.93 million and has a net income of $76.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $107.04 million. The EBITDA margin is 35.81 percent (the operating margin is 33.38 percent and the net profit margin 25.69 percent).

Financial Analysis: The total debt represents 0.08 percent of the company’s assets and the total debt in relation to the equity amounts to 0.13 percent. Due to the financial situation, a return on equity of 39.28 percent was realized. Twelve trailing months earnings per share reached a value of $2.11. Last fiscal year, the company paid $0.35 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.24, the P/S ratio is 11.27 and the P/B ratio is finally 15.37. The dividend yield amounts to 0.57 percent and the beta ratio has a value of 1.91.


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

Mastercard (NYSE:MA) has a market capitalization of $57.86 billion. The company employs 6,700 people, generates revenue of $6.714 billion and has a net income of $1.904 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.907 billion. The EBITDA margin is 43.30 percent (the operating margin is 40.41 percent and the 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 $17.26. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.92, the P/S ratio is 8.60 and the P/B ratio is finally 10.05. The dividend yield amounts to 0.26 percent and the beta ratio has a value of 0.90.


”Long-Term
Long-Term Stock History Chart Of Mastercard (Click to enlarge)
”Long-Term
Long-Term Dividends History of Mastercard (MA) (Click to enlarge)
”Long-Term
Long-Term Dividend Yield History of Mastercard (NYSE: MA) (Click to enlarge)


Take a closer look at the full table of the best business service dividend stocks. The average P/E ratio amounts to 24.424 and forward P/E ratio is 19.80. The dividend yield has a value of 2.50 percent. Price to book ratio is 6.30 and price to sales ratio 3.45. The operating margin amounts to 22.56 percent. The average stock has a debt to equity ratio of 0.84.

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

The Best Business Services Stocks (Click to enlarge)

Related stock ticker symbols:
CLCT, GA, WU, HCSG, NSP, FIS, RBA, IILG, VVI, MCO, V, HPY, MELI, MA, GPN, FICO

Selected Articles:

*I am long WU. 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.