Let's start the first post for this year with our regular best dividend paying stock list.
The best equity investment is a stock with good fundamentals and a convincing equity story. If this stock is also attractive valuated it could promise good returns. I’ve tried to summarize some significant fundamentals in order to screen the whole capital markets by interesting dividend stocks.
Every month I create a quick dividend list (from low-yield to high-yield paying stocks) of stocks with interesting performance and valuation figures. Stocks from that list are mid- and large caps (market capitalization of more than USD 1 billion) with double-digit long-term earnings growth rates. The companies are traded at AMEX, NYSE, NASDAQ and part of the Dow Jones, S&P 500 or Nasdaq Composite. The list is selected by the following criteria and sorted by dividend yield.
Market capitalization: > 1 Billion
Price/Earnings Ratio: > 0 < 100
Dividend Yield: > 3 < 20
Return on investment: > 10 < 100
Operating Margin: > 10 < 100
10 Year Revenue Growth: > 8 < 200
10 Year EPS Growth: > 10 < 100
Here are my most promising stocks from the list:
Southern Copper (NYSE:SCCO) has a market capitalization of $32.01 billion. The company employs 12,145 people, generates revenue of $6.818 billion and has a net income of $2.344 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.913 billion. The EBITDA margin is 57.39 percent (the operating margin is 53.17 percent and the net profit margin 34.38 percent).
Financial Analysis: The total debt represents 34.05 percent of the company’s assets and the total debt in relation to the equity amounts to 68.38 percent. Due to the financial situation, a return on equity of 59.11 percent was realized. Twelve trailing months earnings per share reached a value of $2.28. Last fiscal year, the company paid $2.43 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.58, the P/S ratio is 4.62 and the P/B ratio is finally 7.89. The dividend yield amounts to 9.95 percent and the beta ratio has a value of 1.56.
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| Long-Term Stock History Chart Of Southern Copper (SCCO) |
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| Long-Term Dividends History of Southern Copper (SCCO) |
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| Long-Term Dividend Yield History of Southern Copper (SCCO) |
MFA Financial (NYSE:MFA) has a market capitalization of $2.90 billion. The company employs 35 people, generates revenue of $496.75 million and has a net income of $316.41 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $308.25 million. The EBITDA margin is 62.05 percent (the operating margin is 62.12 percent and the net profit margin 63.70 percent).
Financial Analysis: The total debt represents 73.94 percent of the company’s assets and the total debt in relation to the equity amounts to 347.86 percent. Due to the financial situation, a return on equity of 12.91 percent was realized. Twelve trailing months earnings per share reached a value of $0.84. 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 9.69, the P/S ratio is 5.81 and the P/B ratio is finally 1.15. The dividend yield amounts to 9.91 percent and the beta ratio has a value of 0.33.
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| Long-Term Stock History Chart Of MFA Financial (MFA) |
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| Long-Term Dividends History of MFA Financial (MFA) |
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| Long-Term Dividend Yield History of MFA Financial (MFA) |
Alliance Resource Partners (NASDAQ:ARLP) has a market capitalization of $2.14 billion. The company employs 3,832 people, generates revenue of $1,843.56 million and has a net income of $389.35 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $573.26 million. The EBITDA margin is 31.10 percent (the operating margin is 22.40 percent and the net profit margin 21.12 percent).
Financial Analysis: The total debt represents 40.84 percent of the company’s assets and the total debt in relation to the equity amounts to 113.37 percent. Due to the financial situation, a return on equity of 36.30 percent was realized. Twelve trailing months earnings per share reached a value of $6.19. Last fiscal year, the company paid $3.63 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.38, the P/S ratio is 1.15 and the P/B ratio is finally 2.34. The dividend yield amounts to 7.55 percent and the beta ratio has a value of 0.78.
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| Long-Term Stock History Chart Of Alliance Resource Partners (ARLP) |
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| Long-Term Dividends History of Alliance Resource Partners (ARLP) |
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| Long-Term Dividend Yield History of Alliance Resource Partners (ARLP) |
Take a closer
look at the full table of the best dividend paying stocks. The average price to earnings ratio (P/E ratio) amounts
to 14.57 while the dividend yield has a value of 4.71 percent. Price to book
ratio is 3.55 and price to sales ratio 2.83. The operating margin amounts to 26.58
percent. The earnings per share grew by 19.50 yearly over the past decade and
sales by 16.66 percent.
Here is the full list of the best dividend paying stocks:
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| Best Dividend Paying Stocks (Click to enlarge) |
Related Stock Ticker Symbols:
SCCO, MFA, ARLP,
SID, HEP, YZC, VALE, PBR, STX, MBT, MMP, GRMN, MCHP, STO, HLF, QSII, NVS, CHL, TLK,
MSFT, ABV, CVX, BBL, PEP, LLTC, HRS, KSS, GD
Selected Articles:
* I am long PEP, HLF. 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.
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