Dividend Challengers with low beta ratios originally
published at "long-term-investments.blogspot.com". Some investors are greedy
and tend to overlook risks. Others are too anxious and avoid to buy stocks in
a larger amount. They could “lose money” or they “can get quick rich” are two psychological
factors that investors prevent to make real money with investing. Both are not true and only an illusion.
If you invest money into the stock market and you
do it wisely and diversified, you should only count with a return close to the performance
of the broad market. I believe that a return of 8 percent is realistic and good
enough to beat inflation and grow wealth.
Today I like to screen a category of stocks with
a longer dividend growth history, the Dividend Challengers. Those stocks have achieved
to raise dividends over a period of more than five years in a row but less than
10 years. 167 companies have fulfilled these dividend growth criteria.
Below is a list of the safest stocks from the investment category "Challengers". They have a beta ratio of less than 0.5 as well as a market capitalization over USD 2.0 billion.
Below is a list of the safest stocks from the investment category "Challengers". They have a beta ratio of less than 0.5 as well as a market capitalization over USD 2.0 billion.
20 Dividend Challengers are on the list of the safest dividend income growth stocks and six of them have a high
yield; Nine are recommended to buy.
Here are my favorite stocks:
Here are my favorite stocks:
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Boardwalk Pipelines (NYSE:BWP) has a market capitalization of $6.65 billion. The company employs 1,200 people, generates revenue of $1.185 billion and has a net income of $306.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $726.10 million. The EBITDA margin is 61.27 percent (the operating margin is 39.98 percent and the net profit margin 25.82 percent).
Financial Analysis: The total debt represents 45.01 percent of the company’s assets and the total debt in relation to the equity amounts to 91.28 percent. Due to the financial situation, a return on equity of 7.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.28. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.58, the P/S ratio is 5.61 and the P/B ratio is finally 1.75. The dividend yield amounts to 7.39 percent and the beta ratio has a value of 0.24.
Kellogg (NYSE:K) has a market capitalization of $23.38 billion. The company employs 31,000 people, generates revenue of $14.197 billion and has a net income of $962.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.010 billion. The EBITDA margin is 14.16 percent (the operating margin is 11.00 percent and the net profit margin 6.78 percent).
Financial Analysis: The total debt represents 52.04 percent of the company’s assets and the total debt in relation to the equity amounts to 326.66 percent. Due to the financial situation, a return on equity of 45.60 percent was realized. Twelve trailing months earnings per share reached a value of $2.68. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.13, the P/S ratio is 1.66 and the P/B ratio is finally 9.65. The dividend yield amounts to 2.72 percent and the beta ratio has a value of 0.48.
General Mills (NYSE:GIS) has a market capitalization of $31.55 billion. The company employs 35,000 people, generates revenue of $16.657 billion and has a net income of $1.500 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.103 billion. The EBITDA margin is 18.63 percent (the operating margin is 15.38 percent and the net profit margin 9.01 percent).
Financial Analysis: The total debt represents 35.22 percent of the company’s assets and the total debt in relation to the equity amounts to 115.70 percent. Due to the financial situation, a return on equity of 24.51 percent was realized. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.00, the P/S ratio is 1.89 and the P/B ratio is finally 4.93. The dividend yield amounts to 2.71 percent and the beta ratio has a value of 0.18.
Take a closer look at the full list of the safest early stage dividend growth stocks. The average P/E ratio amounts to 21.35
and forward P/E ratio is 16.09. The dividend yield has a value of 3.75 percent.
Price to book ratio is 3.68 and price to sales ratio 3.38. The operating margin
amounts to 18.99 percent and the beta ratio is 0.37. Stocks from the list have
an average debt to equity ratio of 1.49.
Here is the full table with
some fundamentals (TTM):
 |
| 20 Safest Dividend Income Growth Stocks (Click to enlarge) |
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Related stock
ticker symbols:
BWP, APU, EPB,
LO, OKS, SEP, DUK, VZ, CMS, XEL, CHL, WES, GIS, K, CPB, AWK, KGC, KR, SLGN, GOLD
Selected Articles:
*I am long LO, GIS, K and
CPB. 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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