The Dow Jones Index is full of great growth stocks. Some grew well, others extraordinary good and others not so spectacularly. The latest category will be removed from the index in the long-run.
While many investors look solely at current yield as their gauge of whether a dividend stock is a smart buy, the better bet is to focus on long-term dividend growth. If a company can boost its payout consistently over the years, then it will eventually reward shareholders much more than a company that pays an unsustainably high dividend yield that shrinks in the near future.
With that goal in mind, let's look today at the four companies among the Dow Jones Industrials that have done the best job of boosting their dividend payouts over the past five years. Linked are the four best results. Three of them have a current buy or better rating.
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Intel (NASDAQ:INTC) has a market capitalization of $107.03 billion. The company employs 104,700 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).
Financial Analysis: The total debt represents 15.94 percent of the company’s assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized. Twelve trailing months earnings per share reached a value of $2.13. Last fiscal year, the company paid $0.87 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.16, the P/S ratio is 2.01 and the P/B ratio is finally 2.09. The dividend yield amounts to 4.16 percent and the beta ratio has a value of 1.02.
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| Long-Term Stock History Chart Of Intel (INTC) |
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| Long-Term Dividends History of Intel (INTC) |
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| Long-Term Dividend Yield History of Intel (INTC) |
Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $233.78 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.819 billion. The EBITDA margin is 33.67 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).
Financial Analysis: The total debt represents 9.85 percent of the company’s assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.82. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.31, the P/S ratio is 3.17 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.30 percent and the beta ratio has a value of 0.94.
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| Long-Term Stock History Chart Of Microsoft Corporation (MSFT) |
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| Long-Term Dividends History of Microsoft Corporation (MSFT) |
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| Long-Term Dividend Yield History of Microsoft Corporation (MSFT) |
Intl. Business Machines (NYSE:IBM) has a market capitalization of $235.26 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.393 billion. The EBITDA margin is 25.25 percent (the operating margin is 20.96 percent and the net profit margin 15.89 percent).
Financial Analysis: The total debt represents 27.91 percent of the company’s assets and the total debt in relation to the equity amounts to 176.40 percent. Due to the financial situation, a return on equity of 85.15 percent was realized. Twelve trailing months earnings per share reached a value of $14.41. Last fiscal year, the company paid $3.30 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.61, the P/S ratio is 2.25 and the P/B ratio is finally 12.47. The dividend yield amounts to 1.61 percent and the beta ratio has a value of 0.70.
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| Long-Term Stock History Chart Of Intl. Business Machines (IBM) |
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| Long-Term Dividends History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
Intl. Business Machines (NYSE:IBM) has a market capitalization of $235.26 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.393 billion. The EBITDA margin is 25.25 percent (the operating margin is 20.96 percent and the net profit margin 15.89 percent).
Financial Analysis: The total debt represents 27.91 percent of the company’s assets and the total debt in relation to the equity amounts to 176.40 percent. Due to the financial situation, a return on equity of 85.15 percent was realized. Twelve trailing months earnings per share reached a value of $14.41. Last fiscal year, the company paid $3.30 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.61, the P/S ratio is 2.25 and the P/B ratio is finally 12.47. The dividend yield amounts to 1.61 percent and the beta ratio has a value of 0.70.
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| Long-Term Stock History Chart Of Intl. Business Machines (IBM) |
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| Long-Term Dividends History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
UnitedHealth Group (NYSE:UNH) has a market capitalization of $56.20 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).
Financial Analysis: The total debt represents 20.71 percent of the company’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized. Twelve trailing months earnings per share reached a value of $5.28. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.38, the P/S ratio is 0.51 and the P/B ratio is finally 1.79. The dividend yield amounts to 1.55 percent and the beta ratio has a value of 0.87.
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| Long-Term Stock History Chart Of UnitedHealth Group (UNH) |
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| Long-Term Dividends History of UnitedHealth Group (UNH) |
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| Long-Term Dividend Yield History of UnitedHealth Group (UNH) |
Take a closer look at the full list of the fastest dividend growers of the Dow Jones. The average P/E ratio amounts to 13.44
and forward P/E ratio is 9.82. The dividend yield has a value of 2.15 percent.
Price to book ratio is 5.83 and price to sales ratio 1.99. The operating margin
amounts to 18.70 percent and the beta ratio is 0.84. Stocks from the list have
an average debt to equity ratio of 0.83.
Here is the full table with
some fundamentals (TTM):
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| 4 Fastest Growing Dividend Stocks From The Dow Jones |
Related stock
ticker symbols:
UNH, IBM,
MSFT, INTC
Selected Articles:
*I am long IBM and INTC. 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.