Each month, I make a screen of America’s cheapest dividend paying large capitalized stocks with highest expected growth for the upcoming fiscal year. I want to know what stocks are cheap and which opportunities are available. It’s hard to find real bargains at the market, especially when the market booms and price ratios go up.
My criteria for the cheap large cap screen are: A market capitalization of more than USD 10 billion with expected earnings per share growth of at least 10 percent for the next year. In addition, the P/E ratio should be less than 15 and the P/S and P/B ratio are both under two.
Twelve companies fulfilled these criteria of which eight are recommended to buy. Two of the results have a high yield.
Here are my favorites:
Energy Transfer Partners (NYSE:ETP) has a market capitalization of $14.63 billion. The company employs 13,847 people, generates revenue of $15.702 billion and has a net income of $1.757 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.986 billion. The EBITDA margin is 12.65 percent (the operating margin is 8.15 percent and the net profit margin 11.19 percent).
Financial Analysis:
The total debt represents 37.51 percent of the company’s assets and the total debt in relation to the equity amounts to 176.25 percent. Due to the financial situation, a return on equity of 16.82 percent was realized. Twelve trailing months earnings per share reached a value of $5.25. Last fiscal year, the company paid $3.58 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 9.17, the P/S ratio is 0.97 and the P/B ratio is finally 1.61. The dividend yield amounts to 7.42 percent and the beta ratio has a value of 0.64.
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| Long-Term Stock Price Chart Of Energy Transfer Partners (ETP) |
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| Long-Term Dividend Payment History of Energy Transfer Partners (ETP) |
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| Long-Term Dividend Yield History of Energy Transfer Partners (ETP) |
General Electric (NYSE:GE) has a market capitalization of $222.00 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $28.367 billion. The EBITDA margin is 19.25 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).
Financial Analysis: The total debt represents 60.42 percent of the company’s assets and the total debt in relation to the equity amounts to 336.56 percent. Due to the financial situation, a return on equity of 12.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.92, the P/S ratio is 1.50 and the P/B ratio is finally 1.81. The dividend yield amounts to 3.56 percent and the beta ratio has a value of 1.68.
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| Long-Term Stock Price Chart Of General Electric (GE) |
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| Long-Term Dividend Payment History of General Electric (GE) |
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| Long-Term Dividend Yield History of General Electric (GE) |
National-Oilwell (NYSE:NOV) has a market capitalization of $27.75 billion. The company employs 42,183 people, generates revenue of $20.041 billion and has a net income of $2.483 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.185 billion. The EBITDA margin is 20.88 percent (the operating margin is 17.75 percent and the net profit margin 12.39 percent).
Financial Analysis: The total debt represents 10.00 percent of the company’s assets and the total debt in relation to the equity amounts to 15.56 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $5.83. Last fiscal year, the company paid $0.49 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.15, the P/S ratio is 1.39 and the P/B ratio is finally 1.37. The dividend yield amounts to 0.80 percent and the beta ratio has a value of 1.67.
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| Long-Term Stock Price Chart Of National-Oilwell (NOV) |
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| Long-Term Dividend Payment History of National-Oilwell (NOV) |
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| Long-Term Dividend Yield History of National-Oilwell (NOV) |
Take a look at
the full list of cheap large capitalized stocks with highest expected earnings
per share growth. The average P/E ratio amounts to 10.69 while the forward P/E
ratio is 9.64. P/S ratio is 0.98 and P/B ratio 1.32. The expected earnings
growth for next year amounts to 14.48 and 5.23 percent for the upcoming five
years.
Here is the full table with
some fundamentals (TTM):
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| Cheap Large Cap Dividend Stocks (Click to enlarge) |
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Related stock ticker symbols:
ETP, NEM, FCX, AEG, GE, KSS,
PFG, BBD, MGA, MUR, PKX, NOV
Selected Articles:
*I am long GE. 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.