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19 Cheap Dividend Aristocrats

Dividend Aristocrats with low forward Price-to-earnings originally published at long-term-investments.blogspot.com. Everybody talks about Dividend Aristocrats when discussing the best dividend growth stocks. Those companies have raised their dividend payments over a period of more than 25 years in a row and being selected by the credit rating agency Standard & Poor’s. The index has only 54 constituents. Normally, Dividend Aristocrats are highly valuated because of their high quality and low risk business models.

If you pay a big premium on your asset, you will not get a good return in the end. It’s very simple. All you need to do is to scout for attractive bargains at the capital market.

Today I would like to screen the Dividend Aristocrats Index by the cheapest companies in terms of forward P/E. Only 19 stocks have a current forward P/E ratio below 15. Some of them have bigger amounts of debt and others are slow growing. However, nearly 70 percent of the results have a current buy or better rating by brokerage firms.

All members of the Dividend Aristocrats Index generated a positive year-to-date performance. It’s also a sign for the quality of the index. In average, they have a stock price performance of 16.03 percent. 1.02 percent points better than the broader S&P 500.

Here are the 3 cheapest results in terms of forward P/E:
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AFLAC Incorporated (NYSE:AFL) has a market capitalization of $27.05 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).

Financial Analysis: The total debt represents 3.32 percent of the company’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized. Twelve trailing months earnings per share reached a value of $6.33. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders. Forward Price-To-Earnings: 8.91.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.17, the P/S ratio is 1.07 and the P/B ratio is finally 1.70. The dividend yield amounts to 2.41 percent and the beta ratio has a value of 1.91.


Long-Term Stock Price Chart Of AFLAC Incorporated (AFL)
Long-Term Dividend Payment History of AFLAC Incorporated (AFL)
Long-Term Dividend Yield History of AFLAC Incorporated (AFL)

Chevron Corporation (NYSE:CVX) has a market capitalization of $235.08 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).

Financial Analysis: The total debt represents 5.23 percent of the company’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized. Twelve trailing months earnings per share reached a value of $13.23. Last fiscal year, the company paid $3.51 in the form of dividends to shareholders. Forward Price-To-Earnings: 9.74.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.16, the P/S ratio is 0.97 and the P/B ratio is finally 1.73. The dividend yield amounts to 3.30 percent and the beta ratio has a value of 0.80.


Long-Term Stock Price Chart Of Chevron Corporation (CVX)
Long-Term Dividend Payment History of Chevron Corporation (CVX)
Long-Term Dividend Yield History of Chevron Corporation (CVX)

Exxon Mobil (NYSE:XOM) has a market capitalization of $410.18 billion. The company employs 76,900 people, generates revenue of $467.285 billion and has a net income of $47.681 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $79.931 billion. The EBITDA margin is 17.11 percent (the operating margin is 13.71 percent and the net profit margin 10.20 percent).

Financial Analysis: The total debt represents 3.47 percent of the company’s assets and the total debt in relation to the equity amounts to 6.98 percent. Due to the financial situation, a return on equity of 28.03 percent was realized. Twelve trailing months earnings per share reached a value of $9.81. Last fiscal year, the company paid $2.18 in the form of dividends to shareholders. Forward Price-To-Earnings: 11.24.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.41, the P/S ratio is 0.88 and the P/B ratio is finally 2.50. The dividend yield amounts to 2.73 percent and the beta ratio has a value of 0.50.


Long-Term Stock Price Chart Of Exxon Mobil (XOM)
Long-Term Dividend Payment History of Exxon Mobil (XOM)
Long-Term Dividend Yield History of Exxon Mobil (XOM)

Take a closer look at the full list of the cheapest Dividend Aristocrats. The average P/E ratio amounts to 17.52 and forward P/E ratio is 12.62. The dividend yield has a value of 2.47 percent. Price to book ratio is 3.59 and price to sales ratio 1.56. The operating margin amounts to 15.64 percent and the beta ratio is 0.93. Stocks from the list have an average debt to equity ratio of 0.74.

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

Cheapest Dividend Aristocrats (Click to enlarge)

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Related stock ticker symbols:
T, ABBV, NUE, CVX, EMR, XOM, CAH, SWK, WMT, WAG, TGT, AFL, ADM, MDT, CB, DOV, PNR, BEN, BCR

Selected Articles:


*I am long WMT, WAG, ADM, MDT. 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.