In bullish markets, you can make a better performance if you have high beta stocks in your portfolio. Today I would like to show you which of the services dividend stocks have the highest betas. Because of the huge amount of results, I needed to implement additional criteria. All stocks should have a low valuation measured by a forward P/E under 15 at earnings per share growth rates for the next five years of more than 10 percent yearly. Not enough, all stocks must have a market valuation over USD 10 billion.
Eighteen stocks fulfilled the above mentioned criteria. Sixteen have a current buy or better rating. The disadvantage is that the best results are low yielders. The highest dividend yield amounts to 2.81 percent. Low yields don’t mean low returns: The stocks generated a return between 8.94 percent and 76.75 percent since the beginning of the trading year.
Here are the highest yielding high beta services stocks:
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Norfolk Southern (NYSE:NSC) has a market capitalization of $23.11 billion. The company employs 30,943 people, generates revenue of $11,040.00 million and has a net income of $1,749.00 million. Norfolk Southern’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,040.00 million. The EBITDA margin is 36.59 percent (the operating margin is 28.24 percent and the net profit margin 15.84 percent).
Financial Analysis: The total debt represents 28.61 percent of Norfolk Southern’s assets and the total debt in relation to the equity amounts to 88.95 percent. Due to the financial situation, a return on equity of 17.69 percent was realized by Norfolk Southern. Twelve trailing months earnings per share reached a value of $5.42. Last fiscal year, Norfolk Southern paid $1.94 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.68, the P/S ratio is 2.09 and the P/B ratio is finally 2.38. The dividend yield amounts to 2.81 percent and the beta ratio has a value of 1.13.
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| Long-Term Stock Price Chart Of Norfolk Southern (NSC) |
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| Long-Term Dividend Payment History of Norfolk Southern (NSC) |
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| Long-Term Dividend Yield History of Norfolk Southern (NSC) |
Walgreen (NYSE:WAG) has a market capitalization of $46.96 billion. The company employs 171,000 people, generates revenue of $71,633.00 million and has a net income of $2,127.00 million. Walgreen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,672.00 million. The EBITDA margin is 6.52 percent (the operating margin is 4.84 percent and the net profit margin 2.97 percent).
Financial Analysis: The total debt represents 16.11 percent of Walgreen’s assets and the total debt in relation to the equity amounts to 29.57 percent. Due to the financial situation, a return on equity of 12.86 percent was realized by Walgreen. Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, Walgreen paid $0.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.87, the P/S ratio is 0.66 and the P/B ratio is finally 2.57. The dividend yield amounts to 2.54 percent and the beta ratio has a value of 1.10.
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| Long-Term Stock Price Chart Of Walgreen (WAG) |
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| Long-Term Dividend Payment History of Walgreen (WAG) |
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| Long-Term Dividend Yield History of Walgreen (WAG) |
Target (NYSE:TGT) has a market capitalization of $45.97 billion. The company employs 361,000 people, generates revenue of $73,301.00 million and has a net income of $2,999.00 million. Target’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,513.00 million. The EBITDA margin is 10.25 percent (the operating margin is 7.33 percent and the net profit margin 4.09 percent).
Financial Analysis: The total debt represents 37.86 percent of Target’s assets and the total debt in relation to the equity amounts to 110.13 percent. Due to the financial situation, a return on equity of 18.52 percent was realized by Target. Twelve trailing months earnings per share reached a value of $4.26. Last fiscal year, Target paid $1.38 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.84, the P/S ratio is 0.63 and the P/B ratio is finally 2.79. The dividend yield amounts to 2.40 percent and the beta ratio has a value of 0.89.
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| Long-Term Stock Price Chart Of Target (TGT) |
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| Long-Term Dividend Payment History of Target (TGT) |
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| Long-Term Dividend Yield History of Target (TGT) |
Cardinal Health (NYSE:CAH) has a market capitalization of $17.49 billion. The company employs 32,500 people, generates revenue of $101,093.00 million and has a net income of $335.00 million. Cardinal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,443.00 million. The EBITDA margin is 2.42 percent (the operating margin is 0.99 percent and the net profit margin 0.33 percent).
Financial Analysis: The total debt represents 14.93 percent of Cardinal Health’s assets and the total debt in relation to the equity amounts to 64.50 percent. Due to the financial situation, a return on equity of 5.48 percent was realized by Cardinal Health. Twelve trailing months earnings per share reached a value of $0.96. Last fiscal year, Cardinal Health paid $1.02 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 53.48, the P/S ratio is 0.17 and the P/B ratio is finally 2.93. The dividend yield amounts to 2.37 percent and the beta ratio has a value of 0.77.
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| Long-Term Stock Price Chart Of Cardinal Health (CAH) |
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| Long-Term Dividend Payment History of Cardinal Health (CAH) |
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| Long-Term Dividend Yield History of Cardinal Health (CAH) |
Take a closer look at the full list of high beta services dividend stocks. The average P/E ratio amounts to 16.85
and forward P/E ratio is 12.99. The dividend yield has a value of 1.81 percent.
Price to book ratio is 3.41 and price to sales ratio 1.43. The operating margin
amounts to 15.21 percent and the beta ratio is 1.12. Stocks from the list have
an average debt to equity ratio of 0.88.
Here is the full table with
some fundamentals (TTM):
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| High Beta Services Dividend Stocks (Click to enlarge) |
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Related Stock Ticker Symbols:
NSC, WAG, TGT,
CAH, CSX, TWC, M, JWN, TWX, UNP, MGA, CNI, CVS, VIAB, GPS, DAL, MCK, FDX
Selected Articles:
*I am long WAG. 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.
