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A major criterion which is often used by many investors is the price to earnings ratio. It tells you how many years do you need to get your investment back in corporate earnings. The lower the ratio, the cheaper your investment is. A P/E of 10 also means that the earnings yield is at 10 percent.
This month, I’ve created an article serial about high beta stocks. Those stocks are stronger correlated than the overall market and tend to outperform the broad S&P 500 in bullish times. They also tend to lose performance when the markets are going down.
Today I would like to screen high beta dividend stocks
from the industrial sector with a cheap forward P/E ratio. Only fifteen stocks from the sector fulfilled
these criteria and eleven of them are currently recommended to buy.
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ABB (NYSE:ABB) has a market capitalization of $51.60 billion. The company employs 146,100 people, generates revenue of $39.33 billion and has a net income of $2.808 billion. ABB’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.719 billion. The EBITDA margin is 14.54 percent (the operating margin is 10.32 percent and the net profit margin 7.14 percent).
Financial Analysis: The total debt represents 20.52 percent of ABB’s assets and the total debt in relation to the equity amounts to 59.57 percent. Due to the financial situation, a return on equity of 16.52 percent was realized by ABB. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, ABB paid $0.74 in the form of dividends to shareholders. Forward P/E: 13.68.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.44, the P/S ratio is 1.33 and the P/B ratio is finally 3.05. The dividend yield amounts to 3.20 percent and the beta ratio has a value of 1.45.
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| Long-Term Stock Price Chart Of ABB (ABB) |
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| Long-Term Dividend Payment History of ABB (ABB) |
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| Long-Term Dividend Yield History of ABB (ABB) |
General Electric (NYSE:GE) has a market capitalization of $246.96 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. General Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.339 billion. The EBITDA margin is 19.91 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 General Electric’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 by General Electric. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, General Electric paid $0.70 in the form of dividends to shareholders. Forward P/E: 13.35.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.28, the P/S ratio is 1.68 and the P/B ratio is finally 2.05. The dividend yield amounts to 3.13 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) |
Caterpillar (NYSE:CAT) has a market capitalization of $54.73 billion. The company employs 122,402 people, generates revenue of $65.875 billion and has a net income of $5.708 billion. Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.167 billion. The EBITDA margin is 18.47 percent (the operating margin is 13.01 percent and the net profit margin 8.66 percent).
Financial Analysis: The total debt represents 44.92 percent of Caterpillar’s assets and the total debt in relation to the equity amounts to 228.97 percent. Due to the financial situation, a return on equity of 37.36 percent was realized by Caterpillar. Twelve trailing months earnings per share reached a value of $6.34. Last fiscal year, Caterpillar paid $2.02 in the form of dividends to shareholders. Forward P/E: 11.50.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.33, the P/S ratio is 0.83 and the P/B ratio is finally 3.16. The dividend yield amounts to 2.84 percent and the beta ratio has a value of 1.90.
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| Long-Term Stock Price Chart Of Caterpillar (CAT) |
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| Long-Term Dividend Payment History of Caterpillar (CAT) |
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| Long-Term Dividend Yield History of Caterpillar (CAT) |
Take a closer look at the full list of cheap industrial high beta dividend stocks. The average P/E ratio amounts to 17.39
and forward P/E ratio is 13.05. The dividend yield has a value of 2.26 percent.
Price to book ratio is 3.30 and price to sales ratio 1.22. The operating margin
amounts to 11.05 percent and the beta ratio is 1.55. Stocks from the list have
an average debt to equity ratio of 1.06.
Here is the full table with
some fundamentals (TTM):
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| Cheap High Beta Industrial Dividend Stocks (Click to enlarge) |
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Related Stock Ticker Symbols:
ABB, GE, CAT,
SI, GD, TS, NOC, DE, SWK, CMI, BA, PH, DOV, IR, FLR
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.