I often used my
static ratios like earnings multiples or book ratios to identify cheaply
valuated stocks. Today I like to change my recent criteria about cheapest
dividend paying large caps a little bit. I tighten the restriction
Price-To-Sales to a value of less than one and look at forward P/E’s. In the past,
I’ve looked at current earnings multiples.
These are the criteria for my cheapest dividend paying
large cap screen:
- Market Capitalization
over USD 10 billion
- Expected Earnings
per share growth over 10 percent for the next five years
- Forward P/E
ratio under 15
- P/S under 1 and
P/B ratio under 2
- Positive
Dividends
The number of my
results rose. Eighteen stocks fulfilled these criteria of which one pays a high
yield of more than five percent. Nearly all, fourteen in total, got a buy or
better rating by brokerage firms.
Here are my favorites:
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Marathon Petroleum (NYSE:MPC) has a market capitalization of $20.20 billion. The company employs 25,985 people, generates revenue of $82.492 billion and has a net income of $3.393 billion. Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.106 billion. The EBITDA margin is 7.40 percent (the operating margin is 6.48 percent and the net profit margin 4.11 percent).
Financial Analysis: The total debt represents 12.35 percent of Marathon Petroleum’s assets and the total debt in relation to the equity amounts to 28.74 percent. Due to the financial situation, a return on equity of 31.92 percent was realized by Marathon Petroleum. Twelve trailing months earnings per share reached a value of $9.84. Last fiscal year, Marathon Petroleum paid $1.20 in the form of dividends to shareholders. Earnings of MPC are expected to grow by 11 percent over the next five years yearly.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.56, the P/S ratio is 0.24 and the P/B ratio is finally 1.84. The dividend yield amounts to 2.60 percent and the beta ratio is not calculable.
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| Long-Term Stock Price Chart Of Marathon Petroleum (MPC) |
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| Long-Term Dividend Payment History of Marathon Petroleum (MPC) |
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| Long-Term Dividend Yield History of Marathon Petroleum (MPC) |
Prudential Financial (NYSE:PRU) has a market capitalization of $36.54 billion. The company employs 48,498 people, generates revenue of $84.815 billion and has a net income of $472.00 million. Prudential Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $978.00 million. The EBITDA margin is 1.15 percent (the operating margin is 0.80 percent and the net profit margin 0.56 percent).
Financial Analysis: The total debt represents 4.06 percent of Prudential Financial’s assets and the total debt in relation to the equity amounts to 74.63 percent. Due to the financial situation, a return on equity of 1.23 percent was realized by Prudential Financial. Twelve trailing months earnings per share reached a value of $-4.33. Last fiscal year, Prudential Financial paid $1.60 in the form of dividends to shareholders. Earnings of PRU are expected to grow by 13.23 percent over the next five years yearly.
Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.43 and the P/B ratio is finally 0.94. The dividend yield amounts to 2.04 percent and the beta ratio has a value of 2.49.
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| Long-Term Stock Price Chart Of Prudential Financial (PRU) |
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| Long-Term Dividend Payment History of Prudential Financial (PRU) |
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| Long-Term Dividend Yield History of Prudential Financial (PRU) |
WellPoint (NYSE:WLP) has a market capitalization of $24.61 billion. The company employs 43,500 people, generates revenue of $61.71 billion and has a net income of $2.655 billion. WellPoint’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.118 billion. The EBITDA margin is 8.29 percent (the operating margin is 6.26 percent and the net profit margin 4.30 percent).
Financial Analysis: The total debt represents 25.41 percent of WellPoint’s assets and the total debt in relation to the equity amounts to 62.93 percent. Due to the financial situation, a return on equity of 11.28 percent was realized by WellPoint. Twelve trailing months earnings per share reached a value of $9.19. Last fiscal year, WellPoint paid $1.15 in the form of dividends to shareholders. Earnings of WLP are expected to grow by 11.50 percent over the next five years yearly.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.96, the P/S ratio is 0.40 and the P/B ratio is finally 1.05. The dividend yield amounts to 1.82 percent and the beta ratio has a value of 0.81.
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| Long-Term Stock Price Chart Of WellPoint (WLP) |
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| Long-Term Dividend Payment History of WellPoint (WLP) |
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| Long-Term Dividend Yield History of WellPoint (WLP) |
CVS Caremark (NYSE:CVS) has a market capitalization of $71.90 billion. The company employs 203,000 people, generates revenue of $123.133 billion and has a net income of $3.882 billion. CVS Caremark’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.014 billion. The EBITDA margin is 7.32 percent (the operating margin is 5.59 percent and the net profit margin 3.15 percent).
Financial Analysis: The total debt represents 14.91 percent of CVS Caremark’s assets and the total debt in relation to the equity amounts to 26.07 percent. Due to the financial situation, a return on equity of 10.25 percent was realized by CVS Caremark. Twelve trailing months earnings per share reached a value of $3.38. Last fiscal year, CVS Caremark paid $0.65 in the form of dividends to shareholders. Earnings of CVS are expected to grow by 14.05 percent over the next five years yearly.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.34, the P/S ratio is 0.58 and the P/B ratio is finally 1.91. The dividend yield amounts to 1.54 percent and the beta ratio has a value of 0.77.
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| Long-Term Stock Price Chart Of CVS Caremark (CVS) |
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| Long-Term Dividend Payment History of CVS Caremark (CVS) |
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| Long-Term Dividend Yield History of CVS Caremark (CVS) |
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 16.77 while the forward P/E
ratio is 9.94. P/S ratio is 0.52 and P/B ratio 1.22. The expected earnings
growth for next year amounts to 16.01 and 22.13 percent for the upcoming five
years.
Here is the full table with
some fundamentals (TTM):
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| Cheap Dividend Paying Large Caps September (Click to enlarge) |
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Related stock ticker symbols:
HMC, MT, ORAN, PTR, SNP, HNP,
TI, MPC, PRU, MUR, CHA, WLP, CVS, BG, AET, LUV, TM, GGB
Selected Articles:
*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.