For sure, nobody will gift you something on the market and there is definitely no free lunch. That’s a major rule I’ve learned from my years as a professional investor. But sometimes these are good companies with price to book ratios below the current market valuation. Theoretically, you get more values for each dollar but does it helps you if the corporate produces losses and decreases the book value year for year? I don’t think so. But the answer is always hidden.
Today I would like to present you dividend growth stocks that have hiked their payments uninterrupted over more than five years and have a price-to-book ratio below one at the same time. The financial industry is one of the biggest contributors to the screening results. Are there real values for investors?
Only 12 corporate stocks in total fulfilled these two criteria of which four yield over three percent and six of them have a current buy or better rating.
Here are my favorite stocks:
If you would like to receive more dividend stock ideas and
the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively,
you can follow me on Facebook or Twitter.
Nippon Telegraph & Telephone (NYSE:NTT) has a market capitalization of $61.64 billion. The company employs 227,168 people, generates revenue of $108.725 billion and has a net income of $7.314 billion. Nippon Telegraph & Telephone’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.883 billion. The EBITDA margin is 29.32 percent (the operating margin is 11.23 percent and the net profit margin 6.73 percent).
Financial Analysis: The total debt represents 20.70 percent of Nippon Telegraph & Telephone’s assets and the total debt in relation to the equity amounts to 48.90 percent. Due to the financial situation, a return on equity of 6.47 percent was realized by Nippon Telegraph & Telephone. Twelve trailing months earnings per share reached a value of $2.25. Last fiscal year, Nippon Telegraph & Telephone paid $0.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.74, the P/S ratio is 0.65 and the P/B ratio is finally 0.74. The dividend yield amounts to 3.38 percent and the beta ratio has a value of 0.32.
Long-Term Stock Price Chart Of Nippon Telegraph & Telephone (NTT) |
Long-Term Dividend Payment History of Nippon Telegraph & Telephone (NTT) |
Long-Term Dividend Yield History of Nippon Telegraph & Telephone (NTT) |
Telephone & Data Systems (NYSE:TDS) has a market capitalization of $3.19 billion. The company employs 12,100 people, generates revenue of $5.345 billion and has a net income of $122.65 million. Telephone & Data Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.038 billion. The EBITDA margin is 19.43 percent (the operating margin is 3.44 percent and the net profit margin 2.29 percent).
Financial Analysis: The total debt represents 19.98 percent of Telephone & Data Systems’s assets and the total debt in relation to the equity amounts to 42.94 percent. Due to the financial situation, a return on equity of 2.05 percent was realized by Telephone & Data Systems. Twelve trailing months earnings per share reached a value of $1.31. Last fiscal year, Telephone & Data Systems 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 22.47, the P/S ratio is 0.60 and the P/B ratio is finally 0.79. The dividend yield amounts to 1.73 percent and the beta ratio has a value of 0.87.
Long-Term Stock Price Chart Of Telephone & Data Systems (TDS) |
Long-Term Dividend Payment History of Telephone & Data Systems (TDS) |
Long-Term Dividend Yield History of Telephone & Data Systems (TDS) |
PartnerRe (NYSE:PRE) has a market capitalization of $4.98 billion. The company employs 1,217 people, generates revenue of $5.562 billion and has a net income of $1.124 billion. PartnerRe’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.346 billion. The EBITDA margin is 42.19 percent (the operating margin is 23.89 percent and the net profit margin 20.22 percent).
Financial Analysis: The total debt represents 3.57 percent of PartnerRe’s assets and the total debt in relation to the equity amounts to 11.84 percent. Due to the financial situation, a return on equity of 16.10 percent was realized by PartnerRe. Twelve trailing months earnings per share reached a value of $9.25. Last fiscal year, PartnerRe paid $2.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.96, the P/S ratio is 0.90 and the P/B ratio is finally 0.79. The dividend yield amounts to 2.78 percent and the beta ratio has a value of 0.55.
Long-Term Stock Price Chart Of PartnerRe (PRE) |
Long-Term Dividend Payment History of PartnerRe (PRE) |
Long-Term Dividend Yield History of PartnerRe (PRE) |
Eagle Bancorp Montana (NASDAQ:EBMT) has a market capitalization of $42.07 million. The company employs people, generates revenue of $14.80 million and has a net income of $1.97 million. Eagle Bancorp Montana’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.34 million. The EBITDA margin is 42.84 percent (the operating margin is 5.79 percent and the net profit margin 8.63 percent).
Financial Analysis: The total debt represents 1.01 percent of Eagle Bancorp Montana’s assets and the total debt in relation to the equity amounts to 10.47 percent. Due to the financial situation, a return on equity of 3.84 percent was realized by Eagle Bancorp Montana. Twelve trailing months earnings per share reached a value of $0.50. Last fiscal year, Eagle Bancorp Montana paid $0.29 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.55, the P/S ratio is 1.84 and the P/B ratio is finally 0.85. The dividend yield amounts to 2.69 percent and the beta ratio has a value of 0.46.
Long-Term Stock Price Chart Of Eagle Bancorp Montana (EBMT) |
Long-Term Dividend Payment History of Eagle Bancorp Montana (EBMT) |
Long-Term Dividend Yield History of Eagle Bancorp Montana (EBMT) |
Take a closer look at the full list of cheap dividend growth stocks below book value. The average P/E ratio amounts to 17.72
and forward P/E ratio is 14.01. The dividend yield has a value of 6.46 percent.
Price to book ratio is 3.13 and price to sales ratio 1.63. The operating margin
amounts to 17.39 percent and the beta ratio is 0.85. Stocks from the list have
an average debt to equity ratio of 1.37.
Here is the full table with
some fundamentals (TTM):
Dividend Growth Stock Below Book Value (Click to enlarge) |
Do you like this article? If yes, please support us and hit the button for a Facebook Like, make a tweet or post a comment in the Dividend Yield community! Thank you so much, we really appreciate it.
Related Stock Ticker Symbols:
DX, PBCT, LARK,
NTT, PRE, EBMT, THG, UNM, AIZ, RGA, TDS, AEL
Selected Articles:
*I am long MO. 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.