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12 Consumer Goods Stocks With Big Dividend Potential

Consumer stocks with low debt and dividend payout ratios to boost current yields originally published at long-term-investments.blogspot.com. You know that I love stocks form the consumer goods sector because there are so many companies with a high quality and low cyclic business model. Around 3/4 of my investments have a deep relationship to the consumer sector.

Today I would like to finish my monthly screen about low debt stocks with small dividend payouts. I’ve tried to compile the top picks from the major capital sectors with high potential of a growing dividend.

Here you can find the links to the articles:

The consumer sector offers 12 stocks with a low dividend payout of less than 20 percent combined with a debt to equity ratio below 0.2. Nine of them have a current buy or better rating by brokerage firms.

I own none of the mentioned stocks. This could be reasonable to the fact that most of the results have a very small market capitalization. I do love big companies with strong cash flows and high market entry barriers but those have also high debt burdens.

Here are the biggest results:
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Ralph Lauren (NYSE:RL) has a market capitalization of $14.36 billion. The company employs 14,000 people, generates revenue of $6.944 billion and has a net income of $750.00 million. Ralph Lauren’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.389 billion. The EBITDA margin is 20.01 percent (the operating margin is 16.22 percent and the net profit margin 10.80 percent).

Financial Analysis: The total debt represents 5.63 percent of Ralph Lauren’s assets and the total debt in relation to the equity amounts to 8.06 percent. Due to the financial situation, a return on equity of 20.17 percent was realized by Ralph Lauren. Twelve trailing months earnings per share reached a value of $7.91. Last fiscal year, Ralph Lauren paid $1.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.07, the P/S ratio is 2.10 and the P/B ratio is finally 3.87. The dividend yield amounts to 0.99 percent and the beta ratio has a value of 1.46.

Long-Term Stock Price Chart Of Ralph Lauren (RL)
Long-Term Dividend Payment History of Ralph Lauren (RL)
Long-Term Dividend Yield History of Ralph Lauren (RL)

Fortune Brands Home & Security (NYSE:FBHS) has a market capitalization of $6.39 billion. The company employs 16,100 people, generates revenue of $3.591 billion and has a net income of $119.70 million. Fortune Brands Home & Security’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $283.30 million. The EBITDA margin is 7.89 percent (the operating margin is 4.50 percent and the net profit margin 3.33 percent).

Financial Analysis: The total debt represents 8.40 percent of Fortune Brands Home & Security’s assets and the total debt in relation to the equity amounts to 13.67 percent. Due to the financial situation, a return on equity of 5.27 percent was realized by Fortune Brands Home & Security. Twelve trailing months earnings per share reached a value of $0.94. Last fiscal year, Fortune Brands Home & Security paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.93, the P/S ratio is 1.85 and the P/B ratio is finally 2.76. The dividend yield amounts to 1.00 percent and the beta ratio is not calulable.

Long-Term Stock Price Chart Of Fortune Brands Home & Security (FBHS)
Long-Term Dividend Payment History of Fortune Brands Home & Security (FBHS)
Long-Term Dividend Yield History of Fortune Brands Home & Security (FBHS)

Gildan Activewear (NYSE:GIL) has a market capitalization of $5.57 billion. The company employs 30,000 people, generates revenue of $1.948 billion and has a net income of $148.46 million. Gildan Activewear’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $267.72 million. The EBITDA margin is 13.74 percent (the operating margin is 7.96 percent and the net profit margin 7.62 percent).

Financial Analysis: The total debt represents 9.54 percent of Gildan Activewear’s assets and the total debt in relation to the equity amounts to 12.69 percent. Due to the financial situation, a return on equity of 10.85 percent was realized by Gildan Activewear. Twelve trailing months earnings per share reached a value of $2.55. Last fiscal year, Gildan Activewear paid $0.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.91, the P/S ratio is 2.89 and the P/B ratio is finally 3.95. The dividend yield amounts to 0.78 percent and the beta ratio has a value of 1.82.

Long-Term Stock Price Chart Of Gildan Activewear (GIL)
Long-Term Dividend Payment History of Gildan Activewear (GIL)
Long-Term Dividend Yield History of Gildan Activewear (GIL)

Carter's (NYSE:CRI) has a market capitalization of $4.34 billion. The company employs 3,498 people, generates revenue of $2.381 billion and has a net income of $161.15 million. Carter's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $314.54 million. The EBITDA margin is 13.21 percent (the operating margin is 11.00 percent and the net profit margin 6.77 percent).

Financial Analysis: The total debt represents 11.41 percent of Carter's assets and the total debt in relation to the equity amounts to 18.87 percent. Due to the financial situation, a return on equity of 17.76 percent was realized by Carter's. Twelve trailing months earnings per share reached a value of $2.82. Last fiscal year, Carter's paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.00, the P/S ratio is 1.84 and the P/B ratio is finally 4.43. The dividend yield amounts to 0.87 percent and the beta ratio has a value of 0.95.

Long-Term Stock Price Chart Of Carter's (CRI)
Long-Term Dividend Payment History of Carter's (CRI)
Long-Term Dividend Yield History of Carter's (CRI)

Take a closer look at the full list of consumer goods stocks with low debt and dividend payouts to boost future dividends. The average P/E ratio amounts to 19.13 and forward P/E ratio is 16.79. The dividend yield has a value of 0.90 percent. Price to book ratio is 2.77 and price to sales ratio 1.30. The operating margin amounts to 10.14 percent and the beta ratio is 1.56. Stocks from the list have an average debt to equity ratio of 0.08.

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

Consumer Goods Stocks With Huge Potenital
To Boost Dividends (Click to enlarge)

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Related Stock Ticker Symbols:
IPAR, IBA, THO, SAFM, FBHS, RL, CRI, GIL, LZB, ACAT, UNF, SEB

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*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.