Dividend Aristocrats are nice because they have a huge trust base for long-term orientated investors but a past performance also did not mean that the future performance would be the same. Some Dividend Aristocrats are full of debt and they pay dividends at a very high level.
I started an article serial this month about
stocks with low debt and dividend payout ratios. I believe that those companies
are much better positioned from the financial perspective to boost future
dividends. In addition, they have much more capabilities to grow at a faster
pace.
Today I would like to introduce you some of the
Dividend Aristocrats with the lowest dividend payout ratios on the market. Half
of the results have also acceptable or low debt ratios.
Only thirteen stocks have a dividend payout ratio of less than 30 percent of which seven are currently recommended to buy.
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Chevron (NYSE:CVX) has a market capitalization of $225.53 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).
Financial Analysis: The total debt represents 5.23 percent of Chevron’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized by Chevron. Twelve trailing months earnings per share reached a value of $12.34. Last fiscal year, Chevron paid $3.51 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.46, the P/S ratio is 0.93 and the P/B ratio is finally 1.66. The dividend yield amounts to 3.43 percent and the beta ratio has a value of 0.88.
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| Long-Term Stock Price Chart Of Chevron (CVX) |
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| Long-Term Dividend Payment History of Chevron (CVX) |
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| Long-Term Dividend Yield History of Chevron (CVX) |
Exxon Mobil (NYSE:XOM) has a market capitalization of $376.38 billion. The company employs 76,900 people, generates revenue of $467.285 billion and has a net income of $47.681 billion. Exxon Mobil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $79.931 billion. The EBITDA margin is 17.11 percent (the operating margin is 13.71 percent and the net profit margin 10.20 percent).
Financial Analysis: The total debt represents 3.47 percent of Exxon Mobil’s assets and the total debt in relation to the equity amounts to 6.98 percent. Due to the financial situation, a return on equity of 28.03 percent was realized by Exxon Mobil. Twelve trailing months earnings per share reached a value of $7.94. Last fiscal year, Exxon Mobil paid $2.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.77, the P/S ratio is 0.81 and the P/B ratio is finally 2.32. The dividend yield amounts to 2.95 percent and the beta ratio has a value of 0.58.
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| Long-Term Stock Price Chart Of Exxon Mobil (XOM) |
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| Long-Term Dividend Payment History of Exxon Mobil (XOM) |
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| Long-Term Dividend Yield History of Exxon Mobil (XOM) |
AFLAC (NYSE:AFL) has a market capitalization of $28.91 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. AFLAC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).
Financial Analysis: The total debt represents 3.32 percent of AFLAC’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized by AFLAC. Twelve trailing months earnings per share reached a value of $7.20. Last fiscal year, AFLAC paid $1.34 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.63, the P/S ratio is 1.14 and the P/B ratio is finally 1.82. The dividend yield amounts to 2.25 percent and the beta ratio has a value of 2.17.
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| Long-Term Stock Price Chart Of AFLAC (AFL) |
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| Long-Term Dividend Payment History of AFLAC (AFL) |
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| Long-Term Dividend Yield History of AFLAC (AFL) |
Take a closer look at the full list of Dividend Aristocrats with low payout ratios. The average P/E ratio amounts to 14.83
and forward P/E ratio is 17.27. The dividend yield has a value of 1.79 percent.
Price to book ratio is 4.53 and price to sales ratio 2.0. The operating margin
amounts to 20.1 percent and the beta ratio is 1.01. Stocks from the list have
an average debt to equity ratio of 0.46.
Here is the full table with
some fundamentals (TTM):
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| Dividend Aristocrats With Low Payout Ratios (Click to enlarge) |
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Related Stock Ticker Symbols:
CVX, XOM, AFL,
BDX, CB, DOV, MHFI, PPG, FDO, CTAS, SHW, SIAL, BEN
Selected Articles:
*I am long BDX. 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.