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13 Large Cap Financials With High Potential To Boost Dividends

Financial dividend stocks with low payout ratios and relatively small debt figures originally published at long-term-investments.blogspot.com. I started an article serial about stocks with low dividend payout ratios and small debt figures this month.

I believe that these two ratios have a big impact to judge the ability of a corporate to grow at a faster pace and hike dividends in the future.

Today I would like to discover the financial sector by stocks with a less than 20 percent dividend payout ratio and a debt to equity leverage of less than one. Because of the huge amount of results, I will only look at those stocks with a market capitalization over USD 10 billion.

Exactly thirteen financial stocks fulfilled these criteria of which one is a High-Yield.

Here are some of my favorite stocks:
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AFLAC (NYSE:AFL) has a market capitalization of $28.97 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 8.65, 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.

Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)

The Allstate Corporation (NYSE:ALL) has a market capitalization of $23.61 billion. The company employs 38,000 people, generates revenue of $33.315 billion and has a net income of $2.306 billion. The Allstate Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.793 billion. The EBITDA margin is 23.39 percent (the operating margin is 9.87 percent and the net profit margin 6.92 percent).

Financial Analysis: The total debt represents 4.77 percent of The Allstate Corporation’s assets and the total debt in relation to the equity amounts to 29.43 percent. Due to the financial situation, a return on equity of 11.86 percent was realized by The Allstate Corporation. Twelve trailing months earnings per share reached a value of $4.68. Last fiscal year, The Allstate Corporation paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.90, the P/S ratio is 0.70 and the P/B ratio is finally 1.18. The dividend yield amounts to 1.98 percent and the beta ratio has a value of 1.38.

Long-Term Stock Price Chart Of The Allstate Corporation (ALL)
Long-Term Dividend Payment History of The Allstate Corporation (ALL)
Long-Term Dividend Yield History of The Allstate Corporation (ALL)

Franklin Resources (NYSE:BEN) has a market capitalization of $31.91 billion. The company employs 9,000 people, generates revenue of $7.101 billion and has a net income of $1.915 billion. Franklin Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.593 billion. The EBITDA margin is 36.53 percent (the operating margin is 35.42 percent and the net profit margin 26.98 percent).

Financial Analysis: The total debt represents 18.83 percent of Franklin Resources’s assets and the total debt in relation to the equity amounts to 30.18 percent. Due to the financial situation, a return on equity of 21.66 percent was realized by Franklin Resources. Twelve trailing months earnings per share reached a value of $3.33. Last fiscal year, Franklin Resources paid $0.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.01, the P/S ratio is 4.45 and the P/B ratio is finally 3.43. The dividend yield amounts to 0.81 percent and the beta ratio has a value of 1.59.

Long-Term Stock Price Chart Of Franklin Resources (BEN)
Long-Term Dividend Payment History of Franklin Resources (BEN)
Long-Term Dividend Yield History of Franklin Resources (BEN)

Visa (NYSE:V) has a market capitalization of $118.63 billion. The company employs 8,500 people, generates revenue of $10.421 billion and has a net income of $2.142 billion. Visa’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.574 billion. The EBITDA margin is 63.08 percent (the operating margin is 20.53 percent and the net profit margin 20.55 percent).

Financial Analysis: The total debt represents 0.00 percent of Visa’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 7.93 percent was realized by Visa. Twelve trailing months earnings per share reached a value of $5.80. Last fiscal year, Visa paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.68, the P/S ratio is 13.79 and the P/B ratio is finally 4.42. The dividend yield amounts to 0.72 percent and the beta ratio has a value of 0.57.

Long-Term Stock Price Chart Of Visa (V)
Long-Term Dividend Payment History of Visa (V)
Long-Term Dividend Yield History of Visa (V)

Take a closer look at the full list of large capitalized financial stocks with great potential to boost future dividends. The average P/E ratio amounts to 15.69 and forward P/E ratio is 12.45. The dividend yield has a value of 1.46 percent. Price to book ratio is 2.42 and price to sales ratio 3.49. The operating margin amounts to 38.23 percent and the beta ratio is 1.61. Stocks from the list have an average debt to equity ratio of 0.36.

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

13 Financial Stocks With Potential To Boost Dividends (Click to enlarge)

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Related Stock Ticker Symbols:
SMFG, AFL, ALL, COF, RF, STI, LNC, AIG, BEN, LFC, V, L, MA

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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.