Pages

Cheapest Dividend Paying Large Caps As of October 2013

Cheap large capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. I always look for stocks with a cheap valuation and modest growth perspectives.

While the interest environment is low, the market valuation is extraordinary high and it’s more important to take care about a solid price in order to ensure not to overpay a stocks.

Each month I create a quick list that allows me to observe the market by the cheapest growth picks. You can find my criteria below.

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

Only fourteen stocks fulfilled these criteria of which twelve have a current buy or better rating by brokerage firms.

Here are my favorites:
Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook or Twitter

CVS Caremark (NYSE:CVS) has a market capitalization of $75.40 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. Forward P/E: 13.75 at 5-Year earnings growth forecasts of 14.40 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.18, the P/S ratio is 0.61 and the P/B ratio is finally 2.00. The dividend yield amounts to 1.47 percent and the beta ratio has a value of 0.83.

Long-Term Stock Price Chart Of CVS Caremark (CVS)
Long-Term Dividend Payment History of CVS Caremark (CVS)
Long-Term Dividend Yield History of CVS Caremark (CVS)

Bunge (NYSE:BG) has a market capitalization of $11.87 billion. The company employs 36,000 people, generates revenue of $60.991 billion and has a net income of $378.00 million. Bunge’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.489 billion. The EBITDA margin is 2.44 percent (the operating margin is 1.01 percent and the net profit margin 0.62 percent).

Financial Analysis: The total debt represents 21.44 percent of Bunge’s assets and the total debt in relation to the equity amounts to 53.85 percent. Due to the financial situation, a return on equity of 3.49 percent was realized by Bunge. Twelve trailing months earnings per share reached a value of $1.88. Last fiscal year, Bunge paid $1.06 in the form of dividends to shareholders. Forward P/E: 10.19 at 5-Year earnings growth forecasts of 17.35 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 42.81, the P/S ratio is 0.19 and the P/B ratio is finally 1.16. The dividend yield amounts to 1.49 percent and the beta ratio has a value of 0.70.

Long-Term Stock Price Chart Of Bunge (BG)
Long-Term Dividend Payment History of Bunge (BG)
Long-Term Dividend Yield History of Bunge (BG)

Prudential Financial (NYSE:PRU) has a market capitalization of $38.00 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. Forward P/E: 9.0 at 5-Year earnings growth forecasts of 13.30 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.45 and the P/B ratio is finally 0.99. The dividend yield amounts to 1.96 percent and the beta ratio has a value of 2.28.

Long-Term Stock Price Chart Of Prudential Financial (PRU)
Long-Term Dividend Payment History of Prudential Financial (PRU)
Long-Term Dividend Yield History of Prudential Financial (PRU)

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 20.49 while the forward P/E ratio is 10.72. P/S ratio is 0.57 and P/B ratio 1.38. The expected earnings growth for next year amounts to 32.49 and 21.31 percent for the upcoming five years.

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

Cheap Dividend Paying Large Caps (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment below!

Related stock ticker symbols:
HMC, ORAN, HNP, MPC, MUR, PRU, PBR, TM, BG, CVS, SNE, AET, LUV, GGB

Selected Articles:

*I am long none of them. 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.