America is definitely the country with the highest amount of stocks that share profits with shareholders fairly. Believe me; I've seen thousands of companies all around the world where investors get robbed by management teams, lead investors or even the government.
My investment focus is on dividend growth stocks but over the recent months and years, we all have seen a significant increase in price multiples. Most of the best long-term dividend growers are valuated with a P/E of 20 or more. If you pay such high ratios, you will definitely not get a good inflation and risk-adjusted return over the long-run if you invest in a slow growing business.
Today, I try to find additional dividend stocks that are near to achieve a consecutive dividend growth history of at least five years.
Around 150 stocks are available with 4 years of dividend growth. With the next hike they could become a real Dividend Challenger. My hope is that some of them are cheaper than the older and well-established stocks.
You can find attached a list of all large capitalized stocks with a low forward price to earnings ratio of less than 15. Only 19 companies fulfilled these criteria of which nearly all (17 shares) are recommended to buy.
Here are my favorite stocks:
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KLA-Tencor (NASDAQ:KLAC) has a market capitalization of $10.59 billion. The company employs 5,820 people, generates revenue of $2.842 billion and has a net income of $543.15 million. KLA-Tencor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $823.22 million. The EBITDA margin is 28.96 percent (the operating margin is 25.67 percent and the net profit margin 19.11 percent).
Financial Analysis: The total debt represents 14.14 percent of KLA-Tencor’s assets and the total debt in relation to the equity amounts to 21.46 percent. Due to the financial situation, a return on equity of 15.98 percent was realized by KLA-Tencor. Twelve trailing months earnings per share reached a value of $3.07. Last fiscal year, KLA-Tencor 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 20.72, the P/S ratio is 3.72 and the P/B ratio is finally 3.02. The dividend yield amounts to 2.83 percent and the beta ratio has a value of 1.73.
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| Long-Term Stock Price Chart Of KLA-Tencor (KLAC) |
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| Long-Term Dividend Payment History of KLA-Tencor (KLAC) |
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| Long-Term Dividend Yield History of KLA-Tencor (KLAC) |
ENSCO (NYSE:ESV) has a market capitalization of $14.45 billion. The company employs 9,000 people, generates revenue of $4.300 billion and has a net income of $1.222 billion. ENSCO’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.150 billion. The EBITDA margin is 50.01 percent (the operating margin is 36.39 percent and the net profit margin 28.42 percent).
Financial Analysis: The total debt represents 26.10 percent of ENSCO’s assets and the total debt in relation to the equity amounts to 40.91 percent. Due to the financial situation, a return on equity of 10.59 percent was realized by ENSCO. Twelve trailing months earnings per share reached a value of $5.57. Last fiscal year, ENSCO paid $1.50 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.11, the P/S ratio is 3.36 and the P/B ratio is finally 1.21. The dividend yield amounts to 4.85 percent and the beta ratio has a value of 1.26.
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| Long-Term Stock Price Chart Of ENSCO (ESV) |
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| Long-Term Dividend Payment History of ENSCO (ESV) |
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| Long-Term Dividend Yield History of ENSCO (ESV) |
Magna International (NYSE:MGA) has a market capitalization of $19.03 billion. The company employs 123,000 people, generates revenue of $30.837 billion and has a net income of $1.426 billion. Magna International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.308 billion. The EBITDA margin is 7.48 percent (the operating margin is 5.68 percent and the net profit margin 4.62 percent).
Financial Analysis: The total debt represents 2.52 percent of Magna International’s assets and the total debt in relation to the equity amounts to 4.58 percent. Due to the financial situation, a return on equity of 16.28 percent was realized by Magna International. Twelve trailing months earnings per share reached a value of $6.49. Last fiscal year, Magna International paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.09, the P/S ratio is 0.62 and the P/B ratio is finally 2.10. The dividend yield amounts to 1.51 percent and the beta ratio has a value of 1.14.
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| Long-Term Stock Price Chart Of Magna International (MGA) |
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| Long-Term Dividend Payment History of Magna International (MGA) |
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| Long-Term Dividend Yield History of Magna International (MGA) |
The Bank of Nova Scotia (NYSE:BNS) has a market capitalization of $75.65 billion. The company employs 83,416 people, generates revenue of $16.434 billion and has a net income of $6.194 billion. The Bank of Nova Scotia’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.166 billion. The EBITDA margin is 48.57 percent (the operating margin is 40.84 percent and the net profit margin 32.82 percent).
Financial Analysis: The total debt represents 10.25 percent of The Bank of Nova Scotia’s assets and the total debt in relation to the equity amounts to 172.70 percent. Due to the financial situation, a return on equity of 19.55 percent was realized by The Bank of Nova Scotia. Twelve trailing months earnings per share reached a value of $4.82. Last fiscal year, The Bank of Nova Scotia paid $2.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.03, the P/S ratio is 4.01 and the P/B ratio is finally 2.20. The dividend yield amounts to 3.83 percent and the beta ratio has a value of 1.16.
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| Long-Term Stock Price Chart Of The Bank of Nova Scotia (BNS) |
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| Long-Term Dividend Payment History of The Bank of Nova Scotia (BNS) |
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| Long-Term Dividend Yield History of The Bank of Nova Scotia (BNS) |
Avago Technologies (NASDAQ:AVGO) has a market capitalization of $11.05 billion. The company employs 3,600 people, generates revenue of $2.364 billion and has a net income of $563.00 million. Avago Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $744.00 million. The EBITDA margin is 31.47 percent (the operating margin is 24.62 percent and the net profit margin 23.82 percent).
Financial Analysis: The total debt represents 0.10 percent of Avago Technologies’s assets and the total debt in relation to the equity amounts to 0.12 percent. Due to the financial situation, a return on equity of 25.45 percent was realized by Avago Technologies. Twelve trailing months earnings per share reached a value of $2.15. Last fiscal year, Avago Technologies paid $0.56 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.77, the P/S ratio is 4.67 and the P/B ratio is finally 4.53. The dividend yield amounts to 2.06 percent and the beta ratio has a value of 0.91.
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| Long-Term Stock Price Chart Of Avago Technologies (AVGO) |
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| Long-Term Dividend Payment History of Avago Technologies (AVGO) |
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| Long-Term Dividend Yield History of Avago Technologies (AVGO) |
Take a closer look at the full list of the best potential Dividend Growers. The average P/E ratio amounts to 18.13
and forward P/E ratio is 12.34. The dividend yield has a value of 2.50 percent.
Price to book ratio is 4.84 and price to sales ratio 2.31. The operating margin
amounts to 22.97 percent and the beta ratio is 1.43. Stocks from the list have
an average debt to equity ratio of 1.40.
Here is the full table with
some fundamentals (TTM):
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| Next 19 Dividend Kings (Click to enlarge) |
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Related Stock Ticker Symbols:
AEP, BNS,
TCK, ESV, BT, SPLS, IP, KLAC, IVZ, BTI, ETN, AVGO, BAP, PRU, BRCM, UNH, BCS, MGA,
ATVI,
Selected Articles:
*I am long BTI. 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.