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5 Top Stocks With Over 25 Percent 1-Year Dividend Growth And Potential To Grow Further

I've recently published an article about stocks with the fastest short-term dividend growth on my blog long-term-investments.blogspot.com. The top yielding pick with a double-digit dividend growth was Philipp Morris.


I love tobacco stocks and my own portfolio has around 25 percent of its assets invested into cigarettes producing companies.

Today I would highlight some stocks with more than 25 percent short-term dividend growth.

Technology stocks are the most dominant stock category in my screen in terms of dividend growth potential. They have huge amounts of cash and most of the old tech players are very profitable. 

Over the past few years, companies like eBay, Cisco, Microsoft or even Apple have failed to create new innovative products to boost growth but they still sit on tons of cash. 

As a result, some of them started to pay back a part of the free and growing mountains of money to shareholders via stock repurchases and dividends. I'm happy to see what they do because they are so profitable and don't need all this money.

Another group of stocks with big dividend growth rates is coming from the basic material or energy sector. Normally, I own only a small share of them in my portfolio because I've no idea how long our economy will be addicted by oil and gas. Further, it's also a black box to me because of the cyclic oil price and changing oil reserves.

However, below is a list of five top stocks that have raised their dividend payments over the recent year by more than 25 percent and they still have a good chance to grow their dividends in the future.

5 stocks with more than 25 percent  one year dividend growth rate

Weyerhaeuser Company (NYSE:WY) has a market capitalization of $17.40 billion. The company employs 13,200 people, generates revenue of $7.059 billion and has a net income of $384.00 million. Weyerhaeuser Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.201 billion. The EBITDA margin is 17.01 percent (the operating margin is 10.41 percent and the net profit margin 5.44 percent).

Financial Analysis: The total debt represents 34.08 percent of Weyerhaeuser Company’s assets and the total debt in relation to the equity amounts to 105.43 percent. Due to the financial situation, a return on equity of 9.24 percent was realized by Weyerhaeuser Company. Twelve trailing months earnings per share reached a value of $1.14. Last fiscal year, Weyerhaeuser Company paid $0.62 in the form of dividends to shareholders. WY raised their dividends by 26.7 percent over the past year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.15, the P/S ratio is 2.47 and the P/B ratio is finally 3.98. The dividend yield amounts to 2.95 percent and the beta ratio has a value of 1.54.


Long-Term Stock Price Chart Of Weyerhaeuser Company (WY)
Long-Term Dividend Payment History of Weyerhaeuser Company (WY)
Long-Term Dividend Yield History of Weyerhaeuser Company (WY)

Marathon Petroleum (NYSE:MPC) has a market capitalization of $23.74 billion. The company employs 25,985 people, generates revenue of $82.492 billion and has a net income of $3.393 billion. Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.106 billion. The EBITDA margin is 7.40 percent (the operating margin is 6.48 percent and the net profit margin 4.11 percent).

Financial Analysis: The total debt represents 12.35 percent of Marathon Petroleum’s assets and the total debt in relation to the equity amounts to 28.74 percent. Due to the financial situation, a return on equity of 31.92 percent was realized by Marathon Petroleum. Twelve trailing months earnings per share reached a value of $6.79. Last fiscal year, Marathon Petroleum paid $1.20 in the form of dividends to shareholders. MPC raised their dividends by 28.3 percent over the past year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.62, the P/S ratio is 0.27 and the P/B ratio is finally 2.14. The dividend yield amounts to 2.24 percent and the beta ratio has a value of not calculable.


Long-Term Stock Price Chart Of Marathon Petroleum (MPC)
Long-Term Dividend Payment History of Marathon Petroleum (MPC)
Long-Term Dividend Yield History of Marathon Petroleum (MPC)

Valero Energy (NYSE:VLO) has a market capitalization of $23.23 billion. The company employs 21,671 people, generates revenue of $139.250 billion and has a net income of $2.080 billion. Valero Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.526 billion. The EBITDA margin is 4.69 percent (the operating margin is 2.88 percent and the net profit margin 1.49 percent).

Financial Analysis: The total debt represents 15.85 percent of Valero Energy’s assets and the total debt in relation to the equity amounts to 39.09 percent. Due to the financial situation, a return on equity of 12.08 percent was realized by Valero Energy. Twelve trailing months earnings per share reached a value of $4.39. Last fiscal year, Valero Energy paid $0.65 in the form of dividends to shareholders. VLO raised their dividends by 28 percent over the past year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.75, the P/S ratio is 0.17 and the P/B ratio is finally 1.31. The dividend yield amounts to 2.10 percent and the beta ratio has a value of 1.39.


Long-Term Stock Price Chart Of Valero Energy (VLO)
Long-Term Dividend Payment History of Valero Energy (VLO)
Long-Term Dividend Yield History of Valero Energy (VLO)

QUALCOMM (NASDAQ:QCOM) has a market capitalization of $120.32 billion. The company employs 31,000 people, generates revenue of $24.866 billion and has a net income of $6.845 billion. QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.578 billion. The EBITDA margin is 34.50 percent (the operating margin is 28.78 percent and the net profit margin 27.53 percent).

Financial Analysis: The total debt represents 0.00 percent of QUALCOMM’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 19.69 percent was realized by QUALCOMM. Twelve trailing months earnings per share reached a value of $3.91. Last fiscal year, QUALCOMM paid $0.95 in the form of dividends to shareholders. QCOM raised their dividends by 29 percent over the past year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.22, the P/S ratio is 4.84 and the P/B ratio is finally 3.33. The dividend yield amounts to 1.97 percent and the beta ratio has a value of 1.02.


Long-Term Stock Price Chart Of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)

Oracle (NYSE:ORCL) has a market capitalization of $159.73 billion. The company employs 120,000 people, generates revenue of $37.180 billion and has a net income of $10.925 billion. Oracle’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $17.363 billion. The EBITDA margin is 46.70 percent (the operating margin is 39.49 percent and the net profit margin 29.38 percent).

Financial Analysis: The total debt represents 22.61 percent of Oracle’s assets and the total debt in relation to the equity amounts to 41.42 percent. Due to the financial situation, a return on equity of 24.74 percent was realized by Oracle. Twelve trailing months earnings per share reached a value of $2.32. Last fiscal year, Oracle paid $0.30 in the form of dividends to shareholders. ORCL raised their dividends by 25 percent over the past year.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.82, the P/S ratio is 4.22 and the P/B ratio is finally 3.58. The dividend yield amounts to 1.40 percent and the beta ratio has a value of 1.15.


Long-Term Stock Price Chart Of Oracle (ORCL)
Long-Term Dividend Payment History of Oracle (ORCL)
Long-Term Dividend Yield History of Oracle (ORCL)