It's very hard to predict which of the 400 companies
will become the next Dividend King and who of the additional 3,000 shares will
create the most shareholder values with the result of extraordinary strong dividend growth.
Today I've created a quick list about stocks that have
a low price ratio (on current basis and for the future). In addition, the
dividend should be bigger than a normal high-yielding stock and the debt situation
should finally be on a normal level (below one). These are the criteria in detail:
Market Cap over USD 1 billion
Dividend yield is above 6 percent
At least one dividend hike in the past year
Trailing P/E is less than 15
Forward P/E is less than 15
Total debt to equity is less than 1.00
Only four stocks fulfilled the above mentioned
criteria. Of which three are currently recommended to buy.
PetroLogistics (NYSE:PDH) has a market capitalization of $1.58 billion. The company employs 100 people, generates revenue of $750.65 million and has a net income of $-56.67 million. PetroLogistics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $177.30 million. The EBITDA margin is 23.62 percent (the operating margin is -3.97 percent and the net profit margin -7.55 percent).
Financial Analysis: The total debt represents 42.76 percent of PetroLogistics’s assets and the total debt in relation to the equity amounts to 103.46 percent. Due to the financial situation, a return on equity of -12.96 percent was realized by PetroLogistics. Twelve trailing months earnings per share reached a value of $1.29. Last fiscal year, PetroLogistics paid no dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.82, the P/S ratio is 2.13 and the P/B ratio is finally 4.85. The dividend yield amounts to 14.77 percent and the beta ratio is not calculable.
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| Long-Term Stock Price Chart Of PetroLogistics (PDH) |
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| Long-Term Dividend Payment History of PetroLogistics (PDH) |
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| Long-Term Dividend Yield History of PetroLogistics (PDH) |
Hercules Technology Growth Capital (NYSE:HTGC) has a market capitalization of $1.03 billion. The company employs 56 people, generates revenue of $97.52 million and has a net income of $46.76 million. Hercules Technology Growth Capital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $48.40 million. The EBITDA margin is 49.63 percent (the operating margin is 49.33 percent and the net profit margin 47.95 percent).
Financial Analysis: The total debt represents 26.38 percent of Hercules Technology Growth Capital’s assets and the total debt in relation to the equity amounts to 57.45 percent. Due to the financial situation, a return on equity of 9.66 percent was realized by Hercules Technology Growth Capital. Twelve trailing months earnings per share reached a value of $1.71. Last fiscal year, Hercules Technology Growth Capital paid $0.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.76, the P/S ratio is 10.67 and the P/B ratio is finally 1.73. The dividend yield amounts to 7.36 percent and the beta ratio has a value of 1.59.
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| Long-Term Stock Price Chart Of Hercules Technology Growth Capital (HTGC) |
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| Long-Term Dividend Payment History of Hercules Technology Growth Capital (HTGC) |
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| Long-Term Dividend Yield History of Hercules Technology Growth Capital (HTGC) |
Select Income REIT (NYSE:SIR) has a market capitalization of $1.34 billion. The company employs people, generates revenue of $122.79 million and has a net income of $65.88 million. Select Income REIT’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $90.79 million. The EBITDA margin is 73.94 percent (the operating margin is 59.83 percent and the net profit margin 53.65 percent).
Financial Analysis: The total debt represents 33.05 percent of Select Income REIT’s assets and the total debt in relation to the equity amounts to 52.52 percent. Due to the financial situation, a return on equity of 7.30 percent was realized by Select Income REIT. Twelve trailing months earnings per share reached a value of $2.15. Last fiscal year, Select Income REIT paid $0.91 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.55, the P/S ratio is 11.12 and the P/B ratio is finally 1.20. The dividend yield amounts to 6.71 percent and the beta ratio is calculable.
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| Long-Term Stock Price Chart Of Select Income REIT (SIR) |
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| Long-Term Dividend Payment History of Select Income REIT (SIR) |
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| Long-Term Dividend Yield History of Select Income REIT (SIR) |
Ecopetrol (NYSE:EC) has a market capitalization of $88.15 billion. The company employs 8,087 people, generates revenue of $34.572 billion and has a net income of $7.697 billion. Ecopetrol’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.753 billion. The EBITDA margin is 42.67 percent (the operating margin is 35.23 percent and the net profit margin 22.26 percent).
Financial Analysis: The total debt represents 17.73 percent of Ecopetrol’s assets and the total debt in relation to the equity amounts to 38.40 percent. Due to the financial situation, a return on equity of 39.88 percent was realized by Ecopetrol. Twelve trailing months earnings per share reached a value of $3.38. Last fiscal year, Ecopetrol paid $3.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.67, the P/S ratio is 2.54 and the P/B ratio is finally 4.52. The dividend yield amounts to 6.44 percent and the beta ratio has a value of 0.77.
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| Long-Term Stock Price Chart Of Ecopetrol (EC) |
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| Long-Term Dividend Payment History of Ecopetrol (EC) |
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| Long-Term Dividend Yield History of Ecopetrol (EC) |
*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.
