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8 Dividend Growth Stocks On The Sweet Spot

Out there happening very exciting moments on the market. Due to the recent stock market crash, stocks look a little bit more attractive than weeks before while the total number of potential dividend growers rise steadily.

The fantastic economic recovery of the recent years was the the most important item which helped to grow the total number of stocks with more than 5 years of consecutive dividend growth to 488! I expect that we would hit the 500 mark by the end of this year.

It's great to see that we've more and more opportunities in the dividend growth investing field but if we look at the valuations on the market, we definitely notice that it's still hard to find real bargains.

Some stocks are too expensive, others are cheap but those companies release falling earnings and sales figures or they are overloaded with debt. What we need are long-term dividend growth stocks on the sweet spot.

After the recent sell-off on the market, I screened my database by stocks with a current dividend yield over 3 percent and a low forward P/E of less than 15. In addition, the expected earnings should grow by at least 5 percent (analyst predictions), year by year for the next five fiscals.

Around 30 companies fulfilled these criteria at the moment. I try to highlight some of the best ideas. Below are 8 stocks, sorted by market capitalization.


The 8 Top Dividend Growth Stocks On Their Sweet-Spot are....

Microsoft (NASDAQ:MSFT) has a market capitalization of $303.47 billion. The company employs 99,000 people, generates revenue of $77.849 billion and has a net income of $21.863 billion. Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $30.519 billion. The EBITDA margin is 39.20 percent (the operating margin is 34.11 percent and the net profit margin 28.08 percent). See the 10-Year results here: Microsoft Long-Term Income Figures.

Financial Analysis: The total debt represents 10.95 percent of Microsoft’s assets and the total debt in relation to the equity amounts to 19.76 percent. Due to the financial situation, a return on equity of 30.09 percent was realized by Microsoft. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, Microsoft paid $0.89 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Microsoft Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.50, the P/S ratio is 3.90 and the P/B ratio is finally 3.86. The dividend yield amounts to 3.06 percent and the beta ratio has a value of 0.97. Compare the current price ratios here: Microsoft Corporate Valuation Book.

Long-Term Stock Price Chart Of Microsoft (MSFT)
Long-Term Dividend Payment History of Microsoft (MSFT)
Long-Term Dividend Yield History of Microsoft (MSFT)

AT&T (NYSE:T) has a market capitalization of $168.80 billion. The company employs 246,740 people, generates revenue of $128.752 billion and has a net income of $18.553 billion. AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $49.375 billion. The EBITDA margin is 38.35 percent (the operating margin is 23.67 percent and the net profit margin 14.41 percent). See the 10-Year results here: AT&T Long-Term Income Figures.

Financial Analysis: The total debt represents 26.92 percent of AT&T’s assets and the total debt in relation to the equity amounts to 82.20 percent. Due to the financial situation, a return on equity of 19.91 percent was realized by AT&T. Twelve trailing months earnings per share reached a value of $3.40. Last fiscal year, AT&T paid $1.80 in the form of dividends to shareholders. Discover all of the 10-Year financials here: AT&T Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.49, the P/S ratio is 1.31 and the P/B ratio is finally 1.86. The dividend yield amounts to 5.70 percent and the beta ratio has a value of 0.47. Compare the current price ratios here: AT&T Corporate Valuation Book.

Long-Term Stock Price Chart Of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)

Altria (NYSE:MO) has a market capitalization of $70.61 billion. The company employs 9,100 people, generates revenue of $24.466 billion and has a net income of $4.535 billion. Altria’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.137 billion. The EBITDA margin is 33.26 percent (the operating margin is 28.61 percent and the net profit margin 18.54 percent). See the 10-Year results here: Altria Long-Term Income Figures.

Financial Analysis: The total debt represents 41.64 percent of Altria’s assets and the total debt in relation to the equity amounts to 352.53 percent. Due to the financial situation, a return on equity of 124.49 percent was realized by Altria. Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, Altria paid $1.80 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Altria Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.61, the P/S ratio is 2.89 and the P/B ratio is finally 17.15. The dividend yield amounts to 5.44 percent and the beta ratio has a value of 0.48. Compare the current price ratios here: Altria Corporate Valuation Book.

Long-Term Stock Price Chart Of Altria (MO)
Long-Term Dividend Payment History of Altria (MO)
Long-Term Dividend Yield History of Altria (MO)

Lockheed Martin (NYSE:LMT) has a market capitalization of $49.49 billion. The company employs 120,000 people, generates revenue of $45.358 billion and has a net income of $2.950 billion. Lockheed Martin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.495 billion. The EBITDA margin is 12.11 percent (the operating margin is 9.93 percent and the net profit margin 6.50 percent). See the 10-Year results here: Lockheed Martin Long-Term Income Figures.

Financial Analysis: The total debt represents 17.00 percent of Lockheed Martin’s assets and the total debt in relation to the equity amounts to 125.09 percent. Due to the financial situation, a return on equity of 119.02 percent was realized by Lockheed Martin. Twelve trailing months earnings per share reached a value of $9.04. Last fiscal year, Lockheed Martin paid $4.78 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Lockheed Martin Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.16, the P/S ratio is 1.10 and the P/B ratio is finally 10.06. The dividend yield amounts to 3.43 percent and the beta ratio has a value of 0.73. Compare the current price ratios here: Lockheed Martin Corporate Valuation Book.

Long-Term Stock Price Chart Of Lockheed Martin (LMT)
Long-Term Dividend Payment History of Lockheed Martin (LMT)
Long-Term Dividend Yield History of Lockheed Martin (LMT)

Target (NYSE:TGT) has a market capitalization of $35.61 billion. The company employs 361,000 people, generates revenue of $73.301 billion and has a net income of $2.999 billion. Target’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.513 billion. The EBITDA margin is 10.25 percent (the operating margin is 7.33 percent and the net profit margin 4.09 percent). See the 10-Year results here: Target Long-Term Income Figures.

Financial Analysis: The total debt represents 37.86 percent of Target’s assets and the total debt in relation to the equity amounts to 110.13 percent. Due to the financial situation, a return on equity of 18.52 percent was realized by Target. Twelve trailing months earnings per share reached a value of $3.73. Last fiscal year, Target paid $1.38 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Target Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.11, the P/S ratio is 0.49 and the P/B ratio is finally 2.20. The dividend yield amounts to 3.05 percent and the beta ratio has a value of 0.79. Compare the current price ratios here: Target Corporate Valuation Book.

Long-Term Stock Price Chart Of Target (TGT)
Long-Term Dividend Payment History of Target (TGT)
Long-Term Dividend Yield History of Target (TGT)

Kellogg (NYSE:K) has a market capitalization of $21.14 billion. The company employs 31,000 people, generates revenue of $14.197 billion and has a net income of $962.00 million. Kellogg’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.113 billion. The EBITDA margin is 14.88 percent (the operating margin is 11.00 percent and the net profit margin 6.78 percent). See the 10-Year results here: Kellogg Long-Term Income Figures.

Financial Analysis: The total debt represents 52.09 percent of Kellogg’s assets and the total debt in relation to the equity amounts to 328.70 percent. Due to the financial situation, a return on equity of 45.76 percent was realized by Kellogg. Twelve trailing months earnings per share reached a value of $2.72. Last fiscal year, Kellogg paid $1.74 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Kellogg Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.45, the P/S ratio is 1.49 and the P/B ratio is finally 8.77. The dividend yield amounts to 3.15 percent and the beta ratio has a value of 0.43. Compare the current price ratios here: Kellogg Corporate Valuation Book.

Long-Term Stock Price Chart Of Kellogg (K)
Long-Term Dividend Payment History of Kellogg (K)
Long-Term Dividend Yield History of Kellogg (K)

Mattel (NASDAQ:MAT) has a market capitalization of $12.57 billion. The company employs 28,000 people, generates revenue of $6.484 billion and has a net income of $903.90 million. Mattel’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.168 billion. The EBITDA margin is 18.01 percent (the operating margin is 18.01 percent and the net profit margin 13.94 percent). See the 10-Year results here: Mattel Long-Term Income Figures.

Financial Analysis: The total debt represents 24.91 percent of Mattel’s assets and the total debt in relation to the equity amounts to 49.34 percent. Due to the financial situation, a return on equity of 28.61 percent was realized by Mattel. Twelve trailing months earnings per share reached a value of $2.60. Last fiscal year, Mattel paid $1.44 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Mattel Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.19, the P/S ratio is 1.93 and the P/B ratio is finally 3.87. The dividend yield amounts to 4.11 percent and the beta ratio has a value of 0.83. Compare the current price ratios here: Mattel Corporate Valuation Book.

Long-Term Stock Price Chart Of Mattel (MAT)
Long-Term Dividend Payment History of Mattel (MAT)
Long-Term Dividend Yield History of Mattel (MAT)

Tupperware Brands (NYSE:TUP) has a market capitalization of $3.94 billion. The company employs 13,000 people, generates revenue of $2.671 billion and has a net income of $274.20 million. Tupperware Brands’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $412.10 million. The EBITDA margin is 15.43 percent (the operating margin is 15.10 percent and the net profit margin 10.26 percent). See the 10-Year results here: Tupperware Brands Long-Term Income Figures.

Financial Analysis: The total debt represents 46.70 percent of Tupperware Brands’s assets and the total debt in relation to the equity amounts to 334.28 percent. Due to the financial situation, a return on equity of 74.62 percent was realized by Tupperware Brands. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, Tupperware Brands paid $2.22 in the form of dividends to shareholders. Discover all of the 10-Year financials here: Tupperware Brands Long-Term Financial Figures.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.74, the P/S ratio is 1.46 and the P/B ratio is finally 15.40. The dividend yield amounts to 3.53 percent and the beta ratio has a value of 1.59. Compare the current price ratios here: Tupperware Brands Corporate Valuation Book.

Long-Term Stock Price Chart Of Tupperware Brands (TUP)
Long-Term Dividend Payment History of Tupperware Brands (TUP)
Long-Term Dividend Yield History of Tupperware Brands (TUP)

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*I am long MSFT, TUP, LMT, MO, K, MAT. 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.