This weekend, I've summarized some stocks with over 5 years of consecutive dividend growth and expected 5-Year earnings growth above 10 percent yearly.
It's hard to find cheap stocks that grow safely, especially when the overall market is really ambitious valuated.
Below are six stock ideas from each of the popular dividend growth categories (Dividend Champions, Dividend Contenders as well as Dividend Challengers), with a low forward P/E of less than 15 as well as double-digit earnings predictions by analysts.
Financial Analysis: The total debt represents 41.63 percent of Western Union’s assets and the total debt in relation to the equity amounts to 381.37 percent. Due to the financial situation, a return on equity of 78.07 percent was realized by Western Union. Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, Western Union paid $0.50 in the form of dividends to shareholders. Earnings are expected to grow by 10.50 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.17, the P/S ratio is 1.58 and the P/B ratio is finally 7.91. The dividend yield amounts to 3.14 percent and the beta ratio has a value of 1.45.
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| Long-Term Stock Price Chart Of Western Union (WU) |
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| Long-Term Dividend Payment History of Western Union (WU) |
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| Long-Term Dividend Yield History of Western Union (WU) |
Target (NYSE:TGT) has a market capitalization of $37.52 billion. The company employs 361,000 people, generates revenue of $73.3 billion and has a net income of $2.99 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).
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. Earnings are expected to grow by 11.78 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.93, the P/S ratio is 0.51 and the P/B ratio is finally 2.31. The dividend yield amounts to 2.90 percent and the beta ratio has a value of 0.72.
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| Long-Term Stock Price Chart Of Target (TGT) |
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| Long-Term Dividend Payment History of Target (TGT) |
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| Long-Term Dividend Yield History of Target (TGT) |
Raytheon (NYSE:RTN) has a market capitalization of $31.48 billion. The company employs 63,000 people, generates revenue of $23.706 billion and has a net income of $1.949 billion. Raytheon’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.383 billion. The EBITDA margin is 14.27 percent (the operating margin is 12.39 percent and the net profit margin 8.22 percent).
Financial Analysis: The total debt represents 18.23 percent of Raytheon’s assets and the total debt in relation to the equity amounts to 42.90 percent. Due to the financial situation, a return on equity of 20.27 percent was realized by Raytheon. Twelve trailing months earnings per share reached a value of $5.96. Last fiscal year, Raytheon paid $2.70 in the form of dividends to shareholders. Earnings are expected to grow by 12.35 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.80, the P/S ratio is 1.33 and the P/B ratio is finally 2.86. The dividend yield amounts to 2.20 percent and the beta ratio has a value of 0.75.
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| Long-Term Stock Price Chart Of Raytheon (RTN) |
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| Long-Term Dividend Payment History of Raytheon (RTN) |
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| Long-Term Dividend Yield History of Raytheon (RTN) |
Gap (NYSE:GPS) has a market capitalization of $18.77 billion. The company employs 136,000 people, generates revenue of $16.148 billion and has a net income of $1.28 billion. Gap’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.619 billion. The EBITDA margin is 16.22 percent (the operating margin is 13.31 percent and the net profit margin 7.93 percent).
Financial Analysis: The total debt represents 17.76 percent of Gap’s assets and the total debt in relation to the equity amounts to 45.53 percent. Due to the financial situation, a return on equity of 42.98 percent was realized by Gap. Twelve trailing months earnings per share reached a value of $2.74. Last fiscal year, Gap paid $0.70 in the form of dividends to shareholders. Earnings are expected to grow by 12.80 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.34, the P/S ratio is 1.17 and the P/B ratio is finally 6.13. The dividend yield amounts to 2.09 percent and the beta ratio has a value of 1.35.
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| Long-Term Stock Price Chart Of Gap (GPS) |
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| Long-Term Dividend Payment History of Gap (GPS) |
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| Long-Term Dividend Yield History of Gap (GPS) |
QUALCOMM (NASDAQ:QCOM) has a market capitalization of $126.39 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 0.04 percent of QUALCOMM’s assets and the total debt in relation to the equity amounts to 0.05 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 $3.66. Last fiscal year, QUALCOMM paid $1.20 in the form of dividends to shareholders. Earnings are expected to grow by 15.0 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.42, the P/S ratio is 5.08 and the P/B ratio is finally 3.49. The dividend yield amounts to 1.87 percent and the beta ratio has a value of 1.10.
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| Long-Term Stock Price Chart Of QUALCOMM (QCOM) |
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| Long-Term Dividend Payment History of QUALCOMM (QCOM) |
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| Long-Term Dividend Yield History of QUALCOMM (QCOM) |
Franklin Resources (NYSE:BEN) has a market capitalization of $32.25 billion. The company employs 9,100 people, generates revenue of $7.985 billion and has a net income of $2.170 billion. Franklin Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.018 billion. The EBITDA margin is 37.80 percent (the operating margin is 36.55 percent and the net profit margin 27.18 percent).
Financial Analysis: The total debt represents 14.97 percent of Franklin Resources’s assets and the total debt in relation to the equity amounts to 22.87 percent. Due to the financial situation, a return on equity of 22.17 percent was realized by Franklin Resources. Twelve trailing months earnings per share reached a value of $3.52. Last fiscal year, Franklin Resources paid $0.38 in the form of dividends to shareholders. Earnings are expected to grow by 15.67 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.53, the P/S ratio is 4.04 and the P/B ratio is finally 3.20. The dividend yield amounts to 0.94 percent and the beta ratio has a value of 1.38.
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| Long-Term Stock Price Chart Of Franklin Resources (BEN) |
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| Long-Term Dividend Payment History of Franklin Resources (BEN) |
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| Long-Term Dividend Yield History of Franklin Resources (BEN) |
*I am long RTN and WU. 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.