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5 Long-Term Dividend Growth Stocks To Stay Hedged In A Market Correction

The market shows a clear signal that the interest rates should rise in the near future but what should this mean for your long-term orientated dividend growth stocks?

I believe that the high valuations must come down in some way. It could also be possible that the market prices stay stable due to a solid business growth and the high liquidity in the market. 

We still have dividend yields of more than 2 percent for the average market, that's a solid and defensible value during a market correction. What's your opinion about a rising interest rates? Should stocks fall or rise?

However, to stay productive, I've attached a few long-term orientated dividend growth stock ideas with low beta ratios and high dividend yields.

Each of them have raised dividends by more than five consecutive years and cover the market volatility with a beta ratio of less than 0.5.

These are the final criteria:
- Beta ratio below 0.5
- Market Cap over USD 10 billion
- Expected 5-Year earnings growth of more than 5 percent
- Forward P/E under 15

The Top 5 results are...

AT&T (NYSE:T) has a market capitalization of $185.10 billion. The company employs 243,000 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 $48.874 billion. The EBITDA margin is 37.96 percent (the operating margin is 23.67 percent and the net profit margin 14.41 percent).

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.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.44, the P/S ratio is 1.44 and the P/B ratio is finally 2.04. The dividend yield amounts to 5.18 percent and the beta ratio has a value of 0.44.

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 $74.87 billion. The company employs 9,000 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 $8.329 billion. The EBITDA margin is 34.04 percent (the operating margin is 28.61 percent and the net profit margin 18.54 percent).

Financial Analysis: The total debt represents 41.64 percent of Altria’s assets and the total debt in relation to the equity amounts to 352.44 percent. Due to the financial situation, a return on equity of 124.14 percent was realized by Altria. Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, Altria paid $1.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.61, the P/S ratio is 3.05 and the P/B ratio is finally 18.18. The dividend yield amounts to 5.11 percent and the beta ratio has a value of 0.52.

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

ConAgra Foods (NYSE:CAG) has a market capitalization of $13.05 billion. The company employs 34,840 people, generates revenue of $15.491 billion and has a net income of $748.60 million. ConAgra Foods earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.879 billion. The EBITDA margin is 12.13 percent (the operating margin is 9.19 percent and the net profit margin 4.83 percent).

Financial Analysis: The total debt represents 47.00 percent of ConAgra Foods assets and the total debt in relation to the equity amounts to 182.16 percent. Due to the financial situation, a return on equity of 15.92 percent was realized by ConAgra Foods. Twelve trailing months earnings per share reached a value of $1.90. Last fiscal year, ConAgra Foods paid $0.99 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.32, the P/S ratio is 0.84 and the P/B ratio is finally 2.47. The dividend yield amounts to 3.23 percent and the beta ratio has a value of 0.49.

Long-Term Stock Price Chart Of ConAgra Foods (CAG)
Long-Term Dividend Payment History of ConAgra Foods (CAG)
Long-Term Dividend Yield History of ConAgra Foods (CAG)

Dr Pepper Snapples (NYSE:DPS) has a market capitalization of $10.66 billion. The company employs 19,000 people, generates revenue of $5.997 billion and has a net income of $623.00 million. Dr Pepper Snapples earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.28 billion. The EBITDA margin is 21.34 percent (the operating margin is 17.44 percent and the net profit margin 10.39 percent).

Financial Analysis: The total debt represents 31.39 percent of Dr Pepper Snapples assets and the total debt in relation to the equity amounts to 113.04 percent. Due to the financial situation, a return on equity of 27.39 percent was realized by Dr Pepper Snapples. Twelve trailing months earnings per share reached a value of $3.06. Last fiscal year, Dr Pepper Snapples paid $1.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.56, the P/S ratio is 1.78 and the P/B ratio is finally 4.67. The dividend yield amounts to 3.05 percent and the beta ratio has a value of 0.17.

Long-Term Stock Price Chart Of Dr Pepper Snapples (DPS)
Long-Term Dividend Payment History of Dr Pepper Snapples (DPS)
Long-Term Dividend Yield History of Dr Pepper Snapples (DPS)

Wal-Mart Stores (NYSE:WMT) has a market capitalization of $249.65 billion. The company employs 2,200,000 people, generates revenue of $476.294 billion and has a net income of $16.551 billion. Wal-Mart Stores earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $35.742 billion. The EBITDA margin is 7.50 percent (the operating margin is 5.64 percent and the net profit margin 3.47 percent).

Financial Analysis: The total debt represents 27.66 percent of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 74.28 percent. Due to the financial situation, a return on equity of 20.81 percent was realized by Wal-Mart Stores. Twelve trailing months earnings per share reached a value of $4.85. Last fiscal year, Wal-Mart Stores paid $1.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.93, the P/S ratio is 0.52 and the P/B ratio is finally 3.28. The dividend yield amounts to 2.48 percent and the beta ratio has a value of 0.45.

Long-Term Stock Price Chart Of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)

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*I am long WMT, MO. 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.