How fast must your company grow in the future to defend this valuation level? I believe it should grow by more than 10 percent yearly.
The aim of
each investor should be to evaluate risks and to select a price premium in the final investment decision. I’m my
favorite asset class, long-term dividend growth stocks, there are not many choices with good fundamentals at the moment,
only a dozen companies with a proven track record.
Today I
like to present five companies with double-digit expected earnings growth, a
debt-to-equity ratio of less than 0.5 and a forward P/E of less than 20. Each
stock has raised dividends by more than 25 consecutive years.
Financial Analysis: The total debt represents 18.08 percent of 3M’s assets and the total debt in relation to the equity amounts to 34.66 percent. Due to the financial situation, a return on equity of 26.56 percent was realized by 3M. Twelve trailing months earnings per share reached a value of $6.90. Last fiscal year, 3M paid $2.54 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.57, the P/S ratio is 3.02 and the P/B ratio is finally 5.40. The dividend yield amounts to 2.40 percent and the beta ratio has a value of 1.15.
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| Long-Term Stock Price Chart Of 3M (MMM) |
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| Long-Term Dividend Payment History of 3M (MMM) |
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| Long-Term Dividend Yield History of 3M (MMM) |
T. Rowe Price Group (NASDAQ:TROW) has a market capitalization of $21.38 billion. The company employs 5,692 people, generates revenue of $3.484 billion and has a net income of $1.047 billion. T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.728 billion. The EBITDA margin is 49.61 percent (the operating margin is 47.00 percent and the net profit margin 30.07 percent).
Financial Analysis: The total debt represents 0.00 percent of T. Rowe Price Group’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 23.97 percent was realized by T. Rowe Price Group. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, T. Rowe Price Group 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 19.78, the P/S ratio is 6.16 and the P/B ratio is finally 4.44. The dividend yield amounts to 2.16 percent and the beta ratio has a value of 1.33.
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| Long-Term Stock Price Chart Of T. Rowe Price Group (TROW) |
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| Long-Term Dividend Payment History of T. Rowe Price Group (TROW) |
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| Long-Term Dividend Yield History of T. Rowe Price Group (TROW) |
Walgreen (NYSE:WAG) has a market capitalization of $67.67 billion. The company employs 173,000 people, generates revenue of $72.217 billion and has a net income of $2.450 billion. Walgreen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.020 billion. The EBITDA margin is 6.95 percent (the operating margin is 5.46 percent and the net profit margin 3.39 percent).
Financial Analysis: The total debt represents 14.22 percent of Walgreen’s assets and the total debt in relation to the equity amounts to 25.94 percent. Due to the financial situation, a return on equity of 13.00 percent was realized by Walgreen. Twelve trailing months earnings per share reached a value of $2.84. Last fiscal year, Walgreen paid $1.14 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.97, the P/S ratio is 0.94 and the P/B ratio is finally 3.46. The dividend yield amounts to 1.77 percent and the beta ratio has a value of 1.33.
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| Long-Term Stock Price Chart Of Walgreen (WAG) |
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| Long-Term Dividend Payment History of Walgreen (WAG) |
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| Long-Term Dividend Yield History of Walgreen (WAG) |
Hormel Foods (NYSE:HRL) has a market capitalization of $12.88 billion. The company employs 19,700 people, generates revenue of $8.751 billion and has a net income of $530.08 million. Hormel Foods’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $910.33 million. The EBITDA margin is 10.40 percent (the operating margin is 9.21 percent and the net profit margin 6.06 percent).
Financial Analysis: The total debt represents 5.09 percent of Hormel Foods’s assets and the total debt in relation to the equity amounts to 7.55 percent. Due to the financial situation, a return on equity of 17.17 percent was realized by Hormel Foods. Twelve trailing months earnings per share reached a value of $2.09. Last fiscal year, Hormel Foods paid $0.68 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.38, the P/S ratio is 1.47 and the P/B ratio is finally 3.88. The dividend yield amounts to 1.64 percent and the beta ratio has a value of 0.47.
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| Long-Term Stock Price Chart Of Hormel Foods (HRL) |
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| Long-Term Dividend Payment History of Hormel Foods (HRL) |
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| Long-Term Dividend Yield History of Hormel Foods (HRL) |
VF Corporation (NYSE:VFC) has a market capitalization of $27.03 billion. The company employs 59,000 people, generates revenue of $11.419 billion and has a net income of $1.210 billion. VF Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.871 billion. The EBITDA margin is 16.39 percent (the operating margin is 14.42 percent and the net profit margin 10.60 percent).
Financial Analysis: The total debt represents 14.06 percent of VF Corporation’s assets and the total debt in relation to the equity amounts to 23.87 percent. Due to the financial situation, a return on equity of 21.60 percent was realized by VF Corporation. Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, VF Corporation paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.88, the P/S ratio is 2.36 and the P/B ratio is finally 4.54. The dividend yield amounts to 1.68 percent and the beta ratio has a value of 0.98.
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| Long-Term Stock Price Chart Of VF Corporation (VFC) |
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| Long-Term Dividend Payment History of VF Corporation (VFC) |
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| Long-Term Dividend Yield History of VF Corporation (VFC) |
*I am long WAG, MMM, . 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.