Dividend
stocks are a passion for me but most of the long-term dividend payer and grower
underperformed the market within the recent years.
However, I
maintain my strategy because I know what I own and how much return they will deliver over the long-run. I don't care about my friends and other
investor colleagues and what they might say about my boring strategy.
Toady I've screened the
market by cheap opportunities, stocks that look fundamentally cheap. It does
not mean that they perform well in the near future but they offer a good yield
with solid fundamentals which is a good seed of future crops.
My criteria are:
- Dividend growth of more than 5 consecutive years
- Debt-to-equity ratio under 0.5
- Dividend Yield above 3 percent
- Market Cap over $2 billion
- Forward P/E below 15
8 companies survived my screening. Below are the detailed stocks in review.
8 Cheap Dividend Stars you must know...
Colony Financial (NYSE:CLNY) has a market capitalization of $2.09 billion. The company generates revenue of $184.82 million and has a net income of $125.92 million. Colony Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $138.92 million. The EBITDA margin is 75.16 percent (the operating margin is 68.51 percent and the net profit margin 68.13 percent).
Financial Analysis: The total debt represents 23.44 percent of Colony Financial’s assets and the total debt in relation to the equity amounts to 36.58 percent. Due to the financial situation, a return on equity of 5.48 percent was realized by Colony Financial. Twelve trailing months earnings per share reached a value of $1.10. Last fiscal year, Colony Financial paid $1.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.54, the P/S ratio is 11.31 and the P/B ratio is finally 1.03. The dividend yield amounts to 6.36 percent and the beta ratio has a value of 0.79.
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| Long-Term Stock Price Chart Of Colony Financial (CLNY) |
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| Long-Term Dividend Payment History of Colony Financial (CLNY) |
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| Long-Term Dividend Yield History of Colony Financial (CLNY) |
Old Republic (NYSE:ORI) has a market capitalization of $4.37 billion. The company employs 7,900 people, generates revenue of $5,442.70 million and has a net income of $448.00 million. Old Republic’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $718.60 million. The EBITDA margin is 13.20 percent (the operating margin is 12.77 percent and the net profit margin 8.23 percent).
Financial Analysis: The total debt represents 3.44 percent of Old Republic’s assets and the total debt in relation to the equity amounts to 15.08 percent. Due to the financial situation, a return on equity of 12.15 percent was realized by Old Republic. Twelve trailing months earnings per share reached a value of $2.03. Last fiscal year, Old Republic paid $0.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.26, the P/S ratio is 0.80 and the P/B ratio is finally 1.16. The dividend yield amounts to 4.35 percent and the beta ratio has a value of 0.89.
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| Long-Term Stock Price Chart Of Old Republic (ORI) |
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| Long-Term Dividend Payment History of Old Republic (ORI) |
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| Long-Term Dividend Yield History of Old Republic (ORI) |
First American Financial (NYSE:FAF) has a market capitalization of $2.95 billion. The company employs 17,292 people, generates revenue of $4,956.08 million and has a net income of $187.06 million. First American Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $400.92 million. The EBITDA margin is 8.09 percent (the operating margin is 6.58 percent and the net profit margin 3.77 percent).
Financial Analysis: The total debt represents 4.76 percent of First American Financial’s assets and the total debt in relation to the equity amounts to 12.65 percent. Due to the financial situation, a return on equity of 7.75 percent was realized by First American Financial. Twelve trailing months earnings per share reached a value of $1.59. Last fiscal year, First American Financial paid $0.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.40, the P/S ratio is 0.60 and the P/B ratio is finally 1.19. The dividend yield amounts to 3.47 percent and the beta ratio has a value of 0.91.
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| Long-Term Stock Price Chart Of First American Financial (FAF) |
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| Long-Term Dividend Payment History of First American Financial (FAF) |
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| Long-Term Dividend Yield History of First American Financial (FAF) |
ABB (NYSE:ABB) has a market capitalization of $52.44 billion. The company employs 147,700 people, generates revenue of $41,848.00 million and has a net income of $2,944.00 million. ABB’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,188.00 million. The EBITDA margin is 14.79 percent (the operating margin is 10.48 percent and the net profit margin 7.03 percent).
Financial Analysis: The total debt represents 16.69 percent of ABB’s assets and the total debt in relation to the equity amounts to 42.95 percent. Due to the financial situation, a return on equity of 15.87 percent was realized by ABB. Twelve trailing months earnings per share reached a value of $1.17.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.47, the P/S ratio is 1.26 and the P/B ratio is finally 2.81. The dividend yield amounts to 3.46 percent and the beta ratio has a value of 1.43.
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| Long-Term Stock Price Chart Of ABB (ABB) |
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| Long-Term Dividend Payment History of ABB (ABB) |
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| Long-Term Dividend Yield History of ABB (ABB) |
ConocoPhillips (NYSE:COP) has a market capitalization of $104.06 billion. The company employs 18,800 people, generates revenue of $56,185.00 million and has a net income of $8,037.00 million. ConocoPhillips’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,761.00 million. The EBITDA margin is 36.95 percent (the operating margin is 22.78 percent and the net profit margin 14.30 percent).
Financial Analysis: The total debt represents 18.35 percent of ConocoPhillips’s assets and the total debt in relation to the equity amounts to 41.59 percent. Due to the financial situation, a return on equity of 15.94 percent was realized by ConocoPhillips. Twelve trailing months earnings per share reached a value of $6.51. Last fiscal year, ConocoPhillips paid $2.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.03, the P/S ratio is 1.85 and the P/B ratio is finally 1.99. The dividend yield amounts to 3.45 percent and the beta ratio has a value of 1.02.
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| Long-Term Stock Price Chart Of ConocoPhillips (COP) |
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| Long-Term Dividend Payment History of ConocoPhillips (COP) |
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| Long-Term Dividend Yield History of ConocoPhillips (COP) |
Chevron (NYSE:CVX) has a market capitalization of $248.22 billion. The company employs 64,600 people, generates revenue of $220,264.00 million and has a net income of $21,597.00 million. Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41,912.00 million. The EBITDA margin is 19.03 percent (the operating margin is 12.59 percent and the net profit margin 9.81 percent).
Financial Analysis: The total debt represents 8.05 percent of Chevron’s assets and the total debt in relation to the equity amounts to 13.70 percent. Due to the financial situation, a return on equity of 15.00 percent was realized by Chevron. Twelve trailing months earnings per share reached a value of $10.27. Last fiscal year, Chevron paid $3.90 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.70, the P/S ratio is 1.13 and the P/B ratio is finally 1.67. The dividend yield amounts to 3.28 percent and the beta ratio has a value of 1.08.
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| Long-Term Stock Price Chart Of Chevron (CVX) |
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| Long-Term Dividend Payment History of Chevron (CVX) |
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| Long-Term Dividend Yield History of Chevron (CVX) |
BHP Billiton (NYSE:BHP) has a market capitalization of $115.72 billion. The company employs 49,496 people, generates revenue of $65,953.00 million and has a net income of $12,820.00 million. BHP Billiton’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $28,819.00 million. The EBITDA margin is 43.70 percent (the operating margin is 31.84 percent and the net profit margin 19.44 percent).
Financial Analysis: The total debt represents 23.84 percent of BHP Billiton’s assets and the total debt in relation to the equity amounts to 46.96 percent. Due to the financial situation, a return on equity of 16.44 percent was realized by BHP Billiton. Twelve trailing months earnings per share reached a value of $5.58. Last fiscal year, BHP Billiton paid $2.28 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.91, the P/S ratio is 2.85 and the P/B ratio is finally 1.64. The dividend yield amounts to 3.27 percent and the beta ratio has a value of 1.60.
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| Long-Term Stock Price Chart Of BHP Billiton (BHP) |
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| Long-Term Dividend Payment History of BHP Billiton (BHP) |
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| Long-Term Dividend Yield History of BHP Billiton (BHP) |
Syngenta (NYSE:SYT) has a market capitalization of $33.37 billion. The company employs 29,000 people, generates revenue of $14,688.00 million and has a net income of $1,649.00 million. Syngenta’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,853.00 million. The EBITDA margin is 19.42 percent (the operating margin is 14.20 percent and the net profit margin 11.23 percent).
Financial Analysis: The total debt represents 15.86 percent of Syngenta’s assets and the total debt in relation to the equity amounts to 33.78 percent. Due to the financial situation, a return on equity of 18.00 percent was realized by Syngenta. Twelve trailing months earnings per share reached a value of $3.56. Last fiscal year, Syngenta paid $2.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.45, the P/S ratio is 2.30 and the P/B ratio is finally 3.52. The dividend yield amounts to 3.13 percent and the beta ratio has a value of 1.05.
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| Long-Term Stock Price Chart Of Syngenta (SYT) |
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| Long-Term Dividend Payment History of Syngenta (SYT) |
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| Long-Term Dividend Yield History of Syngenta (SYT) |
*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.
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