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These 7 Growth Stocks Have Potential To Make You Rich

7 Growth stocks originally appeared at long-term-investments.blogspot.comYesterday, I've published a small and very inspiring article about a Chinese couple that made a million with only two trades; fascinating.

Today I've run my stock screener for growth stocks with a market capitalization between 2 and 10 billion. Those stocks have a good chance to double if the company grows earnings and sales further.

In order to keep the passive income source alive, I've only selected stocks with a positive dividend yield as well as low debt ratios.

My focus excluded also stocks from the financial sector, mining stocks and energy/commodity companies as well. I don’t like those companies because I cannot predict their future. The business is price driven or caused by the skills or talents of the management.


Below are my seven favorites, best dividend paying companies that have doubled sales and earnings over the past ten years. Which do you like or do you own some of them? Let me know by leaving a small notice or comment in the box at the end of this article. Thank you so much for reading.

7 Growth Stocks I like are... 

Watsco (NYSE:WSO) has a market capitalization of $3.17 billion. The company employs 4,800 people, generates revenue of $3,743.33 million and has a net income of $187.72 million. Watsco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $288.92 million. The EBITDA margin is 7.72 percent (the operating margin is 7.25 percent and the net profit margin 5.01 percent).

Financial Analysis: The total debt represents 13.82 percent of Watsco’s assets and the total debt in relation to the equity amounts to 27.45 percent. Due to the financial situation, a return on equity of 14.94 percent was realized by Watsco. Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, Watsco paid $1.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.15, the P/S ratio is 0.84 and the P/B ratio is finally 4.41. The dividend yield amounts to 2.66 percent and the beta ratio has a value of 0.88.


Long-Term Stock Price Chart Of Watsco (WSO)
Long-Term Dividend Payment History of Watsco (WSO)
Long-Term Dividend Yield History of Watsco (WSO)

DSW (NYSE:DSW) has a market capitalization of $2.70 billion. The company employs 11,000 people, generates revenue of $2,368.67 million and has a net income of $151.30 million. DSW’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $305.49 million. The EBITDA margin is 12.90 percent (the operating margin is 10.19 percent and the net profit margin 6.39 percent).

Financial Analysis: The total debt represents 0.00 percent of DSW’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 16.29 percent was realized by DSW. Twelve trailing months earnings per share reached a value of $1.69. Last fiscal year, DSW paid $0.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.79, the P/S ratio is 1.13 and the P/B ratio is finally 2.74. The dividend yield amounts to 2.49 percent and the beta ratio has a value of 1.16.


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

ResMed (NYSE:RMD) has a market capitalization of $7.36 billion. The company employs 4,100 people, generates revenue of $1,554.97 million and has a net income of $345.27 million. ResMed’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $484.87 million. The EBITDA margin is 31.18 percent (the operating margin is 26.05 percent and the net profit margin 22.20 percent).

Financial Analysis: The total debt represents 12.74 percent of ResMed’s assets and the total debt in relation to the equity amounts to 17.11 percent. Due to the financial situation, a return on equity of 20.50 percent was realized by ResMed. Twelve trailing months earnings per share reached a value of $2.40. Last fiscal year, ResMed paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.89, the P/S ratio is 4.74 and the P/B ratio is finally 4.20. The dividend yield amounts to 2.13 percent and the beta ratio has a value of 0.80.


Long-Term Stock Price Chart Of ResMed (RMD)
Long-Term Dividend Payment History of ResMed (RMD)
Long-Term Dividend Yield History of ResMed (RMD)

Jack Henry & Associates (NASDAQ:JKHY) has a market capitalization of $4.77 billion. The company employs 5,499 people, generates revenue of $1,210.05 million and has a net income of $201.14 million. Jack Henry & Associates’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $419.77 million. The EBITDA margin is 34.69 percent (the operating margin is 25.78 percent and the net profit margin 16.62 percent).

Financial Analysis: The total debt represents 0.56 percent of Jack Henry & Associates’s assets and the total debt in relation to the equity amounts to 0.88 percent. Due to the financial situation, a return on equity of 19.06 percent was realized by Jack Henry & Associates. Twelve trailing months earnings per share reached a value of $2.36. Last fiscal year, Jack Henry & Associates paid $0.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.72, the P/S ratio is 3.98 and the P/B ratio is finally 4.64. The dividend yield amounts to 1.51 percent and the beta ratio has a value of 0.76.


Long-Term Stock Price Chart Of Jack Henry & Associates (JKHY)
Long-Term Dividend Payment History of Jack Henry & Associates (JKHY)
Long-Term Dividend Yield History of Jack Henry & Associates (JKHY)

Tractor Supply (NASDAQ:TSCO) has a market capitalization of $8.75 billion. The company employs 10,200 people, generates revenue of $5,164.78 million and has a net income of $328.23 million. Tractor Supply’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $614.68 million. The EBITDA margin is 11.90 percent (the operating margin is 9.96 percent and the net profit margin 6.36 percent).

Financial Analysis: The total debt represents 0.07 percent of Tractor Supply’s assets and the total debt in relation to the equity amounts to 0.10 percent. Due to the financial situation, a return on equity of 28.90 percent was realized by Tractor Supply. Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, Tractor Supply paid $0.13 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.30, the P/S ratio is 1.64 and the P/B ratio is finally 6.90. The dividend yield amounts to 1.04 percent and the beta ratio has a value of 1.11.


Long-Term Stock Price Chart Of Tractor Supply (TSCO)
Long-Term Dividend Payment History of Tractor Supply (TSCO)
Long-Term Dividend Yield History of Tractor Supply (TSCO)

Stantec (NYSE:STN) has a market capitalization of $3.22 billion. The company employs 14,000 people, generates revenue of $1,676.16 million and has a net income of $133.74 million. Stantec’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $236.90 million. The EBITDA margin is 14.13 percent (the operating margin is 10.86 percent and the net profit margin 7.98 percent).

Financial Analysis: The total debt represents 2.79 percent of Stantec’s assets and the total debt in relation to the equity amounts to 5.21 percent. Due to the financial situation, a return on equity of 18.05 percent was realized by Stantec. Twelve trailing months earnings per share reached a value of $3.09. Last fiscal year, Stantec paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.45, the P/S ratio is 1.94 and the P/B ratio is finally 3.98. The dividend yield amounts to 0.98 percent and the beta ratio has a value of 1.08.


Long-Term Stock Price Chart Of Stantec (STN)
Long-Term Dividend Payment History of Stantec (STN)
Long-Term Dividend Yield History of Stantec (STN)

Gildan Activewear (NYSE:GIL) has a market capitalization of $6.89 billion. The company employs 34,000 people, generates revenue of $2,184.30 million and has a net income of $320.18 million. Gildan Activewear’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $446.75 million. The EBITDA margin is 20.45 percent (the operating margin is 15.69 percent and the net profit margin 14.66 percent).

Financial Analysis: The total debt represents 0.00 percent of Gildan Activewear’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 20.36 percent was realized by Gildan Activewear. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, Gildan Activewear paid $0.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.78, the P/S ratio is 3.16 and the P/B ratio is finally 3.99. The dividend yield amounts to 0.77 percent and the beta ratio has a value of 1.10.


Long-Term Stock Price Chart Of Gildan Activewear (GIL)
Long-Term Dividend Payment History of Gildan Activewear (GIL)
Long-Term Dividend Yield History of Gildan Activewear (GIL)

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*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.