This is certainly
good news for dividend investors. Unfortunately the stock market is trading at
an elevated price-to-earnings ratio. As a result, total stock market returns
are expected to average just 5% a year over the next decade.
If you are looking
for more return, you must select the good stocks and eliminate the bad ones. By
following the dividend growth rule, dividend growth stocks should perform
better than the overall market.
Below are 10 that
could fit the dividend growth rule. Which do you like?
Seagate Technology -- Yield: 3.87%
Seagate Technology (NASDAQ:STX) employs 52,100 people, generates revenue of $13,724.00 million and has a net income of $1,570.00 million. The current market capitalization stands at $17.71 billion.Seagate Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,679.00 million. The EBITDA margin is 19.52% (the operating margin is 12.94% and the net profit margin 11.44%).
Financials: The total debt represents 41.30% of Seagate Technology assets and the total debt in relation to the equity amounts to 138.42%. Due to the financial situation, a return on equity of 49.63% was realized by Seagate Technology.
Twelve trailing months earnings per share reached a value of $5.75. Last fiscal year, Seagate Technology paid $1.67 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.71, the P/S ratio is 1.29 and the P/B ratio is finally 6.43. The dividend yield amounts to 3.87%.
Stock Charts:
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| Long-Term Stock Price Chart of Seagate Technology (STX) |
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| Long-Term Dividend Payment History of Seagate Technology (STX) |
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| Long-Term Dividend Yield History of Seagate Technology (STX) |
Baxter International -- Yield: 3.09%
Baxter International (NYSE:BAX) employs 66,000 people, generates revenue of $16,671.00 million and has a net income of $1,946.00 million. The current market capitalization stands at $36.67 billion.Baxter International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,321.00 million. The EBITDA margin is 25.92% (the operating margin is 15.82% and the net profit margin 11.67%).
Financials: The total debt represents 35.90% of Baxter International assets and the total debt in relation to the equity amounts to 114.59%. Due to the financial situation, a return on equity of 23.47% was realized by Baxter International.
Twelve trailing months earnings per share reached a value of $3.40. Last fiscal year, Baxter International paid $2.05 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.83, the P/S ratio is 2.20 and the P/B ratio is finally 4.50. The dividend yield amounts to 3.09%.
Stock Charts:
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| Long-Term Stock Price Chart of Baxter International (BAX) |
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| Long-Term Dividend Payment History of Baxter International (BAX) |
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| Long-Term Dividend Yield History of Baxter International (BAX) |
International Paper -- Yield: 3.01%
International Paper (NYSE:IP) employs 58,000 people, generates revenue of $23,617.00 million and has a net income of $749.00 million. The current market capitalization stands at $22.35 billion.International Paper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,874.00 million. The EBITDA margin is 16.40% (the operating margin is 6.41% and the net profit margin 3.17%).
Financials: The total debt represents 32.68% of International Paper assets and the total debt in relation to the equity amounts to 183.25%. Due to the financial situation, a return on equity of 8.59% was realized by International Paper.
Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, International Paper paid $1.45 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 0.95 and the P/B ratio is finally 4.36. The dividend yield amounts to 3.01%.
Stock Charts:
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| Long-Term Stock Price Chart of International Paper (IP) |
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| Long-Term Dividend Payment History of International Paper (IP) |
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| Long-Term Dividend Yield History of International Paper (IP) |
AES Corporation -- Yield: 2.92%
AES Corporation (NYSE:AES) employs 18,500 people, generates revenue of $17,146.00 million and has a net income of $1,157.00 million. The current market capitalization stands at $9.62 billion.AES Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,163.00 million. The EBITDA margin is 24.28% (the operating margin is 9.94% and the net profit margin 6.75%).
Financials: The total debt represents 53.53% of AES Corporation assets and the total debt in relation to the equity amounts to 488.25%. Due to the financial situation, a return on equity of 18.34% was realized by AES Corporation.
Twelve trailing months earnings per share reached a value of $1.34. Last fiscal year, AES Corporation paid $0.25 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.20, the P/S ratio is 0.56 and the P/B ratio is finally 2.26. The dividend yield amounts to 2.92%.
Stock Charts:
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| Long-Term Stock Price Chart of AES Corporation (AES) |
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| Long-Term Dividend Payment History of AES Corporation (AES) |
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| Long-Term Dividend Yield History of AES Corporation (AES) |
Dr Pepper Snapple -- Yield: 2.49%
Dr Pepper Snapple (NYSE:DPS) employs 19,000 people, generates revenue of $6,121.00 million and has a net income of $702.00 million. The current market capitalization stands at $14.77 billion.Dr Pepper Snapple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,441.00 million. The EBITDA margin is 23.54% (the operating margin is 19.28% and the net profit margin 11.47%).
Financials: The total debt represents 31.32% of Dr Pepper Snapple assets and the total debt in relation to the equity amounts to 112.95%. Due to the financial situation, a return on equity of 30.76% was realized by Dr Pepper Snapple.
Twelve trailing months earnings per share reached a value of $3.59. Last fiscal year, Dr Pepper Snapple paid $0.41 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.46, the P/S ratio is 2.41 and the P/B ratio is finally 6.48. The dividend yield amounts to 2.49%.
Stock Charts:
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| Long-Term Stock Price Chart of Dr Pepper Snapple (DPS) |
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| Long-Term Dividend Payment History of Dr Pepper Snapple (DPS) |
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| Long-Term Dividend Yield History of Dr Pepper Snapple (DPS) |
Regions Financial -- Yield: 2.35%
Regions Financial (NYSE:RF) employs 23,723 people, generates revenue of $3,588.00 million and has a net income of $1,142.00 million. The current market capitalization stands at $13.70 billion.Regions Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,342.00 million. The EBITDA margin is 45.92% (the operating margin is 31.35% and the net profit margin 22.39%).
Financials: The total debt represents 4.78% of Regions Financial assets and the total debt in relation to the equity amounts to 33.87%. Due to the financial situation, a return on equity of 6.96% was realized by Regions Financial.
Twelve trailing months earnings per share reached a value of $0.73. Last fiscal year, Regions Financial paid $0.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.95, the P/S ratio is 2.69 and the P/B ratio is finally 0.87. The dividend yield amounts to 2.35%.
Stock Charts:
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| Long-Term Stock Price Chart of Regions Financial (RF) |
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| Long-Term Dividend Payment History of Regions Financial (RF) |
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| Long-Term Dividend Yield History of Regions Financial (RF) |
Cummins Incorporation -- Yield: 2.20%
Cummins Incorporation (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $25.72 billion.Cummins Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).
Financials: The total debt represents 10.76% of Cummins Incorporation assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins Incorporation.
Twelve trailing months earnings per share reached a value of $9.33. Last fiscal year, Cummins Incorporation paid $2.81 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.21, the P/S ratio is 1.34 and the P/B ratio is finally 3.34. The dividend yield amounts to 2.20%.
Stock Charts:
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| Long-Term Stock Price Chart of Cummins Incorporation (CMI) |
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| Long-Term Dividend Payment History of Cummins Incorporation (CMI) |
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| Long-Term Dividend Yield History of Cummins Incorporation (CMI) |
Harley-Davidson -- Yield: 2.18%
Harley-Davidson (NYSE:HOG) employs 5,900 people, generates revenue of $6,228.51 million and has a net income of $844.61 million. The current market capitalization stands at $11.85 billion.Harley-Davidson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,460.28 million. The EBITDA margin is 23.45% (the operating margin is 20.57% and the net profit margin 13.56%).
Financials: The total debt represents 57.77% of Harley-Davidson assets and the total debt in relation to the equity amounts to 189.21%. Due to the financial situation, a return on equity of 28.54% was realized by Harley-Davidson.
Twelve trailing months earnings per share reached a value of $3.93. Last fiscal year, Harley-Davidson paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.49, the P/S ratio is 1.90 and the P/B ratio is finally 4.15. The dividend yield amounts to 2.18%.
Stock Charts:
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| Long-Term Stock Price Chart of Harley-Davidson (HOG) |
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| Long-Term Dividend Payment History of Harley-Davidson (HOG) |
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| Long-Term Dividend Yield History of Harley-Davidson (HOG) |
Home Depot -- Yield: 2.10%
Home Depot (NYSE:HD) employs 371,000 people, generates revenue of $83,176.00 million and has a net income of $6,345.00 million. The current market capitalization stands at $145.62 billion.Home Depot’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,255.00 million. The EBITDA margin is 14.73% (the operating margin is 12.59% and the net profit margin 7.63%).
Financials: The total debt represents 43.05% of Home Depot assets and the total debt in relation to the equity amounts to 184.48%. Due to the financial situation, a return on equity of 58.09% was realized by Home Depot.
Twelve trailing months earnings per share reached a value of $4.93. Last fiscal year, Home Depot 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 22.77, the P/S ratio is 1.75 and the P/B ratio is finally 15.73. The dividend yield amounts to 2.10%.
Stock Charts:
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| Long-Term Stock Price Chart of Home Depot (HD) |
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| Long-Term Dividend Payment History of Home Depot (HD) |
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| Long-Term Dividend Yield History of Home Depot (HD) |
Novo Nordisk -- Yield: 1.32%
Novo Nordisk (NYSE:NVO) employs 39,062 people, generates revenue of $13,074.90 million and has a net income of $3,898.79 million. The current market capitalization stands at $119.30 billion.Novo Nordisk’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,583.99 million. The EBITDA margin is 42.71% (the operating margin is 38.84% and the net profit margin 29.82%).
Financials: The total debt represents 0.93% of Novo Nordisk assets and the total debt in relation to the equity amounts to 1.79%. Due to the financial situation, a return on equity of 63.92% was realized by Novo Nordisk.
Twelve trailing months earnings per share reached a value of $1.68. Last fiscal year, Novo Nordisk paid $0.75 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 34.16, the P/S ratio is 9.09 and the P/B ratio is finally 25.07. The dividend yield amounts to 1.32%.
Stock Charts:
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| Long-Term Stock Price Chart of Novo Nordisk (NVO) |
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| Long-Term Dividend Payment History of Novo Nordisk (NVO) |
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| Long-Term Dividend Yield History of Novo Nordisk (NVO) |