Pages

10 U.K. High-Quality Dividend Stocks With Free Cashflow Yields Over 4%

High quality investments existing all over the world but the most of them can be found on the mother country of capitalism, United States.

Asset prices have grown into unbelievable dimensions due to the expansive monetary policy. In addition, the dollar was also on the strong pace.

It does make sense to look for high-quality investments abroad if you believe that the current assets in the USA are overpriced in average.

Today, I like to give an overview about some high-yielders in terms of free cash flow from the UK. In addition, those stocks pay solid dividends with room to grow them for years.

These are the results....



Reckitt Benckiser -- Yield: 2.39%

Reckitt Benckiser (LON:RB) employs 37,200 people, generates revenue of $8,836.00 million and has a net income of $1,664.00 million. The current market capitalization stands at $41.21 billion.

Reckitt Benckiser’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,346.00 million. The EBITDA margin is 26.55% (the operating margin is 24.49% and the net profit margin 18.83%).

Financials: The total debt represents 16.60% of Reckitt Benckiser assets and the total debt in relation to the equity amounts to 37.65%. Due to the financial situation, a return on equity of 25.26% was realized by Reckitt Benckiser.

Twelve trailing months earnings per share reached a value of $2.28. Last fiscal year, Reckitt Benckiser paid $1.39 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.11, the P/S ratio is 4.70 and the P/B ratio is finally 6.12. The dividend yield amounts to 2.39%.

Sage Group -- Yield: 2.21%

Sage Group (LON:SGE) employs 12,594 people, generates revenue of $1,306.80 million and has a net income of $187.70 million. The current market capitalization stands at $6.00 billion.

Sage Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $388.60 million. The EBITDA margin is 29.74% (the operating margin is 22.83% and the net profit margin 14.36%).

Financials: The total debt represents 28.00% of Sage Group assets and the total debt in relation to the equity amounts to 76.71%. Due to the financial situation, a return on equity of 22.57% was realized by Sage Group.

Twelve trailing months earnings per share reached a value of $0.18. Last fiscal year, Sage Group paid $0.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.40, the P/S ratio is 4.64 and the P/B ratio is finally 8.01. The dividend yield amounts to 2.21%.

PZ Cussons -- Yield: 2.18%

PZ Cussons (LON:PZC) employs 5,779 people, generates revenue of $861.40 million and has a net income of $98.70 million. The current market capitalization stands at $1.54 billion.

PZ Cussons’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $147.00 million. The EBITDA margin is 17.07% (the operating margin is 14.52% and the net profit margin 11.46%).

Financials: The total debt represents 11.82% of PZ Cussons assets and the total debt in relation to the equity amounts to 24.48%. Due to the financial situation, a return on equity of 18.95% was realized by PZ Cussons.

Twelve trailing months earnings per share reached a value of $0.21. Last fiscal year, PZ Cussons paid $0.08 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.77, the P/S ratio is 1.79 and the P/B ratio is finally 3.18. The dividend yield amounts to 2.18%.


Burberry Group -- Yield: 2.08%

Burberry Group (LON:BRBY) employs 9,698 people, generates revenue of $2,523.20 million and has a net income of $341.10 million. The current market capitalization stands at $7.47 billion.

Burberry Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $585.10 million. The EBITDA margin is 23.19% (the operating margin is 17.60% and the net profit margin 13.52%).

Financials: The total debt represents 3.00% of Burberry Group assets and the total debt in relation to the equity amounts to 4.65%. Due to the financial situation, a return on equity of 26.21% was realized by Burberry Group.

Twelve trailing months earnings per share reached a value of $0.75. Last fiscal year, Burberry Group paid $0.35 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.46, the P/S ratio is 2.99 and the P/B ratio is finally 5.38. The dividend yield amounts to 2.08%.


Spectris -- Yield: 2.03%

Spectris (LON:SXS) employs 7,676 people, generates revenue of $1,173.70 million and has a net income of $135.10 million. The current market capitalization stands at $2.67 billion.

Spectris’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $221.40 million. The EBITDA margin is 18.86% (the operating margin is 14.34% and the net profit margin 11.51%).

Financials: The total debt represents 11.40% of Spectris assets and the total debt in relation to the equity amounts to 17.51%. Due to the financial situation, a return on equity of 15.35% was realized by Spectris.

Twelve trailing months earnings per share reached a value of $1.13. Last fiscal year, Spectris paid $0.46 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.86, the P/S ratio is 2.32 and the P/B ratio is finally 2.97. The dividend yield amounts to 2.03%.


Euromoney -- Yield: 1.95%

Euromoney (LON:ERM) employs 2,409 people, generates revenue of $406.56 million and has a net income of $75.86 million. The current market capitalization stands at $1.51 billion.

Euromoney’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $122.31 million. The EBITDA margin is 30.08% (the operating margin is 25.42% and the net profit margin 18.66%).

Financials: The total debt represents 6.97% of Euromoney assets and the total debt in relation to the equity amounts to 13.23%. Due to the financial situation, a return on equity of 22.32% was realized by Euromoney.

Twelve trailing months earnings per share reached a value of $0.98. Last fiscal year, Euromoney paid $0.23 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.08, the P/S ratio is 3.72 and the P/B ratio is finally 4.33. The dividend yield amounts to 1.95%.



10 UK dividend growth stocks (click to enlarge), Source: iii.co.uk