With Bonds and Treasury bills yielding less than 2%
over a 1-5 year time horizon, stocks with assured dividend growth are perhaps
one of the few bright spots for investors.
As even the most imprudent investor knows, dividend
stocks are historically less volatile than non-dividend stocks and are proven
outperformers over the long term.
These stocks are a safe bet to create wealth as
dividends generally act as a hedge against economic uncertainty. Moreover,
these stocks provide downside protection by offering sizable yields on a
regular basis.
A lot of investors
consider dividend-paying companies as "boring." Weighed against the
high-flying small cap companies, whose volatility seems to excite them,
dividend-paying stocks are typically more mature and conventional. Although
this may be uninteresting for some, the combination of a consistent dividend
payout and dividend growth can be something to get excited about.
Below I've attached some good looking stocks that have
grown dividends in the recent 5 years by more than 35 percent and having a current
strong buy or buy rating.
Ares Commercial Real Estate -- Yield: 8.42%
Ares Commercial Real Estate (NYSE:ACRE) employs 100 people, generates revenue of $98.78 million and has a net income of $24.62 million. The current market capitalization stands at $339.58 million.Ares Commercial Real Estate’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24.55 million. The EBITDA margin is 24.86% (the operating margin is 23.86% and the net profit margin 24.92%).
Financials: The total debt represents 71.86% of Ares Commercial Real Estate assets and the total debt in relation to the equity amounts to 333.07%. Due to the financial situation, a return on equity of 6.03% was realized by Ares Commercial Real Estate.
Twelve trailing months earnings per share reached a value of $0.93. Last fiscal year, Ares Commercial Real Estate 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 12.76, the P/S ratio is 3.44 and the P/B ratio is finally 0.84. The dividend yield amounts to 8.42%.
Stock Charts:
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| Long-Term Stock Price Chart of Ares Commercial Real Estate (ACRE) |
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| Long-Term Dividend Payment History of Ares Commercial Real Estate (ACRE) |
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| Long-Term Dividend Yield History of Ares Commercial Real Estate (ACRE) |
Retail Opportunity Investments -- Yield: 4.14%
Retail Opportunity Investments (NASDAQ:ROIC) employs 65 people, generates revenue of $155.86 million and has a net income of $21.05 million. The current market capitalization stands at $1.54 billion.Retail Opportunity Investments’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $96.13 million. The EBITDA margin is 61.67% (the operating margin is 31.21% and the net profit margin 13.50%).
Financials: The total debt represents 40.15% of Retail Opportunity Investments assets and the total debt in relation to the equity amounts to 80.48%. Due to the financial situation, a return on equity of 2.52% was realized by Retail Opportunity Investments.
Twelve trailing months earnings per share reached a value of $0.23. Last fiscal year, Retail Opportunity Investments paid $0.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 72.65, the P/S ratio is 9.91 and the P/B ratio is finally 1.65. The dividend yield amounts to 4.14%.
Stock Charts:
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| Long-Term Stock Price Chart of Retail Opportunity Investments (ROIC) |
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| Long-Term Dividend Payment History of Retail Opportunity Investments (ROIC) |
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| Long-Term Dividend Yield History of Retail Opportunity Investments (ROIC) |
Church & Dwight -- Yield: 1.59%
Church & Dwight (NYSE:CHD) employs 4,200 people, generates revenue of $3,297.60 million and has a net income of $413.90 million. The current market capitalization stands at $11.01 billion.Church & Dwight’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $703.00 million. The EBITDA margin is 21.32% (the operating margin is 19.44% and the net profit margin 12.55%).
Financials: The total debt represents 25.00% of Church & Dwight assets and the total debt in relation to the equity amounts to 52.11%. Due to the financial situation, a return on equity of 18.81% was realized by Church & Dwight.
Twelve trailing months earnings per share reached a value of $3.08. Last fiscal year, Church & Dwight paid $1.24 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.58, the P/S ratio is 3.34 and the P/B ratio is finally 5.34. The dividend yield amounts to 1.59%.
Stock Charts:
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| Long-Term Stock Price Chart of Church & Dwight (CHD) |
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| Long-Term Dividend Payment History of Church & Dwight (CHD) |
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| Long-Term Dividend Yield History of Church & Dwight (CHD) |
Royal Caribbean -- Yield: 1.46%
Royal Caribbean (NYSE:RCL) employs 63,400 people, generates revenue of $8,073.86 million and has a net income of $764.15 million. The current market capitalization stands at $18.12 billion.Royal Caribbean’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,748.76 million. The EBITDA margin is 21.66% (the operating margin is 11.67% and the net profit margin 9.46%).
Financials: The total debt represents 39.95% of Royal Caribbean assets and the total debt in relation to the equity amounts to 99.89%. Due to the financial situation, a return on equity of 8.94% was realized by Royal Caribbean.
Twelve trailing months earnings per share reached a value of $3.51. Last fiscal year, Royal Caribbean 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 23.72, the P/S ratio is 2.24 and the P/B ratio is finally 2.18. The dividend yield amounts to 1.46%.
Stock Charts:
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| Long-Term Stock Price Chart of Royal Caribbean (RCL) |
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| Long-Term Dividend Payment History of Royal Caribbean (RCL) |
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| Long-Term Dividend Yield History of Royal Caribbean (RCL) |
Culp -- Yield: 0.73%
Culp (NYSE:CFI) employs 1,167 people, generates revenue of $310.17 million and has a net income of $15.07 million. The current market capitalization stands at $399.93 million.Culp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $28.75 million. The EBITDA margin is 9.27% (the operating margin is 7.35% and the net profit margin 4.86%).
Financials: The total debt represents 1.28% of Culp assets and the total debt in relation to the equity amounts to 1.84%. Due to the financial situation, a return on equity of 13.04% was realized by Culp.
Twelve trailing months earnings per share reached a value of $1.21. Last fiscal year, Culp paid $0.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.04, the P/S ratio is 1.29 and the P/B ratio is finally 3.36. The dividend yield amounts to 0.73%.
Stock Charts:
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| Long-Term Stock Price Chart of Culp (CFI) |
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| Long-Term Dividend Payment History of Culp (CFI) |
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| Long-Term Dividend Yield History of Culp (CFI) |