Doing nothing is a core principle of both dividend growth investing and the Buffett-Munger approach to buying high quality businesses trading at fair or better prices. When you buy a high quality business, all you have to do is sit back and let it compound your wealth.
The truth is, it is hard to do nothing. It is easier to buy and sell stocks. All of the activity gives us the illusion that we are in control. In reality, doing less in investing is being in control. It is much easier to sleep at night knowing you are invested in high quality businesses that you are comfortable holding for the long run.
Attached are 8 Do-Nothing stocks that offer in my view a solid fundament for further research while still paying solid dividends. High yielding Do-Nothing stocks are very rare.
These are the results:
AmeriGas Partners -- Yield: 8.09%
AmeriGas Partners (NYSE:APU) employs 8,000 people, generates revenue of $3,712.94 million and has a net income of $294.44 million. The current market capitalization stands at $4.23 billion.AmeriGas Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $654.98 million. The EBITDA margin is 17.64% (the operating margin is 12.46% and the net profit margin 7.93%).
Financials: The total debt represents 55.01% of AmeriGas Partners assets and the total debt in relation to the equity amounts to 181.53%. Due to the financial situation, a return on equity of 19.62% was realized by AmeriGas Partners.
Twelve trailing months earnings per share reached a value of $0.99. Last fiscal year, AmeriGas Partners paid $3.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 44.90, the P/S ratio is 1.14 and the P/B ratio is finally 3.25. The dividend yield amounts to 8.09%.
Stock Charts:
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| Long-Term Stock Price Chart of AmeriGas Partners (APU) |
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| Long-Term Dividend Payment History of AmeriGas Partners (APU) |
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| Long-Term Dividend Yield History of AmeriGas Partners (APU) |
HCP -- Yield: 5.95%
HCP (NYSE:HCP) employs 170 people, generates revenue of $2,266.28 million and has a net income of $893.19 million. The current market capitalization stands at $17.66 billion.HCP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,799.50 million. The EBITDA margin is 79.40% (the operating margin is 58.35% and the net profit margin 39.41%).
Financials: The total debt represents 45.67% of HCP assets and the total debt in relation to the equity amounts to 90.91%. Due to the financial situation, a return on equity of 8.31% was realized by HCP.
Twelve trailing months earnings per share reached a value of $0.91. Last fiscal year, HCP paid $2.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 41.26, the P/S ratio is 7.75 and the P/B ratio is finally 1.63. The dividend yield amounts to 5.95%.
Stock Charts:
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| Long-Term Stock Price Chart of HCP (HCP) |
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| Long-Term Dividend Payment History of HCP (HCP) |
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| Long-Term Dividend Yield History of HCP (HCP) |
AT&T -- Yield: 5.49%
AT&T (NYSE:T) employs 250,790 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $177.96 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).
Financials: The total debt represents 28.03% of AT&T assets and the total debt in relation to the equity amounts to 95.02%. Due to the financial situation, a return on equity of 7.02% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $1.11. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 30.45, the P/S ratio is 1.34 and the P/B ratio is finally 2.06. The dividend yield amounts to 5.49%.
Stock Charts:
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| Long-Term Stock Price Chart of AT&T (T) |
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| Long-Term Dividend Payment History of AT&T (T) |
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| Long-Term Dividend Yield History of AT&T (T) |
Realty Income -- Yield: 4.82%
Realty Income (NYSE:O) employs 131 people, generates revenue of $933.50 million and has a net income of $269.14 million. The current market capitalization stands at $10.99 billion.Realty Income’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $827.48 million. The EBITDA margin is 88.64% (the operating margin is 25.00% and the net profit margin 28.83%).
Financials: The total debt represents 44.82% of Realty Income assets and the total debt in relation to the equity amounts to 87.92%. Due to the financial situation, a return on equity of 4.50% was realized by Realty Income.
Twelve trailing months earnings per share reached a value of $1.07. Last fiscal year, Realty Income paid $1.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 43.74, the P/S ratio is 11.78 and the P/B ratio is finally 2.04. The dividend yield amounts to 4.82%.
Stock Charts:
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| Long-Term Stock Price Chart of Realty Income (O) |
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| Long-Term Dividend Payment History of Realty Income (O) |
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| Long-Term Dividend Yield History of Realty Income (O) |
Verizon Communications -- Yield: 4.74%
Verizon Communications (NYSE:VZ) employs 176,200 people, generates revenue of $127,079.00 million and has a net income of $11,956.00 million. The current market capitalization stands at $189.45 billion.Verizon Communications’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43,239.00 million. The EBITDA margin is 34.03% (the operating margin is 15.42% and the net profit margin 9.41%).
Financials: The total debt represents 48.68% of Verizon Communications assets and the total debt in relation to the equity amounts to 921.05%. Due to the financial situation, a return on equity of 37.65% was realized by Verizon Communications.
Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, Verizon Communications paid $2.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.22, the P/S ratio is 1.49 and the P/B ratio is finally 15.69. The dividend yield amounts to 4.74%.
Stock Charts:
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| Long-Term Stock Price Chart of Verizon Communications (VZ) |
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| Long-Term Dividend Payment History of Verizon Communications (VZ) |
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| Long-Term Dividend Yield History of Verizon Communications (VZ) |
National Retail Properties -- Yield: 4.68%
National Retail Properties (NYSE:NNN) employs 64 people, generates revenue of $434.85 million and has a net income of $179.78 million. The current market capitalization stands at $4.98 billion.National Retail Properties’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $383.17 million. The EBITDA margin is 88.12% (the operating margin is 61.23% and the net profit margin 41.34%).
Financials: The total debt represents 35.34% of National Retail Properties assets and the total debt in relation to the equity amounts to 56.48%. Due to the financial situation, a return on equity of 6.07% was realized by National Retail Properties.
Twelve trailing months earnings per share reached a value of $1.14. Last fiscal year, National Retail Properties paid $1.65 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 32.17, the P/S ratio is 11.46 and the P/B ratio is finally 1.96. The dividend yield amounts to 4.68%.
Stock Charts:
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| Long-Term Stock Price Chart of National Retail Properties (NNN) |
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| Long-Term Dividend Payment History of National Retail Properties (NNN) |
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| Long-Term Dividend Yield History of National Retail Properties (NNN) |
Mercury General -- Yield: 4.37%
Mercury General (NYSE:MCY) employs 4,400 people, generates revenue of $3,011.77 million and has a net income of $177.95 million. The current market capitalization stands at $3.12 billion.Mercury General’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $804.37 million. The EBITDA margin is 26.71% (the operating margin is 8.30% and the net profit margin 5.91%).
Financials: The total debt represents 6.30% of Mercury General assets and the total debt in relation to the equity amounts to 15.46%. Due to the financial situation, a return on equity of 9.62% was realized by Mercury General.
Twelve trailing months earnings per share reached a value of $2.39. Last fiscal year, Mercury General paid $2.46 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.59, the P/S ratio is 1.04 and the P/B ratio is finally 1.66. The dividend yield amounts to 4.37%.
Stock Charts:
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| Long-Term Stock Price Chart of Mercury General (MCY) |
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| Long-Term Dividend Payment History of Mercury General (MCY) |
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| Long-Term Dividend Yield History of Mercury General (MCY) |
Consolidated Edison -- Yield: 4.18%
Consolidated Edison (NYSE:ED) employs 14,601 people, generates revenue of $12,919.00 million and has a net income of $1,092.00 million. The current market capitalization stands at $18.22 billion.Consolidated Edison’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,235.00 million. The EBITDA margin is 25.04% (the operating margin is 16.75% and the net profit margin 8.45%).
Financials: The total debt represents 29.32% of Consolidated Edison assets and the total debt in relation to the equity amounts to 103.30%. Due to the financial situation, a return on equity of 8.80% was realized by Consolidated Edison.
Twelve trailing months earnings per share reached a value of $3.74. Last fiscal year, Consolidated Edison paid $2.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.34, the P/S ratio is 1.41 and the P/B ratio is finally 1.45. The dividend yield amounts to 4.18%.
Stock Charts:
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| Long-Term Stock Price Chart of Consolidated Edison (ED) |
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| Long-Term Dividend Payment History of Consolidated Edison (ED) |
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| Long-Term Dividend Yield History of Consolidated Edison (ED) |