Overall, dividends
will provide about half the total returns for equity investors in the next
decade, that's a major guide each analyst tells you when we are discussing the
dividend growth strategies.
Today I like to
refer a great basket from Goldman Sachs, the Dividend Growth Basket. Each stock
of the list has a median yield of 2.5% and is expected to increase dividends by
16% in 2015 and 12% in 2016. The basket has a price-to-earnings ratio of 15 vs.
17.3 for the S&P.
That sounds very
interesting, right? Well let us look at the detailed results. Here are the best
picks from each industry. Which do you like?
Verizon Communications -- Yield: 4.66%
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 $191.85 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 $2.39. 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 19.66, the P/S ratio is 1.51 and the P/B ratio is finally 15.95. The dividend yield amounts to 4.66%.
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) |
Seagate Technology -- Yield: 4.49%
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 $14.93 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 8.19, the P/S ratio is 1.11 and the P/B ratio is finally 5.55. The dividend yield amounts to 4.49%.
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) |
WEC Energy Group -- Yield: 3.92%
WEC Energy Group (NYSE:WEC) employs 4,248 people, generates revenue of $4,997.10 million and has a net income of $588.30 million. The current market capitalization stands at $14.64 billion.WEC Energy Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,531.50 million. The EBITDA margin is 30.65% (the operating margin is 22.25% and the net profit margin 11.77%).
Financials: The total debt represents 34.48% of WEC Energy Group assets and the total debt in relation to the equity amounts to 117.48%. Due to the financial situation, a return on equity of 13.60% was realized by WEC Energy Group.
Twelve trailing months earnings per share reached a value of $2.54. Last fiscal year, WEC Energy Group paid $1.56 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.29, the P/S ratio is 2.95 and the P/B ratio is finally 2.38. The dividend yield amounts to 3.92%.
Stock Charts:
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| Long-Term Stock Price Chart of WEC Energy Group (WEC) |
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| Long-Term Dividend Payment History of WEC Energy Group (WEC) |
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| Long-Term Dividend Yield History of WEC Energy Group (WEC) |
Host Hotels and Resorts -- Yield: 3.90%
Host Hotels and Resorts (NYSE:HST) employs 251 people, generates revenue of $5,354.00 million and has a net income of $747.00 million. The current market capitalization stands at $15.69 billion.Host Hotels and Resorts’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,348.00 million. The EBITDA margin is 25.18% (the operating margin is 13.26% and the net profit margin 13.95%).
Financials: The total debt represents 32.70% of Host Hotels and Resorts assets and the total debt in relation to the equity amounts to 54.42%. Due to the financial situation, a return on equity of 10.05% was realized by Host Hotels and Resorts.
Twelve trailing months earnings per share reached a value of $0.84. Last fiscal year, Host Hotels and Resorts 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 24.51, the P/S ratio is 2.90 and the P/B ratio is finally 2.11. The dividend yield amounts to 3.90%.
Stock Charts:
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| Long-Term Stock Price Chart of Host Hotels and Resorts (HST) |
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| Long-Term Dividend Payment History of Host Hotels and Resorts (HST) |
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| Long-Term Dividend Yield History of Host Hotels and Resorts (HST) |
National-Oilwell Varco -- Yield: 3.88%
National-Oilwell Varco (NYSE:NOV) employs 54,540 people, generates revenue of $21,440.00 million and has a net income of $2,455.00 million. The current market capitalization stands at $17.88 billion.National-Oilwell Varco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,496.00 million. The EBITDA margin is 20.97% (the operating margin is 16.85% and the net profit margin 11.45%).
Financials: The total debt represents 9.43% of National-Oilwell Varco assets and the total debt in relation to the equity amounts to 15.30%. Due to the financial situation, a return on equity of 11.42% was realized by National-Oilwell Varco.
Twelve trailing months earnings per share reached a value of $5.18. Last fiscal year, National-Oilwell Varco 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 8.90, the P/S ratio is 0.86 and the P/B ratio is finally 0.96. The dividend yield amounts to 3.88%.
Stock Charts:
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| Long-Term Stock Price Chart of National-Oilwell Varco (NOV) |
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| Long-Term Dividend Payment History of National-Oilwell Varco (NOV) |
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| Long-Term Dividend Yield History of National-Oilwell Varco (NOV) |
Pfizer -- Yield: 3.36%
Pfizer (NYSE:PFE) employs 78,300 people, generates revenue of $49,605.00 million and has a net income of $9,120.00 million. The current market capitalization stands at $205.70 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,198.00 million. The EBITDA margin is 40.72% (the operating margin is 25.66% and the net profit margin 18.39%).
Financials: The total debt represents 21.67% of Pfizer assets and the total debt in relation to the equity amounts to 51.45%. Due to the financial situation, a return on equity of 12.32% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.45. Last fiscal year, Pfizer paid $1.04 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.10, the P/S ratio is 4.14 and the P/B ratio is finally 2.95. The dividend yield amounts to 3.36%.
Stock Charts:
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| Long-Term Stock Price Chart of Pfizer (PFE) |
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| Long-Term Dividend Payment History of Pfizer (PFE) |
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| Long-Term Dividend Yield History of Pfizer (PFE) |
International Paper -- Yield: 3.34%
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 $20.11 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 21.03, the P/S ratio is 0.85 and the P/B ratio is finally 3.94. The dividend yield amounts to 3.34%.
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) |
Lockheed Martin -- Yield: 3.20%
Lockheed Martin (NYSE:LMT) employs 112,000 people, generates revenue of $45,600.00 million and has a net income of $3,614.00 million. The current market capitalization stands at $59.12 billion.Lockheed Martin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,047.00 million. The EBITDA margin is 15.45% (the operating margin is 12.26% and the net profit margin 7.93%).
Financials: The total debt represents 16.64% of Lockheed Martin assets and the total debt in relation to the equity amounts to 181.44%. Due to the financial situation, a return on equity of 86.90% was realized by Lockheed Martin.
Twelve trailing months earnings per share reached a value of $11.08. Last fiscal year, Lockheed Martin paid $5.49 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.95, the P/S ratio is 1.29 and the P/B ratio is finally 17.30. The dividend yield amounts to 3.20%.
Stock Charts:
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| Long-Term Stock Price Chart of Lockheed Martin (LMT) |
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| Long-Term Dividend Payment History of Lockheed Martin (LMT) |
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| Long-Term Dividend Yield History of Lockheed Martin (LMT) |
Coca-Cola Enterprises -- Yield: 2.60%
Coca-Cola Enterprises (NYSE:CCE) employs 11,650 people, generates revenue of $8,264.00 million and has a net income of $663.00 million. The current market capitalization stands at $9.93 billion.Coca-Cola Enterprises’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,422.00 million. The EBITDA margin is 17.21% (the operating margin is 12.33% and the net profit margin 8.02%).
Financials: The total debt represents 46.26% of Coca-Cola Enterprises assets and the total debt in relation to the equity amounts to 276.17%. Due to the financial situation, a return on equity of 35.73% was realized by Coca-Cola Enterprises.
Twelve trailing months earnings per share reached a value of $2.59. Last fiscal year, Coca-Cola Enterprises 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 16.42, the P/S ratio is 1.22 and the P/B ratio is finally 7.22. The dividend yield amounts to 2.60%.
Stock Charts:
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| Long-Term Stock Price Chart of Coca-Cola Enterprises (CCE) |
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| Long-Term Dividend Payment History of Coca-Cola Enterprises (CCE) |
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| Long-Term Dividend Yield History of Coca-Cola Enterprises (CCE) |
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| Goldman's Dividend Growth Basket (click to enlarge) |
