Buybacks and dividends are great ways to unlock
shareholder values. The past has shown that both strategies work well for
long-term orientated investors but you need to watch careful the market
valuation.
I'm looking for companies trading at a 30%-40% discount to intrinsic value, based on the potential optimization of the balance
sheet. Incentive structures based on return on capital, total shareholder
return and economic value added are more important than factors based on
top-line growth.
Attached are 5 big names with solid dividends that
offer a great risk premium right now.
Best Buy -- Yield: 3.05%
Best Buy (NYSE:BBY) employs 125,000 people, generates revenue of $40,339.00 million and has a net income of $1,246.00 million. The current market capitalization stands at $10.65Billion.Best Buy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,099.00 million. The EBITDA margin is 5.20% (the operating margin is 3.59% and the net profit margin 3.09%).
Financials: The total debt represents 10.63% of Best Buy assets and the total debt in relation to the equity amounts to 32.45%. Due to the financial situation, a return on equity of 27.75% was realized by Best Buy.
Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, Best Buy paid $0.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.29, the P/S ratio is 0.26 and the P/B ratio is finally 2.12. The dividend yield amounts to 3.05%.
Stock Charts:
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| Long-Term Stock Price Chart of Best Buy (BBY) |
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| Long-Term Dividend Payment History of Best Buy (BBY) |
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| Long-Term Dividend Yield History of Best Buy (BBY) |
Deere & Company -- Yield: 2.88%
Deere & Company (NYSE:DE) employs 59,600 people, generates revenue of $36,066.90 million and has a net income of $3,170.90 million. The current market capitalization stands at $27.81Billion.Deere & Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,292.40 million. The EBITDA margin is 17.45% (the operating margin is 15.49% and the net profit margin 8.79%).
Financials: The total debt represents 60.26% of Deere & Company assets and the total debt in relation to the equity amounts to 407.81%. Due to the financial situation, a return on equity of 32.71% was realized by Deere & Company.
Twelve trailing months earnings per share reached a value of $7.17. Last fiscal year, Deere & Company paid $2.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.62, the P/S ratio is 0.77 and the P/B ratio is finally 3.18. The dividend yield amounts to 2.88%.
Stock Charts:
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| Long-Term Stock Price Chart of Deere & Company (DE) |
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| Long-Term Dividend Payment History of Deere & Company (DE) |
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| Long-Term Dividend Yield History of Deere & Company (DE) |
General Dynamics -- Yield: 1.90%
General Dynamics (NYSE:GD) employs 99,500 people, generates revenue of $30,852.00 million and has a net income of $2,673.00 million. The current market capitalization stands at $46.85Billion.General Dynamics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,385.00 million. The EBITDA margin is 14.21% (the operating margin is 12.61% and the net profit margin 8.66%).
Financials: The total debt represents 11.06% of General Dynamics assets and the total debt in relation to the equity amounts to 33.06%. Due to the financial situation, a return on equity of 20.30% was realized by General Dynamics.
Twelve trailing months earnings per share reached a value of $8.66. Last fiscal year, General Dynamics paid $2.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.78, the P/S ratio is 1.52 and the P/B ratio is finally 4.08. The dividend yield amounts to 1.90%.
Stock Charts:
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| Long-Term Stock Price Chart of General Dynamics (GD) |
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| Long-Term Dividend Payment History of General Dynamics (GD) |
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| Long-Term Dividend Yield History of General Dynamics (GD) |
EMC Corporation -- Yield: 1.84%
EMC Corporation (NYSE:EMC) employs 70,000 people, generates revenue of $24,440.00 million and has a net income of $2,894.00 million. The current market capitalization stands at $48.23Billion.EMC Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,140.00 million. The EBITDA margin is 25.12% (the operating margin is 16.52% and the net profit margin 11.84%).
Financials: The total debt represents 11.93% of EMC Corporation assets and the total debt in relation to the equity amounts to 24.98%. Due to the financial situation, a return on equity of 12.28% was realized by EMC Corporation.
Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, EMC Corporation paid $0.45 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.49, the P/S ratio is 1.97 and the P/B ratio is finally 2.27. The dividend yield amounts to 1.84%.
Stock Charts:
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| Long-Term Stock Price Chart of EMC Corporation (EMC) |
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| Long-Term Dividend Payment History of EMC Corporation (EMC) |
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| Long-Term Dividend Yield History of EMC Corporation (EMC) |
Kimberly Clark -- Yield: 3.16%
Kimberly Clark (NYSE:KMB) employs 43,000 people, generates revenue of $19,724.00 million and has a net income of $1,399.00 million. The current market capitalization stands at $40.58Billion.Kimberly Clark’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,383.00 million. The EBITDA margin is 17.15% (the operating margin is 12.78% and the net profit margin 7.09%).
Financials: The total debt represents 45.27% of Kimberly Clark assets and the total debt in relation to the equity amounts to 964.06%. Due to the financial situation, a return on equity of 52.86% was realized by Kimberly Clark.
Twelve trailing months earnings per share reached a value of $1.57. Last fiscal year, Kimberly Clark paid $3.36 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 70.95, the P/S ratio is 2.06 and the P/B ratio is finally 55.83. The dividend yield amounts to 3.16%.
Stock Charts:
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| Long-Term Stock Price Chart of Kimberly Clark (KMB) |
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| Long-Term Dividend Payment History of Kimberly Clark (KMB) |
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| Long-Term Dividend Yield History of Kimberly Clark (KMB) |
