Goldman's Dividend Growth basket consists of 50 stocks with a median expected 2016 dividend yield of 3%. Goldman expects these companies to raise their dividends by an average of 12% in 2016. In comparison, the median S&P 500 stock has an expected dividend yield of 2.2% and an expected median dividend growth of 7% next year.
The basket has a large-cap bias because larger firms are more likely to pay dividends. Investors should use this basket to identify stocks returning cash to shareholders through strong dividend growth and high dividend yields.
Attached are 9 stocks with potential to grow dividends in 2016 by more than 15%. Those stocks have better fundamentals than 40 others in the basket.
These are the results...
Host Hotels and Resorts -- Yield: 4.60%
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 $13.08 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 $0.92. 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 18.97, the P/S ratio is 2.44 and the P/B ratio is finally 1.79. The dividend yield amounts to 4.60%.
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) |
Ford Motor Company -- Yield: 4.10%
Ford Motor Company (NYSE:F) employs 187,000 people, generates revenue of $144,077.00 million and has a net income of $3,186.00 million. The current market capitalization stands at $58.09 billion.Ford Motor Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,803.00 million. The EBITDA margin is 8.89% (the operating margin is 2.30% and the net profit margin 2.21%).
Financials: The total debt represents 57.15% of Ford Motor Company assets and the total debt in relation to the equity amounts to 480.43%. Due to the financial situation, a return on equity of 12.52% was realized by Ford Motor Company.
Twelve trailing months earnings per share reached a value of $0.93. Last fiscal year, Ford Motor Company paid $0.50 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.74, the P/S ratio is 0.40 and the P/B ratio is finally 2.37. The dividend yield amounts to 4.10%.
Stock Charts:
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| Long-Term Stock Price Chart of Ford Motor Company (F) |
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| Long-Term Dividend Payment History of Ford Motor Company (F) |
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| Long-Term Dividend Yield History of Ford Motor Company (F) |
Cummins -- Yield: 3.17%
Cummins (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $21.95 billion.Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).
Financials: The total debt represents 10.76% of Cummins assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins.
Twelve trailing months earnings per share reached a value of $9.52. Last fiscal year, Cummins paid $2.81 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.63, the P/S ratio is 1.14 and the P/B ratio is finally 2.89. The dividend yield amounts to 3.17%.
Stock Charts:
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| Long-Term Stock Price Chart of Cummins (CMI) |
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| Long-Term Dividend Payment History of Cummins (CMI) |
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| Long-Term Dividend Yield History of Cummins (CMI) |
Marathon Petroleum -- Yield: 2.74%
Marathon Petroleum (NYSE:MPC) employs 45,340 people, generates revenue of $98,081.00 million and has a net income of $2,555.00 million. The current market capitalization stands at $25.02 billion.Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,356.00 million. The EBITDA margin is 5.46% (the operating margin is 4.13% and the net profit margin 2.60%).
Financials: The total debt represents 21.70% of Marathon Petroleum assets and the total debt in relation to the equity amounts to 61.41%. Due to the financial situation, a return on equity of 23.26% was realized by Marathon Petroleum.
Twelve trailing months earnings per share reached a value of $5.76. Last fiscal year, Marathon Petroleum paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.13, the P/S ratio is 0.26 and the P/B ratio is finally 2.37. The dividend yield amounts to 2.74%.
Stock Charts:
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| Long-Term Stock Price Chart of Marathon Petroleum (MPC) |
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| Long-Term Dividend Payment History of Marathon Petroleum (MPC) |
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| Long-Term Dividend Yield History of Marathon Petroleum (MPC) |
Regions Financial -- Yield: 2.51%
Regions Financial (NYSE:RF) employs 23,723 people, generates revenue of $3,588.00 million and has a net income of $1,142.00 million. The current market capitalization stands at $12.67 billion.Regions Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,342.00 million. The EBITDA margin is 45.92% (the operating margin is 31.35% and the net profit margin 22.39%).
Financials: The total debt represents 4.78% of Regions Financial assets and the total debt in relation to the equity amounts to 33.87%. Due to the financial situation, a return on equity of 6.96% was realized by Regions Financial.
Twelve trailing months earnings per share reached a value of $0.73. Last fiscal year, Regions Financial paid $0.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.78, the P/S ratio is 2.49 and the P/B ratio is finally 0.81. The dividend yield amounts to 2.51%.
Stock Charts:
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| Long-Term Stock Price Chart of Regions Financial (RF) |
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| Long-Term Dividend Payment History of Regions Financial (RF) |
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| Long-Term Dividend Yield History of Regions Financial (RF) |
Johnson Controls -- Yield: 2.48%
Johnson Controls (NYSE:JCI) employs 168,000 people, generates revenue of $42,828.00 million and has a net income of $1,553.00 million. The current market capitalization stands at $27.44 billion.Johnson Controls’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,257.00 million. The EBITDA margin is 7.60% (the operating margin is 4.75% and the net profit margin 3.63%).
Financials: The total debt represents 14.96% of Johnson Controls assets and the total debt in relation to the equity amounts to 43.37%. Due to the financial situation, a return on equity of 12.13% was realized by Johnson Controls.
Twelve trailing months earnings per share reached a value of $2.63. Last fiscal year, Johnson Controls paid $0.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.76, the P/S ratio is 0.64 and the P/B ratio is finally 2.47. The dividend yield amounts to 2.48%.
Stock Charts:
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| Long-Term Stock Price Chart of Johnson Controls (JCI) |
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| Long-Term Dividend Payment History of Johnson Controls (JCI) |
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| Long-Term Dividend Yield History of Johnson Controls (JCI) |
Nielsen Holdings -- Yield: 2.37%
Nielsen Holdings (NYSE:NLSN) employs 42,000 people, generates revenue of $6,288.00 million and has a net income of $385.00 million. The current market capitalization stands at $17.33 billion.Nielsen Holdings’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,790.00 million. The EBITDA margin is 28.47% (the operating margin is 17.32% and the net profit margin 6.12%).
Financials: The total debt represents 44.63% of Nielsen Holdings assets and the total debt in relation to the equity amounts to 135.72%. Due to the financial situation, a return on equity of 7.12% was realized by Nielsen Holdings.
Twelve trailing months earnings per share reached a value of $1.13. Last fiscal year, Nielsen Holdings paid $0.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 41.71, the P/S ratio is 2.76 and the P/B ratio is finally 3.48. The dividend yield amounts to 2.37%.
Stock Charts:
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| Long-Term Stock Price Chart of Nielsen Holdings (NLSN) |
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| Long-Term Dividend Payment History of Nielsen Holdings (NLSN) |
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| Long-Term Dividend Yield History of Nielsen Holdings (NLSN) |
Harley-Davidson -- Yield: 2.22%
Harley-Davidson (NYSE:HOG) employs 5,900 people, generates revenue of $6,228.51 million and has a net income of $844.61 million. The current market capitalization stands at $11.53 billion.Harley-Davidson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,460.28 million. The EBITDA margin is 23.45% (the operating margin is 20.57% and the net profit margin 13.56%).
Financials: The total debt represents 57.77% of Harley-Davidson assets and the total debt in relation to the equity amounts to 189.21%. Due to the financial situation, a return on equity of 28.54% was realized by Harley-Davidson.
Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, Harley-Davidson 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 14.85, the P/S ratio is 1.85 and the P/B ratio is finally 4.08. The dividend yield amounts to 2.22%.
Stock Charts:
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| Long-Term Stock Price Chart of Harley-Davidson (HOG) |
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| Long-Term Dividend Payment History of Harley-Davidson (HOG) |
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| Long-Term Dividend Yield History of Harley-Davidson (HOG) |
Amgen -- Yield: 2.09%
Amgen (NASDAQ:AMGN) employs 17,900 people, generates revenue of $20,063.00 million and has a net income of $5,158.00 million. The current market capitalization stands at $114.63 billion.Amgen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,660.00 million. The EBITDA margin is 43.16% (the operating margin is 30.86% and the net profit margin 25.71%).
Financials: The total debt represents 44.51% of Amgen assets and the total debt in relation to the equity amounts to 119.15%. Due to the financial situation, a return on equity of 21.55% was realized by Amgen.
Twelve trailing months earnings per share reached a value of $7.55. Last fiscal year, Amgen paid $2.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.39, the P/S ratio is 5.71 and the P/B ratio is finally 4.46. The dividend yield amounts to 2.09%.
Stock Charts:
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| Long-Term Stock Price Chart of Amgen (AMGN) |
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| Long-Term Dividend Payment History of Amgen (AMGN) |
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| Long-Term Dividend Yield History of Amgen (AMGN) |