As a compromise, a 9 to 13 year payback should be acceptable for most long-term investors. Once you earn back your investment, some might say you are in a no-lose situation. I wouldn’t go quite that far, but you have found an investment that that has provided you a good historical revenue stream, and hopefully it will continue to do so in the future.
Attached you can find 7 dividend growth stocks with a 9 to 13 year payback (at the current yield and dividend growth rate) and a yield between 2.5% to 6.0%.
A combined portfolio delivered a total return of 25% in 2014. At the end of the article, you can find more about this fact.
Here are the results....
Omega Healthcare -- Yield: 6.19%
Omega Healthcare (NYSE:OHI) employs 27 people, generates revenue of $504.79 million and has a net income of $221.35 million. The current market capitalization stands at $6.66 billion.
OHI increased dividends 16 out of the last 21 years. In 2014
the dividend yield was 7.2%. Dividend distributions were in January, April,
July and October. The dividend payout ratio is 118%. In the last 10 years, the
stock had an annual compounded return of 20.7% including dividends and stock
price appreciation. This is 15.3% higher than the S&P 500 return of 5.4%.
The company operates in the Financial sector.
Omega Healthcare’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $476.18 million. The EBITDA margin is 94.33% (the operating margin is 68.41% and the net profit margin 43.85%).
Financials: The total debt represents 60.65% of Omega Healthcare assets and the total debt in relation to the equity amounts to 169.73%. Due to the financial situation, a return on equity of 16.39% was realized by Omega Healthcare.
Twelve trailing months earnings per share reached a value of $1.46. Last fiscal year, Omega Healthcare paid $2.02 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.62, the P/S ratio is 13.26 and the P/B ratio is finally 3.30. The dividend yield amounts to 6.19%.
Stock Charts:
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| Long-Term Stock Price Chart of Omega Healthcare (OHI) |
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| Long-Term Dividend Payment History of Omega Healthcare (OHI) |
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| Long-Term Dividend Yield History of Omega Healthcare (OHI) |
HCP -- Yield: 5.87%
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 $17.75 billion.
HCP
increased dividends 25 out of the last 25 years. In 2014 the dividend yield was
6.3%. Dividend distributions were in February, May, August and November. The
dividend payout ratio is 97%. In the last 10 years, the stock had an annual
compounded return of 10.8% including dividends and stock price appreciation.
This is 5.4% higher than the S&P 500 return of 5.4%. The company operates
in the Financial sector.
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 $0.80. 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 48.27, the P/S ratio is 7.86 and the P/B ratio is finally 1.65. The dividend yield amounts to 5.87%.
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) |
Cracker Barrel Old Country Store -- Yield: 3.12%
Cracker Barrel Old Country Store (NASDAQ:CBRL) employs 72,000 people, generates revenue of $2,842.28 million and has a net income of $163.90 million. The current market capitalization stands at $3.39 billion.
CBRL
increased dividends 18 out of the last 27 years. In 2014 the dividend yield was
3.3%. Dividend distributions were in January, April, July and October. In the
last 10 years, the stock had an annual compounded return of 15.5% including
dividends and stock price appreciation. This is 10% higher than the S&P 500
return of 5.4%. The company operates in the Services sector.
Cracker Barrel Old Country Store’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $327.27 million. The EBITDA margin is 11.51% (the operating margin is 8.97% and the net profit margin 5.77%).
Financials: The total debt represents 25.38% of Cracker Barrel Old Country Store assets and the total debt in relation to the equity amounts to 74.31%. Due to the financial situation, a return on equity of 30.72% was realized by Cracker Barrel Old Country Store.
Twelve trailing months earnings per share reached a value of $6.81. Last fiscal year, Cracker Barrel Old Country Store paid $4.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.00, the P/S ratio is 1.19 and the P/B ratio is finally 6.28. The dividend yield amounts to 3.12%.
Stock Charts:
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| Long-Term Stock Price Chart of Cracker Barrel Old Country Store (CBRL) |
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| Long-Term Dividend Payment History of Cracker Barrel Old Country Store (CBRL) |
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| Long-Term Dividend Yield History of Cracker Barrel Old Country Store (CBRL) |
Target Corporation -- Yield: 3.00%
Target Corporation (NYSE:TGT) employs 347,000 people, generates revenue of $72,618.00 million and has a net income of $2,449.00 million. The current market capitalization stands at $47.14 billion.
TGT
increased dividends 30 out of the last 30 years. In 2014 the dividend yield was
3.1%. Dividend distributions were in February, May, August and November. The
dividend payout ratio is 76%. In the last 10 years, the stock had an annual
compounded return of 5.6% including dividends and stock price appreciation.
This is 0.2% higher than the S&P 500 return of 5.4%. The company operates
in the Services sector.
Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,665.00 million. The EBITDA margin is 9.18% (the operating margin is 6.25% and the net profit margin 3.37%).
Financials: The total debt represents 30.91% of Target Corporation assets and the total debt in relation to the equity amounts to 91.42%. Due to the financial situation, a return on equity of 16.20% was realized by Target Corporation.
Twelve trailing months earnings per share reached a value of $4.52. Last fiscal year, Target Corporation paid $1.99 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.85, the P/S ratio is 0.65 and the P/B ratio is finally 3.42. The dividend yield amounts to 3.00%.
Stock Charts:
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| Long-Term Stock Price Chart of Target Corporation (TGT) |
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| Long-Term Dividend Payment History of Target Corporation (TGT) |
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| Long-Term Dividend Yield History of Target Corporation (TGT) |
Lockheed Martin -- Yield: 2.96%
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 $68.03 billion.
LMT
increased dividends 25 out of the last 29 years. In 2014 the dividend yield was
3.8%. Dividend distributions were in February, May, August and November. The
dividend payout ratio is 54%. In the last 10 years, the stock had an annual
compounded return of 16.6% including dividends and stock price appreciation.
This is 11.2% higher than the S&P 500 return of 5.4%. The company operates
in the Industrial Goods sector.
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 $11.27. 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 19.54, the P/S ratio is 1.50 and the P/B ratio is finally 20.60. The dividend yield amounts to 2.96%.
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) |
Cisco Systems -- Yield: 2.89%
Cisco Systems (NASDAQ:CSCO) employs 71,833 people, generates revenue of $49,161.00 million and has a net income of $8,981.00 million. The current market capitalization stands at $147.75 billion.
CSCO
increased dividends 2 out of the last 2 years. In 2014 the dividend yield was
3.4%. Dividend distributions were in January, April, July and September. The
dividend payout ratio is 50%. In the last 10 years, the stock had an annual
compounded return of 4.7% including dividends and stock price appreciation.
This is 0.8% lower than the S&P 500 return of 5.4%. The company operates in
the Technology sector.
Cisco Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,696.00 million. The EBITDA margin is 27.86% (the operating margin is 21.91% and the net profit margin 18.27%).
Financials: The total debt represents 22.34% of Cisco Systems assets and the total debt in relation to the equity amounts to 42.47%. Due to the financial situation, a return on equity of 15.44% was realized by Cisco Systems.
Twelve trailing months earnings per share reached a value of $1.75. Last fiscal year, Cisco Systems paid $0.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.83, the P/S ratio is 3.01 and the P/B ratio is finally 2.47. The dividend yield amounts to 2.89%.
Stock Charts:
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| Long-Term Stock Price Chart of Cisco Systems (CSCO) |
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| Long-Term Dividend Payment History of Cisco Systems (CSCO) |
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| Long-Term Dividend Yield History of Cisco Systems (CSCO) |
Microsoft -- Yield: 2.68%
Microsoft (NASDAQ:MSFT) employs 118,000 people, generates revenue of $93,580.00 million and has a net income of $12,193.00 million. The current market capitalization stands at $430.37 billion.
MSFT
increased dividends 9 out of the last 10 years. In 2014 the dividend yield was
3.2%. Dividend distributions were in February, May, August and November. The
dividend payout ratio is 44%. In the last 10 years, the stock had an annual
compounded return of 8% including dividends and stock price appreciation. This
is 2.5% higher than the S&P 500 return of 5.4%. The company operates in the
Technology sector.
Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,129.00 million. The EBITDA margin is 36.47% (the operating margin is 19.21% and the net profit margin 13.03%).
Financials: The total debt represents 20.03% of Microsoft assets and the total debt in relation to the equity amounts to 44.07%. Due to the financial situation, a return on equity of 14.36% was realized by Microsoft.
Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, Microsoft 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 35.75, the P/S ratio is 4.58 and the P/B ratio is finally 5.38. The dividend yield amounts to 2.68%.
Stock Charts:
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| Long-Term Stock Price Chart of Microsoft (MSFT) |
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| Long-Term Dividend Payment History of Microsoft (MSFT) |
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| Long-Term Dividend Yield History of Microsoft (MSFT) |
Here is how the stock selection performed over the past decade...
Portfolio
Total Return: 217.6%
The above
portfolio's total return was 217.6%, outperforming the SPDR S&P 500 ETF's
total return of 91.1%. The total return includes stock price appreciation and
dividends.
Portfolio
Volatility: 17.7%
The
portfolio's volatility was 17.7% which was higher than the S&P 500
volatility of 14.9%.
Portfolio
Diversification:
The
portfolio's average correlation value is 0.78.
A 10,000 USD Investment Portfolio Generated 425 USD Dividend Income in 2014 and 2,500 USD Total Return...
