My personal
portfolio goal is to create an income stream from dividends paid out by low
risk, financially strong (high-quality) companies. Reinvesting your portfolio
income is also an essential part for your financial freedom.
Reinvesting
your dividends received from high-quality dividend growth stocks is a great,
relatively conservative and proven way to build wealth over the long term.
This is
especially true and appropriate for investors in the accumulation phase that
are planning for future retirement. Accumulating additional shares of dividend
growth stocks can, and will, provide an increasing and eventually larger stream
of income available at retirement when income is needed most.
Attached
you can find a list of stocks that might be interesting for long-term investors
who like to reinvest their dividends in their portfolio while looking at
raising dividends.
My main
focus was on valuation. If you buy a stock at a moderate valuation, your
initial yield should help you to get a solid starting yield.
Every stock
on the attached list has a dividend yield of more than 3 percent.
Debt-to-equity ratio is under 1, EPS growth for the next five years over 5% and
the forward P/E under 15
As a
result, 13 stocks remained on my screen. Some of them might also be
interesting. It's a first step for further research but good to find value
stocks with a decent income as inflation hedge.
MDU Resources Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $889.59 million. The EBITDA margin is 19.05% (the operating margin is 10.45% and the net profit margin 6.23%).
Financials: The total debt represents 26.82% of MDU Resources Group assets and the total debt in relation to the equity amounts to 66.84%. Due to the financial situation, a return on equity of 9.93% was realized by MDU Resources Group.
Twelve trailing months earnings per share reached a value of $0.95. Last fiscal year, MDU Resources Group 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 18.52, the P/S ratio is 0.73 and the P/B ratio is finally 1.09. The dividend yield amounts to 4.27%.
Stock Charts:
Long-Term Stock Price Chart of MDU Resources Group (MDU) |
Long-Term Dividend Payment History of MDU Resources Group (MDU) |
Long-Term Dividend Yield History of MDU Resources Group (MDU) |
Coach -- Yield: 4.24%
Coach (NYSE:COH) employs 15,800 people, generates revenue of $4,191.60 million and has a net income of $402.40 million. The current market capitalization stands at $8.83 billion.Coach’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $980.30 million. The EBITDA margin is 23.39% (the operating margin is 14.74% and the net profit margin 9.60%).
Financials: The total debt represents 19.08% of Coach assets and the total debt in relation to the equity amounts to 35.76%. Due to the financial situation, a return on equity of 16.39% was realized by Coach.
Twelve trailing months earnings per share reached a value of $1.37. Last fiscal year, Coach paid $1.35 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.23, the P/S ratio is 2.11 and the P/B ratio is finally 3.53. The dividend yield amounts to 4.24%.
Stock Charts:
Long-Term Stock Price Chart of Coach (COH) |
Long-Term Dividend Payment History of Coach (COH) |
Long-Term Dividend Yield History of Coach (COH) |
QUALCOMM -- Yield: 3.96%
QUALCOMM (NASDAQ:QCOM) employs 33,000 people, generates revenue of $25,281.00 million and has a net income of $5,268.00 million. The current market capitalization stands at $72.96 billion.QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,350.00 million. The EBITDA margin is 29.07% (the operating margin is 22.12% and the net profit margin 20.84%).
Financials: The total debt represents 21.59% of QUALCOMM assets and the total debt in relation to the equity amounts to 34.91%. Due to the financial situation, a return on equity of 14.93% was realized by QUALCOMM.
Twelve trailing months earnings per share reached a value of $3.20. Last fiscal year, QUALCOMM paid $1.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.15, the P/S ratio is 2.89 and the P/B ratio is finally 2.35. The dividend yield amounts to 3.96%.
Stock Charts:
Long-Term Stock Price Chart of QUALCOMM (QCOM) |
Long-Term Dividend Payment History of QUALCOMM (QCOM) |
Long-Term Dividend Yield History of QUALCOMM (QCOM) |
Cummins -- Yield: 3.91%
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 $17.72 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 $9.34. 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 10.67, the P/S ratio is 0.92 and the P/B ratio is finally 2.35. The dividend yield amounts to 3.91%.
Stock Charts:
Long-Term Stock Price Chart of Cummins (CMI) |
Long-Term Dividend Payment History of Cummins (CMI) |
Long-Term Dividend Yield History of Cummins (CMI) |
Emerson Electric -- Yield: 3.78%
Emerson Electric (NYSE:EMR) employs 110,800 people, generates revenue of $22,304.00 million and has a net income of $2,733.00 million. The current market capitalization stands at $32.92 billion.Emerson Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,171.00 million. The EBITDA margin is 18.70% (the operating margin is 14.60% and the net profit margin 12.25%).
Financials: The total debt represents 30.98% of Emerson Electric assets and the total debt in relation to the equity amounts to 84.67%. Due to the financial situation, a return on equity of 29.78% was realized by Emerson Electric.
Twelve trailing months earnings per share reached a value of $4.01. Last fiscal year, Emerson Electric paid $1.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.56, the P/S ratio is 1.48 and the P/B ratio is finally 4.07. The dividend yield amounts to 3.78%.
Stock Charts:
Long-Term Stock Price Chart of Emerson Electric (EMR) |
Long-Term Dividend Payment History of Emerson Electric (EMR) |
Long-Term Dividend Yield History of Emerson Electric (EMR) |
Kohl's Corporation -- Yield: 3.74%
Kohl's Corporation (NYSE:KSS) employs 32,000 people, generates revenue of $19,023.00 million and has a net income of $867.00 million. The current market capitalization stands at $9.35 billion.Kohl's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,575.00 million. The EBITDA margin is 13.54% (the operating margin is 8.88% and the net profit margin 4.56%).
Financials: The total debt represents 32.93% of Kohl's Corporation assets and the total debt in relation to the equity amounts to 79.25%. Due to the financial situation, a return on equity of 14.49% was realized by Kohl's Corporation.
Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, Kohl's Corporation 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 12.82, the P/S ratio is 0.49 and the P/B ratio is finally 1.61. The dividend yield amounts to 3.74%.
Stock Charts:
Long-Term Stock Price Chart of Kohl's Corporation (KSS) |
Long-Term Dividend Payment History of Kohl's Corporation (KSS) |
Long-Term Dividend Yield History of Kohl's Corporation (KSS) |
Dow Chemical -- Yield: 3.54%
Dow Chemical (NYSE:DOW) employs 51,635 people, generates revenue of $58,167.00 million and has a net income of $3,839.00 million. The current market capitalization stands at $60.26 billion.Dow Chemical’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,891.00 million. The EBITDA margin is 13.57% (the operating margin is 9.22% and the net profit margin 6.60%).
Financials: The total debt represents 28.76% of Dow Chemical assets and the total debt in relation to the equity amounts to 88.23%. Due to the financial situation, a return on equity of 16.48% was realized by Dow Chemical.
Twelve trailing months earnings per share reached a value of $3.66. Last fiscal year, Dow Chemical paid $1.53 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.20, the P/S ratio is 1.04 and the P/B ratio is finally 3.27. The dividend yield amounts to 3.54%.
Stock Charts:
Long-Term Stock Price Chart of Dow Chemical (DOW) |
Long-Term Dividend Payment History of Dow Chemical (DOW) |
Long-Term Dividend Yield History of Dow Chemical (DOW) |
Prudential Financial -- Yield: 3.25%
Prudential Financial (NYSE:PRU) employs 48,331 people, generates revenue of $54,161.00 million and has a net income of $1,410.00 million. The current market capitalization stands at $38.74 billion.Prudential Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,419.00 million. The EBITDA margin is 8.16% (the operating margin is 3.25% and the net profit margin 2.60%).
Financials: The total debt represents 3.88% of Prudential Financial assets and the total debt in relation to the equity amounts to 71.17%. Due to the financial situation, a return on equity of 3.52% was realized by Prudential Financial.
Twelve trailing months earnings per share reached a value of $7.33. Last fiscal year, Prudential Financial paid $2.17 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.77, the P/S ratio is 0.72 and the P/B ratio is finally 0.94. The dividend yield amounts to 3.25%.
Stock Charts:
Long-Term Stock Price Chart of Prudential Financial (PRU) |
Long-Term Dividend Payment History of Prudential Financial (PRU) |
Long-Term Dividend Yield History of Prudential Financial (PRU) |
Invesco -- Yield: 3.21%
Invesco (NYSE:IVZ) employs 6,430 people, generates revenue of $5,147.10 million and has a net income of $1,004.50 million. The current market capitalization stands at $14.24 billion.Invesco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,366.30 million. The EBITDA margin is 26.55% (the operating margin is 24.81% and the net profit margin 19.52%).
Financials: The total debt represents 32.93% of Invesco assets and the total debt in relation to the equity amounts to 80.94%. Due to the financial situation, a return on equity of 11.86% was realized by Invesco.
Twelve trailing months earnings per share reached a value of $2.40. Last fiscal year, Invesco paid $0.98 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.00, the P/S ratio is 2.77 and the P/B ratio is finally 1.70. The dividend yield amounts to 3.21%.
Stock Charts:
Long-Term Stock Price Chart of Invesco (IVZ) |
Long-Term Dividend Payment History of Invesco (IVZ) |
Long-Term Dividend Yield History of Invesco (IVZ) |
Cisco Systems -- Yield: 3.07%
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 $138.68 billion.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 $1.87. 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 14.64, the P/S ratio is 2.82 and the P/B ratio is finally 2.33. The dividend yield amounts to 3.07%.
Stock Charts:
Long-Term Stock Price Chart of Cisco Systems (CSCO) |
Long-Term Dividend Payment History of Cisco Systems (CSCO) |
Long-Term Dividend Yield History of Cisco Systems (CSCO) |
Target Corporation -- Yield: 3.05%
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 $45.24 billion.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 $4.46. 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 16.46, the P/S ratio is 0.62 and the P/B ratio is finally 3.36. The dividend yield amounts to 3.05%.
Stock Charts:
Long-Term Stock Price Chart of Target Corporation (TGT) |
Long-Term Dividend Payment History of Target Corporation (TGT) |
Long-Term Dividend Yield History of Target Corporation (TGT) |
13 Dividend Income Stocks At Deep Discount (click to enlarge) |