Everyone loves dividends and a rising income. Dividends provide a constant income stream that help recover investment returns. So, for an investor, there’s nothing better than a company that distributes increasing dividends. But how does one go about hunting down the stocks that yields maximum dividend?
Well, here are 10 important tips that can help you choose the best company that would yield dividend from its stock.
- Go for a company with long dividend history
- Choose a company that’s payout ratio isn’t more than 80% of its EPS
- The company’s worldwide market presence is a must to lookout for
- Whether it’s consumer products or information technology, strike a stable product line
- Make sure the company has a lot of cash
- Ensure that the company sticks to its core business and doesn’t swap stocks
- Check the company’s stock price stability, regardless of how big the company is
- Make sure the company has a history of buying back its own stock
- History of increasing dividend – find dividend aristocrats
- Always watch out for the current dividend yield percentage.
- Make sure that the corporate isn't overvalued
Attached are 9 cheap dividend aristocrats that might match most of the above mentioned criteria.
Here are the results...
Emerson Electric -- Yield: 4.26%
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 $29.04 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 11.13, the P/S ratio is 1.30 and the P/B ratio is finally 3.61. The dividend yield amounts to 4.26%.
Stock Charts:
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| Long-Term Stock Price Chart of Emerson Electric (EMR) |
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| Long-Term Dividend Payment History of Emerson Electric (EMR) |
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| Long-Term Dividend Yield History of Emerson Electric (EMR) |
Nucor Corporation -- Yield: 3.86%
Nucor Corporation (NYSE:NUE) employs 23,600 people, generates revenue of $21,105.14 million and has a net income of $815.79 million. The current market capitalization stands at $12.42 billion.Nucor Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,082.66 million. The EBITDA margin is 9.87% (the operating margin is 6.44% and the net profit margin 3.87%).
Financials: The total debt represents 30.05% of Nucor Corporation assets and the total debt in relation to the equity amounts to 60.37%. Due to the financial situation, a return on equity of 9.23% was realized by Nucor Corporation.
Twelve trailing months earnings per share reached a value of $1.96. Last fiscal year, Nucor Corporation paid $1.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.85, the P/S ratio is 0.59 and the P/B ratio is finally 1.60. The dividend yield amounts to 3.86%.
Stock Charts:
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| Long-Term Stock Price Chart of Nucor Corporation (NUE) |
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| Long-Term Dividend Payment History of Nucor Corporation (NUE) |
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| Long-Term Dividend Yield History of Nucor Corporation (NUE) |
Wal-Mart Stores -- Yield: 3.33%
Wal-Mart Stores (NYSE:WMT) employs 2,200,000 people, generates revenue of $485,651.00 million and has a net income of $16,814.00 million. The current market capitalization stands at $188.43 billion.Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36,320.00 million. The EBITDA margin is 7.48% (the operating margin is 5.59% and the net profit margin 3.46%).
Financials: The total debt represents 24.65% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 61.63%. Due to the financial situation, a return on equity of 20.40% was realized by Wal-Mart Stores.
Twelve trailing months earnings per share reached a value of $4.66. Last fiscal year, Wal-Mart Stores paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.62, the P/S ratio is 0.39 and the P/B ratio is finally 2.33. The dividend yield amounts to 3.33%.
Stock Charts:
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| Long-Term Stock Price Chart of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
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| Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |
Archer Daniels Midland -- Yield: 3.20%
Archer Daniels Midland (NYSE:ADM) employs 33,900 people, generates revenue of $81,201.00 million and has a net income of $2,253.00 million. The current market capitalization stands at $20.89 billion.Archer Daniels Midland’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,755.00 million. The EBITDA margin is 4.62% (the operating margin is 3.39% and the net profit margin 2.77%).
Financials: The total debt represents 12.86% of Archer Daniels Midland assets and the total debt in relation to the equity amounts to 28.91%. Due to the financial situation, a return on equity of 11.32% was realized by Archer Daniels Midland.
Twelve trailing months earnings per share reached a value of $2.88. Last fiscal year, Archer Daniels Midland paid $0.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.18, the P/S ratio is 0.26 and the P/B ratio is finally 1.14. The dividend yield amounts to 3.20%.
Stock Charts:
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| Long-Term Stock Price Chart of Archer Daniels Midland (ADM) |
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| Long-Term Dividend Payment History of Archer Daniels Midland (ADM) |
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| Long-Term Dividend Yield History of Archer Daniels Midland (ADM) |
T. Rowe Price Group -- Yield: 2.98%
T. Rowe Price Group (NASDAQ:TROW) employs 5,908 people, generates revenue of $3,982.10 million and has a net income of $1,229.60 million. The current market capitalization stands at $17.55 billion.T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,002.60 million. The EBITDA margin is 50.29% (the operating margin is 47.48% and the net profit margin 30.88%).
Financials: The total debt represents 0.00% of T. Rowe Price Group assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 23.80% was realized by T. Rowe Price Group.
Twelve trailing months earnings per share reached a value of $4.51. Last fiscal year, T. Rowe Price Group paid $1.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.49, the P/S ratio is 4.41 and the P/B ratio is finally 3.38. The dividend yield amounts to 2.98%.
Stock Charts:
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| Long-Term Stock Price Chart of T. Rowe Price Group (TROW) |
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| Long-Term Dividend Payment History of T. Rowe Price Group (TROW) |
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| Long-Term Dividend Yield History of T. Rowe Price Group (TROW) |
Dover Corp -- Yield: 2.87%
Dover Corp (NYSE:DOV) employs 27,000 people, generates revenue of $7,752.73 million and has a net income of $778.14 million. The current market capitalization stands at $9.07 billion.Dover Corp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,567.48 million. The EBITDA margin is 20.22% (the operating margin is 15.68% and the net profit margin 10.04%).
Financials: The total debt represents 33.34% of Dover Corp assets and the total debt in relation to the equity amounts to 81.90%. Due to the financial situation, a return on equity of 17.14% was realized by Dover Corp.
Twelve trailing months earnings per share reached a value of $3.91. Last fiscal year, Dover Corp paid $1.55 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.96, the P/S ratio is 1.17 and the P/B ratio is finally 2.58. The dividend yield amounts to 2.87%.
Stock Charts:
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| Long-Term Stock Price Chart of Dover Corp (DOV) |
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| Long-Term Dividend Payment History of Dover Corp (DOV) |
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| Long-Term Dividend Yield History of Dover Corp (DOV) |
AFLAC Incorporated -- Yield: 2.81%
AFLAC Incorporated (NYSE:AFL) employs 9,235 people, generates revenue of $22,759.00 million and has a net income of $2,951.00 million. The current market capitalization stands at $24.87 billion.AFLAC Incorporated’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,002.00 million. The EBITDA margin is 26.37% (the operating margin is 21.13% and the net profit margin 12.97%).
Financials: The total debt represents 4.41% of AFLAC Incorporated assets and the total debt in relation to the equity amounts to 28.79%. Due to the financial situation, a return on equity of 17.90% was realized by AFLAC Incorporated.
Twelve trailing months earnings per share reached a value of $5.71. Last fiscal year, AFLAC Incorporated paid $1.50 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.21, the P/S ratio is 1.09 and the P/B ratio is finally 1.41. The dividend yield amounts to 2.81%.
Stock Charts:
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| Long-Term Stock Price Chart of AFLAC Incorporated (AFL) |
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| Long-Term Dividend Payment History of AFLAC Incorporated (AFL) |
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| Long-Term Dividend Yield History of AFLAC Incorporated (AFL) |
Franklin Resources -- Yield: 2.06%
Franklin Resources (NYSE:BEN) employs 9,500 people, generates revenue of $7,948.70 million and has a net income of $2,104.70 million. The current market capitalization stands at $21.05 billion.Franklin Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,129.30 million. The EBITDA margin is 39.37% (the operating margin is 37.96% and the net profit margin 26.48%).
Financials: The total debt represents 13.19% of Franklin Resources assets and the total debt in relation to the equity amounts to 18.20%. Due to the financial situation, a return on equity of 17.27% was realized by Franklin Resources.
Twelve trailing months earnings per share reached a value of $3.30. Last fiscal year, Franklin Resources paid $0.60 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.62, the P/S ratio is 2.65 and the P/B ratio is finally 1.78. The dividend yield amounts to 2.06%.
Stock Charts:
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| Long-Term Stock Price Chart of Franklin Resources (BEN) |
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| Long-Term Dividend Payment History of Franklin Resources (BEN) |
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| Long-Term Dividend Yield History of Franklin Resources (BEN) |
Cardinal Health -- Yield: 1.79%
Cardinal Health (NYSE:CAH) employs 34,500 people, generates revenue of $102,531.00 million and has a net income of $1,212.00 million. The current market capitalization stands at $28.49 billion.Cardinal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,913.00 million. The EBITDA margin is 2.84% (the operating margin is 2.05% and the net profit margin 1.18%).
Financials: The total debt represents 18.22% of Cardinal Health assets and the total debt in relation to the equity amounts to 87.79%. Due to the financial situation, a return on equity of 19.15% was realized by Cardinal Health.
Twelve trailing months earnings per share reached a value of $3.99. Last fiscal year, Cardinal Health paid $1.37 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.68, the P/S ratio is 0.28 and the P/B ratio is finally 4.54. The dividend yield amounts to 1.79%.
Stock Charts:
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| Long-Term Stock Price Chart of Cardinal Health (CAH) |
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| Long-Term Dividend Payment History of Cardinal Health (CAH) |
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| Long-Term Dividend Yield History of Cardinal Health (CAH) |
