Dividend stocks are often the foundation for a great retirement portfolio. Dividend payments not only put money in your pocket, which can help hedge against any downward move in the stock market, but they're usually a sign of a financially sound company.Dividend payments also give investors the opportunity to reinvest into more shares of stock, thus boosting future dividend payments and compounding gains over time.
Yet not all income stocks are living up to their full potential. Utilizing the payout ratio, or the percentage of profits a company returns in the form of a dividend to its shareholders, we can get a good bead on whether or not a company has room to increase its dividend.
Ideally, we like to see healthy payout ratios between 50% and 75%. Here are a few income stocks with payout ratios currently far below 50% that could potentially double their dividends.
Stocks to double dividend payments are....
Valero Energy -- Yield: 2.96%
Valero Energy (NYSE:VLO) employs 10,065 people, generates revenue of $130,844.00 million and has a net income of $3,775.00 million. The current market capitalization stands at $32.51 billion.Valero Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,362.00 million. The EBITDA margin is 6.39% (the operating margin is 4.51% and the net profit margin 2.89%).
Financials: The total debt represents 14.02% of Valero Energy assets and the total debt in relation to the equity amounts to 30.88%. Due to the financial situation, a return on equity of 18.40% was realized by Valero Energy.
Twelve trailing months earnings per share reached a value of $9.51. Last fiscal year, Valero Energy paid $1.05 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.11, the P/S ratio is 0.25 and the P/B ratio is finally 1.68. The dividend yield amounts to 2.96%.
Stock Charts:
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| Long-Term Stock Price Chart of Valero Energy (VLO) |
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| Long-Term Dividend Payment History of Valero Energy (VLO) |
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| Long-Term Dividend Yield History of Valero Energy (VLO) |
Infosys Ltd -- Yield: 2.37%
Infosys Ltd (NYSE:INFY) employs 176,187 people, generates revenue of $8,711.00 million and has a net income of $2,013.00 million. The current market capitalization stands at $36.05 billion.Infosys Ltd’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,474.00 million. The EBITDA margin is 28.40% (the operating margin is 25.92% and the net profit margin 23.11%).
Financials: The total debt represents 0.00% of Infosys Ltd assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 24.12% was realized by Infosys Ltd.
Twelve trailing months earnings per share reached a value of $0.88. Last fiscal year, Infosys Ltd paid $0.30 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.41, the P/S ratio is 4.14 and the P/B ratio is finally 4.23. The dividend yield amounts to 2.37%.
Stock Charts:
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| Long-Term Stock Price Chart of Infosys Ltd (INFY) |
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| Long-Term Dividend Payment History of Infosys Ltd (INFY) |
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| Long-Term Dividend Yield History of Infosys Ltd (INFY) |
Polaris Industries -- Yield: 2.27%
Polaris Industries (NYSE:PII) employs 7,000 people, generates revenue of $4,479.65 million and has a net income of $454.03 million. The current market capitalization stands at $6.12 billion.Polaris Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $780.53 million. The EBITDA margin is 17.42% (the operating margin is 15.95% and the net profit margin 10.14%).
Financials: The total debt represents 10.90% of Polaris Industries assets and the total debt in relation to the equity amounts to 26.26%. Due to the financial situation, a return on equity of 65.01% was realized by Polaris Industries.
Twelve trailing months earnings per share reached a value of $7.07. Last fiscal year, Polaris Industries 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 13.22, the P/S ratio is 1.37 and the P/B ratio is finally 7.19. The dividend yield amounts to 2.27%.
Stock Charts:
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| Long-Term Stock Price Chart of Polaris Industries (PII) |
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| Long-Term Dividend Payment History of Polaris Industries (PII) |
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| Long-Term Dividend Yield History of Polaris Industries (PII) |
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| 11 Stocks With Strong Potential To Double Dividends |