Dividend
investing, or choosing stocks with a reliable cash payout, is a proven
strategy.
In the stock market, there are two paths to return on investment: capital appreciation and dividends.
Of the two paths, the only one with any reliability is the cash dividend.
In the stock market, there are two paths to return on investment: capital appreciation and dividends.
Of the two paths, the only one with any reliability is the cash dividend.
Investors seeking a reliable rate of return can look to
blue-chip dividend-paying stocks with confidence. The cash dividend is a
company policy.
It must be voted on, declared and authorized by the board of
directors, who arguably know the current condition of the company better than
anyone else, as well as the prospects for the future. The cash dividend has a
record date, an ex-date and a pay date.
Reliable dividends are more important for retirees, income
growth investors who like to retire earlier and don't want to look each quarter
at the results of the cyclic company while fearing a dividend cut.
Attached I've tried to compile a few dividend stock ideas,
large caps with a solid dividend growth history, that may offer a big margin of
safety for anxious investors.
Verizon Communication -- Yield: 4.96%
Verizon Communication (NYSE:VZ) employs 177,900 people, generates revenue of $127,079.00 million and has a net income of $11,956.00 million. The current market capitalization stands at $185.34 billion.Verizon Communication’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43,239.00 million. The EBITDA margin is 34.03% (the operating margin is 15.42% and the net profit margin 9.41%).
Financials: The total debt represents 48.68% of Verizon Communication assets and the total debt in relation to the equity amounts to 921.05%. Due to the financial situation, a return on equity of 37.65% was realized by Verizon Communication.
Twelve trailing months earnings per share reached a value of $2.51. Last fiscal year, Verizon Communication paid $2.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.12, the P/S ratio is 1.46 and the P/B ratio is finally 15.39. The dividend yield amounts to 4.96%.
Stock Charts:
Long-Term Stock Price Chart of Verizon Communication (VZ) |
Long-Term Dividend Payment History of Verizon Communication (VZ) |
Long-Term Dividend Yield History of Verizon Communication (VZ) |
Altria Group -- Yield: 3.94%
Altria Group (NYSE:MO) employs 9,000 people, generates revenue of $24,522.00 million and has a net income of $5,070.00 million. The current market capitalization stands at $112.45 billion.Altria Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,874.00 million. The EBITDA margin is 32.11% (the operating margin is 30.89% and the net profit margin 20.68%).
Financials: The total debt represents 42.62% of Altria Group assets and the total debt in relation to the equity amounts to 487.49%. Due to the financial situation, a return on equity of 141.82% was realized by Altria Group.
Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, Altria Group paid $2.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.55, the P/S ratio is 4.58 and the P/B ratio is finally 37.51. The dividend yield amounts to 3.94%.
Stock Charts:
Long-Term Stock Price Chart of Altria Group (MO) |
Long-Term Dividend Payment History of Altria Group (MO) |
Long-Term Dividend Yield History of Altria Group (MO) |
Procter & Gamble -- Yield: 3.33%
Procter & Gamble (NYSE:PG) employs 110,000 people, generates revenue of $76,279.00 million and has a net income of $8,930.00 million. The current market capitalization stands at $216.72 billion.Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,979.00 million. The EBITDA margin is 20.95% (the operating margin is 15.46% and the net profit margin 11.71%).
Financials: The total debt represents 23.43% of Procter & Gamble assets and the total debt in relation to the equity amounts to 48.62%. Due to the financial situation, a return on equity of 13.23% was realized by Procter & Gamble.
Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, Procter & Gamble paid $2.59 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.20, the P/S ratio is 2.84 and the P/B ratio is finally 3.53. The dividend yield amounts to 3.33%.
Stock Charts:
Long-Term Stock Price Chart of Procter & Gamble (PG) |
Long-Term Dividend Payment History of Procter & Gamble (PG) |
Long-Term Dividend Yield History of Procter & Gamble (PG) |
Johnson & Johnson -- Yield: 2.88%
Johnson & Johnson (NYSE:JNJ) employs 126,500 people, generates revenue of $74,331.00 million and has a net income of $16,323.00 million. The current market capitalization stands at $288.09 billion.Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,305.00 million. The EBITDA margin is 35.39% (the operating margin is 27.66% and the net profit margin 21.96%).
Financials: The total debt represents 14.31% of Johnson & Johnson assets and the total debt in relation to the equity amounts to 26.90%. Due to the financial situation, a return on equity of 22.70% was realized by Johnson & Johnson.
Twelve trailing months earnings per share reached a value of $5.22. Last fiscal year, Johnson & Johnson paid $2.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.96, the P/S ratio is 3.88 and the P/B ratio is finally 4.15. The dividend yield amounts to 2.88%.
Stock Charts:
Long-Term Stock Price Chart of Johnson & Johnson (JNJ) |
Long-Term Dividend Payment History of Johnson & Johnson (JNJ) |
Long-Term Dividend Yield History of Johnson & Johnson (JNJ) |
Microsoft -- Yield: 2.61%
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 $440.93 billion.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 37.09, the P/S ratio is 4.71 and the P/B ratio is finally 5.53. The dividend yield amounts to 2.61%.
Stock Charts:
Long-Term Stock Price Chart of Microsoft (MSFT) |
Long-Term Dividend Payment History of Microsoft (MSFT) |
Long-Term Dividend Yield History of Microsoft (MSFT) |
General Dynamics -- Yield: 2.00%
General Dynamics (NYSE:GD) employs 99,500 people, generates revenue of $30,852.00 million and has a net income of $2,673.00 million. The current market capitalization stands at $43.65 billion.General Dynamics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,385.00 million. The EBITDA margin is 14.21% (the operating margin is 12.61% and the net profit margin 8.66%).
Financials: The total debt represents 11.06% of General Dynamics assets and the total debt in relation to the equity amounts to 33.06%. Due to the financial situation, a return on equity of 20.30% was realized by General Dynamics.
Twelve trailing months earnings per share reached a value of $8.88. Last fiscal year, General Dynamics paid $2.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.55, the P/S ratio is 1.41 and the P/B ratio is finally 3.88. The dividend yield amounts to 2.00%.
Stock Charts:
Long-Term Stock Price Chart of General Dynamics (GD) |
Long-Term Dividend Payment History of General Dynamics (GD) |
Long-Term Dividend Yield History of General Dynamics (GD) |
Aetna -- Yield: 0.93%
Aetna (NYSE:AET) employs 48,800 people, generates revenue of $58,003.20 million and has a net income of $2,045.20 million. The current market capitalization stands at $37.32 billion.Aetna’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,639.40 million. The EBITDA margin is 8.00% (the operating margin is 6.60% and the net profit margin 3.53%).
Financials: The total debt represents 16.07% of Aetna assets and the total debt in relation to the equity amounts to 59.25%. Due to the financial situation, a return on equity of 14.32% was realized by Aetna.
Twelve trailing months earnings per share reached a value of $6.53. Last fiscal year, Aetna 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 16.39, the P/S ratio is 0.64 and the P/B ratio is finally 2.68. The dividend yield amounts to 0.93%.
Stock Charts:
Long-Term Stock Price Chart of Aetna (AET) |
Long-Term Dividend Payment History of Aetna (AET) |
Long-Term Dividend Yield History of Aetna (AET) |