Equity investors should consider companies with strong balance sheets that will outperform those with weak balance sheets. That's my key investing rule for the next year 2015.Divergent monetary policies will strengthen the U.S. dollar and benefit some stocks and harm others.
The domestic consumer economy is strong but many industrial companies
cite a contraction in business activity.
Growth equities are outperforming value which is a pattern that occurs
when economic growth is weak.
Cyclical stocks have lagged sharply led by Energy and Materials but
defensive sectors trade at stretched valuations.
As a result, stocks with high sales in the U.S. will outperform those
with significant international sales.
Attached you can find 14 stocks that might benefit from the current
market environment. Each of the results has a strong balance sheet, growth
forecasts above the GDP Growth and margin improvement potential.
Only stocks from the S&P 500 are part of my screen.
14 dividend paying companies remain.
3M -- Yield: 2.79%
3M (NYSE:MMM) employs 89,800 people, generates revenue of $31,821.00 million and has a net income of $4,998.00 million. The current market capitalization stands at $90.83 billion.3M’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,553.00 million. The EBITDA margin is 26.88% (the operating margin is 22.42% and the net profit margin 15.71%).
Financials: The total debt represents 22.05% of 3M assets and the total debt in relation to the equity amounts to 52.61%. Due to the financial situation, a return on equity of 32.38% was realized by 3M.
Twelve trailing months earnings per share reached a value of $7.74. Last fiscal year, 3M paid $3.42 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.07, the P/S ratio is 2.84 and the P/B ratio is finally 7.12. The dividend yield amounts to 2.79%.
Stock Charts:
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| Long-Term Stock Price Chart of 3M (MMM) |
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| Long-Term Dividend Payment History of 3M (MMM) |
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| Long-Term Dividend Yield History of 3M (MMM) |
Texas Instruments -- Yield: 2.77%
Texas Instruments (NASDAQ:TXN) employs 31,003 people, generates revenue of $13,045.00 million and has a net income of $2,821.00 million. The current market capitalization stands at $55.74 billion.Texas Instruments’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,126.00 million. The EBITDA margin is 39.29% (the operating margin is 30.26% and the net profit margin 21.63%).
Financials: The total debt represents 26.19% of Texas Instruments assets and the total debt in relation to the equity amounts to 44.68%. Due to the financial situation, a return on equity of 26.20% was realized by Texas Instruments.
Twelve trailing months earnings per share reached a value of $2.79. Last fiscal year, Texas Instruments 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 19.92, the P/S ratio is 4.27 and the P/B ratio is finally 5.53. The dividend yield amounts to 2.77%.
Stock Charts:
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| Long-Term Stock Price Chart of Texas Instruments (TXN) |
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| Long-Term Dividend Payment History of Texas Instruments (TXN) |
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| Long-Term Dividend Yield History of Texas Instruments (TXN) |
Marathon Petroleum -- Yield: 2.54%
Marathon Petroleum (NYSE:MPC) employs 45,340 people, generates revenue of $98,081.00 million and has a net income of $2,555.00 million. The current market capitalization stands at $26.84 billion.Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,356.00 million. The EBITDA margin is 5.46% (the operating margin is 4.13% and the net profit margin 2.60%).
Financials: The total debt represents 21.70% of Marathon Petroleum assets and the total debt in relation to the equity amounts to 61.41%. Due to the financial situation, a return on equity of 23.26% was realized by Marathon Petroleum.
Twelve trailing months earnings per share reached a value of $6.34. Last fiscal year, Marathon Petroleum 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 7.94, the P/S ratio is 0.27 and the P/B ratio is finally 2.56. The dividend yield amounts to 2.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Marathon Petroleum (MPC) |
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| Long-Term Dividend Payment History of Marathon Petroleum (MPC) |
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| Long-Term Dividend Yield History of Marathon Petroleum (MPC) |
U.S. Bancorp -- Yield: 2.41%
U.S. Bancorp (NYSE:USB) employs 66,750 people, generates revenue of $12,228.00 million and has a net income of $5,908.00 million. The current market capitalization stands at $74.73 billion.U.S. Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,484.00 million. The EBITDA margin is 47.57% (the operating margin is 40.10% and the net profit margin 29.63%).
Financials: The total debt represents 15.44% of U.S. Bancorp assets and the total debt in relation to the equity amounts to 142.95%. Due to the financial situation, a return on equity of 14.87% was realized by U.S. Bancorp.
Twelve trailing months earnings per share reached a value of $3.16. Last fiscal year, U.S. Bancorp 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 13.54, the P/S ratio is 3.72 and the P/B ratio is finally 1.95. The dividend yield amounts to 2.41%.
Stock Charts:
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| Long-Term Stock Price Chart of U.S. Bancorp (USB) |
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| Long-Term Dividend Payment History of U.S. Bancorp (USB) |
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| Long-Term Dividend Yield History of U.S. Bancorp (USB) |
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| Stocks Have Serious Upside Potential In 2016 (click to enlarge) |
