Dividend
growth usually means that a number of positive metrics are being met, and the
company can consistently add to the pot of money that is returned to
shareholders.
A stock that offers solid fundamentals, low debt, high
returns, a sustainable underlying business...e.g. has a huge possibility to
grow dividends in the future.
I've always tried to discover those stocks and
introduced hundreds of them in the past.
Today's screen focuses on those stocks that have a solid free cash flow, growth perspectives and an acceptable initial yield while generating double digit returns.
Here are the criteria in detail:
- Market cap that was $3 billion or higher
- Return on invested capital that was 10% or higher over the past 5 years
- Net debt to EBITDA that was less than 1.5%
- Free cash flow yield 6% or higher
- Dividend yield at least 2.5%
- Dividend compounded annual growth rate 5% or higher over the past 10 years
These are the top yielding results:
Cummins -- Yield: 3.99%
Cummins (NYSE:CMI) employs 55,200 people, generates revenue of $19,110.00 million and has a net income of $1,470.00 million. The current market capitalization stands at $17.02 billion.Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,500.00 million. The EBITDA margin is 13.08% (the operating margin is 10.76% and the net profit margin 7.69%).
Financials: The total debt represents 10.83% of Cummins assets and the total debt in relation to the equity amounts to 22.13%. Due to the financial situation, a return on equity of 18.46% was realized by Cummins.
Twelve trailing months earnings per share reached a value of $7.82. Last fiscal year, Cummins paid $3.51 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.49, the P/S ratio is 0.89 and the P/B ratio is finally 2.31. The dividend yield amounts to 3.99%.
Stock Charts:
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| Long-Term Stock Price Chart of Cummins (CMI) |
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| Long-Term Dividend Payment History of Cummins (CMI) |
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| Long-Term Dividend Yield History of Cummins (CMI) |
QUALCOMM -- Yield: 3.72%
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 $77.14 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 $3.02. 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 17.09, the P/S ratio is 3.05 and the P/B ratio is finally 2.50. The dividend yield amounts to 3.72%.
Stock Charts:
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| Long-Term Stock Price Chart of QUALCOMM (QCOM) |
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| Long-Term Dividend Payment History of QUALCOMM (QCOM) |
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| Long-Term Dividend Yield History of QUALCOMM (QCOM) |
Boeing -- Yield: 3.69%
Boeing (NYSE:BA) employs 161,400 people, generates revenue of $96,114.00 million and has a net income of $5,176.00 million. The current market capitalization stands at $79.18 billion.Boeing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,751.00 million. The EBITDA margin is 9.10% (the operating margin is 7.74% and the net profit margin 5.39%).
Financials: The total debt represents 10.55% of Boeing assets and the total debt in relation to the equity amounts to 157.28%. Due to the financial situation, a return on equity of 68.96% was realized by Boeing.
Twelve trailing months earnings per share reached a value of $7.44. Last fiscal year, Boeing paid $3.82 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.87, the P/S ratio is 0.81 and the P/B ratio is finally 12.43. The dividend yield amounts to 3.69%.
Stock Charts:
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| Long-Term Stock Price Chart of Boeing (BA) |
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| Long-Term Dividend Payment History of Boeing (BA) |
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| Long-Term Dividend Yield History of Boeing (BA) |
Intel -- Yield: 3.49%
Intel (NASDAQ:INTC) employs 107,300 people, generates revenue of $55,355.00 million and has a net income of $11,420.00 million. The current market capitalization stands at $141.63 billion.Intel’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,802.00 million. The EBITDA margin is 41.19% (the operating margin is 25.68% and the net profit margin 20.63%).
Financials: The total debt represents 22.00% of Intel assets and the total debt in relation to the equity amounts to 37.11%. Due to the financial situation, a return on equity of 19.53% was realized by Intel.
Twelve trailing months earnings per share reached a value of $2.34. Last fiscal year, Intel 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 12.76, the P/S ratio is 2.54 and the P/B ratio is finally 2.31. The dividend yield amounts to 3.49%.
Stock Charts:
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| Long-Term Stock Price Chart of Intel (INTC) |
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| Long-Term Dividend Payment History of Intel (INTC) |
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| Long-Term Dividend Yield History of Intel (INTC) |