The Oracle of Omaha summed up his love for bargains with this quote: "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
Today I will look at several dividend-paying businesses that are industry leaders with strong competitive advantages.
My main criteria are focussed on low price multiples like forward P/E and Free Cashflow P/E. In addition each of the stocks should have an estimated earnings outlook for the next five years of more than 5% yearly.
The market has unfairly punished all of these businesses. You can take advantage of current discounts by loading up on these high-quality businesses trading at bargain prices.
Here are the results...
Valero Energy -- Yield: 4.29%
Valero Energy (NYSE:VLO) employs 10,103 people, generates revenue of $87,804.00 million and has a net income of $4,101.00 million. The current market capitalization stands at $26.73 billion.Valero Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,671.00 million. The EBITDA margin is 9.88% (the operating margin is 7.24% and the net profit margin 4.67%).
Financials: The total debt represents 16.58% of Valero Energy assets and the total debt in relation to the equity amounts to 35.73%. Due to the financial situation, a return on equity of 19.35% was realized by Valero Energy.
Twelve trailing months earnings per share reached a value of $7.09. Last fiscal year, Valero Energy paid $1.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.87, the P/S ratio is 0.30 and the P/B ratio is finally 1.29. The dividend yield amounts to 4.29%.
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) |
Viacom -- Yield: 3.90%
Viacom (NASDAQ:VIA) employs 9,200 people, generates revenue of $13,268.00 million and has a net income of $2,002.00 million. The current market capitalization stands at $16.56 billion.Viacom’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,540.00 million. The EBITDA margin is 26.68% (the operating margin is 23.32% and the net profit margin 15.09%).
Financials: The total debt represents 55.48% of Viacom assets and the total debt in relation to the equity amounts to 347.23%. Due to the financial situation, a return on equity of 52.97% was realized by Viacom.
Twelve trailing months earnings per share reached a value of $5.57. Last fiscal year, Viacom paid $1.46 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.85, the P/S ratio is 1.24 and the P/B ratio is finally 4.62. The dividend yield amounts to 3.90%.
Stock Charts:
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| Long-Term Stock Price Chart of Viacom (VIA) |
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| Long-Term Dividend Payment History of Viacom (VIA) |
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| Long-Term Dividend Yield History of Viacom (VIA) |
Prudential Financial -- Yield: 3.63%
Prudential Financial (NYSE:PRU) employs 49,384 people, generates revenue of $57,260.00 million and has a net income of $5,697.00 million. The current market capitalization stands at $34.37 billion.Prudential Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,143.00 million. The EBITDA margin is 17.71% (the operating margin is 13.57% and the net profit margin 9.95%).
Financials: The total debt represents 3.90% of Prudential Financial assets and the total debt in relation to the equity amounts to 70.52%. Due to the financial situation, a return on equity of 13.62% was realized by Prudential Financial.
Twelve trailing months earnings per share reached a value of $10.94. Last fiscal year, Prudential Financial paid $2.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.97, the P/S ratio is 0.60 and the P/B ratio is finally 0.82. The dividend yield amounts to 3.63%.
Stock Charts:
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| Long-Term Stock Price Chart of Prudential Financial (PRU) |
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| Long-Term Dividend Payment History of Prudential Financial (PRU) |
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| Long-Term Dividend Yield History of Prudential Financial (PRU) |
Principal Financial -- Yield: 3.63%
Principal Financial (NYSE:PFG) employs 14,895 people, generates revenue of $11,994.60 million and has a net income of $1,253.20 million. The current market capitalization stands at $12.63 billion.Principal Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,654.00 million. The EBITDA margin is 13.79% (the operating margin is 11.93% and the net profit margin 10.45%).
Financials: The total debt represents 1.59% of Principal Financial assets and the total debt in relation to the equity amounts to 37.29%. Due to the financial situation, a return on equity of 12.41% was realized by Principal Financial.
Twelve trailing months earnings per share reached a value of $3.92. Last fiscal year, Principal Financial 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 10.85, the P/S ratio is 1.04 and the P/B ratio is finally 1.34. The dividend yield amounts to 3.63%.
Stock Charts:
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| Long-Term Stock Price Chart of Principal Financial (PFG) |
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| Long-Term Dividend Payment History of Principal Financial (PFG) |
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| Long-Term Dividend Yield History of Principal Financial (PFG) |
Ameriprise Financial -- Yield: 3.15%
Ameriprise Financial (NYSE:AMP) employs 13,000 people, generates revenue of $12,200.00 million and has a net income of $1,687.00 million. The current market capitalization stands at $16.17 billion.Ameriprise Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,928.00 million. The EBITDA margin is 24.00% (the operating margin is 20.73% and the net profit margin 13.83%).
Financials: The total debt represents 13.11% of Ameriprise Financial assets and the total debt in relation to the equity amounts to 264.06%. Due to the financial situation, a return on equity of 20.36% was realized by Ameriprise Financial.
Twelve trailing months earnings per share reached a value of $8.48. Last fiscal year, Ameriprise Financial 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 11.22, the P/S ratio is 1.29 and the P/B ratio is finally 2.26. The dividend yield amounts to 3.15%.
Stock Charts:
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| Long-Term Stock Price Chart of Ameriprise Financial (AMP) |
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| Long-Term Dividend Payment History of Ameriprise Financial (AMP) |
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| Long-Term Dividend Yield History of Ameriprise Financial (AMP) |
JPMorgan Chase -- Yield: 2.84%
JPMorgan Chase (NYSE:JPM) employs 237,420 people, generates revenue of $50,973.00 million and has a net income of $24,442.00 million. The current market capitalization stands at $229.12 billion.JPMorgan Chase’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39,983.00 million. The EBITDA margin is 42.74% (the operating margin is 32.82% and the net profit margin 26.13%).
Financials: The total debt represents 20.33% of JPMorgan Chase assets and the total debt in relation to the equity amounts to 193.07%. Due to the financial situation, a return on equity of 10.35% was realized by JPMorgan Chase.
Twelve trailing months earnings per share reached a value of $5.90. Last fiscal year, JPMorgan Chase paid $1.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.48, the P/S ratio is 2.43 and the P/B ratio is finally 1.03. The dividend yield amounts to 2.84%.
Stock Charts:
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| Long-Term Stock Price Chart of JPMorgan Chase (JPM) |
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| Long-Term Dividend Payment History of JPMorgan Chase (JPM) |
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| Long-Term Dividend Yield History of JPMorgan Chase (JPM) |
Apple -- Yield: 2.44%
Apple (NASDAQ:AAPL) employs 110,000 people, generates revenue of $233,715.00 million and has a net income of $53,394.00 million. The current market capitalization stands at $510.16 billion.Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $81,730.00 million. The EBITDA margin is 34.97% (the operating margin is 30.48% and the net profit margin 22.85%).
Financials: The total debt represents 22.19% of Apple assets and the total debt in relation to the equity amounts to 54.01%. Due to the financial situation, a return on equity of 46.25% was realized by Apple.
Twelve trailing months earnings per share reached a value of $8.99. Last fiscal year, Apple paid $1.98 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.29, the P/S ratio is 2.19 and the P/B ratio is finally 4.37. The dividend yield amounts to 2.44%.
Stock Charts:
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| Long-Term Stock Price Chart of Apple (AAPL) |
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| Long-Term Dividend Payment History of Apple (AAPL) |
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| Long-Term Dividend Yield History of Apple (AAPL) |
AmTrust Financial -- Yield: 2.32%
AmTrust Financial (NASDAQ:AFSI) employs 6,200 people, generates revenue of $4,683.50 million and has a net income of $485.14 million. The current market capitalization stands at $4.56 billion.AmTrust Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,100.98 million. The EBITDA margin is 23.51% (the operating margin is 11.45% and the net profit margin 10.36%).
Financials: The total debt represents 5.79% of AmTrust Financial assets and the total debt in relation to the equity amounts to 34.01%. Due to the financial situation, a return on equity of 22.66% was realized by AmTrust Financial.
Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, AmTrust Financial paid $0.55 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.52, the P/S ratio is 0.97 and the P/B ratio is finally 1.87. The dividend yield amounts to 2.32%.
Stock Charts:
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| Long-Term Stock Price Chart of AmTrust Financial (AFSI) |
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| Long-Term Dividend Payment History of AmTrust Financial (AFSI) |
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| Long-Term Dividend Yield History of AmTrust Financial (AFSI) |
Cardinal Health -- Yield: 2.29%
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 $25.07 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 $4.18. 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 18.39, the P/S ratio is 0.25 and the P/B ratio is finally 4.11. The dividend yield amounts to 2.29%.
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) |
Discover Financial -- Yield: 2.00%
Discover Financial (NYSE:DFS) employs 15,036 people, generates revenue of $7,945.00 million and has a net income of $2,297.00 million. The current market capitalization stands at $23.16 billion.Discover Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,647.00 million. The EBITDA margin is 53.18% (the operating margin is 41.33% and the net profit margin 26.28%).
Financials: The total debt represents 28.40% of Discover Financial assets and the total debt in relation to the equity amounts to 218.63%. Due to the financial situation, a return on equity of 21.10% was realized by Discover Financial.
Twelve trailing months earnings per share reached a value of $5.19. Last fiscal year, Discover Financial paid $1.08 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.67, the P/S ratio is 2.64 and the P/B ratio is finally 2.20. The dividend yield amounts to 2.00%.
Stock Charts:
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| Long-Term Stock Price Chart of Discover Financial (DFS) |
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| Long-Term Dividend Payment History of Discover Financial (DFS) |
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| Long-Term Dividend Yield History of Discover Financial (DFS) |
AmerisourceBergen -- Yield: 1.77%
AmerisourceBergen (NYSE:ABC) employs 16,500 people, generates revenue of $135,961.80 million and has a net income of $-134.89 million. The current market capitalization stands at $16.21 billion.AmerisourceBergen’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $770.36 million. The EBITDA margin is 0.57% (the operating margin is 0.28% and the net profit margin -0.10%).
Financials: The total debt represents 12.59% of AmerisourceBergen assets and the total debt in relation to the equity amounts to 551.37%. Due to the financial situation, a return on equity of -10.41% was realized by AmerisourceBergen.
Twelve trailing months earnings per share reached a value of $6.75. Last fiscal year, AmerisourceBergen paid $1.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.22, the P/S ratio is 0.12 and the P/B ratio is finally 25.04. The dividend yield amounts to 1.77%.
Stock Charts:
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| Long-Term Stock Price Chart of AmerisourceBergen (ABC) |
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| Long-Term Dividend Payment History of AmerisourceBergen (ABC) |
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| Long-Term Dividend Yield History of AmerisourceBergen (ABC) |
Aetna -- Yield: 0.87%
Aetna (NYSE:AET) employs 50,100 people, generates revenue of $60,336.50 million and has a net income of $2,394.60 million. The current market capitalization stands at $39.54 billion.Aetna’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,270.50 million. The EBITDA margin is 8.74% (the operating margin is 7.62% and the net profit margin 3.97%).
Financials: The total debt represents 14.58% of Aetna assets and the total debt in relation to the equity amounts to 48.31%. Due to the financial situation, a return on equity of 15.62% was realized by Aetna.
Twelve trailing months earnings per share reached a value of $6.64. Last fiscal year, Aetna paid $1.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.91, the P/S ratio is 0.67 and the P/B ratio is finally 2.48. The dividend yield amounts to 0.87%.
Stock Charts:
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| Long-Term Stock Price Chart of Aetna (AET) |
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| Long-Term Dividend Payment History of Aetna (AET) |
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| Long-Term Dividend Yield History of Aetna (AET) |
McKesson Corporation -- Yield: 0.66%
McKesson Corporation (NYSE:MCK) employs 70,400 people, generates revenue of $190,884.00 million and has a net income of $2,342.00 million. The current market capitalization stands at $37.58 billion.McKesson Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,633.00 million. The EBITDA margin is 2.43% (the operating margin is 1.86% and the net profit margin 1.23%).
Financials: The total debt represents 14.42% of McKesson Corporation assets and the total debt in relation to the equity amounts to 91.37%. Due to the financial situation, a return on equity of 27.06% was realized by McKesson Corporation.
Twelve trailing months earnings per share reached a value of $9.82. Last fiscal year, McKesson Corporation paid $1.08 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.20, the P/S ratio is 0.20 and the P/B ratio is finally 4.29. The dividend yield amounts to 0.66%.
Stock Charts:
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| Long-Term Stock Price Chart of McKesson Corporation (MCK) |
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| Long-Term Dividend Payment History of McKesson Corporation (MCK) |
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| Long-Term Dividend Yield History of McKesson Corporation (MCK) |
