They compound on themselves because companies that pay dividends have an implied agreement with their shareholders that they’ll continue bumping them up. Not all do, of course – but I’ve identified five dividend growth stocks that you can bank on.
Today they yield an average 3.6% and each has not only a strong history of increasing dividends but also strong dividend coverage – which means their payouts (and stock prices) are likely to keep growing for the foreseeable future.
Now let’s get into these five dividend growers…
General Motors Company -- Yield: 5.14%
General Motors Company (NYSE:GM) employs 215,000 people, generates revenue of $152,356.00 million and has a net income of $9,615.00 million. The current market capitalization stands at $44.22 billion.General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,545.00 million. The EBITDA margin is 8.89% (the operating margin is 3.51% and the net profit margin 6.31%).
Financials: The total debt represents 32.47% of General Motors Company assets and the total debt in relation to the equity amounts to 158.29%. Due to the financial situation, a return on equity of 25.72% was realized by General Motors Company.
Twelve trailing months earnings per share reached a value of $6.67. Last fiscal year, General Motors Company paid $1.38 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.40, the P/S ratio is 0.30 and the P/B ratio is finally 1.11. The dividend yield amounts to 5.14%.
Stock Charts:
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| Long-Term Stock Price Chart of General Motors Company (GM) |
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| Long-Term Dividend Payment History of General Motors Company (GM) |
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| Long-Term Dividend Yield History of General Motors Company (GM) |
Target Corporation -- Yield: 3.50%
Target Corporation (NYSE:TGT) employs 341,000 people, generates revenue of $73,785.00 million and has a net income of $3,321.00 million. The current market capitalization stands at $40.12 billion.Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,124.00 million. The EBITDA margin is 9.66% (the operating margin is 7.49% and the net profit margin 4.50%).
Financials: The total debt represents 31.69% of Target Corporation assets and the total debt in relation to the equity amounts to 98.48%. Due to the financial situation, a return on equity of 24.64% was realized by Target Corporation.
Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, Target Corporation paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.80, the P/S ratio is 0.55 and the P/B ratio is finally 3.19. The dividend yield amounts to 3.50%.
Stock Charts:
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| Long-Term Stock Price Chart of Target Corporation (TGT) |
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| Long-Term Dividend Payment History of Target Corporation (TGT) |
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| Long-Term Dividend Yield History of Target Corporation (TGT) |
Pfizer -- Yield: 3.40%
Pfizer (NYSE:PFE) employs 97,900 people, generates revenue of $48,851.00 million and has a net income of $6,974.00 million. The current market capitalization stands at $216.73 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,788.00 million. The EBITDA margin is 38.46% (the operating margin is 21.14% and the net profit margin 14.28%).
Financials: The total debt represents 23.24% of Pfizer assets and the total debt in relation to the equity amounts to 60.10%. Due to the financial situation, a return on equity of 10.22% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, Pfizer paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.94, the P/S ratio is 4.38 and the P/B ratio is finally 3.36. The dividend yield amounts to 3.40%.
Stock Charts:
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| Long-Term Stock Price Chart of Pfizer (PFE) |
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| Long-Term Dividend Payment History of Pfizer (PFE) |
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| Long-Term Dividend Yield History of Pfizer (PFE) |
Reynolds American -- Yield: 3.32%
Reynolds American (NYSE:RAI) employs 5,600 people, generates revenue of $10,675.00 million and has a net income of $3,253.00 million. The current market capitalization stands at $72.46 billion.Reynolds American’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,993.00 million. The EBITDA margin is 37.41% (the operating margin is 65.13% and the net profit margin 30.47%).
Financials: The total debt represents 32.78% of Reynolds American assets and the total debt in relation to the equity amounts to 95.59%. Due to the financial situation, a return on equity of 28.57% was realized by Reynolds American.
Twelve trailing months earnings per share reached a value of $4.84. Last fiscal year, Reynolds American paid $1.39 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.56, the P/S ratio is 6.76 and the P/B ratio is finally 3.96. The dividend yield amounts to 3.32%.
Stock Charts:
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| Long-Term Stock Price Chart of Reynolds American (RAI) |
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| Long-Term Dividend Payment History of Reynolds American (RAI) |
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| Long-Term Dividend Yield History of Reynolds American (RAI) |
Edison International -- Yield: 2.63%
Edison International (NYSE:EIX) employs 12,768 people, generates revenue of $11,524.00 million and has a net income of $1,082.00 million. The current market capitalization stands at $24.15 billion.Edison International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,018.00 million. The EBITDA margin is 34.87% (the operating margin is 17.42% and the net profit margin 9.39%).
Financials: The total debt represents 23.76% of Edison International assets and the total debt in relation to the equity amounts to 89.29%. Due to the financial situation, a return on equity of 8.82% was realized by Edison International.
Twelve trailing months earnings per share reached a value of $2.91. Last fiscal year, Edison International paid $1.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.28, the P/S ratio is 2.06 and the P/B ratio is finally 2.09. The dividend yield amounts to 2.63%.
Stock Charts:
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| Long-Term Stock Price Chart of Edison International (EIX) |
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| Long-Term Dividend Payment History of Edison International (EIX) |
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| Long-Term Dividend Yield History of Edison International (EIX) |