What Do I Mean by an Attractively Priced, High Quality DGI Stock?
To preface my choices, I define high quality DGI stocks as those having:
- Solid financial strength - I require an S&P credit rating of at least BBB or better and a debt-to-total capital ratio of less than 50%.
- A consistent track record of growing dividends - I prefer 10 years of dividend growth, but I will consider relatively new DGI stocks with shorter records. In addition, I look for an historical 5-year dividend compound annual growth rate (i.e., CAGR) of at least 4%.
- The ability to continue to grow the dividend in the future - I look for a forecast 3-year dividend CAGR of at least 4% and a dividend payout ratio of less than 80%.
In terms of value, I look for the following:
- Is the stock trading at or below its historical 10-year P/E?
- Is the stock's dividend yield at or near its 5-year high?
- Is the stock trading at or below Morningstar's fair value estimate? S&P's fair value estimate? Valuentum's fair value estimate?
- Is the stock trading below S&P's 12-month target?
There are nine top results that came into my minds. For sure I've not included long-term dividend growth as essential criteria. That's the reason why you might find Apple and Gilead in the results.
Care Capital Properties -- Yield: 8.97%
Care Capital Properties (NYSE:CCP) employs 56 people, generates revenue of $324.03 million and has a net income of $143.36 million. The current market capitalization stands at $2.14 billion.Care Capital Properties’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $316.25 million. The EBITDA margin is 97.60% (the operating margin is 46.94% and the net profit margin 44.24%).
Financials: The total debt represents 51.60% of Care Capital Properties assets and the total debt in relation to the equity amounts to 125.56%. Due to the financial situation, a return on equity of 8.59% was realized by Care Capital Properties.
Twelve trailing months earnings per share reached a value of $1.63. Last fiscal year, Care Capital Properties paid $1.14 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.85, the P/S ratio is 6.58 and the P/B ratio is finally 1.75. The dividend yield amounts to 8.97%.
Stock Charts:
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| Long-Term Stock Price Chart of Care Capital Properties (CCP) |
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| Long-Term Dividend Payment History of Care Capital Properties (CCP) |
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| Long-Term Dividend Yield History of Care Capital Properties (CCP) |
Omega Healthcare -- Yield: 7.03%
Omega Healthcare (NYSE:OHI) employs 58 people, generates revenue of $743.62 million and has a net income of $233.32 million. The current market capitalization stands at $6.19 billion.Omega Healthcare’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $697.18 million. The EBITDA margin is 93.75% (the operating margin is 55.31% and the net profit margin 31.38%).
Financials: The total debt represents 44.51% of Omega Healthcare assets and the total debt in relation to the equity amounts to 95.48%. Due to the financial situation, a return on equity of 8.74% was realized by Omega Healthcare.
Twelve trailing months earnings per share reached a value of $1.21. Last fiscal year, Omega Healthcare paid $2.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.38, the P/S ratio is 8.36 and the P/B ratio is finally 1.66. The dividend yield amounts to 7.03%.
Stock Charts:
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| Long-Term Stock Price Chart of Omega Healthcare (OHI) |
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| Long-Term Dividend Payment History of Omega Healthcare (OHI) |
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| Long-Term Dividend Yield History of Omega Healthcare (OHI) |
HCP -- Yield: 6.67%
HCP (NYSE:HCP) employs 187 people, generates revenue of $2,544.31 million and has a net income of $-557.84 million. The current market capitalization stands at $16.21 billion.HCP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,833.92 million. The EBITDA margin is 72.08% (the operating margin is -4.25% and the net profit margin -21.92%).
Financials: The total debt represents 51.60% of HCP assets and the total debt in relation to the equity amounts to 118.47%. Due to the financial situation, a return on equity of -5.58% was realized by HCP.
Twelve trailing months earnings per share reached a value of $-0.44. Last fiscal year, HCP paid $2.26 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is , the P/S ratio is 6.33 and the P/B ratio is finally 1.72. The dividend yield amounts to 6.67%.
Stock Charts:
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| Long-Term Stock Price Chart of HCP (HCP) |
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| Long-Term Dividend Payment History of HCP (HCP) |
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| Long-Term Dividend Yield History of HCP (HCP) |
Spectra Energy Partners -- Yield: 5.59%
Spectra Energy Partners (NYSE:SEP) employs 2,400 people, generates revenue of $2,455.00 million and has a net income of $1,265.00 million. The current market capitalization stands at $13.47 billion.Spectra Energy Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,577.00 million. The EBITDA margin is 64.24% (the operating margin is 51.85% and the net profit margin 51.53%).
Financials: The total debt represents 35.03% of Spectra Energy Partners assets and the total debt in relation to the equity amounts to 61.07%. Due to the financial situation, a return on equity of 9.06% was realized by Spectra Energy Partners.
Twelve trailing months earnings per share reached a value of $3.30. Last fiscal year, Spectra Energy Partners paid $2.43 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.02, the P/S ratio is 5.56 and the P/B ratio is finally 1.25. The dividend yield amounts to 5.59%.
Stock Charts:
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| Long-Term Stock Price Chart of Spectra Energy Partners (SEP) |
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| Long-Term Dividend Payment History of Spectra Energy Partners (SEP) |
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| Long-Term Dividend Yield History of Spectra Energy Partners (SEP) |
United Technologies -- Yield: 2.61%
United Technologies (NYSE:UTX) employs 197,000 people, generates revenue of $56,098.00 million and has a net income of $4,356.00 million. The current market capitalization stands at $84.81 billion.United Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,613.00 million. The EBITDA margin is 17.14% (the operating margin is 13.00% and the net profit margin 7.76%).
Financials: The total debt represents 23.35% of United Technologies assets and the total debt in relation to the equity amounts to 74.66%. Due to the financial situation, a return on equity of 13.64% was realized by United Technologies.
Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, United Technologies paid $2.56 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.05, the P/S ratio is 1.51 and the P/B ratio is finally 3.10. The dividend yield amounts to 2.61%.
Stock Charts:
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| Long-Term Stock Price Chart of United Technologies (UTX) |
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| Long-Term Dividend Payment History of United Technologies (UTX) |
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| Long-Term Dividend Yield History of United Technologies (UTX) |
Union Pacific -- Yield: 2.48%
Union Pacific (NYSE:UNP) employs 43,655 people, generates revenue of $21,813.00 million and has a net income of $4,772.00 million. The current market capitalization stands at $73.34 billion.Union Pacific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,064.00 million. The EBITDA margin is 46.14% (the operating margin is 36.91% and the net profit margin 21.88%).
Financials: The total debt represents 26.01% of Union Pacific assets and the total debt in relation to the equity amounts to 68.60%. Due to the financial situation, a return on equity of 22.78% was realized by Union Pacific.
Twelve trailing months earnings per share reached a value of $5.34. Last fiscal year, Union Pacific 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 16.46, the P/S ratio is 3.42 and the P/B ratio is finally 3.64. The dividend yield amounts to 2.48%.
Stock Charts:
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| Long-Term Stock Price Chart of Union Pacific (UNP) |
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| Long-Term Dividend Payment History of Union Pacific (UNP) |
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| Long-Term Dividend Yield History of Union Pacific (UNP) |
Apple -- Yield: 2.34%
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 $538.38 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 10.92, the P/S ratio is 2.28 and the P/B ratio is finally 4.55. The dividend yield amounts to 2.34%.
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) |
Cardinal Health -- Yield: 2.30%
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 $24.96 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 18.37, the P/S ratio is 0.25 and the P/B ratio is finally 4.09. The dividend yield amounts to 2.30%.
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) |
Gilead Sciences -- Yield: 2.25%
Gilead Sciences (NASDAQ:GILD) employs 8,000 people, generates revenue of $32,639.00 million and has a net income of $18,106.00 million. The current market capitalization stands at $110.86 billion.Gilead Sciences’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,221.00 million. The EBITDA margin is 71.14% (the operating margin is 68.00% and the net profit margin 55.47%).
Financials: The total debt represents 42.65% of Gilead Sciences assets and the total debt in relation to the equity amounts to 119.01%. Due to the financial situation, a return on equity of 106.64% was realized by Gilead Sciences.
Twelve trailing months earnings per share reached a value of $11.69. Last fiscal year, Gilead Sciences paid $1.29 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.16, the P/S ratio is 3.41 and the P/B ratio is finally 6.41. The dividend yield amounts to 2.25%.
Stock Charts:
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| Long-Term Stock Price Chart of Gilead Sciences (GILD) |
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| Long-Term Dividend Payment History of Gilead Sciences (GILD) |
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| Long-Term Dividend Yield History of Gilead Sciences (GILD) |