Instead of just buying a stock that’s cheap, or one that’s growing earnings fast, we look for stocks that appear decently priced with respect to year-over-year growth.
By focusing only on the consistent growers, you score bigger checks every year (or more shares bought when reinvesting).
More importantly, steady dividend increases bode well for a stock's future. Today I'd like to share a few specific dividend stocks with you that seems to be attractive in terms of price to growth.
For example, a company growing 15% annually with a price-to-earnings (P/E) ratio of 15 or less would be considered really cheap but also very rare.
Attached you will find a couple of Dividend Achievers with a P/E under 20 and five year expected earnings growth of more than 10%.
These are the top yielding results in detail...
Oneok Partners -- Yield: 7.83%
Oneok Partners (NYSE:OKS) employs 2,364 people, generates revenue of $7,761.07 million and has a net income of $597.87 million. The current market capitalization stands at $11.52 billion.Oneok Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,427.84 million. The EBITDA margin is 18.40% (the operating margin is 10.53% and the net profit margin 7.70%).
Financials: The total debt represents 49.23% of Oneok Partners assets and the total debt in relation to the equity amounts to 116.04%. Due to the financial situation, a return on equity of 3.29% was realized by Oneok Partners.
Twelve trailing months earnings per share reached a value of $1.08. Last fiscal year, Oneok Partners paid $3.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.04, the P/S ratio is 1.49 and the P/B ratio is finally 1.89. The dividend yield amounts to 7.83%.
Stock Charts:
Long-Term Stock Price Chart of Oneok Partners (OKS) |
Long-Term Dividend Payment History of Oneok Partners (OKS) |
Long-Term Dividend Yield History of Oneok Partners (OKS) |
Maxim Integrated Products -- Yield: 3.38%
Maxim Integrated Products (NASDAQ:MXIM) employs 8,250 people, generates revenue of $2,306.86 million and has a net income of $206.04 million. The current market capitalization stands at $9.99 billion.Maxim Integrated Products’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $727.42 million. The EBITDA margin is 31.53% (the operating margin is 10.29% and the net profit margin 8.93%).
Financials: The total debt represents 23.65% of Maxim Integrated Products assets and the total debt in relation to the equity amounts to 43.67%. Due to the financial situation, a return on equity of 8.73% was realized by Maxim Integrated Products.
Twelve trailing months earnings per share reached a value of $0.80. Last fiscal year, Maxim Integrated Products 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 44.07, the P/S ratio is 4.38 and the P/B ratio is finally 4.42. The dividend yield amounts to 3.38%.
Stock Charts:
Long-Term Stock Price Chart of Maxim Integrated Products (MXIM) |
Long-Term Dividend Payment History of Maxim Integrated Products (MXIM) |
Long-Term Dividend Yield History of Maxim Integrated Products (MXIM) |
Thomson Reuters Corporation -- Yield: 3.33%
Thomson Reuters Corporation (NYSE:TRI) employs 52,000 people, generates revenue of $12,209.00 million and has a net income of $1,301.00 million. The current market capitalization stands at $30.72 billion.Thomson Reuters Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,395.00 million. The EBITDA margin is 27.81% (the operating margin is 14.20% and the net profit margin 10.66%).
Financials: The total debt represents 29.63% of Thomson Reuters Corporation assets and the total debt in relation to the equity amounts to 68.36%. Due to the financial situation, a return on equity of 9.43% was realized by Thomson Reuters Corporation.
Twelve trailing months earnings per share reached a value of $1.48. Last fiscal year, Thomson Reuters Corporation paid $1.34 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.33, the P/S ratio is 2.51 and the P/B ratio is finally 2.49. The dividend yield amounts to 3.33%.
Stock Charts:
Long-Term Stock Price Chart of Thomson Reuters Corporation (TRI) |
Long-Term Dividend Payment History of Thomson Reuters Corporation (TRI) |
Long-Term Dividend Yield History of Thomson Reuters Corporation (TRI) |
McDonald's Corporation -- Yield: 2.96%
McDonald's Corporation (NYSE:MCD) employs 420,000 people, generates revenue of $25,413.00 million and has a net income of $4,529.30 million. The current market capitalization stands at $106.06 billion.McDonald's Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,871.70 million. The EBITDA margin is 34.91% (the operating margin is 28.12% and the net profit margin 17.82%).
Financials: The total debt represents 63.58% of McDonald's Corporation assets and the total debt in relation to the equity amounts to 340.33%. Due to the financial situation, a return on equity of 45.43% was realized by McDonald's Corporation.
Twelve trailing months earnings per share reached a value of $5.19. Last fiscal year, McDonald's Corporation paid $3.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.25, the P/S ratio is 4.16 and the P/B ratio is finally 15.40. The dividend yield amounts to 2.96%.
Stock Charts:
Long-Term Stock Price Chart of McDonald's Corporation (MCD) |
Long-Term Dividend Payment History of McDonald's Corporation (MCD) |
Long-Term Dividend Yield History of McDonald's Corporation (MCD) |
15 Rapidly Growing Dividend Achievers (click to enlarge) |