You’ve probably noticed you rarely see your favorite stock paying more than 2% or 3%, even if the company raises its dividend every year.
That’s because its price gets bid up as its payout rises – so you never quite get the bargain 4% yield you’re always waiting for, unless something really bad happens (like 2008).
Here are four stocks from my watch list trading at less than 10-times free cash flow. All are growing their payouts quickly AND reducing their share counts meaningfully – a bullish sign of things to come:
Valero Energy -- Yield: 4.43%
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 $24.57 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 $6.19. 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 8.69, the P/S ratio is 0.28 and the P/B ratio is finally 1.25. The dividend yield amounts to 4.43%.
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) |
GATX Corporation -- Yield: 3.62%
GATX Corporation (NYSE:GATX) employs 2,253 people, generates revenue of $1,449.90 million and has a net income of $159.40 million. The current market capitalization stands at $1.73 billion.GATX Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $662.70 million. The EBITDA margin is 45.71% (the operating margin is 24.79% and the net profit margin 10.99%).
Financials: The total debt represents 60.98% of GATX Corporation assets and the total debt in relation to the equity amounts to 328.40%. Due to the financial situation, a return on equity of 15.83% was realized by GATX Corporation.
Twelve trailing months earnings per share reached a value of $5.42. Last fiscal year, GATX Corporation paid $1.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.10, the P/S ratio is 1.23 and the P/B ratio is finally 1.45. The dividend yield amounts to 3.62%.
Stock Charts:
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| Long-Term Stock Price Chart of GATX Corporation (GATX) |
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| Long-Term Dividend Payment History of GATX Corporation (GATX) |
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| Long-Term Dividend Yield History of GATX Corporation (GATX) |
Travelers Companies -- Yield: 2.35%
Travelers Companies (NYSE:TRV) employs 30,900 people, generates revenue of $26,852.00 million and has a net income of $3,439.00 million. The current market capitalization stands at $32.92 billion.Travelers Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,868.00 million. The EBITDA margin is 36.75% (the operating margin is 19.04% and the net profit margin 12.81%).
Financials: The total debt represents 6.33% of Travelers Companies assets and the total debt in relation to the equity amounts to 26.88%. Due to the financial situation, a return on equity of 14.10% was realized by Travelers Companies.
Twelve trailing months earnings per share reached a value of $10.35. Last fiscal year, Travelers Companies paid $2.38 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.14, the P/S ratio is 1.22 and the P/B ratio is finally 1.43. The dividend yield amounts to 2.35%.
Stock Charts:
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| Long-Term Stock Price Chart of Travelers Companies (TRV) |
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| Long-Term Dividend Payment History of Travelers Companies (TRV) |
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| Long-Term Dividend Yield History of Travelers Companies (TRV) |
SunTrust Banks -- Yield: 2.28%
SunTrust Banks (NYSE:STI) employs 24,043 people, generates revenue of $5,265.00 million and has a net income of $1,943.00 million. The current market capitalization stands at $22.40 billion.SunTrust Banks’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,775.00 million. The EBITDA margin is 47.00% (the operating margin is 33.70% and the net profit margin 24.19%).
Financials: The total debt represents 6.86% of SunTrust Banks assets and the total debt in relation to the equity amounts to 55.85%. Due to the financial situation, a return on equity of 8.47% was realized by SunTrust Banks.
Twelve trailing months earnings per share reached a value of $3.69. Last fiscal year, SunTrust Banks paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.38, the P/S ratio is 2.82 and the P/B ratio is finally 1.05. The dividend yield amounts to 2.28%.
Stock Charts:
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| Long-Term Stock Price Chart of SunTrust Banks (STI) |
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| Long-Term Dividend Payment History of SunTrust Banks (STI) |
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| Long-Term Dividend Yield History of SunTrust Banks (STI) |
