While many investors tend to gauge these stocks primarily by the size of their yields, there are other factors to consider.
Long-term investors will want to pick stocks with substantial future growth potential and ones that are able to continue funding dividend increases.
After all, the true divided yield you get is based on the price you paid, not the current price of the stock.
We've tried to predict what will be the best dividend stock to have in your portfolio 10 years from now. 4 stocks came in our minds.
These are the results...
Intl. Business Machines -- Yield: 3.47%
Intl. Business Machines (NYSE:IBM) employs 377,757 people, generates revenue of $81,741.00 million and has a net income of $13,364.00 million. The current market capitalization stands at $154.35 billion.Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,536.00 million. The EBITDA margin is 23.90% (the operating margin is 18.67% and the net profit margin 16.35%).
Financials: The total debt represents 36.10% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 279.69%. Due to the financial situation, a return on equity of 102.29% was realized by Intl. Business Machines.
Twelve trailing months earnings per share reached a value of $12.27. Last fiscal year, Intl. Business Machines paid $5.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.15, the P/S ratio is 1.88 and the P/B ratio is finally 10.92. The dividend yield amounts to 3.47%.
Stock Charts:
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| Long-Term Stock Price Chart of Intl. Business Machines (IBM) |
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| Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
Cisco Systems -- Yield: 3.32%
Cisco Systems (NASDAQ:CSCO) employs 73,700 people, generates revenue of $49,247.00 million and has a net income of $10,739.00 million. The current market capitalization stands at $159.45 billion.Cisco Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,110.00 million. The EBITDA margin is 30.68% (the operating margin is 25.71% and the net profit margin 21.81%).
Financials: The total debt represents 23.55% of Cisco Systems assets and the total debt in relation to the equity amounts to 45.05%. Due to the financial situation, a return on equity of 17.42% was realized by Cisco Systems.
Twelve trailing months earnings per share reached a value of $2.11. Last fiscal year, Cisco Systems paid $0.94 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.85, the P/S ratio is 3.20 and the P/B ratio is finally 2.48. The dividend yield amounts to 3.32%.
Stock Charts:
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| Long-Term Stock Price Chart of Cisco Systems (CSCO) |
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| Long-Term Dividend Payment History of Cisco Systems (CSCO) |
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| Long-Term Dividend Yield History of Cisco Systems (CSCO) |
American Water Works -- Yield: 2.10%
American Water Works (NYSE:AWK) employs 6,700 people, generates revenue of $3,159.00 million and has a net income of $476.00 million. The current market capitalization stands at $12.73 billion.American Water Works’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,512.00 million. The EBITDA margin is 47.86% (the operating margin is 34.03% and the net profit margin 15.07%).
Financials: The total debt represents 38.03% of American Water Works assets and the total debt in relation to the equity amounts to 129.85%. Due to the financial situation, a return on equity of 9.55% was realized by American Water Works.
Twelve trailing months earnings per share reached a value of $2.61. Last fiscal year, American Water Works paid $1.36 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.26, the P/S ratio is 4.02 and the P/B ratio is finally 2.52. The dividend yield amounts to 2.10%.
Stock Charts:
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| Long-Term Stock Price Chart of American Water Works (AWK) |
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| Long-Term Dividend Payment History of American Water Works (AWK) |
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| Long-Term Dividend Yield History of American Water Works (AWK) |
Starbucks Corporation -- Yield: 1.85%
Starbucks Corporation (NASDAQ:SBUX) employs 238,000 people, generates revenue of $21,315.90 million and has a net income of $2,818.90 million. The current market capitalization stands at $79.60 billion.Starbucks Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,823.60 million. The EBITDA margin is 22.63% (the operating margin is 19.57% and the net profit margin 13.22%).
Financials: The total debt represents 25.14% of Starbucks Corporation assets and the total debt in relation to the equity amounts to 61.22%. Due to the financial situation, a return on equity of 48.16% was realized by Starbucks Corporation.
Twelve trailing months earnings per share reached a value of $1.90. Last fiscal year, Starbucks Corporation paid $0.85 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.44, the P/S ratio is 3.71 and the P/B ratio is finally 13.39. The dividend yield amounts to 1.85%.
Stock Charts:
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| Long-Term Stock Price Chart of Starbucks Corporation (SBUX) |
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| Long-Term Dividend Payment History of Starbucks Corporation (SBUX) |
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| Long-Term Dividend Yield History of Starbucks Corporation (SBUX) |
