Stocks that have a strong history of dividend growth as opposed to those that pays high yields form a healthy portfolio with more scope for capital appreciation. This is because these stocks act as a hedge against economic or political uncertainty as well as stock market volatility. Simultaneously, these offer outsized payouts or sizable yields on a regular basis irrespective of the market direction.
Additionally, these stocks have superior fundamentals compared to other dividend paying stocks as dividend growth reflects a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. All these make dividend growth a quality and promising investment for the long term.
However, the long history of outperformance by dividend growth stocks compared with the broader stock market or any other dividend paying stocks does not necessarily mean that they have the highest yields.
Here are a few ideas for a winning dividend growth portfolio:
Nucor Corporation -- Yield: 2.54%
Nucor Corporation (NYSE:NUE) employs 23,700 people, generates revenue of $16,439.28 million and has a net income of $496.08 million. The current market capitalization stands at $18.55 billion.Nucor Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,822.80 million. The EBITDA margin is 11.09% (the operating margin is 5.34% and the net profit margin 3.02%).
Financials: The total debt represents 31.29% of Nucor Corporation assets and the total debt in relation to the equity amounts to 60.02%. Due to the financial situation, a return on equity of 4.69% was realized by Nucor Corporation.
Twelve trailing months earnings per share reached a value of $1.60. Last fiscal year, Nucor Corporation paid $1.49 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.34, the P/S ratio is 1.15 and the P/B ratio is finally 2.55. The dividend yield amounts to 2.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Nucor Corporation (NUE) |
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| Long-Term Dividend Payment History of Nucor Corporation (NUE) |
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| Long-Term Dividend Yield History of Nucor Corporation (NUE) |
Lowe's Companies -- Yield: 1.97%
Lowe's Companies (NYSE:LOW) employs 180,000 people, generates revenue of $59,074.00 million and has a net income of $2,546.00 million. The current market capitalization stands at $61.53 billion.Lowe's Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,568.00 million. The EBITDA margin is 11.12% (the operating margin is 8.41% and the net profit margin 4.31%).
Financials: The total debt represents 40.46% of Lowe's Companies assets and the total debt in relation to the equity amounts to 165.26%. Due to the financial situation, a return on equity of 28.76% was realized by Lowe's Companies.
Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, Lowe's Companies paid $1.07 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.83, the P/S ratio is 1.05 and the P/B ratio is finally 8.46. The dividend yield amounts to 1.97%.
Stock Charts:
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| Long-Term Stock Price Chart of Lowe's Companies (LOW) |
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| Long-Term Dividend Payment History of Lowe's Companies (LOW) |
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| Long-Term Dividend Yield History of Lowe's Companies (LOW) |
Walgreens Boots Alliance -- Yield: 1.81%
Walgreens Boots Alliance (NASDAQ:WBA) employs 240,000 people, generates revenue of $117,351.00 million and has a net income of $4,147.00 million. The current market capitalization stands at $88.75 billion.Walgreens Boots Alliance’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,673.00 million. The EBITDA margin is 7.39% (the operating margin is 5.11% and the net profit margin 3.53%).
Financials: The total debt represents 26.18% of Walgreens Boots Alliance assets and the total debt in relation to the equity amounts to 63.68%. Due to the financial situation, a return on equity of 13.74% was realized by Walgreens Boots Alliance.
Twelve trailing months earnings per share reached a value of $3.82. Last fiscal year, Walgreens Boots Alliance paid $1.46 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.69, the P/S ratio is 0.76 and the P/B ratio is finally 3.00. The dividend yield amounts to 1.81%.
Stock Charts:
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| Long-Term Stock Price Chart of Walgreens Boots Alliance (WBA) |
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| Long-Term Dividend Payment History of Walgreens Boots Alliance (WBA) |
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| Long-Term Dividend Yield History of Walgreens Boots Alliance (WBA) |
Parker-Hannifin -- Yield: 1.80%
Parker-Hannifin (NYSE:PH) employs 48,950 people, generates revenue of $11,360.75 million and has a net income of $807.22 million. The current market capitalization stands at $18.98 billion.Parker-Hannifin’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,644.42 million. The EBITDA margin is 14.47% (the operating margin is 9.81% and the net profit margin 7.11%).
Financials: The total debt represents 25.05% of Parker-Hannifin assets and the total debt in relation to the equity amounts to 65.88%. Due to the financial situation, a return on equity of 16.67% was realized by Parker-Hannifin.
Twelve trailing months earnings per share reached a value of $6.04. Last fiscal year, Parker-Hannifin paid $2.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.61, the P/S ratio is 1.64 and the P/B ratio is finally 4.10. The dividend yield amounts to 1.80%.
Stock Charts:
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| Long-Term Stock Price Chart of Parker-Hannifin (PH) |
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| Long-Term Dividend Payment History of Parker-Hannifin (PH) |
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| Long-Term Dividend Yield History of Parker-Hannifin (PH) |
Becton Dickinson -- Yield: 1.76%
Becton Dickinson (NYSE:BDX) employs 50,900 people, generates revenue of $12,483.00 million and has a net income of $977.00 million. The current market capitalization stands at $35.09 billion.Becton Dickinson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,272.00 million. The EBITDA margin is 26.21% (the operating margin is 11.46% and the net profit margin 7.83%).
Financials: The total debt represents 45.15% of Becton Dickinson assets and the total debt in relation to the equity amounts to 151.33%. Due to the financial situation, a return on equity of 13.19% was realized by Becton Dickinson.
Twelve trailing months earnings per share reached a value of $4.50. Last fiscal year, Becton Dickinson paid $2.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 36.73, the P/S ratio is 2.83 and the P/B ratio is finally 4.63. The dividend yield amounts to 1.76%.
Stock Charts:
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| Long-Term Stock Price Chart of Becton Dickinson (BDX) |
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| Long-Term Dividend Payment History of Becton Dickinson (BDX) |
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| Long-Term Dividend Yield History of Becton Dickinson (BDX) |
S&P Global -- Yield: 1.34%
S&P Global (NYSE:SPGI) employs 20,400 people, generates revenue of $5,313.00 million and has a net income of $1,268.00 million. The current market capitalization stands at $27.81 billion.S&P Global’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,074.00 million. The EBITDA margin is 39.04% (the operating margin is 36.08% and the net profit margin 23.87%).
Financials: The total debt represents 44.13% of S&P Global assets and the total debt in relation to the equity amounts to 1,861.34%. Due to the financial situation, a return on equity of 339.00% was realized by S&P Global.
Twelve trailing months earnings per share reached a value of $6.81. Last fiscal year, S&P Global paid $1.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.93, the P/S ratio is 5.24 and the P/B ratio is finally 147.45. The dividend yield amounts to 1.34%.
Stock Charts:
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| Long-Term Stock Price Chart of S&P Global (SPGI) |
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| Long-Term Dividend Payment History of S&P Global (SPGI) |
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| Long-Term Dividend Yield History of S&P Global (SPGI) |
Carlisle -- Yield: 1.27%
Carlisle (NYSE:CSL) employs 12,000 people, generates revenue of $3,543.20 million and has a net income of $319.60 million. The current market capitalization stands at $7.04 billion.Carlisle’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $632.00 million. The EBITDA margin is 17.84% (the operating margin is 14.17% and the net profit margin 9.02%).
Financials: The total debt represents 18.87% of Carlisle assets and the total debt in relation to the equity amounts to 31.75%. Due to the financial situation, a return on equity of 13.93% was realized by Carlisle.
Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, Carlisle paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.03, the P/S ratio is 2.01 and the P/B ratio is finally 3.02. The dividend yield amounts to 1.27%.
Stock Charts:
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| Long-Term Stock Price Chart of Carlisle (CSL) |
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| Long-Term Dividend Payment History of Carlisle (CSL) |
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| Long-Term Dividend Yield History of Carlisle (CSL) |
HB Fuller -- Yield: 1.16%
HB Fuller (NYSE:FUL) employs 4,400 people, generates revenue of $2,083.66 million and has a net income of $82.49 million. The current market capitalization stands at $2.46 billion.HB Fuller’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $245.77 million. The EBITDA margin is 11.80% (the operating margin is 7.96% and the net profit margin 3.96%).
Financials: The total debt represents 35.40% of HB Fuller assets and the total debt in relation to the equity amounts to 82.81%. Due to the financial situation, a return on equity of 9.98% was realized by HB Fuller.
Twelve trailing months earnings per share reached a value of $2.15. Last fiscal year, HB Fuller paid $0.51 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.82, the P/S ratio is 1.17 and the P/B ratio is finally 2.77. The dividend yield amounts to 1.16%.
Stock Charts:
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| Long-Term Stock Price Chart of HB Fuller (FUL) |
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| Long-Term Dividend Payment History of HB Fuller (FUL) |
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| Long-Term Dividend Yield History of HB Fuller (FUL) |
Stepan Company -- Yield: 1.01%
Stepan Company (NYSE:SCL) employs 2,073 people, generates revenue of $1,776.17 million and has a net income of $76.04 million. The current market capitalization stands at $1.81 billion.Stepan Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $186.91 million. The EBITDA margin is 10.52% (the operating margin is 6.91% and the net profit margin 4.28%).
Financials: The total debt represents 26.76% of Stepan Company assets and the total debt in relation to the equity amounts to 59.49%. Due to the financial situation, a return on equity of 13.91% was realized by Stepan Company.
Twelve trailing months earnings per share reached a value of $3.87. Last fiscal year, Stepan Company paid $0.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.86, the P/S ratio is 1.03 and the P/B ratio is finally 3.26. The dividend yield amounts to 1.01%.
Stock Charts:
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| Long-Term Stock Price Chart of Stepan Company (SCL) |
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| Long-Term Dividend Payment History of Stepan Company (SCL) |
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| Long-Term Dividend Yield History of Stepan Company (SCL) |
C R Bard -- Yield: 0.46%
C R Bard (NYSE:BCR) employs 14,900 people, generates revenue of $3,416.00 million and has a net income of $135.40 million. The current market capitalization stands at $16.76 billion.C R Bard’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,041.10 million. The EBITDA margin is 30.48% (the operating margin is 11.63% and the net profit margin 3.96%).
Financials: The total debt represents 28.23% of C R Bard assets and the total debt in relation to the equity amounts to 95.81%. Due to the financial situation, a return on equity of 8.19% was realized by C R Bard.
Twelve trailing months earnings per share reached a value of $7.50. Last fiscal year, C R Bard 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 30.34, the P/S ratio is 4.84 and the P/B ratio is finally 11.38. The dividend yield amounts to 0.46%.
Stock Charts:
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| Long-Term Stock Price Chart of C R Bard (BCR) |
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| Long-Term Dividend Payment History of C R Bard (BCR) |
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| Long-Term Dividend Yield History of C R Bard (BCR) |
