13 Dividend Stocks With The Highest Profitable Earnings Growth For The Future

Stocks of companies that initiate dividends tend to fare well. Shares of dividend payers raise an average of 15% in the 12 months following the announcement of the initial disbursement. 

Growing companies have better things to do with their money than dole it out as dividends. Reinvesting in the business is usually a better idea, especially if a firm is racking up high returns on invested capital (a measure of profitability). 

But a corporate that doesn’t pay money to shareholders is nothing worth. Only the stock market could reward the rising business structure with hopes to get all of the invested money back.

I'm a big fan of dividends and share buybacks. Better is the cash source of the company. If it generates tons of cash and don't need to put most of the money back into the company, it's one of the best investments if they have a stable business with big competitive advances.

Growth combined with value and predictable business models is one of my key premises when I put money into stocks.

Today I like to highlight those dividend paying stocks with the highest growth expectations for the next five years. Especially cyclic stocks have enormous EPS growth rates when they come out of their business cycle.

I like to exclude those companies by implementing a positive sales growth rule of the past years. In addition, the company should not have unsustainable high debt and a double digit Return on Investment ratio. Only a profitable growth makes sense over the long-term.

13 companies fulfilled these criteria of which four yield over 3 percent. Attached you can find the full list of the results with some fundamentals. I hope you find new inpirations and get a broader view on the market. If you like my articles, you can easily subscribe my free newsletter via RSS.

Here are the top yielding results...

12 High-Yielding And Fairly Priced Dividend Stocks

Sometimes high dividends can be transient as the business may not be able to support it long term. In compiling this list, we have also considered the safety of the dividend and this is indicated by a high dividend coverage ratio. 

These companies have also grown their dividends at a nice clip over the last 5 years which shows their commitment to dividend payments and shareholder returns. 

While nothing is certain, this is a great list to start with and conduct further research in each of these stocks to figure out if they are good investments for your portfolio or not.

Attached you can find a list of stocks that might look attractive now. Each of the resutls pay a dividend over 3 percent yerly and have a low price-to-earnings ratio. Dividends grew by more than 10 percent over the past 5 years and those payments are coverd more than two times.

The value focus on the market moves more to Energy, Commodity and Energy related engineering stocks.

In addition, there are also a few retailing stocks that look cheap. Macy's, Kohls, GameStop, Wal-Mart, BestBuy, Bed Bath & Beyond are a few examples.

They could also be cheap for a reason: Online retailers like Amazon or ebay gaining more and more market share.

However, back to the results. Here are the 12 best results for value investors who look for dividend income.

12 High-Yielding And Fairly Priced Dividend Stocks are...

Oil Refinery Dividend Stock Investing - These Portfolio Generated 12.26% Yearly

Oil dropped to just over $40 per barrel, and oil stocks have taken a hit. If you're worried that oil will stay at a low price, then refiners are a good investment.

They do very well when the price of crude is low. Low prices means they can refine more oil, so, apart from the initial hit on inventory, future profit opportunities are strong. People also tend to buy more gas when oil is low, so there's more demand for the refineries.

My latest research focus was the Asset Management, Industrial and finally the Energy Sector.

Within the Energy sector, companies from the downstream segment like Oil refinery stocks look attractive for me. They do not depend highly on the oil price, more on the cracking margin.

The business of the refining players is negatively correlated with crude prices. This is because the companies use oil as an input from which they derive refined petroleum products like gasoline – the prime transportation fuel in the U.S. Hence, lower the oil price, higher will be their profits.

We can say that the decline in crude price, which is expected to continue for some time, will bring more good news for the firms engaged in refining oil.

This means not that downstream companies are better when the oil price slumps. My research result of the past decade was that they also lose value and they are highly volatile. 

In 2008, the year of the financial crisis, the portfolio of the best refinery dividend paying oil stocks lost more than half of its value. After the sell-off, it tripled its value.

Attached is a list of 12 dividend paying oil refinery stocks that gave investors a great past return. Over the last decade, those stocks delivered a 12.26% average yearly return.

The biggest threat is in my view the possibility of a political change in the energy sector. Do politicians want more renewable energy production or put they more money into jobs and growth via the old systems.

Energy is definitely the most important sector that benefits when growth should be created for the economy.

These are the best dividend picks from the Oil Refinery Industry...