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Showing posts with label Cheap Stock. Show all posts
Showing posts with label Cheap Stock. Show all posts

4 Most Attractive Dividend Growth Champions

P/E figures of the overall market are still high at a range of 18-20. Investing within a low interest era is very difficult but stock picking still can help you to attract good companies at solid prices.

In order to ensure that you don't overpay a stock, you must have a strong focus on the valuation level, debt and growth figures as well as margins.

Below are five Dividend Champions with a low forward P/E (less than 15), a current dividend yield of more than 3 percent as well as a debt-to-equity ratio under 0.5.

The four most attractive Dividend Champions on the market are....

4 Cheap Dividend Stocks With A Single-Digit Forward P/E

If you are a yield hungry investor, you need to look at stocks with a low valuation in terms of earnings multiples and growth perspectives.

The lower the price, the shorter the period in which your investment pays-off. 

I have a strict focus on low priced stocks. Below is a small overview of all Dividend Champions and Contenders with a single-digit forward earnings multiple.

Stay disciplined when you invest your hard-worked money into the highly volatile stock market. You should be a part of the winner site of the market and not the person who loses cash to the better informed persons.

5 Highest Yielding Long-Term Dividend Plays In A Hot Stock Market

I had a great success with dividend stocks over the past decade. In total, I could realize a six-figure amount of money for my trading accounts. But if I compare the values with the time that I've spent over the recent decade, I could advice you to become a passive income investor.

As investor with a low share participation of the corporate, you can't change much. For sure, you can read annual reports and investor presentations but it is only for your own comprehension.

The best return will come from long-term investments from companies that cannot destroyed by a worse management team. Those are companies with strong brands and big market shares in the major key markets around the world.

If you would like to put your last money on the table, please consider this as it is your final trade. Below are 5 top long-term dividend growers that contain some kind of values. It’s very difficult to find really attractively priced stock, especially in a hot and with cheap money flooded market. But we cannot give up this fight for a good risk and inflation adjusted return.

5 highest yielding long term dividend grower...

Grow Your Dividend Income Now...With These Cheaply Valuated Dividend Stocks

...that's what I can pray to every income investor. I've made tons of money by investing capital into dividend growth stocks. For sure, I had luck and the Lehman Crises helped me a little to attract stocks at a cheap valuation.

Today, it's more difficult to catch bargains on the market. The Federal Reserve banks around the world flooded the markets with cheap money and pushed down the interest rates at the lowest level for decades! I'm pretty sure that this constellation is not sustainable but gives us investors also great possibilities to buy stocks.

Good dividend growth stocks grow their earnings payouts to shareholders each year and they don't want to stop it. That's a good way to improve your personal, passive income by a significant amount. Below are five stocks that have risen dividends over more than 25 consecutive years, a cheap forward P/E of less than 15 als well as a double digit earnings growth forecast.

6 Stock Ideas With Dividend Growth And Double-Digit Earnings Growth Forecasts

I always look for investment opportunities that offer growth and dividends combined. 

This weekend, I've summarized some stocks with over 5 years of consecutive dividend growth and expected 5-Year earnings growth above 10 percent yearly. 

It's hard to find cheap stocks that grow safely, especially when the overall market is really ambitious valuated.

Below are six stock ideas from each of the popular dividend growth categories (Dividend Champions, Dividend Contenders as well as Dividend Challengers), with a low forward P/E of less than 15 as well as double-digit earnings predictions by analysts.

8 Dividend Growth Stocks On The Sweet Spot

Out there happening very exciting moments on the market. Due to the recent stock market crash, stocks look a little bit more attractive than weeks before while the total number of potential dividend growers rise steadily.

The fantastic economic recovery of the recent years was the the most important item which helped to grow the total number of stocks with more than 5 years of consecutive dividend growth to 488! I expect that we would hit the 500 mark by the end of this year.

It's great to see that we've more and more opportunities in the dividend growth investing field but if we look at the valuations on the market, we definitely notice that it's still hard to find real bargains.

Some stocks are too expensive, others are cheap but those companies release falling earnings and sales figures or they are overloaded with debt. What we need are long-term dividend growth stocks on the sweet spot.

After the recent sell-off on the market, I screened my database by stocks with a current dividend yield over 3 percent and a low forward P/E of less than 15. In addition, the expected earnings should grow by at least 5 percent (analyst predictions), year by year for the next five fiscals.

Around 30 companies fulfilled these criteria at the moment. I try to highlight some of the best ideas. Below are 8 stocks, sorted by market capitalization.

12 Stock Ideas From The S&P High Yield Dividend Aristocrats Index

In a low interest environment, it's more important to catch a good yielding stock with a fair possibility of a solid capital gain in the mid-term.

Today I would like to screen the S&P High Yield Dividend Aristocrats Index by stocks with a P/E under 20 and a solid debt situation, measured by a debt-to-equity value of 0.5. I accept a higher valuation due to a better debt ratio; A good deal in my view.

Attached are the 12 best yielding results with a dividend yield above the 2 percent mark.

My favorites are Exxon Mobil, Genuine Parts and Walgreen but on the list are more interesting stocks. Take a look on the sheet and make your own advice...

3 top picks from the S&P High Yield Dividend Aristocrats Index...

5 Stocks Warren Buffett Keeps An Eye On...

Attached are five more stocks with fundamentals that meet Warren Buffett target criteria. 

I've introduced a few more stocks in this blog earlier this month and I believe that it's a good tool to get new stock ideas in a hot market.

The markets are not cheap for the time being and high-quality stocks have a much higher premium rate. But the good thing is that this should not make it impossible to find new investment targets.

You must have patience to get the right investments at the right prices. Only the disciplined investor makes the better return.

5 stocks with Warren Buffett like criteria are...

Warren Buffett's Targets Part I: Potential White Elephants Of The Guru Investor

Warren Buffett is one of the most trusted and popular investors on the market. He made from a dozen dollars over USD 58 billion. On this blog, I also cover the activities of the guru investor and publish his trades and thoughts.

There are several speculations on the market what Warren Buffett buys next. He has around USD 15 billion in cash, a number that is growing monthly. Some of Warren Buffett's criteria are:

- Market Capitalization from $15 Billion to $40 Billion
- Capital Expenditures / Net Fixed Assets > 10%
- 5-Year Average Growth in ROIC in Highest 50%
- P/E Ratio < Average Company Value in Home Market
- Return on Common Equity > 10%
- Excludes Banks, Brokerages, Asset Managers, Technology, Biotechnology Companies

By screening the market with the above mentioned criteria, there are popping out a few interesting stocks. Some are often discussed like General Mills or Hershey, W.W. Grainger or FedEx.

Big takeovers make sense for Warren Buffett, also when they are higher valuated. More important are the stable cash flows. The strategy is to buy stocks that have big brands and produce products. They buy commodities and create wonderful things for people all over the world.

5 picks that Warren Buffett would like to consider....

General Mills (NYSE:GIS) has a market capitalization of $30.78 billion. The company employs 41,000 people, generates revenue of $17.774 billion and has a net income of $1.793 billion. General Mills’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.443 billion. The EBITDA margin is 19.37 percent (the operating margin is 16.04 percent and the net profit margin 10.09 percent).

Financial Analysis: The total debt represents 35.17 percent of General Mills’s assets and the total debt in relation to the equity amounts to 119.44 percent. Due to the financial situation, a return on equity of 28.34 percent was realized by General Mills. Twelve trailing months earnings per share reached a value of $2.69. Last fiscal year, General Mills paid $0.99 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.31, the P/S ratio is 1.73 and the P/B ratio is finally 4.73. The dividend yield amounts to 3.08 percent and the beta ratio has a value of 0.20.

Long-Term Stock Price Chart Of General Mills (GIS)
Long-Term Dividend Payment History of General Mills (GIS)
Long-Term Dividend Yield History of General Mills (GIS)

Hershey (NYSE:HSY) has a market capitalization of $21.45 billion. The company employs 12,100 people, generates revenue of $6.644 billion and has a net income of $660.93 million. Hershey’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.399 billion. The EBITDA margin is 21.07 percent (the operating margin is 16.72 percent and the net profit margin 9.95 percent).

Financial Analysis: The total debt represents 40.10 percent of Hershey’s assets and the total debt in relation to the equity amounts to 183.93 percent. Due to the financial situation, a return on equity of 69.79 percent was realized by Hershey. Twelve trailing months earnings per share reached a value of $3.45. Last fiscal year, Hershey paid $1.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.80, the P/S ratio is 3.21 and the P/B ratio is finally 20.71. The dividend yield amounts to 2.02 percent and the beta ratio has a value of 0.21.

Long-Term Stock Price Chart Of Hershey (HSY)
Long-Term Dividend Payment History of Hershey (HSY)
Long-Term Dividend Yield History of Hershey (HSY)

W.W. Grainger (NYSE:GWW) has a market capitalization of $17.65 billion. The company employs 21,100 people, generates revenue of $8.950 billion and has a net income of $698.85 million. W.W. Grainger’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.357 billion. The EBITDA margin is 15.16 percent (the operating margin is 12.64 percent and the net profit margin 7.81 percent).

Financial Analysis: The total debt represents 11.26 percent of W.W. Grainger’s assets and the total debt in relation to the equity amounts to 18.67 percent. Due to the financial situation, a return on equity of 23.97 percent was realized by W.W. Grainger. Twelve trailing months earnings per share reached a value of $11.25. Last fiscal year, W.W. Grainger paid $3.06 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.61, the P/S ratio is 1.97 and the P/B ratio is finally 5.84. The dividend yield amounts to 1.46 percent and the beta ratio has a value of 0.92.

Long-Term Stock Price Chart Of W.W. Grainger (GWW)
Long-Term Dividend Payment History of W.W. Grainger (GWW)
Long-Term Dividend Yield History of W.W. Grainger (GWW)

CBS Corporation (NYSE:CBS) has a market capitalization of $37.00 billion. The company employs 20,930 people, generates revenue of $14.089 billion and has a net income of $1.669 billion. CBS Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.594 billion. The EBITDA margin is 25.51 percent (the operating margin is 20.95 percent and the net profit margin 11.85 percent).

Financial Analysis: The total debt represents 22.38 percent of CBS Corporation’s assets and the total debt in relation to the equity amounts to 57.98 percent. Due to the financial situation, a return on equity of 16.24 percent was realized by CBS Corporation. Twelve trailing months earnings per share reached a value of $2.94. Last fiscal year, CBS Corporation paid $0.44 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.96, the P/S ratio is 2.63 and the P/B ratio is finally 3.80. The dividend yield amounts to 0.78 percent and the beta ratio has a value of 2.27.

Long-Term Stock Price Chart Of CBS Corporation (CBS)
Long-Term Dividend Payment History of CBS Corporation (CBS)
Long-Term Dividend Yield History of CBS Corporation (CBS)

FedEx (NYSE:FDX) has a market capitalization of $44.34 billion. The company employs 112,000 people, generates revenue of $44.287 billion and has a net income of $1.561 billion. FedEx’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.538 billion. The EBITDA margin is 12.50 percent (the operating margin is 5.76 percent and the net profit margin 3.52 percent).

Financial Analysis: The total debt represents 8.91 percent of FedEx’s assets and the total debt in relation to the equity amounts to 17.19 percent. Due to the financial situation, a return on equity of 9.72 percent was realized by FedEx. Twelve trailing months earnings per share reached a value of $5.19. Last fiscal year, FedEx paid $0.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.37, the P/S ratio is 1.00 and the P/B ratio is finally 2.60. The dividend yield amounts to 0.42 percent and the beta ratio has a value of 1.50.

Long-Term Stock Price Chart Of FedEx (FDX)
Long-Term Dividend Payment History of FedEx (FDX)
Long-Term Dividend Yield History of FedEx (FDX)

If you would like to receive more thoughts about Warren Buffett, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

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*I am long GIS. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

5 Attractively Valued Stocks With At Least One Dividend Hike

Cheap stocks are the basis for a good return. But the definition of cheapness is large. One ratio that measures the cheapness of a stock in relation to its growth is the Price-Earnings-To-Growth ratio (PEG ratio).

A PEG-value over one indicates that the stock could be overpaid. Today I would like to generate some fresh stock ideas by screening the market by attractively valuated dividend stocks that have raised dividends for at least one time.


These are my criteria in detail:


- Market cap is greater than USD 100 million
- Dividend yield is above 3%
- At least one dividend hike
- Total debt to equity is under 1
- 12Trailing P/E is less than 15
- Forward P/E is less than 15
- PEG ratio is less than 1

Only five stocks fulfilled these tighten criteria of which two are High-Yields. All results are currently recommended by brokerage firms.

The top 5 results are....

4 Stocks With Over 6 Percent Dividend Yield And Low Debt / Price-Earnings

On this blog, you can find many ideas about stocks with a longer dividend growth history but each Dividend King or Dividend Champion started its career with its first dividend payment 50 years ago.

It's very hard to predict which of the 400 companies will become the next Dividend King and who of the additional 3,000 shares will create the most shareholder values with the result of extraordinary strong dividend growth.

Today I've created a quick list about stocks that have a low price ratio (on current basis and for the future). In addition, the dividend should be bigger than a normal high-yielding stock and the debt situation should finally be on a normal level (below one). These are the criteria in detail:

Market Cap over USD 1 billion
Dividend yield is above 6 percent
At least one dividend hike in the past year
Trailing P/E is less than 15
Forward P/E is less than 15
Total debt to equity is less than 1.00

Only four stocks fulfilled the above mentioned criteria. Of which three are currently recommended to buy.

5 Higher Yielding Growth Picks With Acceptable Price Ratios

I've recently published an article about stocks that combined dividends and growth. The article introduced five picks with attractive fundamentals but the yield ratios were really low.

Today I would like to fix this lack by showing you some higher yielding stocks with great earnings growth forecasts. 


In addition, the valuation could not be cheap because of the higher growth rates but they should be acceptable. These are my criteria in detail:

- Dividend Yield - Over 4%
- Payout Ratio - Under 100%
- Sales growth Past 5 years - Over 10%
- EPS growth Past 5 years - Over 10%
- EPS growth next 5 years - Over 10%
- Trailing P/E - Under 25
- Forward P/E - Under 20

Cisco Systems (CSCO): Position Increase By 44 Percent

I’ve increased my current stake in Cisco Systems last Friday by 44 percent: I purchased 40 additional shares at $21.28 or $856 total investment cost.

Cisco yields at 3.2 percent but has only a dividend payout ratio of 33.5 percent. The company generates over $10 billion free cash flow per year and announced recently to boost its current share buybackprogramm by $15 billion.

My stake is down 15.31 percent on average and marked the highest unrealized single trading loss within the 54 position strong portfolio. 

Due to the 44 percent position increase, the current trading loss shrinks to 11.27 percent but the position size and therefore the trading risk also rises by a small amount. The overall picture looks still good with a 2.5 percent Cisco portfolio exposure. It’s also the second biggest position behind IBM.

Cisco shares should now contribute around 66 bucks per year to the total dividend income of the portfolio. The full-year estimated dividend income rises to $2,826.

Latest Portfolio Transactions (Click to enlarge)

Latest Portfolio I (Click to enlarge)

Latest Portfolio II (Click to enlarge)

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.
--------------------------------------

Stock holdings of the Passive Income Portfolio are up 10.21 percent on average. Due to the high cash values over the recent year, the full portfolio performance amounts to 10.09. 

The full portfolio performance is not as good as the values from major indices like the Dow Jones or S&P 500. Those performed twice as good as my portfolio. But my strategy is long-term and income orientated. I like to create an income vehicle that doubles its income each 10 years from alone.

Latest Portfolio Performance (Click to enlarge)


Here is the income perspective of the portfolio

Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
33.18
3.54
28.90
50
$65.00
$1,845.50
LMT
Lockheed Martin C
14.58
3.5
92.72
20
$95.60
$2,763.80
INTC
Intel Corporation
13.12
3.71
21.27
50
$45.00
$1,241.00
MCD
McDonald's Corpor
17.23
3.27
87.33
25
$78.00
$2,420.00
WU
Western Union Com
10.89
3.04
11.95
100
$50.00
$1,677.00
PM
Philip Morris Int
16.23
4.13
89.76
30
$105.87
$2,574.90
JNJ
Johnson & Johnson
20.73
2.79
69.19
20
$51.80
$1,888.80
MO
Altria Group Inc
14.42
4.87
33.48
40
$72.00
$1,498.40
SYY
Sysco Corporation
20.22
3.34
31.65
40
$44.80
$1,372.40
DRI
Darden Restaurant
18.49
4.03
46.66
30
$63.00
$1,574.40
CA
CA Inc.
13.87
3.08
21.86
50
$50.00
$1,642.50
PG
Procter & Gamble
21.01
2.86
68.72
25
$59.20
$2,113.00
KRFT
Kraft Foods Group
17.01
3.85
44.41
40
$80.00
$2,142.00
MAT
Mattel Inc.
19.16
3.14
36.45
40
$57.60
$1,850.40
PEP
Pepsico Inc. Com
19.23
2.04
70.88
20
$33.46
$1,663.00
KMB
Kimberly-Clark Co
21.61
2.34
86.82
15
$36.45
$1,583.70
COP
ConocoPhillips Co
10.84
3.81
61.06
20
$52.80
$1,415.40
GIS
General Mills In
18.83
2.83
42.13
30
$42.60
$1,545.00
UL
Unilever PLC Comm
18.78
3.5
39.65
35
$48.83
$1,423.10
NSRGY
NESTLE SA REG SHR
19.91
3.02
68.69
30
$65.31
$2,197.20
GE
General Electric
19.89
2.87
23.39
65
$49.40
$1,751.10
ADP
Automatic Data Pr
26.71
2.22
61.65
25
$43.50
$1,991.50
K
Kellogg Company C
23.17
2.97
61.52
25
$45.00
$1,541.00
KO
Coca-Cola Company
20.65
2.81
38.83
40
$44.80
$1,618.40
RTN
Raytheon Company
14.81
2.5
57.04
20
$43.00
$1,733.60
RCI
Rogers Communicat
11.97
3.8
46.5
50
$84.00
$2,245.00
GPC
Genuine Parts Com
18.01
2.01
77.06
20
$32.22
$1,634.40
TSCDY
TESCO PLC SPONS A
N/A
4.19
17.08
110
$75.79
$1,808.40
APD
Air Products and
22.74
2.6
85.71
15
$41.55
$1,642.65
GSK
GlaxoSmithKline P
20.59
4.61
52.16
30
$72.24
$1,579.50
WMT
Wal-Mart Stores
15.27
1.77
79.25
20
$28.20
$1,598.80
BTI
British American
15.96
4
111.13
23
$96.14
$2,413.39
CHL
China Mobile Limi
10.73
4.09
55.32
40
$89.52
$2,200.80
MMM
3M Company Common
19.49
2
110.27
15
$38.10
$1,929.15
TUP
Tupperware Brands
19.12
2.43
80.98
15
$33.30
$1,399.05
IBM
International Bus
12.19
2.1
193.17
20
$74.00
$3,553.40
HAS
Hasbro Inc.
24.01
2.98
44.09
30
$46.80
$1,552.80
T
AT&T Inc.
25.07
5.26
34.47
30
$54.00
$1,035.90
WAG
Walgreen Co. Comm
21.92
2.1
44.25
30
$35.40
$1,701.30
AFL
AFLAC Incorporate
10.03
2.16
59.39
20
$28.40
$1,332.80
TGT
Target Corporatio
16.76
2.52
68.69
32
$50.56
$2,028.16
CSCO
Cisco Systems In
11.37
2.44
23.98
130
$66.30
$2,766.40
DE
Deere & Company C
9.34
2.35
84.11
15
$29.85
$1,279.80
RGR
Sturm Ruger & Co
13.77
2.92
51.65
20
$42.48
$1,435.40
LO
Lorillard Inc Co
15.88
4.35
42.3
30
$66.00
$1,524.00
UNP
Union Pacific Cor
17.9
1.82
154.75
8
$23.68
$1,314.72
IDA
IDACORP Inc. Com
15.59
3.02
47.94
20
$31.40
$1,058.00
BAX
Baxter Internatio
16.89
2.14
66.38
20
$28.60
$1,347.80
MSFT
Microsoft Corpora
14.23
2.55
33.88
40
$38.80
$1,534.40
ACN
Accenture plc. Cl
15.36
2.3
77.71
20
$34.80
$1,510.60
BCE
BCE Inc. Common
14.31
3.95
44.26
25
$42.98
$1,092.50
VZ
Verizon Communica
63.68
4.24
50.31
30
$62.25
$1,484.40
CVX
Chevron Corporati
9.9
3.22
124.03
10
$39.00
$1,222.90
ORCL
Oracle Corporatio
14.98
1.21
35.2
40
$16.80
$1,419.20














$2,826.17
$93,712.72














Average Yield
3.02%














Yield On Cost
3.33%