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Showing posts with label Debt Ratio. Show all posts
Showing posts with label Debt Ratio. Show all posts

19 Dividend Contenders With Real Big Dividend Growth Potential

Dividend growth stocks with low payout and debt ratios originally published at "long-term-investments.blogspot.com". When I consider buying a stock, I always look at the fundamentals of a company. The current yields and P/E’s are a first step but both are only two of hundreds criteria.

If you like to evaluate the future dividend growth you should definitely look at the debt situation and the payout ratio. Also important is the expected growth. Only a growing company can hike its dividends in the long-run without paying out capital assets and destroying shareholder values.

Today I like to present Dividend Contenders with the highest dividend payout potential. If they succeed to hike further dividends over the next few years, they can become a Dividend Champion very soon. These are my criteria:

- Payout ratio below 30 percent
- Long-Term Debt to equity under 0.2
- Market Capitalization over 300 million

Nineteen companies fulfill the above mentioned criteria. Ten have a current buy or better rating.

Here are my favorite stocks:
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C.H. Robinson Worldwide (NASDAQ:CHRW) has a market capitalization of $9.55 billion. The company employs 10,929 people, generates revenue of $11.359 billion and has a net income of $593.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $719.72 million. The EBITDA margin is 6.34 percent (the operating margin is 5.95 percent and the net profit margin 5.23 percent).


Financial Analysis: The total debt represents 11.47 percent of the company’s assets and the total debt in relation to the equity amounts to 21.38 percent. Due to the financial situation, a return on equity of 43.14 percent was realized. Twelve trailing months earnings per share reached a value of $3.66. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.26, the P/S ratio is 0.84 and the P/B ratio is finally 6.34. The dividend yield amounts to 2.37 percent and the beta ratio has a value of 0.65.

Long-Term Stock Price Chart Of C.H. Robinson Worldwide (CHRW)
Long-Term Dividend Payment History of C.H. Robinson Worldwide (CHRW)
Long-Term Dividend Yield History of C.H. Robinson Worldwide (CHRW)

Lincoln Electric Holdings (NASDAQ:LECO) has a market capitalization of $4.90 billion. The company employs 10,000 people, generates revenue of $2.853 billion and has a net income of $257.22 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $448.31 million. The EBITDA margin is 15.71 percent (the operating margin is 12.69 percent and the net profit margin 9.01 percent).

Financial Analysis: The total debt represents 0.97 percent of the company’s assets and the total debt in relation to the equity amounts to 1.51 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $3.10. Last fiscal year, the company paid $0.71 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.04, the P/S ratio is 1.71 and the P/B ratio is finally 3.63. The dividend yield amounts to 1.36 percent and the beta ratio has a value of 1.59.

Long-Term Stock Price Chart Of Lincoln Electric Holdings (LECO)
Long-Term Dividend Payment History of Lincoln Electric Holdings (LECO)
Long-Term Dividend Yield History of Lincoln Electric Holdings (LECO)

A. O. Smith (NYSE:AOS) has a market capitalization of $3.87 billion. The company employs 10,900 people, generates revenue of $1.939 billion and has a net income of $162.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $266.50 million. The EBITDA margin is 13.74 percent (the operating margin is 12.06 percent and the net profit margin 8.38 percent).

Financial Analysis: The total debt represents 10.76 percent of the company’s assets and the total debt in relation to the equity amounts to 20.41 percent. Due to the financial situation, a return on equity of 14.26 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $0.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.54, the P/S ratio is 1.86 and the P/B ratio is finally 2.79. The dividend yield amounts to 1.24 percent and the beta ratio has a value of 1.00.

Long-Term Stock Price Chart Of A. O. Smith (AOS)
Long-Term Dividend Payment History of A. O. Smith (AOS)
Long-Term Dividend Yield History of A. O. Smith (AOS)

Ross Stores (NASDAQ:ROST) has a market capitalization of $14.32 billion. The company employs 16,000 people, generates revenue of $9.721 billion and has a net income of $786.76 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.457 billion. The EBITDA margin is 14.99 percent (the operating margin is 13.01 percent and the net profit margin 8.09 percent).

Financial Analysis: The total debt represents 4.09 percent of the company’s assets and the total debt in relation to the equity amounts to 8.49 percent. Due to the financial situation, a return on equity of 48.27 percent was realized. Twelve trailing months earnings per share reached a value of $3.53. Last fiscal year, the company 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 18.42, the P/S ratio is 1.47 and the P/B ratio is finally 8.14. The dividend yield amounts to 1.04 percent and the beta ratio has a value of 0.73.

Long-Term Stock Price Chart Of Ross Stores (ROST)
Long-Term Dividend Payment History of Ross Stores (ROST)
Long-Term Dividend Yield History of Ross Stores (ROST)


Take a closer look at the full list of Dividend Contenders with big potential to hike future dividends. The average P/E ratio amounts to 15.64 and forward P/E ratio is 14.22. The dividend yield has a value of 1.59 percent. Price to book ratio is 3.01 and price to sales ratio 2.31. The operating margin amounts to 21.10 percent and the beta ratio is 0.93. Stocks from the list have an average debt to equity ratio of 0.13.

Here is the full table with some fundamentals (TTM):

Dividend Contenders With High Dividend Growth Potential (Click to enlarge)

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Related stock ticker symbols:
ACE, AOS, ATRI, AXS, BMI, CHRW, DGICB, FDS, FDX, HCC, IMO, LECO, LNN, MSM, PB, PRE,  QCOM, RNR, ROST

Selected Articles:

*I am long QCOM, FDS. 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.



7 Dividend Aristocrats With The Highest Payout Potential

Dividend Aristocrats with low pay-out ratios and debt to equity ratios originally published at "long-term-investments.blogspot.com". I love dividend growth and high growth rates too. The higher the dividend payments grow the faster my passive income grows too and improves my living standard.

Two factors with significant influence to the matter are the payout ratio well as the debt to equity ratio. If both ratios a low enough, then it signals that there is still potential to hike the future dividend by a higher rate.

Today I like to screen one of the best dividend growth categories, the Dividend Aristocrats, by stocks with the highest payout potential. I selected those stocks from the index with an earnings payout ratio of less than 30 percent as well as a debt to equity ratio lower than 0.5.

Seven great dividend growth stocks fulfilled these criteria of which six have a current buy or better rating.

13 Dividend Champions With Very Low Debt To Equity Ratios

Dividend Champions with very low debt to equity ratios originally published at "long-term-investments.blogspot.com". Safe stocks have a higher priority for me. I believe that I don’t need a bigger return when I try to avoid the real big risks of investing. Every cent I don’t lose with my current holdings is also a cent that I don’t need to earn with other stocks. That's my philosophy.

A real problem that affects the stock price is the debt situation. While everybody is only talking about growth and future potential, I do look at these ratios and the possibilities to repay the debt. Remember, you are a shareholder and get your dividends after loan and interest repayments.

Debt overloaded stocks have the problems that they need decades to reduce this debt if they are working in a non growing industry. A stock with a bigger cash amount on banks is in my view a better alternative. The company has more possibilities to grow and if they don’t find a solution for investing the money, the can repurchase own shares or boost the current dividend.

Today, I want to discover some of the best dividend growth stocks with a very long dividend growth history and a very low leverage risk. I selected 109 Dividend Champions and screened them by a debt to equity ratio of less than 0.1. Thirteen stocks remained of which seven have a buy or better ratio.

19 High Yielding Income Growth Stocks With Low Debt Ratios

High-Yield dividend growth stocks with low debt originally published at "long-term-investments.blogspot.com". I often tell that growth and income growth are two major items in wealth creating.

Another criterion is the debt level. A company with an indebtedness has much more possibilities to grow or to create something special. Companies with a huge debt load must create management teams to handle this debt and look for new finance rounds.


I love it when stocks have a low debt to equity ratio. But it’s only an additional stone in the wall of corporate finance and valuation.


Today I like to highlight the highest dividend paying stocks (over five percent dividend yield) with more than five years of consecutive dividend growth and a debt to equity ratio of less than one. The ratio is not really low but it’s ok for a higher yielding company in my view. What matters in this area is the expected growth. Growth destroys debt. A growing income makes it easier to pay back the loans.


Nineteen companies fulfilled these criteria of which seven have a buy or better rating. Oil and gas pipeline stocks and drilling companies are the dominating industries in this screen.


Reader Question: How To Double Your Investments In 5 Years

A reader of my blog long-term-investments.blogspot.com, Barnard, wrote me on Facebook a question. Here are his words:

“Tom your advice on dividend buying and reinvestment has been informative. I will make a donation to the cause. I hope you can elaborate on how to turn dividend growth stocks into growth that can double ones assets the quickest. Would such a feat be possible even in 1/2 a decade?”

Well that’s a really good question and I give you the answer short. Yes you can double your investment in a half decade. I did it over the recent two years. But its work and luck combiend. You also need to sell some positions with a higher valuation and put the fresh money into new alternatives with bigger growth potential. The basis assumption is that you have really good running capital markets which give you tail wind. As example: The whole market doubled since the market lows in March 2009. It’s easy to make money in markets that go up in a short time.

It’s hard to predict growth. Analysts do this but they revise their predictions with every new quarter report. I personally look at the long-term growth from the past. If I see a stock with a 10 year dividend growth of 10% and the 1 year, 3 year and 5 year growth is in the same range, it should be possible that the company raise dividends at the same rate in the near future. A few points make is easier to predict the possibility for a stable, growing or even slowing rate:

- Payout ratios
A company with low payout ratios has a bigger possibility to grow dividends on a higher rate.

- Expected Earnings Growth
A strong growth could be a good sign that the company raises dividends by the same amount of the earnings growth or even better if the cash flow is strong and the current payout ratios are too low.

- Debt ratios
Low debt amounts or even big mountains of cash are good indicators for growing dividends.

Back to your question. If you like to double your investments in five years, you need to find stocks with a yearly grow rate (dividends included) of 14% or more.

I will not give you tips of stocks to buy or sell because I have no idea where the stock market is in 5 years. The truth is that I can’t tell you because I don’t know it and everybody else don't know it too. 

I buy stocks because of the good looking fundamentals. In addition, I try to eliminate the risks from stocks with diversification. I avoid an overweighting of a single stock – Not more than 1% of my net worth should be invested in a non-core stock. This rule gives me the possibility to realize a higher return by investing more money into faster growing stocks.

I hope my answers helped you to understand my investment strategy a bit more. If not, feel free to submit a comment on my Facebook-Page. I always try my best to help others.

13 Of The Best Dividend Paying High Yields

Best Dividend Paying High Yields Researched By “long-term-investments.blogspot.com. High Yields are stocks with a dividend yield of more than five percent. 857 listed companies have such a high yield but not all of them have a sustainable dividend and pay the best dividends at the market.

In order to find the best dividend paying growth stocks from the investment class High Yield stocks, I screened all companies with a five percent dividend yield, great earnings per share growth of more than 10 percent and an operating margin over 15 percent. To get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.5. Thirteen High Yields remained of which nine are currently recommended to buy. The best recommended stock is City Telecom HK (CTEL) with a yield of 16.47 percent and a strong buy rating.

12 Dividend Aristocrats With Best Debt Ratios

Dividend Aristocrats With Low Debt To Equity Ratios Researched By “long-term-investments.blogspot.com. Dividend growth depends on the total amount of debt which the company has outstanding. The higher the debt level, the higher the risk for a dividend cut.

An important ratio to judge the financial balance sheet health of a stock is the debt to equity ratio. The figure shows how many percent of the equity is covered by debt. A ratio below one is often acceptable if the cash flow is strong enough. However, I screened the investment category “Dividend Aristocrats” (stocks with more than 25 years in consecutive dividend hikes, selected by Standard & Poor’s) by companies with low debt to equity ratios of less than 0.3. Twelve companies fulfilled these criteria of which seven are currently recommended to buy.

12 Dividend Champions With Lowest Debt

Dividend Champions With Low Debt Ratios Researched By Dividend Yield - Stock, Capital, Investment. The amount of debt is of huge importance for investors. The debt level is a capital capacity measure and something like a buffer for tough times. If the company gets trouble, big credit lines could help the make sure that the company gets back on track.

Recently, I screened stocks with consecutive dividend hikes of at least 10 years in a row (Dividend Achievers) and low debt to equity ratios (below 0.1). Twenty-two Dividend Achievers fulfilled these criteria and most of the results had a low number of dividend hikes.  

Now, I narrowed my criteria and screened the investment category Dividend Champions (over 25 years of consecutive rising dividends) by stocks with a very low debt to equity ratio (below 0.1). Twelve Dividend Champions fulfilled thesecriteria but only eight are currently recommended by brokerage firms.

14 Dividend Achievers With Lowest Debt

Dividend Achiever With Low Debt Ratios Researched By Dividend Yield - Stock, Capital, Investment. The amount of debt is of huge importance for investors. The debt level is a capital capacity measure and something like a buffer for tough times. If the company gets trouble, big credit lines could help the make sure that the company gets back on track.

I screened the investment category Dividend Achievers (over 10 years of consecutive rising dividends) by stocks with a very low debt to equity ratio (below 0.1). Twenty-two stocks fulfilled these criteria but only fourteen are currently recommended by brokerage firms.

12 Most Powerful Dividend Stocks

Dividend Stocks With Biggest Fire Power Researched By Dividend Yield - Stock, Capital, Investment. Dividend investors are looking for stocks with great dividend payments. One criterion is the history of consecutive rising dividends. Others are fundamentals like margins, debt ratios or even growth rates. I like to discover those dividend stocks with the highest fire power in terms of dividend payments. First, the stock should have a consecutive dividend growth of at least 25 years (Dividend Champions). Second, the payout ratio should below 30 percent and the debt to equity ratio under 0.3. Stocks with such ratios have enough space to raise dividends when earnings are getting weak.

Twelve companies fulfilled these criteria of which nine have a current buy or better rating.

6 High Yield Stocks With Low Debt And Payout Ratio

Stocks With High Yields, Low Debt And Low Dividend Payout Ratio Researched By Dividend Yield - Stock, Capital, Investment. Stocks with high yields are sometimes risky because they pay dividends in a not sustainable way. A necessary requirement to reduce risks of dividend cuts is the fundamental basis; the company should have low payout ratios and low debt ratios.

In order to find the best high yield stocks with low debt and payout ratios, I screened the market by stocks with a yield over five percent, a debt to equity ratio of less than 0.3 and a payout ratio below 50 percent. Six companies fulfilledthese criteria of which two are recommended to buy.

The Best Yielding Large Cap Dividends With Lowest Debt

Large Capitalized Dividend Stocks With Low Debt To Equity Ratio Researched By Dividend Yield - Stock, Capital, Investment. Debt matters. The higher the debt ratio, the higher the possibility for a dividend cut. On the other hand: If a company has only low debt ratios, there should be some fender to pay stable dividends as well as space to increase dividends over the next years. Depending on the amount of cash and the operating cash flow (EBITDA), an unleveraged company could double its balance sheet in a very short time.

In order to find some opportunities, I screened the market by large capitalized stocks (market capitalization over USD 10 billion) with very low debt to equity ratios of less than 0.1. In addition, the dividend yield should have a nice value of at least two percent. Eleven companies fulfilled the mentioned criteria of which one stock is a high yield; four stocks are recommended to buy.

14 High Yield Stocks With Low Debt Ratios That Are Still Cheap In Terms Of Coming Growth

Stocks With Low PEG Ratios And Low Debt To Equity Researched By Dividend Yield - Stock, Capital, Investment. Sometimes, people only watch at the single P/E ratio which measures the price valuation of a company in relation to its earnings. A high P/E leads similar to a "not buy" decision. But high P/E ratios also express the growth of the company. A stock that doubles earnings every three years is it worth to pay 20 times of earnings. The price-earnings to growth (PEG) ratio is a figure that solves this problem. However, I’ve tried so screen the market by stocks that look cheap in terms of growth (a PEG ratio below one). In addition, the stocks should have a low debt to equity ratio (ratio below 0.3) and a dividend yield of more than five percent (high yields). Fourteen stocks fulfilled these criteria of which six have a double digit yield. Ten stocks have a buy or better recommendation.

16 Solid Financed Dividend Stocks With Best Yields

Big Dividend Paying Stocks With Low Debt And Good Yields Researched By Dividend Yield - Stock, Capital, Investment. The level of debt is important for dividend investors. A high leveraged company has problems to finance dividends and growth in the same way. We love stocks with low payout ratios, low debt and strong cash flows. That’s why we made a screen of stocks with very low debt to equity ratios (a value of less than 0.1) with a minimum dividend yield of three percent. Exactly 147 companies fulfilled these criteria but the big part of the results has a small market capitalization and includes a higher risk for a dividend cut. Only 16 stocks have a capitalization over USD 2 billion and, who has known, six are high yields and additional six are recommended with a buy or better rating.

5 Low Leveraged High Yield Stocks From The S&P 500

Low Debt Stocks From The S&P 500 With High Yields by Dividend Yield - Stock, Capital, Investment. Here is a current screen of stocks from the Standard & Poor’s 500 Index with a dividend yield of more than 5 percent (high yield) as well as a total debt to equity ratio of less than one. The S&P 500 serves 19 stocks with a high yield. Only five have more equity than debt, three of them are recommended with a buy rating.

Here are the best yielding stocks:
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AT&T (NYSE:T) has a market capitalization of $178.31 billion. The company employs 256,210 people, generates revenues of $124,280.00 million and has a net income of $19,400.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $38,952.00 million. Because of these figures, the EBITDA margin is 31.34 percent (operating margin 15.75 percent and the net profit margin finally 15.61 percent).


Financial Analysis:
The total debt representing 24.64 percent of the company’s assets and the total debt in relation to the equity amounts to 59.26 percent. Due to the financial situation, a return on equity of 17.90 percent was realized. Twelve trailing months earnings per share reached a value of $1.97. Last fiscal year, the company paid $1.69 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.27, Price/Sales 1.43 and Price/Book ratio 1.59. Dividend Yield: 5.85 percent. The beta ratio is 0.59.


Long-Term Stock History Chart Of AT&T Inc. (Click to enlarge)


Long-Term Dividends History of AT&T Inc. (T) (Click to enlarge)


Long-Term Dividend Yield History of AT&T Inc. (NYSE: T) (Click to enlarge)


Reynolds American (NYSE:RAI) has a market capitalization of $23.15 billion. The company employs 5,700 people, generates revenues of $8,551.00 million and has a net income of $1,329.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,570.00 million. Because of these figures, the EBITDA margin is 30.05 percent (operating margin 28.29 percent and the net profit margin finally 15.54 percent).


Financial Analysis:
The total debt representing 24.01 percent of the company’s assets and the total debt in relation to the equity amounts to 63.00 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $2.28. Last fiscal year, the company paid $1.84 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 17.45, Price/Sales 2.76 and Price/Book ratio 3.63. Dividend Yield: 5.53 percent. The beta ratio is 0.58.


Long-Term Stock History Chart Of Reynolds American, Inc. (Click to enlarge)


Long-Term Dividends History of Reynolds American, Inc. (RAI) (Click to enlarge)


Long-Term Dividend Yield History of Reynolds American, Inc. (NYSE: RAI) (Click to enlarge)


Integrys Energy Group (NYSE:TEG) has a market capitalization of $4.02 billion. The company employs 4,612 people, generates revenues of $5,203.20 million and has a net income of $223.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $693.90 million. Because of these figures, the EBITDA margin is 13.34 percent (operating margin 8.23 percent and the net profit margin finally 4.30 percent).


Financial Analysis:
The total debt representing 26.98 percent of the company’s assets and the total debt in relation to the equity amounts to 89.57 percent. Due to the financial situation, a return on equity of 7.67 percent was realized. Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, the company paid $2.72 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.48, Price/Sales 0.77 and Price/Book ratio 1.37. Dividend Yield: 5.30 percent. The beta ratio is 0.84.


Long-Term Stock History Chart Of Integrys Energy Group,... (Click to enlarge)


Long-Term Dividends History of Integrys Energy Group,... (TEG) (Click to enlarge)


Long-Term Dividend Yield History of Integrys Energy Group,... (NYSE: TEG) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 13.78 while the forward price to earnings ratio is 13.10. The dividend yield has a value of 5.19 percent. Price to book ratio is 1.98 and price to sales ratio 1.30. The operating margin amounts to 18.82 percent.

Here is the full table with some fundamentals (TTM):

Low Leveraged High Yield Stocks From The S&P 500 (Click to enlarge)

Related stock ticker symbols:
T, RAI, TEG, FII, AEE

Selected Articles:


* 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.

13 Low Debt Consumer Goods Stocks With Best Dividends And High ROE

Consumer Goods Stocks With High Return On Equity And Best Dividend Yield by Dividend Yield - Stock, Capital, Investment. Here is a current sheet of stocks from the consumer goods sector with low debt ratios (debt to equity of less than one). Despite the low leverage, stocks from the screen have a high return on equity due to high profits in relation to shareholders equity. Finally, all stocks have a minimum dividend yield of 3 percent. 13 stocks fulfilled these criteria of which 6 yielding above 4 percent.

Here is the table with some fundamentals:
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 Low Debt Consumer Goods Stocks With Best Dividends and High ROE (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 13.5 while the forward price to earnings ratio is 12.1. The dividend yield has a value of 4.2 percent. Price to book ratio is 4.1 and price to sales ratio 2.2. The operating margin amounts to 20.0 percent.

Related stock ticker symbols:
CHKE, RAI, RMCF, UG, FHCO, KOSS, DEER, UL, UN, HAS, MAT, ALV, PKG

Selected Articles: