I've searched around Fooldom and dug up three potential candidates for the next great dividend stock. Let me just say now that dedicated income investors probably won't be too impressed with the yields I've collected here. Normally, I look for yields above or at least approaching 3%. For the purposes of this exercise, I've put a greater emphasis on growth, so I'm willing to settle for a smaller dividend. In theory, as the company grows, so should the dividend yield.
Here are the results:
Activision Blizzard (NASDAQ: ATVI) has a market capitalization of $14.01 billion. The company employs 7,600 people, generates revenues of $4,447.00 million and has a net income of $418.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $667.00 million. Because of these figures, the EBITDA margin is 15.00 percent (operating margin 10.55 percent and the net profit margin finally 9.40 percent).
The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 3.95 percent was realized. Twelve trailing months earnings per share reached a value of $0.64. Last fiscal year, the company paid $0.15 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 19.12, Price/Sales 3.15 and Price/Book ratio 1.42. Dividend Yield: 1.35 percent. The beta ratio is 0.60.
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Long-Term Stock History Chart Of Activision Blizzard, Inc. (Click to enlarge) |
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Long-Term History of Dividends from Activision Blizzard, Inc. (NASDAQ: ATVI) (Click to enlarge) |
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Long-Term Dividend Yield History of Activision Blizzard, Inc. (NASDAQ: ATVI) (Click to enlarge) |
Kennametal (NYSE: KMT) has a market capitalization of $3.28 billion. The company employs 11,612 people, generates revenues of $2,403.49 million and has a net income of $232.28 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $415.14 million. Because of these figures, the EBITDA margin is 17.27 percent (operating margin 13.38 percent and the net profit margin finally 9.66 percent).
The total debt representing 11.36 percent of the company’s assets and the total debt in relation to the equity amounts to 19.10 percent. Due to the financial situation, a return on equity of 15.56 percent was realized. Twelve trailing months earnings per share reached a value of $3.22. Last fiscal year, the company paid $0.48 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 12.81, Price/Sales 1.36 and Price/Book ratio 2.04. Dividend Yield: 1.36 percent. The beta ratio is 1.64.
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Long-Term Stock History Chart Of Kennametal Inc. (Click to enlarge) |
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Long-Term History of Dividends from Kennametal Inc. (NYSE: KMT) (Click to enlarge) |
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Long-Term Dividend Yield History of Kennametal Inc. (NYSE: KMT) (Click to enlarge) |
BEAM Inc (NYSE: BEAM) has a market capitalization of $7.99 billion. The company employs 24,600 people, generates revenues of $7,141.50 million and has a net income of $496.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,006.30 million. Because of these figures, the EBITDA margin is 14.09 percent (operating margin 10.70 percent and the net profit margin finally 6.95 percent).
The total debt representing 33.77 percent of the company’s assets and the total debt in relation to the equity amounts to 75.49 percent. Due to the financial situation, a return on equity of 9.06 percent was realized. Twelve trailing months earnings per share reached a value of $1.10. Last fiscal year, the company paid $0.76 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 46.52, Price/Sales 1.12 and Price/Book ratio 1.39. Dividend Yield: 1.48 percent. The beta ratio is 1.56.
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Long-Term Stock History Chart Of BEAM Inc (Click to enlarge) |
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Long-Term History of Dividends from BEAM Inc (NYSE: BEAM) (Click to enlarge) |
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Long-Term Dividend Yield History of BEAM Inc (NYSE: BEAM) (Click to enlarge) |
Idea from
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