12 Safe Dividend Contenders With Low P/E Multiples

Dividend Contenders with low P/E and beta ratios originally published at "long-term-investments.blogspot.com". Safety and growth is a good combination but hard to find. 

Safe stocks don’t exist because with your shares you are a part of the business and must carry all fluctuations. But there are more or less risky businesses.

Growth is your wealth driver. A growing business is a good business and makes you richer when your company employs more people and generates higher sales and incomes over a couple of years. 

In order to realize a return you must care about the current price ratios. The price you pay for growth should be acceptable in order to make a good return. Normally you have to pay a higher P/E with bigger growth expectations.

Today I try to combine all three factors: Growth, Bargains and Safeness. I like to screen dividend growth stocks with 10 to 25 years of consecutive dividend growth by low P/E and beta ratios: The P/E should be under 15 and the beta ratio must below 0.5.

Twelve stocks fulfilled the mentioned criteria of which three have a buy or better rating. Insurer, banks and telecom stocks are main contributors to the screen. Somehow strange - How banks fundamentals have changed over the recent years. They show low debt figures and good dividends but the banks in my screen are very low capitalized and have a greater risk.

50 Top Stocks With The Highest Dividend Growth In January 2013

Shares with highest dividend growth from last month by Dividend Yield – Stock, Capital, Investment. Dividend growth is one of the biggest wealth drivers. If you buy a stock with a 2 percent yield you might know that this can’t help you. You are right especially when you have invested only $1,000, your dividend income would only $20. That's not much when you consider that you have around $10 trading costs.

Dividend growth helps you to grow your passive income. Normally, a solid stock should double its dividend payments over ten years. This means that your yield on cost would rise to 4 percent.

I often had stocks in my portfolio that beat this growth rates. Sure they were more risky than stocks like Procter & Gamble or Coca Cola but they all had a margin of safety for me. My yield on cost was after 5 years over 10 percent.

Today I like to show you the 50 fastest dividend growth stocks from the last 30 days. There are some pretty good stocks with very good growth rates which indicate a strong business health. The average dividend growth of the 50 best stocks amounts to 68.40 percent. Remember, if you have such stocks, your yield on cost goes up over 10 percent in less than two years!

I personally have no stocks from the list. I don’t know why. Maybe there are too many financial and oil stocks on the list. More than half of the results have a current buy or better rating.

62 Stocks With Dividend Growth From Last Week

Stocks with dividend hikes from last week originally published at “long-term-investments.blogspot.com”. Stocks with dividend growth often indicate that they have too much cash and a well-running business which produces more and more cash. They like to share their success with shareholders.

I believe that those companies have a well running business and could have a better performance in the long-run. Below is a current list of companies that have announced a dividend increase within the recent week. In total, 62 stocks and funds raised dividends of which 32 have a dividend growth of more than 10 percent. The average dividend growth amounts to 25.73 percent.

Below the best dividend hike stocks/funds are 20 companies with a high yield. 40 of the results are currently recommended to buy or even have a strong buy rating. Basic material and financial stocks are still the dominant sectors.

24 Cheap Dividend Stocks At New 52-Week Highs

Dividend Stocks Close At New Highs By Dividend Yield – Stock, Capital, Investment. Here is a current sheet of dividend stocks (positive yield) that have marked a new 52-Week High within the recent days. Despite the turmoil’s at the markets, there are 200 companies at one-year highs and 116 of them pay dividends. I screened the best performing stocks and analyzed all with a P/E ratio below 15 and a yield over three percent. Twenty-four companies fulfilled these criteria of which thirteen have a buy or better recommendation. Five stocks have a yield over ten percent.

The Safest And Best Yielding Dividend Contenders

Dividend Contenders With Low Beta And Highest Yields Researched By Dividend Yield - Stock, Capital, Investment. Dividend Contenders are stocks with consecutive dividend increases of more than 10 years but less than 25 years. 157 stocks with such a great dividend growth history are available for investors but not all of them are really safe heaven stocks.

I made a little screen within the investment category and searched stocks with a very low beta ratio (below 0.5) and a dividend yield of more than four percent. Nineteen stocks remained of which nine are high yields.

The Best Dividends On May 07, 2012

Here is a current overview of the best yielding stocks with a market capitalization over USD 2 billion that have their ex-dividend date on the next trading day. If your broker settles your trade today, you will receive the next dividend. A full list of all stocks with ex-dividend date can be found here: Ex-Dividend Stocks May 07, 2012. In total, 25 stocks and preferred shares go ex-dividend of which 8 yielding above 3 percent. The average yield amounts to 2.37 percent.

14 Dividend Contenders With Gaining Earnings Growth Momentum

Dividend Contenders With Improved Earnings Growth Researched By Dividend Yield - Stock, Capital, Investment. Dividend Contenders are growth stocks with a huge reliability in terms of dividend payments. They raised distributions over a period of 10-24 consecutive years. 166 companies with such an impressive dividend growth are tradable at the markets.

In order to find some opportunities, I screened the sector by stocks with an earnings growth of more than ten percent (past five years). In order to catch up only those stocks with a gaining earnings momentum, I observed only those stocks with a quarter over quarter sales and earnings per share growth of more than fifteen percent. Exactly fourteen companies fulfilled these criteria of which two are high yields; nine are recommended to buy.

Ex-Dividend Date Reminder For February 06, 2012

Here is a current overview of best yielding stocks that have their ex-dividend date on the next trading day. If your broker settles your trade today, you will receive the next dividend. A full list of all stocks with ex-dividend date can be found here: Ex-Dividend Stocks February 06, 2012. In total, 20 stocks and preferred shares go ex-dividend of which 5 yielding above 3 percent. The average yield amounts to 2.58 percent.

15 Most Impressive Dividend Growth Stocks

Long-Term Dividend Income Stocks With Great Growth Figures by Dividend Yield - Stock, Capital, Investment. Here is a current overview of dividend stocks with long-term double digit earnings and sales growth. In addition, the companies created value due to a return on investment of more than 10 percent over the past five years. These are the criteria in detail:

Dividend Yield: Over 2 percent

5-Year Return On Investment: Over 10 percent

10-Year Sales Growth: More than 15 percent

10-Year Earnings per Share growth: Above 20 percent

The results are impressive. There are five high yields available and 7 have a buy or better recommendation outstanding. The only stock with a strong buy rating is Mobile Telesystems (MBT). The company has a current yield of 6.41 percent and has also the biggest sales growth in our screen. The biggest income growth was realized by American Science & Engineering (ASEI) with an earnings per share growth of 43 percent yearly. However, the most profitable companies are Strayer Education (STRA) and Southern Copper (SCCO).

Here are my favorite stocks:

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Strayer Education (NASDAQ:STRA) has a market capitalization of $1.34 billion. The company employs 2,099 people, generates revenues of $636.73 million and has a net income of $131.26 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $233.08 million. Because of these figures, the EBITDA margin is 36.61 percent (operating margin 33.89 percent and the net profit margin finally 20.61 percent).


Financial Analysis:
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 71.76 percent was realized. Twelve trailing months earnings per share reached a value of $9.25. Last fiscal year, the company paid $3.25 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 12.08, Price/Sales 2.23 and Price/Book ratio 8.95. Dividend Yield: 3.43 percent. The beta ratio is 0.72.

Long-Term Stock History Chart Of Strayer Education, Inc. (Click to enlarge)

Long-Term Dividends History of Strayer Education, Inc. (STRA) (Click to enlarge)

Long-Term Dividend Yield History of Strayer Education, Inc. (NASDAQ: STRA) (Click to enlarge)

Companhia de Bebidas das Americas (NYSE:ABV) has a market capitalization of $115.67 billion. The company employs 44,924 people, generates revenues of $14,337.10 million and has a net income of $4,329.09 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,497.78 million. Because of these figures, the EBITDA margin is 45.32 percent (operating margin 39.72 percent and the net profit margin finally 30.20 percent).


Financial Analysis:
The total debt representing 15.87 percent of the company’s assets and the total debt in relation to the equity amounts to 27.80 percent. Due to the financial situation, a return on equity of 32.61 percent was realized. Twelve trailing months earnings per share reached a value of $1.50. Last fiscal year, the company paid $0.88 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 24.81, Price/Sales 7.19 and Price/Book ratio 8.32. Dividend Yield: 4.01 percent. The beta ratio is 0.98.

Long-Term Stock History Chart Of Companhia de Bebidas d... (Click to enlarge)

Long-Term Dividends History of Companhia de Bebidas d... (ABV) (Click to enlarge)

Long-Term Dividend Yield History of Companhia de Bebidas d... (NYSE: ABV) (Click to enlarge)

Southern Copper Corp. (NYSE:SCCO) has a market capitalization of $30.28 billion. The company employs 11,126 people, generates revenues of $5,149.50 million and has a net income of $1,562.71 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,885.90 million. Because of these figures, the EBITDA margin is 56.04 percent (operating margin 50.57 percent and the net profit margin finally 30.35 percent).


Financial Analysis:
The total debt representing 33.96 percent of the company’s assets and the total debt in relation to the equity amounts to 70.95 percent. Due to the financial situation, a return on equity of 40.02 percent was realized. Twelve trailing months earnings per share reached a value of $2.70. Last fiscal year, the company paid $1.68 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 13.32, Price/Sales 5.89 and Price/Book ratio 7.89. Dividend Yield: 6.96 percent. The beta ratio is 1.63.

Long-Term Stock History Chart Of Southern Copper Corp. (Click to enlarge)

Long-Term Dividends History of Southern Copper Corp. (SCCO) (Click to enlarge)

Long-Term Dividend Yield History of Southern Copper Corp. (NYSE: SCCO) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 10.91. The dividend yield has a value of 4.88 percent. Price to book ratio is 3.78 and price to sales ratio 4.88. The operating margin amounts to 28.81 percent.

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

15 Most Impressive Dividend Growth Stocks (Click to enlarge)

Related stock ticker symbols:

SXL, VALE, SCCO, MBT, QCCO, ARLP, ABV, YZC, STRA, RES, CYD, BBL, ASEI, BHP, MANT

Selected Articles:

· 27 Strong Dividend Income Stocks

· 20 Technology Stocks With Best Yields And Earnings Growth

· 100 Best Growth Stocks – Part VII

· 8 Cheap Growth Stocks With High Margins And Dividend Yields

· My Favorite Dividend Stock Picks For 2012

* 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.