13 High Beta Dividend Champions With Cheap Forward P/E’s

Dividend Champions with high beta ratios and low valuation originally published at long-term-investments.blogspot.com. The Dividend Champions list is a compressed compilation of stocks with the longest dividend growth history. Those stocks raised their cash dividend payments over a period of more than 25 years.

In my current article serial, I write about high beta stocks and the possibility to make more money in a bullish market with high beta stocks. High beta stocks are stronger correlated with the market and can result in a higher performance.

Today I would like to observe those Dividend Champions with a beta ratio above one as well as a forward P/E below 15. It’s very important to make sure that the companies are cheap because only with a high initial earnings yield you can increase the possibility of a good long-term total return. Thirteen stocks fulfilled the above mentioned criteria of which ten are currently recommended to buy.

18 High Beta Services Dividend Paying Stocks With High Growth And Low Valuation

Services dividend stocks with high betas and big growth at low valuation originally published at long-term-investments.blogspot.com. Today I would like to go forward with my monthly screen serial about high beta dividend stocks. Beta is a financial stock market ratio that shows how much the performance of a stock differs from the performance of the overall market. Beta ratios over one mean that the stock is stronger correlated to the market. Shares of the company move stronger up and down.

In bullish markets, you can make a better performance if you have high beta stocks in your portfolio. Today I would like to show you which of the services dividend stocks have the highest betas. Because of the huge amount of results, I needed to implement additional criteria. All stocks should have a low valuation measured by a forward P/E under 15 at earnings per share growth rates for the next five years of more than 10 percent yearly. Not enough, all stocks must have a market valuation over USD 10 billion.

Eighteen stocks fulfilled the above mentioned criteria. Sixteen have a current buy or better rating. The disadvantage is that the best results are low yielders. The highest dividend yield amounts to 2.81 percent. Low yields don’t mean low returns: The stocks generated a return between 8.94 percent and 76.75 percent since the beginning of the trading year.

16 Dividend Aristocrats With High Beta Ratios

Dividend income growth stocks with highest beta ratios published at long-term-investments.blogspot.com. Dividend Aristocrats are stocks with a very long tradition in dividend growth. Those stocks hiked its dividend payments over a period of more than 25 years in a row and being selected by the credit rating agency Standard & Poor’s. The company selects 54 constituents for the index. All income investors love this index but he has also lacks.

Dividend Aristocrats normally have a lower volatility than other stocks. This could also be an disadvantage because you give up performance in a strong up moving market. The solution is simple: Look at high beta stocks. They can give you a better return when the market is very bullish.

I observed all current 54 Dividend Aristocrats by the highest rate of beta, starting with a value above one. Only 16 of them are more volatile than the overall market. It’s how I told it: Only a few Dividend Aristocrats, around 30 percent, are riskier than the market but they can also deliver you a better performance in return. For the time being, twelve of the High Beta Dividend Aristocrats have a buy or better rating.

10 Cheap Income Growth Stocks From The S&P High-Yield Dividend Aristocrats Index

Stocks from the S&P High Yield Dividend Aristocrats with strong growth at low valuation originally published at long-term-investments.blogspot.com. Is there anybody who don’t loves high dividend paying stocks with a long history of dividend hikes? I don’t think so.

Standard & Poor’s has created an index family with focus on dividend growth stocks. One member of the index family is the popular S&P High Yield Dividend Aristocrats Index. Around 84 companies are part of the income product. The index is designed to measure the performance of companies within the S&P Composite 1500® that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.

Below is a small list of the cheapest stocks from the index with expected double-digit earnings per share growth for the next five years. In addition to the growth figures, they have a low forward P/E, fewer than 15. Only ten stocks fulfilled these criteria of which nine have a buy or better rating.

10 Stocks And 2 Funds Hiked Their Dividends Last Week

Stocks with dividend hikes from last week originally published at long-term-investments.blogspot.com. The number of dividend hikers remains low. Only 10 stocks and two additional funds announced to increase their dividend payments last week.

On the list are some well known big players like Conoco Philips, Walgreen, Paychex or Cummins. It’s ever good to see that some stocks keep their dividend growth path. Seven of the results have a current buy or better rating.

19 Cheap Dividend Aristocrats

Dividend Aristocrats with low forward Price-to-earnings originally published at long-term-investments.blogspot.com. Everybody talks about Dividend Aristocrats when discussing the best dividend growth stocks. Those companies have raised their dividend payments over a period of more than 25 years in a row and being selected by the credit rating agency Standard & Poor’s. The index has only 54 constituents. Normally, Dividend Aristocrats are highly valuated because of their high quality and low risk business models.

If you pay a big premium on your asset, you will not get a good return in the end. It’s very simple. All you need to do is to scout for attractive bargains at the capital market.

Today I would like to screen the Dividend Aristocrats Index by the cheapest companies in terms of forward P/E. Only 19 stocks have a current forward P/E ratio below 15. Some of them have bigger amounts of debt and others are slow growing. However, nearly 70 percent of the results have a current buy or better rating by brokerage firms.

All members of the Dividend Aristocrats Index generated a positive year-to-date performance. It’s also a sign for the quality of the index. In average, they have a stock price performance of 16.03 percent. 1.02 percent points better than the broader S&P 500.

Walgreen: The Leading Drug Store Stock For My Portfolio

I purchased 30 Walgreen shares last Friday for my Dividend Yield Passive Income Portfolio. The drug retailer has a market cap of USD 41 billion and is on a track to diversify its global sales. As of now, WAG still generates all of its sales in America.

The company disappointed investors with the latest quarter results and was downgraded by Cantor Fitzgerald from buy to hold with target price USD 45. The stock plunged from its high around 14 percent.

Latest Portfolio Transactions (Click to enlarge)

Dividend Yield Portfolio I

Dividend Yield Portfolio II

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For readers who a 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.

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Walgreen, together with its subsidiaries, operates the drugstore chain in the United States. The Company provides its customers with access to consumer goods and services, pharmacy, and health and wellness services in communities across America. The Company offers its products and services through drugstores, as well as through mails, by telephone and online. The Company sells prescription and non-prescription drugs, as well as general merchandises, including household items, convenience and fresh foods, photofinishing and candy. On August 2, 2012, it acquired 45% interest in Alliance Boots GmbH (Alliance Boots).

The company yields at 2.49 percent and has a P/E ratio of 19.49. The forward P/E amounts to 12.36. I spent around USD 1,327 on the Walgreen stake that will give me yearly around USD 33 in dividends. The current full year dividend income is not expected at USD 1,979.

Here is the income perspective:

Sym	Name	P/E Ratio	Dividend Yield		Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	15.54	3.94		28.90	50	$64.50	$1,629.00
LMT	Lockheed Martin C	12.38	4.15		92.72	20	$89.00	$2,173.20
INTC	Intel Corporation	11.88	3.79		21.27	50	$45.00	$1,203.00
MCD	McDonald's Corpor	18.61	3		87.33	15	$45.15	$1,497.90
WU	Western Union Com	10.17	2.81		11.95	100	$47.50	$1,704.00
PM	Philip Morris Int	16.87	3.92		85.42	20	$68.78	$1,750.20
JNJ	Johnson & Johnson	23.57	2.87		69.19	20	$49.80	$1,757.40
MO	Altria Group Inc	16.42	4.96		33.48	40	$70.40	$1,419.60
SYY	Sysco Corporation	19.62	3.29		31.65	40	$44.40	$1,357.60
DRI	Darden Restaurant	16.26	2.94		46.66	30	$45.00	$1,539.90
CA	CA Inc.	13.55	3.57		21.86	50	$50.00	$1,413.00
PG	Procter & Gamble	17.6	2.91		68.72	25	$57.20	$1,958.50
KRFT	Kraft Foods Group	20.63	3.62		44.41	40	$80.00	$2,209.60
MAT	Mattel Inc.	19.53	2.98		36.45	40	$53.60	$1,827.60
PEP	Pepsico Inc. Com	20.68	2.7		70.88	20	$43.60	$1,616.00
KMB	Kimberly-Clark Co	21.11	3.19		86.82	15	$46.50	$1,460.85
COP	ConocoPhillips Co	10.04	4.27		61.06	20	$52.80	$1,246.20
GIS	General Mills In	17.54	2.02		42.13	30	$29.70	$1,470.90
UL	Unilever PLC Comm	20.32	3.17		39.65	35	$44.91	$1,429.40
NSRGY	NESTLE SA REG SHR	18.41	3.32		68.69	30	$65.31	$1,957.50
GE	General Electric	16.97	3.23		23.39	65	$48.10	$1,510.60
ADP	Automatic Data Pr	23.89	2.42		61.65	25	$42.50	$1,768.75
K	Kellogg Company C	25.56	2.71		61.52	25	$44.00	$1,633.50
KO	Coca-Cola Company	21.19	2.64		38.83	40	$42.80	$1,620.80
RTN	Raytheon Company	11.43	3.22		57.04	20	$42.00	$1,316.80
RCI	Rogers Communicat	11.54	4.2		51.06	50	$83.30	$1,933.50
GPC	Genuine Parts Com	20.01	2.49		77.06	20	$41.28	$1,674.80
TSCDY	TESCO PLC SPONS A	204.4	4.49		17.98	110	$75.68	$1,702.80
APD	Air Products and	16.37	2.95		85.71	15	$40.50	$1,378.20
GSK	GlaxoSmithKline P	18.5	4.64		52.16	30	$70.38	$1,536.00
WMT	Wal-Mart Stores	14.73	2.32		79.25	20	$34.72	$1,504.20
BTI	British American	16.43	3.98		114.6	13	$53.82	$1,361.10
CHL	China Mobile Limi	10.07	4.31		55.32	25	$54.95	$1,281.25
MMM	3M Company Common	17.26	2.24		110.27	15	$36.75	$1,673.10
TUP	Tupperware Brands	22.96	2.47		80.98	15	$29.40	$1,203.30
IBM	International Bus	13.33	1.81		206.35	8	$28.00	$1,559.44
HAS	Hasbro Inc.	18.25	3.22		44.09	30	$44.40	$1,398.30
T	AT&T Inc.	27.55	3.76		34.47	30	$40.20	$1,074.90
WAG	Walgreen Co. Comm	19.3	2.49		44.25	30	$33.00	$1,327.50
							$1,978.93	$61,080.19
							Average Yield	3.24%
							Yield On Cost	3.44%