7 Cheap Dividend Growth Stocks WIth Double-Digit Return On Assets

Return on assets is the ratio of annual net income to average total assets of a business during a financial year. 

It measures efficiency of the business in using its assets to generate net income. It is a profitability ratio.

I like the ratio because it tells me if a company has a highly profitable business that generates enough income from its invested assets.

The higher the ratio, the more profitable the assets are. I like it really but only a small number of dividend growth stocks have a really big ratio.

Asset Managers are the only cheaply valueated Dividend Champions. I talk about Franklin Resources and Eaton Vance.

Both are not really my favorites right now. Attached I've compiled for you all of the cheapest Dividend Achievers with a double-digit return on assets. Each of the results has a cheap forward P/E ratio.

Here are the results in detail...

13 Potential Dividend Kings To Buy For The Next Decade

Long-term dividend growth has a big lack. It focuses only on stocks with a long-term dividend hike.

If a company pays no dividend but buys back tons of its own stock, it means not that the company is bad. The company has the same quality but will not see as a long-term dividend growth investment.

That's one reason why I'm trying to put some buyback kings into the screen. Another lack is that future dividend kings, who are only 3 years on the market and paid two years dividends to the public, will not be included into the search results. 

For sure those stocks with a short business age also offer higher risks, but sometimes the business runs for decades but was private.

Today I like to show you a few interesting stocks that have risen dividends over more than 5 consecutive years. Each of the stocks could become a dividend champion or dividend king one day. 

But the risk to fail is also higher than for stocks that are still playing the dividend champions league. Exactly 412 stocks managed to grow dividends over more than 5 years. 

Here are my personal favorites...

15 Rapidly Growing Dividend Achievers

Exposure to fast-growing dividend payers should excite even the most conservative investors.

Instead of just buying a stock that’s cheap, or one that’s growing earnings fast, we look for stocks that appear decently priced with respect to year-over-year growth.

By focusing only on the consistent growers, you score bigger checks every year (or more shares bought when reinvesting).

More importantly, steady dividend increases bode well for a stock's future. Today I'd like to share a few specific dividend stocks with you that seems to be attractive in terms of price to growth.

For example, a company growing 15% annually with a price-to-earnings (P/E) ratio of 15 or less would be considered really cheap but also very rare.

Attached you will find  a couple of Dividend Achievers with a P/E under 20 and five year expected earnings growth of more than 10%.

These are the top yielding results in detail...

My 6 Favorite Stocks For The Next 20 Years

Market whims and whispers can cause stocks to trade violently in the short term, but strong companies with top-shelf management and rock-solid financials can deliver returns that trounce the market long term.

Because investing for longer periods has proven to outperform shorter periods of trading in and out of stocks, I ask myself which stocks are the best onces to buy and hold for the next twenty years or so.

My basic interest should be to discover those companies with really unimitable business models that are not replaceable by unicorns or internet companies.

In addition, the business-footprint should be so strong that it's very hard for competitors to enter the market.

My thoughts come down to the most popular dividend growth stocks.

These are my favorite stocks for the next 20 years...

These 10 Stocks Gave Investors The Most Money Back Over The Past Quarter

10 Best Stocks By Shareholder Yield;
Source: Factset (click to enlarge)