20 Safest Dividend Achievers
Dividend Yield | Mar 28, 2013 07:27AM ET
Some investors are greedy and tend to overlook risks. Others are too anxious and avoid buying stocks in larger amounts.
If you invest money in the stock market and you do it wisely and diversify, you could end up with returns close to the performance of the broader market. I believe that a return of 8 percent is realistic and good enough to beat inflation and grow wealth.
Today I'm screening for a category of stocks with a longer dividend growth history, the Dividend Challengers. Those stocks have managed to raise dividends over a period of more than five years in a row but less than 10 years. 167 companies have fulfilled these dividend growth criteria.
Below is a list of the 20 safest stocks from this category. They have a beta ratio of less than 0.5 as well as a market capitalization of over USD 2.0 billion. Six of these stocks have a high yield; Nine are recommended to buy.
Boardwalk Pipelines (BWP) has a market capitalization of $6.65 billion. The company employs 1,200 people, generates revenue of $1.185 billion and has a net income of $306.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $726.10 million. The EBITDA margin is 61.27 percent (the operating margin is 39.98 percent and the net profit margin 25.82 percent).
Financial Analysis: The total debt represents 45.01 percent of the company’s assets and the total debt in relation to the equity amounts to 91.28 percent. Due to the financial situation, a return on equity of 7.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.28. Last fiscal year, the company paid $2.13 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.58, the P/S ratio is 5.61 and the P/B ratio is finally 1.75. The dividend yield amounts to 7.39 percent and the beta ratio has a value of 0.24.
Kellogg (K) has a market capitalization of $23.38 billion. The company employs 31,000 people, generates revenue of $14.197 billion and has a net income of $962.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.010 billion. The EBITDA margin is 14.16 percent (the operating margin is 11.00 percent and the net profit margin 6.78 percent).
Financial Analysis: The total debt represents 52.04 percent of the company’s assets and the total debt in relation to the equity amounts to 326.66 percent. Due to the financial situation, a return on equity of 45.60 percent was realized. Twelve trailing months earnings per share reached a value of $2.68. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.13, the P/S ratio is 1.66 and the P/B ratio is finally 9.65. The dividend yield amounts to 2.72 percent and the beta ratio has a value of 0.48.
Get The News You Want
General Mills (GIS) has a market capitalization of $31.55 billion. The company employs 35,000 people, generates revenue of $16.657 billion and has a net income of $1.500 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.103 billion. The EBITDA margin is 18.63 percent (the operating margin is 15.38 percent and the net profit margin 9.01 percent).
Financial Analysis: The total debt represents 35.22 percent of the company’s assets and the total debt in relation to the equity amounts to 115.70 percent. Due to the financial situation, a return on equity of 24.51 percent was realized. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.00, the P/S ratio is 1.89 and the P/B ratio is finally 4.93. The dividend yield amounts to 2.71 percent and the beta ratio has a value of 0.18.
Take a closer look at the full list of the 20 safest dividend growth stocks. The average P/E ratio amounts to 21.35 and forward P/E ratio is 16.09. The dividend yield has a value of 3.75 percent. Price to book ratio is 3.68 and price to sales ratio 3.38. The operating margin amounts to 18.99 percent and the beta ratio is 0.37. Stocks from the list have an average debt to equity ratio of 1.49.
Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
BWP, APU, EPB, LO, OKS, SEP, DUK, VZ, CMS, XEL, CHL, WES, GIS, K, CPB,
AWK, KGC, KR, SLGN, GOLD
Disclosure: I am long LO, GIS, K and CPB. 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.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.