The 13 Best Dividend Paying Services Stocks
Dividend Yield | Sep 12, 2012 05:03AM ET
Stocks from the services sector are important for a consumer based economy such as that of the United States. In the capital markets there are 899 stocks available with a relationship to service. The whole market capitalization amounts to USD 50.88 trillion. The average dividend yield within this sector is 1.84 percent and the P/E ratio is 20.14.
In order to find the best dividend paying large cap growth stocks within this sector, I screened all companies with a positive dividend yield, great earnings per share growth of more than 10 percent and an operating margin over 15 percent. To get the best results in terms of low debt and high cash, the debt to equity ratio should be under 0.5. Finally, the market capitalization should be above USD 2 billion. Thirteen services stocks remained of which eleven are currently recommended to buy.
Paychex (NASDAQ:PAYX) has a market capitalization of $12.37 billion. The company employs 12,400 people, generates revenue of $2,229.80 million and has a net income of $548.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $951.70 million. The EBITDA margin is 42.68 percent (operating margin 38.29 percent and net profit margin 24.58 percent).
Financial Analysis: The total debt represents 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 35.35 percent was realized. Twelve trailing months earnings per share reached a value of $1.51. Last fiscal year, the company paid $1.27 in form of dividends to shareholders. The earnings per share are expected to grow by 10.40 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.60, P/S ratio 5.55 and P/B ratio 7.71. Dividend Yield: 3.75 percent. The beta ratio is 0.87.
Union Pacific (NYSE:UNP) has a market capitalization of $58.82 billion. The company employs 45,797 people, generates revenue of $19,557.00 million and has a net income of $3,292.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,336.00 million. The EBITDA margin is 37.51 percent (operating margin 29.24 percent and net profit margin 16.83 percent).
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Financial Analysis: The total debt represents 19.75 percent of the company’s assets and the total debt in relation to the equity amounts to 47.94 percent. Due to the financial situation, a return on equity of 18.12 percent was realized. Twelve trailing months earnings per share reached a value of $7.73. Last fiscal year, the company paid $1.93 in form of dividends to shareholders. The earnings per share are expected to grow by 13.88 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.06, P/S ratio 2.98 and P/B ratio 3.17. Dividend Yield: 1.95 percent. The beta ratio is 1.17.
Walt Disney (NYSE:DIS) has a market capitalization of $92.51 billion. The company employs 156,000 people, generates revenue of $40,893.00 million and has a net income of $5,258.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,642.00 million. The EBITDA margin is 23.58 percent (operating margin 19.67 percent and net profit margin 12.86 percent).
Financial Analysis: The total debt represents 19.78 percent of the company’s assets and the total debt in relation to the equity amounts to 38.16 percent. Due to the financial situation, a return on equity of 12.84 percent was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The earnings per share are expected to grow by 13.01 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.04, P/S ratio 2.26 and P/B ratio 2.43. Dividend Yield: 1.16 percent. The beta ratio is 1.17.
Visa (NYSE:V) has a market capitalization of $106.66 billion. The company employs 7,500 people, generates revenue of $9,188.00 million and has a net income of $3,646.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,744.00 million. The EBITDA margin is 62.52 percent (operating margin 59.38 percent and net profit margin 39.68 percent).
Financial Analysis: The total debt represents 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 14.19 percent was realized. Twelve trailing months earnings per share reached a value of $1.01. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The earnings per share are expected to grow by 19.68 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 129.84, P/S ratio 11.36 and P/B ratio 3.95. Dividend Yield: 0.68 percent. The beta ratio is 0.77.
Mastercard (NYSE:MA) has a market capitalization of $55.27 billion. The company employs 6,700 people, generates revenue of $6,714.00 million and has a net income of $1,904.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,907.00 million. The EBITDA margin is 43.30 percent (operating margin 40.41 percent and net profit margin 28.36 percent).
Financial Analysis: The total debt represents 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 34.43 percent was realized. Twelve trailing months earnings per share reached a value of $16.73. Last fiscal year, the company paid $0.60 in form of dividends to shareholders. The earnings per share are expected to grow by 19.05 percent for the next five years.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.47, P/S ratio 8.13 and P/B ratio 9.46. Dividend Yield: 0.27 percent. The beta ratio is 0.90.
Take a closer look at the full table of the best dividend paying services stocks . The average price to earnings ratio (P/E ratio) amounts to 20.55 and forward P/E ratio is 16.68. The dividend yield has a value of 1.50 percent. Price to book ratio is 5.09 and price to sales ratio 4.57. The operating margin amounts to 26.54 percent and the beta ratio is 1.37. The average stock has a debt to equity ratio of 0.23.
Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
PAYX, RBA, FMCN, TIF, UNP, THI, MSM, DIS, BID, V, MELI, MA, WAB
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