The Best Dividend Contenders By Free Cash Flow

 | Aug 09, 2012 04:35AM ET

Dividend Contenders are stocks with a consecutive dividend growth of more than 10 years but less than 25. Exactly 175 companies have currently fulfilled this dividend growth criterion. In order to find the cheapest stocks by real income figures, I screened all contenders by a cheap price to free cash flow ratio of less than 15. Ten stocks remained of which three have a yield over three percent.

Best Buy (NYSE:BBY) has a market capitalization of $6.75 billion. The company employs 167,000 people, generates revenue of $50,705.00 million and has a net income of $334.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,043.00 million. The EBITDA margin is 4.03 percent (operating margin 2.14 percent and net profit margin 0.66 percent).

Financial Analysis: The total debt represents 13.80 percent of the company’s assets and the total debt in relation to the equity amounts to 58.96 percent. Due to the financial situation, a return on equity of -20.43 percent was realized. Twelve trailing months earnings per share reached a value of $-3.08. Last fiscal year, the company paid $0.62 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, P/S ratio 0.13 and P/B ratio 1.81. Dividend Yield: 3.42 percent. The beta ratio is 1.31 and the P/FCF ratio 4.03.