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The Best Yielding S&P 500 Dividend Stocks Below Book Value

Published 04/26/2012, 03:01 AM
Updated 07/09/2023, 06:31 AM
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The amount of equity is very important in order to identify the companies’ values. Often, there is a great difference between the market capitalization and the book value of a company. The gap is explainable with a high profitable business that doesn’t need much money to finance the business operations. Otherwise, the market expects better future perspectives and market conditions of which the company should benefit.

No rarity, but there are also stocks below book value. In this case you get for a dollar of your investment more than a dollar in the company’s assets if there is no asset bubble.

I screened the S&P 500 by stocks below book value and yields over two percent inflation target rate. 56 stocks fulfilled these criteria but only 17 have a yield of more than two percent. Three of the results are high yields and ten are currently recommended to buy.

The Travelers Companies (NYSE:TRV) has a market capitalization of $24.81 billion. The company employs 30,000 people, generates revenues of $25,446.00 million and has a net income of $1,426.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,416.00 million. Because of these figures, the EBITDA margin is 25.21 percent (operating margin 5.31 percent and the net profit margin finally 5.60 percent).

Financial Analysis: The total debt representing 6.31 percent of the company’s assets and the total debt in relation to the equity amounts to 26.98 percent. Due to the financial situation, a return on equity of 5.67 percent was realized. Twelve trailing months earnings per share reached a value of $3.46. Last fiscal year, the company paid $1.59 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.45, P/S ratio 0.97 and P/B ratio 1.02. Dividend Yield: 2.90 percent. The beta ratio is 0.67.
Long-Term Stock History Chart Of The Travelers Companie

Long-Term Dividends History of The Travelers Companie

Long-Term Dividend Yield History of The Travelers Companie
JPMorgan Chase & Co. (NYSE:JPM) has a market capitalization of $164.96 billion. The company employs 261,453 people, generates revenues of $61,293.00 million and has a net income of $18,976.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41,603.00 million. Because of these figures, the EBITDA margin is 67.88 percent (operating margin 27.51 percent and the net profit margin finally 19.52 percent).

Financial Analysis: The total debt representing 30.22 percent of the company’s assets and the total debt in relation to the equity amounts to 373.04 percent. Due to the financial situation, a return on equity of 10.21 percent was realized. Twelve trailing months earnings per share reached a value of $4.50. Last fiscal year, the company paid $1.00 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.60, P/S ratio 1.70 and P/B ratio 0.93. Dividend Yield: 2.77 percent. The beta ratio is 1.27.

Long-Term Stock History Chart Of JPMorgan Chase & Co.

Long-Term Dividends History of JPMorgan Chase & Co

Long-Term Dividend Yield History of JPMorgan Chase & Co
Molson Coors Brewing Co. (NYSE:TAP) has a market capitalization of $7.46 billion. The company employs 15,263 people, generates revenues of $3,515.70 million and has a net income of $674.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $652.20 million. Because of these figures, the EBITDA margin is 18.55 percent (operating margin 25.40 percent and the net profit margin finally 19.19 percent).

Financial Analysis: The total debt representing 15.79 percent of the company’s assets and the total debt in relation to the equity amounts to 25.65 percent. Due to the financial situation, a return on equity of 8.73 percent was realized. Twelve trailing months earnings per share reached a value of $3.62. Last fiscal year, the company paid $1.24 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.41, P/S ratio 2.14 and P/B ratio 0.98. Dividend Yield: 3.08 percent. The beta ratio is 0.75.
Long-Term Stock History Chart Of Molson Coors Brewing Co

Long-Term Dividends History of Molson Coors Brewing Co

Long-Term Dividend Yield History of Molson Coors Brewing Co
Take a closer look at the full table of S&P 500 dividend stocks below book value. The average price to earnings ratio (P/E ratio) amounts to 13.67 and forward P/E ratio is 10.12. The dividend yield has a value of 3.49 percent. Price to book ratio is 0.87 and price to sales ratio 1.73. The operating margin amounts to 6.11 percent.

Here is the full table with some fundamentals (TTM):
The Best Yielding S&P 500 Dividend Stocks Below Book ValueRelated stock ticker symbols:
FTR, POM, PBCT, AEE, HCBK, TAP, JPM, ALL, TRV, PFG, VLO, PRU, FITB, BK, XRX, MET, XL

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