Best Dividend Contenders To Grow Your Income Researched
By “long-term-investments.blogspot.com”. Most of us have the
dream to safe little money over years and invest it into some fundamental
attractive stocks with great dividends in order to build up a secondary income
source. Starting at a low passive income, the dividends grow, your savings
increases the amount of stock capital and your dividend income grow steadily.
If you made the right investments, you should expect at least an income from
your investing activities which is high enough to pay all of your daily needs
and some extra items. All is only a question of the amount of regular savings
and the return and growth of your dividend stocks. The fundamental basis is that you find
growth stocks that share their business success with you. An investment class
which covers the best dividend growth stocks is the Dividend
Champions category. The prices of those high-quality growth stocks are very
high, so we should take look at the second group of following stocks, the Dividend
Contenders group (stocks with consecutive dividend growth of more than 10
years but less than 25 years).
I made a screen of the best yielding Dividend
Contenders, starting at a yield of more than five percent. Fifteen companies remained
of which five are currently recommended to buy.
Here are my favorite stocks:
Kinder Morgan Energy Partners (NYSE:KMP) has a market capitalization of $29.80 billion. The company employs 8,120 people, generates revenue of $8.211 billion and has a net income of $1.268 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.617 billion. The EBITDA margin is 31.88 percent (the operating margin is 20.34 percent and the net profit margin 15.45 percent).
Financial Analysis:
The total debt represents 53.18 percent of the company’s assets and the total debt in relation to the equity amounts to 170.74 percent. Due to the financial situation, a return on equity of 1.16 percent was realized. Twelve trailing months earnings per share reached a value of $1.55. Last fiscal year, the company paid $4.61 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 52.72, the P/S ratio is 3.63 and the P/B ratio is finally 3.79. The dividend yield amounts to 6.17 percent and the beta ratio has a value of 0.36.
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| Long-Term Stock History Chart Of Kinder Morgan Ene... (Click to enlarge) |
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| Long-Term Dividends History of Kinder Morgan Ene... (KMP) (Click to enlarge) |
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| Long-Term Dividend Yield History of Kinder Morgan Ene... (NYSE: KMP) (Click to enlarge) |
Lockheed Martin (NYSE:LMT) has a market capitalization of $29.10 billion. The company employs 123,000 people, generates revenue of $46.499 billion and has a net income of $2.667 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.903 billion. The EBITDA margin is 10.54 percent (the operating margin is 8.56 percent and the net profit margin 5.74 percent).
Financial Analysis:
The total debt represents 17.04 percent of the company’s assets and the total debt in relation to the equity amounts to 645.35 percent. Due to the financial situation, a return on equity of 118.59 percent was realized. Twelve trailing months earnings per share reached a value of $8.76. Last fiscal year, the company paid $3.25 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 10.27, the P/S ratio is 0.63 and the P/B ratio is finally 29.05. The dividend yield amounts to 5.12 percent and the beta ratio has a value of 0.94.
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| Long-Term Stock History Chart Of Lockheed Martin C... (Click to enlarge) |
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| Long-Term Dividends History of Lockheed Martin C... (LMT) (Click to enlarge) |
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| Long-Term Dividend Yield History of Lockheed Martin C... (NYSE: LMT) (Click to enlarge) |
PPL Corporation (NYSE:PPL) has a market capitalization of $16.68 billion. The company employs 17,722 people, generates revenue of $12.737 billion and has a net income of $1.510 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.309 billion. The EBITDA margin is 33.83 percent (the operating margin is 24.30 percent and the net profit margin 11.86 percent).
Financial Analysis:
The total debt represents 43.54 percent of the company’s assets and the total debt in relation to the equity amounts to 171.51 percent. Due to the financial situation, a return on equity of 15.62 percent was realized. Twelve trailing months earnings per share reached a value of $2.95. Last fiscal year, the company paid $1.40 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 9.74, the P/S ratio is 1.31 and the P/B ratio is finally 1.53. The dividend yield amounts to 5.01 percent and the beta ratio has a value of 0.39.
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| Long-Term Stock History Chart Of PPL Corporation (Click to enlarge) |
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| Long-Term Dividends History of PPL Corporation (PPL) (Click to enlarge) |
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| Long-Term Dividend Yield History of PPL Corporation (NYSE: PPL) (Click to enlarge) |
Take a closer look at the full table of high yield Dividend Contenders. The average P/E ratio amounts to 19.04
and forward P/E ratio is 26.30. The dividend yield has a value of 6.86 percent.
Price to book ratio is 2.75 and price to sales ratio 3.89. The operating margin
amounts to 26.95 percent. The average stock has a debt to equity ratio of 1.04.
Here is the full table with
some fundamentals (TTM):
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| 15 Hig-Yield Dividend Contenders (Click to enlarge) |
Related stock
ticker symbols:
NS, VGR, BPL,
SPH, OHI, TCP, ARLP, KMP, JCS, PBCT, WPC, UBA, LMT, NNN, PPL
Selected Articles:
I am long LMT. 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.
With all things being equal, dividend paying common stocks provide their shareholders a return bonus, or what some might like to call a kicker, over an equivalent common stock that pays no dividend. Many investors do not see it this way, as they tend to think of the dividend providing them their return. However, the stock market capitalizes earnings whether a company pays a dividend or not. Moreover, we contend that the market will value a given company’s earnings based on their past and future prospects for growth, again, regardless of whether a dividend is paid or not.
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