11/09/2012

The Best Large Cap Basic Material Dividend Stocks With Highest Growth Potential

Large Capitalized Dividend Stocks From The Basic Material Sector With Highest EPS Growth Researched By “long-term-investments.blogspot.com”. Basic Material stocks are important for the economy. They are also very cyclic and depending on commodity prices. Despite the downward trend of the economic growth worldwide, stocks from the sector are still on the buy list of many investors.

I screened some investment ideas from the basic material sector with a higher market capitalization (over USD 10 billion) and very high expected earnings per share growth of more than 15 percent yearly for the next five years. Nineteen companies fulfilled the above mentioned criteria of which three are high-yields and seventeen are currently recommended to buy.

The two best results come from the gold and silver industry. Otherwise, the results are mainly marked by oil and gas related companies.

Here are my favorite stocks:
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ArcelorMittal (NYSE:MT) has a market capitalization of $23.56 billion. The company employs 255,000 people, generates revenue of $93.973 billion and has a net income of $1.798 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.580 billion. The EBITDA margin is 10.19 percent (the operating margin is 5.21 percent and the net profit margin 1.91 percent).

Financial Analysis: The total debt represents 21.68 percent of the company’s assets and the total debt in relation to the equity amounts to 46.60 percent. Due to the financial situation, a return on equity of 3.03 percent was realized. Twelve trailing months earnings per share reached a value of $-0.51. Last fiscal year, the company paid $0.75 in the form of dividends to shareholders. The earnings per share are expected to grow by 26.40 percent yearly for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.25 and the P/B ratio is finally 0.42. The dividend yield amounts to 4.93 percent and the beta ratio has a value of 2.12.


Long-Term Stock History Chart Of ArcelorMittal (Click to enlarge)
Long-Term Dividends History of ArcelorMittal (MT) (Click to enlarge)
Long-Term Dividend Yield History of ArcelorMittal (NYSE: MT) (Click to enlarge)

Newmont Mining Corp (NYSE:NEM) has a market capitalization of $23.86 billion. The company employs 17,100 people, generates revenue of $10.358 billion and has a net income of $1.097 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.898 billion. The EBITDA margin is 27.98 percent (the operating margin is 17.98 percent and the net profit margin 10.59 percent).

Financial Analysis: The total debt represents 15.70 percent of the company’s assets and the total debt in relation to the equity amounts to 33.44 percent. Due to the financial situation, a return on equity of 3.83 percent was realized. Twelve trailing months earnings per share reached a value of $0.40. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders. The earnings per share are expected to grow by 39.20 percent yearly for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 120.73, the P/S ratio is 2.28 and the P/B ratio is finally 1.84. The dividend yield amounts to 2.91 percent and the beta ratio has a value of 0.33.


Long-Term Stock History Chart Of Newmont Mining Corp (Click to enlarge)
Long-Term Dividends History of Newmont Mining Corp (NEM) (Click to enlarge)
Long-Term Dividend Yield History of Newmont Mining Corp (NYSE: NEM) (Click to enlarge)

Halliburton Company (NYSE:HAL) has a market capitalization of $28.36 billion. The company employs 70,000 people, generates revenue of $24.829 billion and has a net income of $3.010 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.096 billion. The EBITDA margin is 24.55 percent (the operating margin is 19.08 percent and the net profit margin 12.12 percent).

Financial Analysis: The total debt represents 20.36 percent of the company’s assets and the total debt in relation to the equity amounts to 36.52 percent. Due to the financial situation, a return on equity of 25.50 percent was realized. Twelve trailing months earnings per share reached a value of $3.13. Last fiscal year, the company paid $0.36 in the form of dividends to shareholders. The earnings per share are expected to grow by 17.18 percent yearly for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.78, the P/S ratio is 1.14 and the P/B ratio is finally 2.13. The dividend yield amounts to 1.18 percent and the beta ratio has a value of 1.55.


Long-Term Stock History Chart Of Halliburton Company (Click to enlarge)
Long-Term Dividends History of Halliburton Company (HAL) (Click to enlarge)
Long-Term Dividend Yield History of Halliburton Company (NYSE: HAL) (Click to enlarge)


Take a closer look at the full table of the best basic material large cap dividend stocks with highest EPS forecats. The average P/E ratio amounts to 19.04 and forward P/E ratio is 26.40. The dividend yield has a value of 2.88 percent. Price to book ratio is 2.56 and price to sales ratio 3.81. The operating margin amounts to 21.95 percent. The average stock has a debt to equity ratio of 1.04.

Here is the full table with some fundamentals (TTM):

19 Large Cap Basic Material Dividend Stocks With Highest Growth (Click to enlarge)

Related stock ticker symbols:

NEM, SLW, KMI, TLM, MT, SDRL, TS, ETE, GG, SQM,  HAL, RIO, SLB, ETP, NOV, PXD, RRC, ESV, CNQ

Selected Articles:
  
* 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.

1 comment:

  1. Large capitalization stocks are generally less volatile and show a greater degree of consistency in earnings and growth. If bought at a good valuation, these stocks can be a less risky way to enjoy moderate to good portfolio growth. Many of these stocks also throw up good dividends which is great for investors looking for income.

    ReplyDelete

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