1/09/2013

Dividend Income Growth: 20 Contenders With Highest Buy Rating

Dividend Contenders with highest buy or better rating originally published at "long-term-investments.blogspot.com". Most people think that they don’t have enough money to invest bigger amounts into the stock market. They could only provide a few hundred bucks per month to stock trading. I tell you that should be enough. If you are also a young person with an investment horizon of more than 20 years, you should make a few hundred thousand dollars from these regular savings.

The most important item for wealth is growth. Only growth lifts to up to the next level of investing. Sure it will take a time if you see the first results. You only need to be disciplined.


Because I talk so much about growth, I want to show you some good dividend growth stocks. Today I highlight the second income growth category also named as Dividend Contenders. Those stocks raised dividend over a period of more than 10 years but less than 25. Exactly 185 companies fulfilled these criteria. Dividend Champions surpass this by more than 25 years of uninterrupted growth. But they are also the most expensive stocks you can consider. High quality has a good price.

I made a list of the 20 best recommended Contenders with a higher capitalization. I often choose bigger capitalized stocks because I think that they have a more diversified business model and imply less risk. Don’t invest like a blind dog. Please make your own thoughts about the companies; it’s your money you invest. My work here is only a first step of research and a source for ideas.

Below the 20 most recommended Dividend Contenders are three with a higher yield over three percent. Five have a strong buy rating.

Here are my favorite stocks:
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CVS Caremark (NYSE:CVS) has a market capitalization of $62.15 billion. The company employs 202,000 people, generates revenue of $107.100 billion and has a net income of $3.488 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.898 billion. The EBITDA margin is 7.37 percent (the operating margin is 5.91 percent and the net profit margin 3.26 percent).

Financial Analysis: The total debt represents 15.52 percent of the company’s assets and the total debt in relation to the equity amounts to 26.32 percent. Due to the financial situation, a return on equity of 9.22 percent was realized. Twelve trailing months earnings per share reached a value of $2.98. Last fiscal year, the company paid $0.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.74, the P/S ratio is 0.58 and the P/B ratio is finally 1.70. The dividend yield amounts to 1.81 percent and the beta ratio has a value of 0.75.

”Long-Term
Long-Term Stock History Chart Of CVS Caremark (CVS)
”Long-Term
Long-Term Dividends History of CVS Caremark (CVS)
”Long-Term
Long-Term Dividend Yield History of CVS Caremark (CVS)

Polaris Industries (NYSE:PII) has a market capitalization of $6.03 billion. The company employs 3,900 people, generates revenue of $2.656 billion and has a net income of $227.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $392.22 million. The EBITDA margin is 14.76 percent (the operating margin is 13.17 percent and the net profit margin 8.57 percent).

Financial Analysis: The total debt represents 8.73 percent of the company’s assets and the total debt in relation to the equity amounts to 21.45 percent. Due to the financial situation, a return on equity of 52.25 percent was realized. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, the company paid $0.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.51, the P/S ratio is 2.27 and the P/B ratio is finally 11.95. The dividend yield amounts to 1.69 percent and the beta ratio has a value of 1.73.

”Long-Term
Long-Term Stock History Chart Of Polaris Industries (PII)
”Long-Term
Long-Term Dividends History of Polaris Industries (PII)
”Long-Term
Long-Term Dividend Yield History of Polaris Industries (PII)

QUALCOMM (NASDAQ:QCOM) has a market capitalization of $108.90 billion. The company employs 26,600 people, generates revenue of $19.121 billion and has a net income of $5.283 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.499 billion. The EBITDA margin is 33.99 percent (the operating margin is 29.28 percent and the net profit margin 27.63 percent).

Financial Analysis: QCOM has no long-term debt. Due to the financial situation, a return on equity of 17.64 percent was realized. Twelve trailing months earnings per share reached a value of $3.06. Last fiscal year, the company paid $0.93 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.86, the P/S ratio is 5.70 and the P/B ratio is finally 3.25. The dividend yield amounts to 1.56 percent and the beta ratio has a value of 1.04.

”Long-Term
Long-Term Stock History Chart Of QUALCOMM (QCOM)
”Long-Term
Long-Term Dividends History of QUALCOMM (QCOM)
”Long-Term
Long-Term Dividend Yield History of QUALCOMM (QCOM)

Take a closer look at the full list of 20 Dividend Contenders with the highest buy rating. The average P/E ratio amounts to 21.71 and forward P/E ratio is 16.90. The dividend yield has a value of 2.28 percent. Price to book ratio is 3.89 and price to sales ratio 2.61. The operating margin amounts to 14.87 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 0.55.

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

20 Dividend Growth Stocks To Buy Now (Click to enlarge)


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Related stock ticker symbols:
WPC, EPD, PAA, NTT, ENB, BHP, CAH, JW-A, NATI, NUS, CVS, ARG, PII, LECO, QCOM, NVO, SEIC, ECL, FDX, EOG

Selected Articles:

*I am long NUS. 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.




1 comment:

  1. Anonymous1/09/2013

    Investing in companies that regularly raise dividends provides security in an uncertain market and means higher returns ahead. I always look for good and high qualtity stocks with growth and very low price to free cash flow.

    ReplyDelete

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