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2/23/2013

Cheapest Dividend Paying Large Caps As of February 2013

Cheapest dividend paying large capitalized stocks with highest earnings per share growth; originally published at “long-term-investments.blogspot.com

A cheap stock is the basis for every future returns. Beside cheap fundamentals and pricing ratios of a company, the expected growth is an additional important item for investors.

Most of my readers are looking for high yielding stocks or cheap stocks to buy. It sounds nearly similar because the goal of both is the same. In the end, all want a high return of the invested capital - no matter how they create it.

Every month, I make a screen of America’s cheapest dividend paying large capitalized stocks with highest expected growth for the upcoming fiscal year. 

The stocks from the list have a market capitalization of more than USD 10 billion and earnings per share are expected to grow for at least 10 percent for the next year. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S and P/B ratio of less than two. Sixteen companies fulfilled the mentioned criteria of which twelve stocks have a buy or better recommendation.

Here are my favorites:
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Vale (NYSE:VALE) has a market capitalization of $93.22 billion. The company employs 70,785 people, generates revenue of $58.990 billion and has a net income of $21.517 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34.234 billion. The EBITDA margin is 58.03 percent (the operating margin is 51.05 percent and the net profit margin 36.48 percent).


Financial Analysis: The total debt represents 19.04 percent of the company’s assets and the total debt in relation to the equity amounts to 31.53 percent. Due to the financial situation, a return on equity of 30.99 percent was realized. Twelve trailing months earnings per share reached a value of $2.47. Last fiscal year, the company paid $1.73 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.33, the P/S ratio is 1.62 and the P/B ratio is finally 1.19. The dividend yield amounts to 6.35 percent and the beta ratio has a value of 1.51.


”Long-Term
Long-Term Stock History Chart Of Vale (VALE)
”Long-Term
Long-Term Dividends History of Vale (VALE)
”Long-Term
Long-Term Dividend Yield History of Vale (VALE)

Thomson Reuters (NYSE:TRI) has a market capitalization of $24.73 billion. The company employs 60,000 people, generates revenue of $13.278 billion and has a net income of $2.121 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.399 billion. The EBITDA margin is 33.13 percent (the operating margin is 19.97 percent and the net profit margin 15.97 percent).

Financial Analysis: The total debt represents 22.20 percent of the company’s assets and the total debt in relation to the equity amounts to 42.18 percent. Due to the financial situation, a return on equity of 12.35 percent was realized. Twelve trailing months earnings per share reached a value of $2.49. Last fiscal year, the company paid $1.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.02, the P/S ratio is 1.87 and the P/B ratio is finally 1.44. The dividend yield amounts to 4.34 percent and the beta ratio has a value of 0.90.


”Long-Term
Long-Term Stock History Chart Of Thomson Reuters (TRI)
”Long-Term
Long-Term Dividends History of Thomson Reuters (TRI)
”Long-Term
Long-Term Dividend Yield History of Thomson Reuters (TRI)

Mondelez International (NASDAQ:MDLZ) has a market capitalization of $47.33 billion. The company employs 126,000 people, generates revenue of $35.015 billion and has a net income of $1.567 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.854 billion. The EBITDA margin is 11.01 percent (the operating margin is 10.39 percent and the net profit margin 4.48 percent).

Financial Analysis: The total debt represents 25.74 percent of the company’s assets and the total debt in relation to the equity amounts to 60.04 percent. Due to the financial situation, a return on equity of 4.56 percent was realized. Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, the company paid no dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.44, the P/S ratio is 1.36 and the P/B ratio is finally 1.46. The dividend yield amounts to 1.94 percent and the beta ratio has a value of 0.53.


”Long-Term
Long-Term Stock History Chart Of Mondelez International (MDLZ)
”Long-Term
Long-Term Dividends History of Mondelez International (MDLZ)
”Long-Term
Long-Term Dividend Yield History of Mondelez International (MDLZ)

Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 12.34 while the forward P/E ratio is 9.94. P/S ratio is 1.03 and P/B ratio 1.50. The expected earnings growth for next year amounts to 21.84 and 9.82 percent for the upcoming five years.

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

Cheap Dividend Stocks (Click to enlarge)

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Related stock ticker symbols:
BP, COP, TRI, VALE, PTR, KSS, AMP, SNP, MUR, MDLZ, PBR, DB, PBR-A, APA, PKX, NOV, ETE

Selected Articles:


*I am long MDLZ, TRI. 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.

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