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4/25/2013

20 Dividend Challengers With Fastest Growing Dividends

Dividend Challengers with fastest growing dividend payments originally published at "long-term-investments.blogspot.com". Recently I screened Dividend Champs with the fastest rate of dividend growth. Mc Donald’s was my best yielding pick. I noticed that the top 20 stocks had a 10 year dividend growth performance of remarkable 10 to 30 percent yearly but for most of them, the performance slowed within the recent years.

It’s not possible of any company to raise dividends at a very high rate over a longer period. It’s also not possible to raise dividend payments with a gaining momentum. Every company that does this must reduce its growth speed over the time.

Today, I like to introduce some of the fastest growing dividend payers that have raised their distributions at least for five consecutive years but less than ten years. Here, the best results have grown their dividend payments over the recent five years with a rate of 90 to 30 percent. That’s definitely a higher growth figure but as I told, very growth rate will come down.


Below the top results of my screen are eleven stocks with a buy or better rating. Three of them are High-Yields.


Here are my favorite stocks:
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Rogers Communications (NYSE:RCI) has a market capitalization of $25.19 billion. The company employs 24,500 people, generates revenue of $12.175 billion and has a net income of $1.688 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.533 billion. The EBITDA margin is 37.23 percent (the operating margin is 22.15 percent and the net profit margin 13.87 percent).


Financial Analysis: The total debt represents 55.00 percent of the company’s assets and the total debt in relation to the equity amounts to 286.33 percent. Due to the financial situation, a return on equity of 47.19 percent was realized. Twelve trailing months earnings per share reached a value of $3.36. Last fiscal year, the company paid $1.54 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.56, the P/S ratio is 2.08 and the P/B ratio is finally 6.83. The dividend yield amounts to 3.49 percent and the beta ratio has a value of 0.81.

Long-Term Stock Price Chart Of Rogers Communications (RCI)
Long-Term Dividend Payment History of Rogers Communications (RCI)
Long-Term Dividend Yield History of Rogers Communications (RCI)

Cummins (NYSE:CMI) has a market capitalization of $21.29 billion. The company employs 46,000 people, generates revenue of $17.334 billion and has a net income of $1.738 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.239 billion. The EBITDA margin is 12.92 percent (the operating margin is 13.00 percent and the net profit margin 10.03 percent).

Financial Analysis: The total debt represents 6.18 percent of the company’s assets and the total debt in relation to the equity amounts to 11.74 percent. Due to the financial situation, a return on equity of 27.20 percent was realized. Twelve trailing months earnings per share reached a value of $8.67. Last fiscal year, the company paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.94, the P/S ratio is 1.20 and the P/B ratio is finally 3.16. The dividend yield amounts to 1.82 percent and the beta ratio has a value of 1.89.

Long-Term Stock Price Chart Of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)

Covidien (NYSE:COV) has a market capitalization of $31.33 billion. The company employs 43,400 people, generates revenue of $11.852 billion and has a net income of $1.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.044 billion. The EBITDA margin is 25.68 percent (the operating margin is 20.34 percent and the net profit margin 16.05 percent).

Financial Analysis: The total debt represents 22.64 percent of the company’s assets and the total debt in relation to the equity amounts to 47.70 percent. Due to the financial situation, a return on equity of 18.66 percent was realized. Twelve trailing months earnings per share reached a value of $3.93. Last fiscal year, the company paid $0.94 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.87, the P/S ratio is 2.64 and the P/B ratio is finally 2.96. The dividend yield amounts to 1.57 percent and the beta ratio has a value of 0.88.

Long-Term Stock Price Chart Of Covidien (COV)
Long-Term Dividend Payment History of Covidien (COV)
Long-Term Dividend Yield History of Covidien (COV)


Take a closer look at the full list of Dividend Challengers with highest dividend growth rates. The average P/E ratio amounts to 20.63 and forward P/E ratio is 14.70. The dividend yield has a value of 3.16 percent. Price to book ratio is 3.21 and price to sales ratio 3.25. The operating margin amounts to 17.44 percent and the beta ratio is 0.96. Stocks from the list have an average debt to equity ratio of 1.01.

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

20 Fasest Growing Dividend Challengers (Click to enlarge)

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Here are the growth rates and years of growth:

Company
Ticker
Years Of Dividend Growth
5Y Dividend Growth Rate in %




Constellation Software Inc.
CNSWF
6
87.8
Epoch Holding Corp.
EPHC
6
68.5
Crestwood Midstream Partners LP
CMLP
6
64.1
Textainer Group Holdings Ltd.
TGH
7
52.1
Spectra Energy Partners LP
SEP
7
45.1
Vanguard Natural Resources LLC
VNR
5
43.5
NewMarket Corp.
NEU
8
43.1
Tower Group Inc.
TWGP
6
43.1
Covidien plc
COV
6
42.3
Broadridge Financial Solutions Inc.
BR
6
40.6
AmerisourceBergen Corp.
ABC
8
39.8
Coca-Cola FEMSA S.A.B. de C.V.
KOF
9
39.0
Rogers Communications Inc.
RCI
8
38.2
CAE Inc.
CAE
5
37.2
Finish Line Inc. (The)
FINL
6
36.9
CMS Energy Corp.
CMS
7
36.9
AmTrust Financial Services Inc.
AFSI
8
35.4
Cummins Inc.
CMI
7
33.2
Randgold Resources Ltd.
GOLD
6
32.0
NV Energy Inc.
NVE
7
32.0

Related stock ticker symbols:
VNR, CMLP, SEP, TGH, TWGP, NVE, CMS, RCI, BR, CAE, AFSI, CMI, ABC, COV, FINL, NEU, KOF, GOLD

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.

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