5/08/2013

20 Most Profitable Dividend Champions

Dividend Champions with highest operating margin originally published at "long-term-investments.blogspot.com". Recently I made a screen of the most profitable stocks from the Dividend Aristocrats index. I thought that it makes sense to know what kind of stocks have the highest degree of profitability. The results were impressive and some of my readers liked the idea.

Today I like to screen my Dividend Champions database by the most profitable stocks, measured by the operating margin. Because of the higher amount of screening members – the Dividend Champions list is nearly twice as big as the Dividend Aristocrats index; the results show some fresh ideas.


The 20 top stocks have a margin between 24.8 and 45.7 percent. Eleven of them are currently recommended to buy.


Here are my favorite stocks:
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Sigma-Aldrich (NASDAQ:SIAL) has a market capitalization of $9.57 billion. The company employs 9,000 people, generates revenue of $2,623.00 million and has a net income of $460.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $809.00 million. The EBITDA margin is 30.84 percent (the operating margin is 25.12 percent and the net profit margin 17.54 percent).


Financial Analysis: The total debt represents 17.88 percent of the company’s assets and the total debt in relation to the equity amounts to 26.83 percent. Due to the financial situation, a return on equity of 19.39 percent was realized. Twelve trailing months earnings per share reached a value of $3.82. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.88, the P/S ratio is 3.64 and the P/B ratio is finally 3.74. The dividend yield amounts to 1.09 percent and the beta ratio has a value of 0.94.


Long-Term Stock Price Chart Of Sigma-Aldrich (SIAL)
Long-Term Dividend Payment History of Sigma-Aldrich (SIAL)
Long-Term Dividend Yield History of Sigma-Aldrich (SIAL)

Helmerich & Payne (NYSE:HP) has a market capitalization of $6.67 billion. The company employs 9,410 people, generates revenue of $3,151.80 million and has a net income of $573.61 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,277.92 million. The EBITDA margin is 40.55 percent (the operating margin is 28.86 percent and the net profit margin 18.20 percent).

Financial Analysis: The total debt represents 4.11 percent of the company’s assets and the total debt in relation to the equity amounts to 6.13 percent. Due to the financial situation, a return on equity of 16.08 percent was realized. Twelve trailing months earnings per share reached a value of $5.65. Last fiscal year, the company paid $0.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.10, the P/S ratio is 2.11 and the P/B ratio is finally 1.73. The dividend yield amounts to 0.96 percent and the beta ratio has a value of 1.26.


Long-Term Stock Price Chart Of Helmerich & Payne (HP)
Long-Term Dividend Payment History of Helmerich & Payne (HP)
Long-Term Dividend Yield History of Helmerich & Payne (HP)

Franklin Resources (NYSE:BEN) has a market capitalization of $34.11 billion. The company employs 8,700 people, generates revenue of $7,101.00 million and has a net income of $1,915.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,593.70 million. The EBITDA margin is 36.53 percent (the operating margin is 35.42 percent and the net profit margin 26.98 percent).

Financial Analysis: The total debt represents 18.83 percent of the company’s assets and the total debt in relation to the equity amounts to 30.18 percent. Due to the financial situation, a return on equity of 21.66 percent was realized. Twelve trailing months earnings per share reached a value of $9.52. Last fiscal year, the company paid $1.08 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.84, the P/S ratio is 4.75 and the P/B ratio is finally 3.66. The dividend yield amounts to 0.73 percent and the beta ratio has a value of 1.51.


Long-Term Stock Price Chart Of Franklin Resources (BEN)
Long-Term Dividend Payment History of Franklin Resources (BEN)
Long-Term Dividend Yield History of Franklin Resources (BEN)



Take a closer look at the full list of High Margin Dividend Champions. The average P/E ratio amounts to 19.97 and forward P/E ratio is 17.34. The dividend yield has a value of 2.60 percent. Price to book ratio is 4.59 and price to sales ratio 4.50. The operating margin amounts to 32.44 percent and the beta ratio is 0.94. Stocks from the list have an average debt to equity ratio of 0.92.

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

20 Most Profitable Dividend Champions (Click to enlarge)

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Related stock ticker symbols:
TROW, FRT, HCP, CBSH, CTBI, BEN, UBSI, SRCE, STR, EV, CTWS, MCD, NFG, HP, MO, EGN, MHP, MDT, MSEX, SIAL

Selected Articles:


*I am long MCD, MO, MDT, SIAL. 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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