Bookmark and Share

20 Cheapest Financial Dividend Stocks

Dividend stocks from the financial sector with very low forward P/E ratios originally published at "long-term-investments.blogspot.com". Dividends are great, not only because you get cash in your pockets. It’s also a symbol for the ability of a company to share its profits with the shareholder of the company.

Dividends are good but they are better when the company is cheaply priced. This month, I started a screen serial of the cheapest stocks from several major sectors. Today, I observe financial stocks with a large market capitalization (over USD 10 billion) and a positive dividend yield.

The top 20 results are valuated between 6.9 and 9.6 of expected earnings. Despite the financial recovery and the ongoing crises, nearly all of the results have an expected five year earnings growth close to the 10 percent mark.
Two of the results have a high yield and 18 are currently recommended to buy or even better.

Here are my favorite stocks:
If you like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternative, you can follow me on Facebook or Twitter.

AFLAC (NYSE:AFL) has a market capitalization of $25.56 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).

Financial Analysis: The total debt represents 3.32 percent of the company’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized. Twelve trailing months earnings per share reached a value of $6.33. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.66, the P/S ratio is 1.03 and the P/B ratio is finally 1.64. The dividend yield amounts to 2.50 percent and the beta ratio has a value of 1.87.


Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)

Prudential Financial (NYSE:PRU) has a market capitalization of $30.53 billion. The company employs 48,498 people, generates revenue of $84.815 billion and has a net income of $472.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $978.00 million. The EBITDA margin is 1.15 percent (the operating margin is 0.80 percent and the net profit margin 0.56 percent).

Financial Analysis: The total debt represents 4.06 percent of the company’s assets and the total debt in relation to the equity amounts to 74.63 percent. Due to the financial situation, a return on equity of 1.23 percent was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $1.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 46.35, the P/S ratio is 0.36 and the P/B ratio is finally 0.80. The dividend yield amounts to 2.43 percent and the beta ratio has a value of 2.40.


Long-Term Stock Price Chart Of Prudential Financial (PRU)
Long-Term Dividend Payment History of Prudential Financial (PRU)
Long-Term Dividend Yield History of Prudential Financial (PRU)

Allstate (NYSE:ALL) has a market capitalization of $23.17 billion. The company employs 38,000 people, generates revenue of $33.315 billion and has a net income of $2.306 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.793 billion. The EBITDA margin is 23.39 percent (the operating margin is 9.87 percent and the net profit margin 6.92 percent).

Financial Analysis: The total debt represents 4.77 percent of the company’s assets and the total debt in relation to the equity amounts to 29.43 percent. Due to the financial situation, a return on equity of 11.86 percent was realized. Twelve trailing months earnings per share reached a value of $4.62. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.71, the P/S ratio is 0.70 and the P/B ratio is finally 1.16. The dividend yield amounts to 2.01 percent and the beta ratio has a value of 1.49.


Long-Term Stock Price Chart Of Allstate (ALL)
Long-Term Dividend Payment History of Allstate (ALL)
Long-Term Dividend Yield History of Allstate (ALL)

Take a closer look at the full list of the 20 cheapest financial stocks. The average P/E ratio amounts to 20.03 and forward P/E ratio is 8.40. The dividend yield has a value of 2.84 percent. Price to book ratio is 1.11 and price to sales ratio 2.12. The operating margin amounts to 16.10 percent and the beta ratio is 1.88. Stocks from the list have an average debt to equity ratio of 4.69.


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

Cheapest Financial Dividend Stocks (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment in the Dividend Yield community!

Related stock ticker symbols:
AEG, BCS, MET, DB, SHG, PRU, AGNC, BX, JPM, HIG, AFL, CM, COF, ITUB, CS, C, BBVA, MS, DFS, ALL  

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.