Bookmark and Share

5 Hot Dividend Stocks

Many people labor under the delusion that dividends are no longer important.

That's simply wrong. Over the past 20 years, dividends - and the reinvestment of those dividends - accounted for 32 percent of the total return from stocks. And this in a time when many investors scorned dividends as obsolete!

Over the previous 50 years (Sept. 30, 1937, through Sept. 30, 1997), dividends directly and indirectly accounted for well over half of stocks' total return.

Rising dividends not only put money in your pocket. They also testify that management believes a company's prospects for growth are sustainable. They are a sincerity barometer that tells you management is putting money where their mouth is.

For a stock to have dividend appeal to me, it should display both an above-average yield and a rising dividend. Here are five stocks that I believe have dividend appeal.

GameStop -- Yield: 7.62%

GameStop (NYSE:GME) employs 23,000 people, generates revenue of $8,607.90 million and has a net income of $353.20 million. The current market capitalization stands at $2.02 billion.

GameStop’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $762.70 million. The EBITDA margin is 8.86% (the operating margin is 6.48% and the net profit margin 4.10%).

Financials: The total debt represents 16.38% of GameStop assets and the total debt in relation to the equity amounts to 36.16%. Due to the financial situation, a return on equity of 16.29% was realized by GameStop.

Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, GameStop paid $1.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.01, the P/S ratio is 0.23 and the P/B ratio is finally 0.89. The dividend yield amounts to 7.62%.

Stock Charts:

Long-Term Stock Price Chart of GameStop (GME)
Long-Term Stock Price Chart of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)


Pier 1 Imports -- Yield: 6.44%

Pier 1 Imports (NYSE:PIR) employs 4,500 people, generates revenue of $1,828.45 million and has a net income of $30.13 million. The current market capitalization stands at $364.48 million.

Pier 1 Imports’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $118.30 million. The EBITDA margin is 6.47% (the operating margin is 3.00% and the net profit margin 1.65%).

Financials: The total debt represents 23.85% of Pier 1 Imports assets and the total debt in relation to the equity amounts to 68.86%. Due to the financial situation, a return on equity of 10.45% was realized by Pier 1 Imports.

Twelve trailing months earnings per share reached a value of $0.36. Last fiscal year, Pier 1 Imports 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 12.00, the P/S ratio is 0.20 and the P/B ratio is finally 1.24. The dividend yield amounts to 6.44%.

Stock Charts:

Long-Term Stock Price Chart of Pier 1 Imports (PIR)
Long-Term Stock Price Chart of Pier 1 Imports (PIR)
Long-Term Dividend Payment History of Pier 1 Imports (PIR)
Long-Term Dividend Payment History of Pier 1 Imports (PIR)
Long-Term Dividend Yield History of Pier 1 Imports (PIR)
Long-Term Dividend Yield History of Pier 1 Imports (PIR)


QUALCOMM -- Yield: 4.20%

QUALCOMM (NASDAQ:QCOM) employs 30,500 people, generates revenue of $23,554.00 million and has a net income of $5,702.00 million. The current market capitalization stands at $80.08 billion.

QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,957.00 million. The EBITDA margin is 33.78% (the operating margin is 26.81% and the net profit margin 24.21%).

Financials: The total debt represents 22.45% of QUALCOMM assets and the total debt in relation to the equity amounts to 37.00%. Due to the financial situation, a return on equity of 18.05% was realized by QUALCOMM.

Twelve trailing months earnings per share reached a value of $2.61. Last fiscal year, QUALCOMM paid $2.02 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.77, the P/S ratio is 3.40 and the P/B ratio is finally 2.52. The dividend yield amounts to 4.20%.

Stock Charts:

Long-Term Stock Price Chart of QUALCOMM (QCOM)
Long-Term Stock Price Chart of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)


Foot Locker -- Yield: 3.98%

Foot Locker (NYSE:FL) employs 15,761 people, generates revenue of $7,766.00 million and has a net income of $664.00 million. The current market capitalization stands at $3.86 billion.

Foot Locker’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,170.00 million. The EBITDA margin is 15.07% (the operating margin is 12.95% and the net profit margin 8.55%).

Financials: The total debt represents 3.31% of Foot Locker assets and the total debt in relation to the equity amounts to 4.69%. Due to the financial situation, a return on equity of 25.23% was realized by Foot Locker.

Twelve trailing months earnings per share reached a value of $4.33. Last fiscal year, Foot Locker 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 7.18, the P/S ratio is 0.50 and the P/B ratio is finally 1.51. The dividend yield amounts to 3.98%.

Stock Charts:

Long-Term Stock Price Chart of Foot Locker (FL)
Long-Term Stock Price Chart of Foot Locker (FL)
Long-Term Dividend Payment History of Foot Locker (FL)
Long-Term Dividend Payment History of Foot Locker (FL)
Long-Term Dividend Yield History of Foot Locker (FL)
Long-Term Dividend Yield History of Foot Locker (FL)


Stewart Information -- Yield: 3.21%

Stewart Information (NYSE:STC) employs 6,350 people, generates revenue of $2,006.64 million and has a net income of $68.42 million. The current market capitalization stands at $888.42 million.

Stewart Information’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $121.13 million. The EBITDA margin is 6.04% (the operating margin is 4.54% and the net profit margin 3.41%).

Financials: The total debt represents 7.96% of Stewart Information assets and the total debt in relation to the equity amounts to 16.66%. Due to the financial situation, a return on equity of 6.84% was realized by Stewart Information.

Twelve trailing months earnings per share reached a value of $2.79. Last fiscal year, Stewart Information paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.41, the P/S ratio is 0.44 and the P/B ratio is finally 1.43. The dividend yield amounts to 3.21%.

Stock Charts:

Long-Term Stock Price Chart of Stewart Information (STC)
Long-Term Stock Price Chart of Stewart Information (STC)
Long-Term Dividend Payment History of Stewart Information (STC)
Long-Term Dividend Payment History of Stewart Information (STC)
Long-Term Dividend Yield History of Stewart Information (STC)
Long-Term Dividend Yield History of Stewart Information (STC)


No comments:

Post a Comment

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.