Tuesday, April 29, 2014

Grow Your Dividend Income Now...With These Cheaply Valuated Dividend Stocks

...that's what I can pray to every income investor. I've made tons of money by investing capital into dividend growth stocks. For sure, I had luck and the Lehman Crises helped me a little to attract stocks at a cheap valuation.

Today, it's more difficult to catch bargains on the market. The Federal Reserve banks around the world flooded the markets with cheap money and pushed down the interest rates at the lowest level for decades! I'm pretty sure that this constellation is not sustainable but gives us investors also great possibilities to buy stocks.

Good dividend growth stocks grow their earnings payouts to shareholders each year and they don't want to stop it. That's a good way to improve your personal, passive income by a significant amount. Below are five stocks that have risen dividends over more than 25 consecutive years, a cheap forward P/E of less than 15 als well as a double digit earnings growth forecast.

The top cheaply valuated dividend grower are....

Target (NYSE:TGT) has a market capitalization of $37.99 billion. The company employs 366,000 people, generates revenue of $72.596 billion and has a net income of $1.971 billion. Target’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.452 billion. The EBITDA margin is 8.89 percent (the operating margin is 5.21 percent and the net profit margin 2.72 percent).

Financial Analysis: The total debt represents 30.93 percent of Target’s assets and the total debt in relation to the equity amounts to 84.91 percent. Due to the financial situation, a return on equity of 12.02 percent was realized by Target. Twelve trailing months earnings per share reached a value of $3.08. Last fiscal year, Target paid $1.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.50, the P/S ratio is 0.52 and the P/B ratio is finally 2.34. The dividend yield amounts to 2.87 percent and the beta ratio has a value of 0.59.


Long-Term Stock Price Chart Of Target (TGT)
Long-Term Dividend Payment History of Target (TGT)
Long-Term Dividend Yield History of Target (TGT)

Nucor (NYSE:NUE) has a market capitalization of $16.60 billion. The company employs 22,300 people, generates revenue of $19.052 billion and has a net income of $585.53 million. Nucor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.543 billion. The EBITDA margin is 8.10 percent (the operating margin is 4.90 percent and the net profit margin 3.07 percent).

Financial Analysis: The total debt represents 29.54 percent of Nucor’s assets and the total debt in relation to the equity amounts to 58.74 percent. Due to the financial situation, a return on equity of 6.36 percent was realized by Nucor. Twelve trailing months earnings per share reached a value of $1.52. Last fiscal year, Nucor paid $1.47 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 34.27, the P/S ratio is 0.87 and the P/B ratio is finally 2.57. The dividend yield amounts to 2.84 percent and the beta ratio has a value of 1.32.


Long-Term Stock Price Chart Of Nucor (NUE)
Long-Term Dividend Payment History of Nucor (NUE)
Long-Term Dividend Yield History of Nucor (NUE)

Eaton Vance (NYSE:EV) has a market capitalization of $4.53 billion. The company employs 1,330 people, generates revenue of $1.357 billion and has a net income of $215.56 million. Eaton Vance’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $478.40 million. The EBITDA margin is 35.24 percent (the operating margin is 29.47 percent and the net profit margin 15.88 percent).

Financial Analysis: The total debt represents 48.41 percent of Eaton Vance’s assets and the total debt in relation to the equity amounts to 173.99 percent. Due to the financial situation, a return on equity of 29.13 percent was realized by Eaton Vance. Twelve trailing months earnings per share reached a value of $1.71. Last fiscal year, Eaton Vance paid $1.82 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.65, the P/S ratio is 3.35 and the P/B ratio is finally 6.70. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 1.50.


Long-Term Stock Price Chart Of Eaton Vance (EV)
Long-Term Dividend Payment History of Eaton Vance (EV)
Long-Term Dividend Yield History of Eaton Vance (EV)

Lowe's (NYSE:LOW) has a market capitalization of $47.68 billion. The company employs 167,000 people, generates revenue of $53.417 billion and has a net income of $2.286 billion. Lowe's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.757 billion. The EBITDA margin is 10.78 percent (the operating margin is 7.77 percent and the net profit margin 4.28 percent).

Financial Analysis: The total debt represents 32.14 percent of Lowe's assets and the total debt in relation to the equity amounts to 88.76 percent. Due to the financial situation, a return on equity of 17.66 percent was realized by Lowe's. Twelve trailing months earnings per share reached a value of $2.14. Last fiscal year, Lowe's paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.87, the P/S ratio is 0.89 and the P/B ratio is finally 4.07. The dividend yield amounts to 1.54 percent and the beta ratio has a value of 1.11.


Long-Term Stock Price Chart Of Lowe's (LOW)
Long-Term Dividend Payment History of Lowe's (LOW)
Long-Term Dividend Yield History of Lowe's (LOW)

HB Fuller (NYSE:FUL) has a market capitalization of $2.33 billion. The company employs 3,700 people, generates revenue of $2.046 billion and has a net income of $87.60 million. HB Fuller’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $248.42 million. The EBITDA margin is 12.14 percent (the operating margin is 7.35 percent and the net profit margin 4.28 percent).

Financial Analysis: The total debt represents 26.32 percent of HB Fuller’s assets and the total debt in relation to the equity amounts to 53.00 percent. Due to the financial situation, a return on equity of 11.19 percent was realized by HB Fuller. Twelve trailing months earnings per share reached a value of $1.75. Last fiscal year, HB Fuller paid $0.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.60, the P/S ratio is 1.14 and the P/B ratio is finally 2.51. The dividend yield amounts to 1.03 percent and the beta ratio has a value of 1.34.


Long-Term Stock Price Chart Of HB Fuller (FUL)
Long-Term Dividend Payment History of HB Fuller (FUL)
Long-Term Dividend Yield History of HB Fuller (FUL)
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*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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1 comment:

  1. The introduction to your article states that you will list stocks with a P/E ratio of less then 15, however each of the stocks you introduce states that their greater than the 15 limit. Am I misunderstanding something?

    ReplyDelete

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