Tuesday, February 17, 2015

18 Cool Dividend Growth Large Caps For A Hot Market

What stocks can we buy when the market hits new highs on a regular basis?

I'm really scared about the ease to trade stocks at such high levels. Markets are valuated far above 20 P/E multiples and the Dollar becomes more and more attractive for foreign investors.

When I look into my dividend stock database, I also see skyrocket price ratios. For sure there are some pretty good stocks in my sheets with deep values but normal investors don't should expect such a big growth for the near future that can justify this valuation.

Today I like to give you some ideas about good growing stocks with a solid dividend growth history and a low debt figure as well.

These are my criteria:

- Large Capitalization (+ 10 Billion USD)
- Expected EPS Growth over 10%
- P/E below 20
- Debt-To-Equity under 0.5
- Consecutive Dividend Payments over 10 years

18 stocks fulfilled my criteria. Not much but some ideas. Would I buy them? I'm not sure. I think that more and more volatility is coming into the market and this could also mean that it is possible to buy them in the near future at a cheaper price.

High yielding stocks are old-fashioned which is also reasonable to QE programs, overseas crises and the low interest environment as well. 

These are my 4 favorite results:

T. Rowe Price Group (NASDAQ:TROW) has a market capitalization of $21.75 billion. The company employs 5,824 people, generates revenue of $3,484.20 million and has a net income of $1,047.70 million.

T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,728.40 million. The EBITDA margin is 49.61 percent (the operating margin is 47.00 percent and the net profit margin 30.07 percent).

Financials: The total debt represents 0.00 percent of T. Rowe Price Group’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 23.97 percent was realized by T. Rowe Price Group.

Twelve trailing months earnings per share reached a value of $4.43. Last fiscal year, T. Rowe Price Group paid $1.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.92, the P/S ratio is 6.24 and the P/B ratio is finally 4.56. The dividend yield amounts to 2.10 percent and the beta ratio has a value of 1.42.


Long-Term Stock Price Chart Of T. Rowe Price Group (TROW)
Long-Term Dividend Payment History of T. Rowe Price Group (TROW)
Long-Term Dividend Yield History of T. Rowe Price Group (TROW)

QUALCOMM (NASDAQ:QCOM) has a market capitalization of $123.73 billion. The company employs 31,300 people, generates revenue of $26,487.00 million and has a net income of $7,534.00 million.

QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,008.00 million. The EBITDA margin is 34.01 percent (the operating margin is 27.84 percent and the net profit margin 28.44 percent).

Financials: The total debt represents 0.00 percent of QUALCOMM’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 20.03 percent was realized by QUALCOMM.

Twelve trailing months earnings per share reached a value of $4.40. Last fiscal year, QUALCOMM 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 16.91, the P/S ratio is 4.67 and the P/B ratio is finally 3.17. The dividend yield amounts to 2.26 percent and the beta ratio has a value of 1.09.


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

Hormel Foods Company (NYSE:HRL) has a market capitalization of $13.52 billion. The company employs 20,400 people, generates revenue of $9,316.26 million and has a net income of $606.03 million.

Hormel Foods Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,044.08 million. The EBITDA margin is 11.21 percent (the operating margin is 10.00 percent and the net profit margin 6.51 percent).

Financials: The total debt represents 4.58 percent of Hormel Foods Company’s assets and the total debt in relation to the equity amounts to 6.93 percent. Due to the financial situation, a return on equity of 17.43 percent was realized by Hormel Foods Company.

Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, Hormel Foods Company paid $0.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.99, the P/S ratio is 1.45 and the P/B ratio is finally 3.75. The dividend yield amounts to 1.95 percent and the beta ratio has a value of 0.58.


Long-Term Stock Price Chart Of Hormel Foods Company (HRL)
Long-Term Dividend Payment History of Hormel Foods Company (HRL)
Long-Term Dividend Yield History of Hormel Foods Company (HRL)

FedEx Corporation (NYSE:FDX) has a market capitalization of $48.92 billion. The company employs 112,000 people, generates revenue of $45,567.00 million and has a net income of $2,097.00 million.

FedEx Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,069.00 million. The EBITDA margin is 13.32 percent (the operating margin is 7.56 percent and the net profit margin 4.60 percent).

Financials: The total debt represents 14.32 percent of FedEx Corporation’s assets and the total debt in relation to the equity amounts to 31.01 percent. Due to the financial situation, a return on equity of 12.81 percent was realized by FedEx Corporation.

Twelve trailing months earnings per share reached a value of $7.93. Last fiscal year, FedEx Corporation paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.78, the P/S ratio is 1.07 and the P/B ratio is finally 3.59. The dividend yield amounts to 0.46 percent and the beta ratio has a value of 1.26.


Long-Term Stock Price Chart Of FedEx Corporation (FDX)
Long-Term Dividend Payment History of FedEx Corporation (FDX)
Long-Term Dividend Yield History of FedEx Corporation (FDX)

18 Dividend Growth Large Caps (Click to enlarge),
source: long-term-investments.blogspot.com

*I am long QCOM, MMM. 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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